QQuestionHistory
QuestionHistory
"Which of the following were effects of the Smoot-Hawley Tariff? Select all that apply.
A. Taxes on foreign imports were reduced.
B. Foreign governments refused to buy American exports.
C. The depression worsened as more companies were forced out of business."
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Answer
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Step 1:Let's solve this step by step:
Step 2:: Understand the Smoot-Hawley Tariff
The Smoot-Hawley Tariff Act of 1930 was a protectionist trade policy that dramatically increased tariffs (taxes) on imported goods to protect American businesses during the early years of the Great Depression.
Step 3:: Analyze Option A - Taxes on foreign imports were reduced
This is INCORRECT. The Smoot-Hawley Tariff actually raised tariffs significantly, not reduced them. The act imposed high taxes on foreign imports, making imported goods much more expensive.
Step 4:: Analyze Option B - Foreign governments refused to buy American exports
This is CORRECT. As a direct response to the high tariffs imposed by the United States, many foreign countries retaliated by: - Imposing their own high tariffs on American goods - Reducing or stopping purchases of American exports - Creating trade barriers that hurt American businesses
Step 5:: Analyze Option C - The depression worsened as more companies were forced out of business
This is CORRECT. The tariff had severe unintended consequences: - International trade dramatically decreased - Foreign countries could not afford to buy American goods - American export-dependent businesses suffered significant economic damage - The global economic downturn was exacerbated
Final Answer
Options B and C are correct effects of the Smoot-Hawley Tariff.
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