Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade?

Need a paper written? Our academic experts can create an original essay on any subject for ~~$13.00~~ $11/page Learn More

Adam Smith argued that every country has an absolute advantage and can produce goods that other countries cannot. Specialization in the production of goods should be the priority, as countries can engage in trade to acquire goods they cannot efficiently produce. Trade of different goods can benefit countries, as they spend fewer resources on purchase than on production.

Meanwhile, David Ricardo notes that if free trade is unrestricted, it allows the consumers to consume more goods, as failure to trade products will lead to the depletion of resources. Whereas, in the neo-mercantilist approach, trade is viewed as a zero-sum game and encourages trade restrictions to limit imports and increase exports with the goal of increasing national income.

Rate the answer:

Further research on topic

Answer by Academic.tip's expert

An answer to this question is provided by one of our experts who specializes in business & economics. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2023) 'Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade'. 21 May.

Reference

Academic.Tips. (2023, May 21). Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade? https://academic.tips/question/discuss-how-adam-smith-and-david-ricardo-turned-the-conversation-and-demonstrated-that-trade-is-a-positive-sum-game-how-has-the-neo-mercantilist-approach-viewed-trade/

References

Academic.Tips. 2023. "Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade?" May 21, 2023. https://academic.tips/question/discuss-how-adam-smith-and-david-ricardo-turned-the-conversation-and-demonstrated-that-trade-is-a-positive-sum-game-how-has-the-neo-mercantilist-approach-viewed-trade/.

1. Academic.Tips. "Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade?" May 21, 2023. https://academic.tips/question/discuss-how-adam-smith-and-david-ricardo-turned-the-conversation-and-demonstrated-that-trade-is-a-positive-sum-game-how-has-the-neo-mercantilist-approach-viewed-trade/.

Bibliography

Academic.Tips. "Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade?" May 21, 2023. https://academic.tips/question/discuss-how-adam-smith-and-david-ricardo-turned-the-conversation-and-demonstrated-that-trade-is-a-positive-sum-game-how-has-the-neo-mercantilist-approach-viewed-trade/.

Work Cited

"Discuss how Adam Smith and David Ricardo turned the conversation and demonstrated that trade is a positive-sum game. How has the neo-mercantilist approach viewed trade?" Academic.Tips, 21 May 2023, academic.tips/question/discuss-how-adam-smith-and-david-ricardo-turned-the-conversation-and-demonstrated-that-trade-is-a-positive-sum-game-how-has-the-neo-mercantilist-approach-viewed-trade/.

Copy