1. Why was a positive trade
balance so important to Mercantilists? In Mercantilist
thinking, why did a positive trade balance not result in domestic
inflation and a loss of international competitiveness?
2. What were the critical
foundations of Mercantilist thought? What trade policies
resulted from this way of thinking?
3. Explain what is meant by a
zero-sum game, and why it was central to Mercantilist
thinking. Then, explain how Smith’s idea of absolute
advantage altered the nature of the “game.”
I need clear...