Question

Match each concept to the correct definition:

1- An economic policy in which a country sought to export more than it imported.
2- Relating to cloth or woven fabric.
3- A political policy in which a country closes itself off from contact with other countries.
4- Relating to the sea.
(A) Mercantilism,
(B) Textile
(C) Isolationism
(D) Maritime

Answer 1

To match the concepts with the definitions: 1 corresponds to (A) Mercantilism, 2 to (B) Textile, 3 to (C) Isolationism, and 4 to (D) Maritime. Mercantilism sought to export more than import, ensuring a positive balance of trade, which characterized European economies before the rise of trade liberalization policies.

Step-by-step explanation:

To match each concept to the correct definition, we need to understand what each term represents. Here are the pairings:

1. Mercantilism – An economic policy in which a country sought to export more than it imported to accumulate silver and gold, aiming for a favorable balance of trade.
2. Textile – Relating to cloth or woven fabric.
3. Isolationism – A political policy in which a country closes itself off from contact with other countries.
4. Maritime – Relating to the sea.

Mercantilism involved European nations implementing protectionist economic principles to control trade and ensure positive outcomes for their economies. Policies included high tariffs and monopolies that promoted domestic manufacturing, eventually leading to the Industrial Revolution. Colonial mercantilism, for instance, relied on the colonies to send raw materials back to the mother country and only purchase finished goods from it, thus maintaining a favorable balance of trade. Critics challenged the finite wealth assumption of mercantilism, postulating that all nations could prosper through competition.