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Unformatted text preview: other countries as they possibly can. They advocate policies that encourage exports and buy as little i.e maximize exports, minimize imports Adam Smith wrote that mercantilism was the dominant view. He almost single-handedly destroyed mercantilism as an honorable view. The nature of wealth is not money but things to consume. To keep it working, high tariffs were encouraged to stop local consumers from buying foreign products. Reasons against Free trade: 1. Free trade reduces employment 2. Free trade results in trade deficits 3. Free trade reduces wages Trade shifts employment, it does not increase it. Protectionists may want to stop import of Camry’s. Now Japanese do not have $1million and decrease demand for lumber. This employment in lumber industry falls....
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