--%>

Explain the cause of Trade barriers

Explain the cause of Trade barriers?

E

Expert

Verified

Trade barriers can cause a “trade war,” in which all nations retaliate with trade barriers of their own.  The Smoot-Hawley Tariff Act of 1930 was a classic example of this.  It prompted other nations to increase tariffs and global trade fell as well as U.S. output.

   Related Questions in Business Economics

  • Q : Banking crisis on checkable deposits

    Question: Some developing countries have suffered banking crises in which depositors lost part or all of their deposits (in some countries there is no deposit insurance). This type of crisis decreases depositors' confidence in the banking syst

  • Q : Define Benefit Cost Ratio or

    Briefly describe the term Benefit Cost Ratio (or B/C Ratio) or Profitability Index (or PI)?

  • Q : Difference between normal and inferior

    Difference between normal goods and inferior goods. Give illustration.

  • Q : Conception of the Invisible Hand by

    Conception of the “Invisible Hand” by Adam Smith relies on mechanisms like those as underpin: (1) William Stanley Jevons’ “sunspot” theory of business cycles. (2) the biological concept of Homeostasis. (3

  • Q : Freedom is to some extent illusory

    Illustrate “freedom is to some extent illusory”?

  • Q : Explanation of theory of pricing for

    The theory of pricing for particular goods explained in Adam Smith’s Wealth of Nations is most consistent along with: (1) mercantilist doctrine. (2) Richard Cantillon’s distinction between “value in

  • Q : Illustrate the Optimal or best

    Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?

  • Q : Economic concepts of academic subjects

    The initial “professional” university professors who taught economic concepts like academic subjects, those were: (1) cosmologists. (2) moral philosophers. (3) socio-biologists. (4) natural historians (5) logicians. (6) mathematicians. (7)

  • Q : Elucidate the gains that have occurred

    Elucidate the gains that have occurred using the resources as before specialization?

  • Q : Explain producers in an industry

    Explain producers in an industry are receiving pure or economic profits?