Can someone explain the economics of trade?
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It has been said that "The lack of free trade was considered by many as a principal cause of the depression" why was this the case?
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Answer:
It is certainly the case that the Smoot-Hawley Tariff Act can claim the credit for making the Great Depression "great": http://en.wikipedia.org/wiki/Hawley-Smoot Surely you've been studying how trade benefits the economies of both parties? http://en.wikipedia.org/wiki/International_trade So if more trade helps the economy, what would reduced trade do?
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