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The Mercantilist Theory points out the basics of trade, such as when you export you receive a payment and currency is based on the gold standard. The best thing to do is to export as much as possible to gain as much gold as possible. If you refuse to import items the population of your nation will have to do without certain consumer items (witiger.com, 2005).
In Theories of Trade there is the Absolute Advantage and the Comparative Advantage. The Absolute Advantage reflects on the idea that countries should specialize in producing what they are best at producing, i.e. things they have an advantage in...
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