--%>

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 : Heterodox approach for more production

    From the heterodox approach, what options does the enterprise need to produce more output? What effect do these options put on its cost structure?

  • Q : Allocative Mechanisms-market based

    The market-based economic system: (1) Appears to be ‘natural’ as it has existed in all societies. (2) Has dominated the economic relationships in United States since from the year1492. (3) Guided resource allocation in middle ages. (4) Is

  • Q : Problem regarding private firms I have

    I have a problem in economics on Problem regarding private firms. Please help me in the following question. The mass of U.S. output is generated by: (i) Producer cooperatives. (ii) Non-profit organizations. (iii) Private firms. (iv) Government agencie

  • Q : Exchange and Specialization I have a

    I have a problem in economics on Exchange and Specialization. Please help me in getting the right answer from the following question. Sarah the wheat farmer would be most probable to trade for fruit from the Kathy's orchard if: (i) Sarah's opportunity

  • Q : Exploit consumers in highly competitive

    This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price

  • Q : Example of simultaneous changes in both

    Elucidate an example of simultaneous changes in both supply and demand?

  • Q : Importance of Economics Importance of

    Importance of Economics:Economics has become one of the major branches of social sciences. This is of enormous practical value in our day by day life. In pure sciences, we study the subject

  • Q : The market system provides such a

    Explain the statements: The market system provides such a variety of desired goods and services precisely.

  • Q : Utilitarianism of Jeremy Bentham The

    The utilitarianism of Jeremy Bentham is generally closely akin to the philosophies of: (1) Epicurianism and hedonism. (2) pragmatism and instrumentalism. (3) asceticism and stoicism. (4) dialecticism and materialism. (5) fundamentalism and predestinat

  • Q : What is an Economic Territory Economic

    Economic Territory: This refers to the region of a country where there is a free movement of goods, capital and human resources.