Mercantilists Believed That

question 55

Multiple Choice

Mercantilists believed that:

• A) merchants should import goods to raise the level of living.
• B) governments should lower import duties.
• C) a nation should have an export surplus in order to accumulate precious metals.
• D) a nation should produce goods for which there is a comparative advantage.
• E) two of the above.

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Definitions:

Question Mark

In the context of business, a Question Mark refers to products in the Boston Consulting Group matrix that have low market share in high-growth markets, indicating uncertainty.

Boston Consulting Group

A global management consulting firm known for its expertise in business strategy, including the development of the growth-share matrix, which helps companies with portfolio management.

Stars

Objects in space consisting of hot plasma emitting light, or in a business context, products or business units with high market share in fast-growing industries.

Dogs

In the context of the BCG Matrix, business units or products that have low market share in a mature, slowly growing industry, suggesting they may generate just enough cash to maintain themselves.