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China and Mercantilism?  

Reread the Country Focus: Is China a Neo-Mercantilist Nation on p. 156 and discuss the following:  

a. Do you think China is pursuing an economic policy that can be characterized as neo-mercantilist?  

b. What should the United States, and other countries, do about this?

 

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Solution Preview

a). I think that China is pursuing a neo-mercantilist economic policy.  They are keeping their currency low and exporting items made at a low cost.  They are also limiting imports.  All of these are part of neo-mercantilist policy.

b). The United States and other countries have many options.  They can do nothing, knowing that 

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