The economic philosophy of mercantilism slowed economic growth before the Industrial Revolution primarily because:
A. It prevented merchants from freely trading goods in foreign markets.
Mercantilism emphasized the accumulation of wealth through a favorable balance of trade, which often led to restrictive policies like tariffs and monopolies. These restrictions hindered the efficient flow of goods and capital, limiting economic growth and innovation.
Answer:
A. It prevented merchants from freely trading goods in foreign markets.
Explanation:
Mercantilism was an economic philosophy dominant in Europe from the 16th to 18th century. It was a system in which governments tightly regulated trade to enhance a nation's wealth by promoting exports over imports.
The accumulation of gold and other precious metals was considered a symbol of wealth and power during this period. Mercantilist policies aimed to ensure that more gold flowed into the country through the sale of exports than flowed out through the purchase of imports.
To achieve this goal, governments imposed policies such as tariffs, quotas, and monopolies which restricted the free flow of goods and hindered the development of international trade. As a result, merchants faced barriers when attempting to engage in commerce with foreign markets, stunting economic growth by limiting opportunities for exchange and innovation.
Therefore, the economic philosophy of mercantilism slowed economic growth before the Industrial Revolution primarily because: