Question

How would mercantilists react to an international trade deficit

Answer 1

Answer - Merchantilists are the favourers of the maximised exports and minimisation of the imports in order to minimise the trade deficit in accordance with the government regualation such as to benefit the domestic economy and ensure national security and self sufficiency.

In the effort of minimising the international trade deficit , the merchantilists will favor the impose of tariffs and quota on the imports and providing of the subsidies to the domestic manufacturers with the view that restricting the imports and motivating the exports will help to reduce the international trade deficit