The motive behind the high tariffs imposed by nations on imports of ma

QUESTION

The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to:

A. deter any possible attempts to promote communism.

B. protect domestic industries from foreign competition.

C. prevent the occurrence of the Great Depression.

D. safeguard patents, copyrights, and trademarks.

E. promote the trade of services over the trade of manufactured goods.

ANSWER

B
During the 1920s and 30s many of the world’s nation-states erected formidable barriers to international trade and foreign direct investment. Many of the barriers to international trade took the form of high tariffs on imports of manufactured goods. The typical aim of such tariffs was to protect domestic industries from foreign competition.