REYMOND T APUAN

OLAU11A8
UA202000286
ACTIVITY #2

1. In your own words discuss at least 2 sentences the following theory.

a. Theory of Mercantilism

- "The mercantilist theory of economics is a key theory in the development of modern

macroeconomics. It views capital accumulation as the goal of economic policy”. An
introduction to an informative and factual blog post on "theory of mercantilism". This will
be about how it was developed, what its purpose is, and what causes it. The intro will
also provide some example explanations for this theory.

b. Theory of Economic Development

- Economist Jagdish Bhagwati explains the risks and challenges associated with
economic development, focusing on the negative effects of globalization.

c. Theory of Absolute Advantage

- The Theory of Absolute Advantage states that at anytime, in any situation, every
country will produce goods or services where they have an absolute advantage. The
two conditions are that the number of resources being utilized is limited and there are
no trade restrictions.