Why might China's economy be described as mercantilist during the 1600s?
A.
China had many colonies throughout Asia.
B.
China formed economic alliances with European nations.
C.
China allowed foreign goods to flood its markets.
D.
China received payment for goods in gold and silver.
D. China received payment for goods in gold and silver.
The correct answer is D. China received payment for goods in gold and silver.
During the 1600s, China operated under a mercantilist economic system. Mercantilism is an economic theory and practice that emphasized the accumulation of wealth through trade. In this system, countries sought to maximize their exports and minimize their imports in order to accumulate precious metals, such as gold and silver.
China's economy during this period was largely based on exporting goods, particularly luxury items like silk, porcelain, and tea. These goods were highly sought after by European nations and other trade partners. As a result, China amassed large amounts of gold and silver from the payments it received in exchange for its goods.
The other options mentioned (A, B, and C) are incorrect because they do not accurately describe the characteristics of a mercantilist economy. China did not have colonies like European nations during the 1600s (option A). While China did engage in trade with some European nations, it did not form economic alliances in the same way (option B). Additionally, China's mercantilist policies aimed to protect its domestic industries by imposing restrictions on foreign goods rather than allowing them to flood its markets (option C).
The correct answer is D. China received payment for goods in gold and silver.
During the 1600s, China's economy can be described as mercantilist because China received payment for its goods primarily in gold and silver. China had a surplus of goods, particularly luxury items like silk and porcelain, that were in high demand in foreign markets. However, to maintain a favorable trade balance, China restricted foreign trade and controlled the flow of imported goods. As a result, China accumulated large amounts of precious metals, mainly gold and silver, as payment for its exports. This accumulation of gold and silver was seen as a measure of wealth and power, and was a key characteristic of mercantilism during this time period.