The Economics of International Trade

Question 1

Mercantilism

Answer 1

Period - 16th and 17th century

To get as much as possible

Promote exports, discourage imports

Question 2

Comparative advantage

Answer 2

David Ricardo

Trade and specialization of each country on each area they can produce best = Increase of total world production

Question 3

Protectionism

Answer 3

To protect against cheaper goods coming from international trade = Tariffs, subsidies, import quotas…