Which statement best describes mercantilism?

• A. A protectionist policy emphasizing self-sufficiency
• B. Free trade and open markets
• C. Laissez-faire minimal government
• D. Economic globalization through specialization

Answer: (A)

Mercantilism is an economic approach that treats a country’s wealth as something to be built up through government-managed trade policies. It emphasizes a favorable balance of trade to accumulate gold and silver, so the state often promotes exports while restricting imports. This protectionist stance aims for self-sufficiency and tight control over resources and production, using tariffs, subsidies for domestic industries, and colonial policies to keep wealth within the nation.

That is why the statement describing mercantilism best is the protectionist idea focused on self-sufficiency. It contrasts with free trade and open markets, which advocate fewer barriers and more international exchange; it contrasts with laissez-faire, which argues for minimal government involvement; and it contrasts with globalization through specialization, which relies on broader, interconnected production and trade networks.