The Smoot-Hawley Tariff Act of 1930 Contributed to the Collapse

question 17

Multiple Choice

The Smoot-Hawley Tariff Act of 1930 contributed to the collapse of global trade

• A) by raising tariffs on products imported into the U.S., which in turn led to retaliatory trade-restricting legislation around the world.
• B) by imposing economic sanctions against third-world countries.
• C) by banning foreign consumer products.
• D) by raising tariffs on exports, which deterred domestic producers from selling in foreign markets.

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Definitions:

Independent

Refers to entities or individuals that are self-reliant and not influenced or controlled by others in terms of business operations or decisions.

Marketing Channel

A pathway through which goods and services flow from producers to consumers, involving intermediaries such as wholesalers and retailers.

Profits

The financial gain achieved when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Coercive Power

Threatening or punishing the other channel member for not undertaking certain tasks. Delaying payment for late delivery would be an example.