History The Great Depression Questions Medium
During the Great Depression, countries implemented various international trade policies in an attempt to protect their domestic industries and stimulate their economies. One of the most significant policies was the imposition of high tariffs and trade barriers, known as protectionism. Many countries, including the United States, raised tariffs on imported goods to shield their industries from foreign competition and encourage consumers to buy domestically produced goods. This approach aimed to protect jobs and industries within the country but had the unintended consequence of reducing international trade and exacerbating the economic downturn.
Additionally, countries resorted to currency devaluations to make their exports cheaper and more competitive in foreign markets. By lowering the value of their currency, countries hoped to increase their export volumes and stimulate economic growth. However, this led to a cycle of competitive devaluations, as other nations retaliated by devaluing their own currencies, resulting in a decline in overall global trade.
Furthermore, countries implemented import quotas and restrictions to limit the influx of foreign goods. These measures aimed to protect domestic industries from foreign competition and preserve jobs. However, they further reduced international trade and hindered economic recovery.
Overall, the international trade policies during the Great Depression were characterized by protectionism, currency devaluations, and import restrictions. While these policies were implemented with the intention of safeguarding domestic industries and stimulating economic growth, they ultimately contributed to a decline in global trade and prolonged the economic crisis.