Which of These Nations Was Forbidden to Join in the International

question 4

Multiple Choice

Which of these nations was forbidden to join in the international arms race after World War II, and has thrived economically as a result?

• A) Japan
• B) the United States
• C) France
• D) Poland

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Definitions:

Mercantilism

The incorrect theory that a nation’s economic objective should be to accumulate precious metals in the public treasury; this theory prompted trade barriers to cut imports, but other countries retaliated, reducing trade and the gains from specialization.

Trade Gains

The benefits that countries obtain from engaging in international trade, often reflected in improvements in economic welfare, efficiency, and resource allocation.

Supply-side Shocks

Unexpected events that affect the supply side of the economy, potentially altering the cost of production and leading to changes in prices and output.

Consumer Spending

The total expenditure by households and individuals on goods and services within a country's economy.