TWO (30 marks). (i) "Mercantilists mixed exchange through trade with wealth" Compare and contrast the mercantilist philosophy concerning trade with Adam Smith's approach. (ii) What were the shortcomings of mercantilism? Question THREE (30 marks) "Diverging significantly from traditional approaches, Vernon focused on the product rather than on a country and its factor endowments". Verify this statement by explaining the different path taken by Raymond Vernon to explain the theory of trade and investment