A. Explain how the role of Mercantilism practice between 1500 to the late 1700’s century has influence the International Trade Theories in the 19-21 Century.

The Mercantilism is understood as a set of practices, adopted by the absolutist state in modern times, in order to obtain and preserve wealth. The mercantilist doctrine is still noticeable in the modern economy. The main rules of mercantilism are exports as a source of measuring the prosperity of the country and the “bullionism”, saying that the only form of measuring the success of a country was the amount of gold he possessed.

The mercantilist theory influenced many thinkers on the feasibility of concepts mercantins the gold accumulation was thought to be necessary for a strong, powerful state. Keynes defended the importance of the positive balance of payments for the development of a country as well as state intervention as an economic necessity.

Currently we can still find frequent debates about commercialism and its political economic viability. Several Countries rich are still engaged in trade liberalization today. China and Germany are great examples of countries that seek trade surplus in its balance of payments. In America, we have the example of President Barack Obama who has a government program to increase exports as part of its plan to help America “win the future”

B. Examine why countries engage in trade and the benefits of specialization and trade between countries. Since the beginning of the globalization process, countries tend to integrate to another as a way to deepen trade and political-economic relations aimed at greater integration among Countries, either through common external tariffs, free trade areas or blocks .The economic countries establish trade relations in order to achieve differentiated tariff agreements, subsidies for goods and services in relation to other countries.

C. When you sit down for your evening meal try to estimate the number of people and transactions that are required to bring your meal to you- be as lateral, imaginative and as specific as possible.