Skip to Main Content
International Business: The New Realities, 5th Edition
book

International Business: The New Realities, 5th Edition

by S. Tamer Cavusgil, Gary Knight, John R. Riesenberger
January 2019
Intermediate to advanced content levelIntermediate to advanced
576 pages
33h 19m
English
Pearson
Content preview from International Business: The New Realities, 5th Edition

Evolution and Consequences of Government Intervention

  1. 7.3 Explain the evolution and consequences of government trade intervention.

A century ago, trade barriers worldwide were relatively high. The trading environment worsened through two world wars and the Great Depression. The United States passed the Smoot-Hawley Tariff Act in 1930. It raised U.S. tariffs to near-record highs of more than 50 percent, compared to only about 4 percent today. Tariffs that other countries imposed to retaliate against Smoot-Hawley choked off foreign markets for U.S. agricultural products. This resulted in falling farm prices and many bank failures. In an effort to revive trade, many governments began to reduce tariffs in the late 1940s.

However, governments ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Fundamentals of International Business

Fundamentals of International Business

Sumati Varma

Publisher Resources

ISBN: 9780136763017