Question

The U.S. and China continue to spar over sociocultural issues, such as human rights, and economic and financial issues, such as the value of the Chinese yuan against the U.S. dollar. U.S. diplomats assert that these differences continue to bolster China’s favorable balance of trade and increase the U.S. trade deficit. The trade protectionist policy exhibited by the Chinese is similar to an economic policy known as ____________ that was followed during the 17th and 18th centuries. This policy resulted in a flow of money to the country that sold the most globally.

A, trade embargoing
B, countertrading
C, profiteering
D, mercantilism

Answer 1

The correct option here is option D) Mercantilism.

Step-by-step explanation:

Mercantilism was a type of economic theory which was practiced around 16th - 18th century , that was based on a idea that a country's wealth and power could well be increased by increasing the exports and decreasing the imports, thus overall increasing the the trade.

This theory promotes that government should regulations on the country's economy to serve the purpose of augmenting state of power at the cost of rival country's powers. This is the same policy that China is using against U.S. in their favor to increase their monetary reserves , through a positive balance of trade.