In What Ways Are Defensive (Benign) and Offensive (Malevolent) Mercantilism

Question

Examlex · Accepted Answer

The Answer is Defensive (benign) and offensive (malevolent) mercantilism differ in their intentions and actions. Defensive mercantilism focuses on protecting domestic industries and maintaining a favorable balance of trade through measures such as tariffs, subsidies, and trade restrictions. This is done with the goal of promoting economic growth and stability within a country. On the other hand, offensive mercantilism involves aggressive tactics such as predatory pricing, dumping, and currency manipulation to gain an unfair advantage in international trade and weaken other countries' economies.

It can be difficult to tell the difference between defensive and offensive mercantilism because the actions taken to achieve these goals may appear similar on the surface. For example, a country implementing protective tariffs to shield its domestic industries from foreign competition could be seen as defensive mercantilism. However, if the same country uses those tariffs as a tool to drive foreign competitors out of the market and establish a monopoly, it would be considered offensive mercantilism.

An example from the reading is the case of China's trade practices. China has been accused of engaging in offensive mercantilism by subsidizing its industries, manipulating its currency, and engaging in intellectual property theft to gain an unfair advantage in international trade. On the other hand, China argues that these measures are necessary for its defensive mercantilist policies to protect its domestic industries and promote economic growth.

In conclusion, the difference between defensive and offensive mercantilism lies in the intentions and actions of a country in international trade. However, it can be challenging to distinguish between the two because the tactics used to achieve these goals may appear similar. This ambiguity can lead to disputes and tensions in international trade relations.

In What Ways Are Defensive (Benign) and Offensive (Malevolent) Mercantilism

Essay

Correct Answer:
Answered by ExamLex AI

In What Ways Are Defensive (Benign) and Offensive (Malevolent) Mercantilism

Essay

Correct Answer:Answered by ExamLex AIShow Answer

Correct Answer:
Answered by ExamLex AI