Countries use a variety of ways to protect their trade. One way is to enact tariffs, which tax imports. This immediately raises the price of the imported goods, making them less competitive when compared to locally produced goods. This works especially well for a country like the United States, which imports a lot of consumer products and oil.
The most famous example is the Smoot-Hawley Tariffof 1930. It was originally designed to protect farmers from agricultural imports from Europe, which was stepping up farming after the destruction of World War I. However, by the time the bill made it throughCongress, it had slapped tariffs on many more imports.
Countries use a variety of ways to protect their trade. One way is to enact tariffs, which tax imports. This immediately raises the price of the imported goods, making them less competitive when compared to locally produced goods. This works especially well for a country like the United States, which imports a lot of consumer products and oil.The most famous example is the Smoot-Hawley Tariffof 1930. It was originally designed to protect farmers from agricultural imports from Europe, which was stepping up farming after the destruction of World War I. However, by the time the bill made it throughCongress, it had slapped tariffs on many more imports.
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