Question

The Smoot-Hawley Tariff US Dept. of State The Smoot- Hawley was more a consequence of the Great Depression than an initial cause. But while the tariff might not have caused the Depression, it certainly did not make it any better. It provoked a storm of foreign responses and came to stand as a symbol of the "beggar-thy-neighbor" policies (policies designed to improve one's own lot at the expense of that of others) of the 1930s. Such policies contributed to a drastic decline in international trade. For example, U.S. imports from Europe declined from a 1929 high of $1,334 million to just $390 million in 1932, while U.S. exports to Europe fell from $2,341 million in 1929 to $784 million in 1932. Overall, world trade declined by some 66% between 1929 and 1934. More generally, Smoot-Hawley did nothing to foster trust and cooperation among nations during a perilous era in international relations Use the preceding reading selection to answer the following question. Which statement best describes US trade after the Smoot-Hawley act? Question 5 options: U.S. imports increased but exports declined, creating an unfavorable trade balance. U.S. exports increased but imports declined, creating a favorable trade balance. U.S. imports and exports declined, creating less world trade. U.S. imports and exports increased, creating more w

Answer 1

U.S. imports and exports declined, creating less world trade.

Answer: Option 3.

Step-by-step explanation:

The Smooth Hawley act was the that aimed at increasing the import tariff of the United States of America. The import tariff because of this act were increased from forty percent to forty eight percent for about nine hundred goods.

But the result of the act was not what was thought, it back fired. Because of the import tariff, other countries also had put tariff on the goods of the United States and therefore the export of the goods of the United States also decreased along with the decrease in the imports. So the overall impact was decrease in world trade.