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. These policies can be broadly categorized into two approaches: protectionism and retaliatory measures.
Protectionism was a common response to the economic crisis, with many countries imposing high tariffs and trade barriers to shield their domestic industries from foreign competition. For instance, the United States passed the Smoot-Hawley Tariff Act in 1930, which raised tariffs on thousands of imported goods. This move aimed to protect American industries and farmers, but it had severe consequences. Other countries retaliated by imposing their own tariffs, leading to a significant decline in global trade. The overall effect was a reduction in international trade and a deepening of the economic downturn.
Retaliatory measures were also prevalent during this period. Countries that faced high tariffs from others responded by imposing similar restrictions on imports from those nations. This tit-for-tat approach further hindered international trade and exacerbated the economic crisis. The decline in global trade resulted in reduced export revenues for many countries, leading to widespread unemployment, bankruptcies, and a decline in living standards.
The consequences of these international trade policies during the Great Depression were detrimental to the global economy. The reduction in international trade worsened the economic downturn, prolonging the period of high unemployment and low economic growth. The policies also strained diplomatic relations between nations, as trade wars escalated and countries became increasingly isolated. The lack of cooperation and coordination in trade policies hindered efforts to restore global economic stability.
In conclusion, the international trade policies during the Great Depression were characterized by protectionism and retaliatory measures. These policies had severe consequences, including a decline in global trade, increased unemployment, and strained diplomatic relations. The lack of cooperation and coordination further hindered efforts to overcome the economic crisis.