SSC
WORLD HISTORY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a system of trade between nations without high fees, or tariffs
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a military strategy of using surprise attacks by small bands of fighters
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the complete control of an empire by using regional governors
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an economic system in which nations increase their wealth and power through colonization.
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Detailed explanation-1: -Mercantilism was a form of economic nationalism that sought to increase the prosperity and power of a nation through restrictive trade practices. Its goal was to increase the supply of a state’s gold and silver with exports rather than to deplete it through imports. It also sought to support domestic employment.
Detailed explanation-2: -The mercantilist nations believed that the more gold and silver they acquired, the more wealth they possessed. Smith believed that this economic policy was foolish and actually limited the potential for “real wealth, ‘’ which he defined as “the annual produce of the land and labor of the society."
Detailed explanation-3: -Britain used mercantilism as a way to secure its interests in the New World. Raw materials were shipped back to England where they were converted to finished goods. These products were then shipped back to the colonies as exports, which the colonists purchased.
Detailed explanation-4: -According to the theory of mercantilism, a nation could increase its wealth and power in two ways. First, it could obtain as much gold and silver as possible. Second, it could establish a favorable balance of trade, in which it sold more goods than it bought.