Trade Barriers

Question 5 • GA-GSE Personal Finance and Economics

Which outcomes resulted from the passage of the Hawley-Smoot Tariff Act? Check all that apply.

Answer

Countries around the world increased their tariffs in response.

Trade gradually increased as taxes on imports fell.

Domestic industries initially benefited from new tariffs.

Imports and exports exchanged between the United States and Britain fell by nearly 66%.

Countries such as Germany and Austria were able to control their economic downturn.

Explanation

The Hawley-Smoot Tariff Act raised U.S. tariffs, and countries around the world responded with tariffs of their own, reducing international trade. U.S. industries initially received protection from foreign competition, so C is also correct. Trade between the United States and Britain fell by nearly 66%; trade did not increase, and the act did not help Germany and Austria control their downturn.

AI-written and checked against the verified answer.

More from this Course

Trade Barriers

Instruction

Trade Barriers