Which statement best describes mercantilism?

Which statement best describes mercantilism?

• A. Encourage Free Trade And Minimal Tariffs
• B. Avoid Colonial Trade With Rivals
• C. Rely On Gold From Other Continents
• D. Control Colonial Trade To Maximize A Favorable Balance Of Trade

Answer: (D)

Mercantilism centers on building national wealth through government‑directed trade and the accumulation of precious metals. The key idea is to use state power to regulate commerce so that exports exceed imports, and the resulting trade surplus brings bullion into the country. Colonial realms are tightly controlled so that resources and profits flow to the home nation, not to rivals. This is precisely captured by the notion of controlling colonial trade to maximize a favorable balance of trade, because it links both governance of trade and the goal of wealth accumulation. Free trade and minimal tariffs run opposite mercantilist thinking, which relies on protections and restrictions to keep wealth at home. Mercantilism also didn’t aim to avoid colonial trade with rivals; colonies were used to bolster the home economy through regulated exchanges. Relying on gold from other continents is related, but the central aim is to manage trade to secure a surplus and bullion for the nation, not merely depend on resources from elsewhere.

Mercantilism centers on building national wealth through government‑directed trade and the accumulation of precious metals. The key idea is to use state power to regulate commerce so that exports exceed imports, and the resulting trade surplus brings bullion into the country. Colonial realms are tightly controlled so that resources and profits flow to the home nation, not to rivals. This is precisely captured by the notion of controlling colonial trade to maximize a favorable balance of trade, because it links both governance of trade and the goal of wealth accumulation.

Free trade and minimal tariffs run opposite mercantilist thinking, which relies on protections and restrictions to keep wealth at home. Mercantilism also didn’t aim to avoid colonial trade with rivals; colonies were used to bolster the home economy through regulated exchanges. Relying on gold from other continents is related, but the central aim is to manage trade to secure a surplus and bullion for the nation, not merely depend on resources from elsewhere.