What term describes a policy that encourages exports and discourages imports, while controlling capital movement?

Neomercantilism is a modern economic theory that emphasizes the importance of a favorable balance of trade, with a focus on promoting exports and limiting imports. This policy framework is characterized by government intervention in the economy to enhance national interests and achieve economic independence. It often includes measures such as tariffs, quotas, and subsidies aimed at protecting domestic industries from foreign competition.

The reason neomercantilism is the best fit for the description provided lies in its alignment with contemporary practices that advocate for economic nationalism in a globalized world. This includes not just trade dynamics but also the regulation of capital movements to maintain financial sovereignty.

In contrast, mercantilism, while historically significant, primarily refers to practices and theories developed before the industrial age, focusing on the accumulation of wealth through trade and colonization rather than modern global economic strategies. Factor proportions pertains to production and trade theory related to resource allocation, and state sovereignty relates to the authority of a state to govern itself, which, while relevant, does not specifically address export-import dynamics in the same targeted way as neomercantilism.