Question

IPE:What lessons does mercantilism hold for the 21st Century? Word Limit: 1000

Answer 1

Mercantilism of 21 th century:

Positive :1) liberalism and globalisation of world Trade with emergence of institution like wto and rationalization of subsidy tarriff and barrier free trade.

-Which make trade more democratic and inclusive

2) trade agreements emergence Like bilateral multilateral tarde like : nafta, safta, rcep etc.

-these may led to trade liberalism as well as ease of doing business for countries.

3) e-commerce trade emergence with emerging technologies

4)trade in services or BPO, KPO industry consultancy services etc....this make countries promote their human resources into best suited human capital.

5) trading of ip address , intellectual property rights etc are some new dimension of trade .

-thus give benifit to knowledge industry or economy .

Negative

1) protectionism policy to do minimum import and maximum export to reduce trade deficit.. .. Thus this pave a way towards to degloblisation and thus harmful for liberal trade.

2) trade imperialism like by China by dumping of cheaper products and take advanvatage by using bad practice of currency manipulation....which set a wrong trend in the world and harmful for trade competitiveness and neighborhood countries as well as they lag behind in competition.

3)unfair and undue subsidy which are trade distorting for emerging or LDC countries.... .this also make world trade less competitive

4) antidumping, countervailing duty ,tarriff and non tarriff barrier etc...to protect domestic market from competition and thus make cost production of that countries firm  

5) illegal trade of conflict diamond, gold and wildlife, drug trafficking etc.