Trade Barriers Assignment

The Hawley-Smoot Tariff Act passed in January ______

1930

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

Countries around the world increased their tariffs in response Domestic industries initially benefited from new tariffs Imports and exports exchanged between the United States and Britain fell by nearly 66%

In response to the economic trends triggered by the Great Depression and the Hawley-Smoot Tariff Act, President Roosevelt signed the Reciprocal Trade Agreements Act. What was the main purpose of this act?

It allowed the US government to work with other countries to reduce tariffs

Based on what you know about the Hawley-Smoot Tariff Act, how can tariffs be both useful and dangerous tools? Give your answer in a short paragraph.

Tariffs can be useful to help boost the demand of domestically produced goods. In the short-term, this approach can be good for the nation implementing the tariff because it can improve its production. However, this tactic can negatively impact other countries as the demand for their exports decline, causing a decline in their GDP. As seen with the Hawley-Smoot Tariff Act, countries may retaliate with tariffs of their own, causing global economic issues.

Which actions were taken after WWII to help ensure that an economic crisis like the Great Depression would not occur again? Check all that apply.

The Bretton Woods Agreement created a system to connect the world's currencies The General Agreement on Tariffs and Trade reduced trade barriers

The act was passed by Congress ______ the start of the Great Depression.

after

Tariffs are used to give domestically produced goods ________ in the market

an advantage

Tariffs are a tax placed on _______ goods

imported

The purpose of the act was to _______ purchases of domestic goods.

increase

What did government leaders hope the result of the new tariff would be?

increased sales for domestic producers

As a result of tariffs, imported goods become _______ expensive for consumers

more