According to this perspective, free trade is not always a good thing. sometimes the state needs to protect domestic industries and promote exports through strategic policies.

According to Neo-mercantilist perspective, free trade is not always a good thing. Sometimes the state needs to protect domestic industries and promote exports through strategic policies.

Explanation:

Neo-mercantilism maximizes the benefits and power of a country by raising the prices for goods that are traded abroad, maintaining the price of goods and stability of supply within the country . Neo-mercantilism encourages exports, deters imports, and controls capital movement.

During 1500, the mercantilism practice was famous in Europe. The main idea of the mercantilism is to improve the nation’s wealth and power. This system greatly dominated Western European economic policies from 16th to late 18th centuries.

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