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According to mercantilists, trade is a:

  • A.Positive sum game
  • B.Negative sum game
  • C.Zero sum game
  • D.Infinite sum game

Answer: C

According to the mercantilists, the total wealth of the world is fixed, so what one country gains from trade another country loses, and trade is a zero sum game. Free trade theory, in contrast, treats trade as a positive sum game. The answer is zero sum game, option C.

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