Innovation mercantilism. Current trends and Effects

INNOVATION MERCANTILISM
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Mercantilism is a process in which a nation aims to amass wealth through engaging in trade with other nations, selling more than it consumes thus growing its income. The countries with such policies aim at increasing domestic production potential and development exports by exploiting the international trading process weakening the goal of free trade through several methods. Simply put, when a country embraces typical innovation mercantilism, it works to strengthen or rectify its economy by weakening the economies of other nations (Atkinson & Ezell, 2012).
Flawed Policies
Some of the policies implemented for innovation mercantilism include the use of forced IP transfer, currency and market manipulation through restrictions on FDI, as well as domestic sourcing when it comes to matters of production. They are flawed, first because they are basically unsustainable. There will be a time when the country will also suffer a deficit of something th...