What is neo-mercantilism?

Answer 1

Neo-mercantilism is an economic theory that emphasizes the importance of government intervention in the economy to promote national interests, particularly through protectionist policies and trade regulations. It advocates for a favorable balance of trade, often by supporting domestic industries and limiting imports. This approach contrasts with free trade principles, as it prioritizes national economic security and the accumulation of wealth. Neo-mercantilist practices can be seen in various modern economic policies aimed at enhancing a country's competitive position in the global market.