Question

During the 1920s, European nations retaliated against U.S. tariff hikes by increasing their own tariffs. Rising tariffs resulted in __________. European countries defaulting on debt payments international cut-throat competition decreased sales for exporters like farmers all of the above

Answer 1

Answer:

The correct answer to the question: During the 1920´s, European nations retaliated against U.S. tariff hikes by increasing their own tariffs. Rising tariffs resulted in:_______ would be: All of the above.

Explanation:

The fallout on international trade between the United States and Europe after World War I, and before World War II, came from the passing of the Fordney-McCumber Tariff in 1922. This act rose the tariffs that America imposed on imported goods from Europe, but also opened the door for enormous loans to European countries who needed that money for recovery. The end result of this was a hit on agriculture, mostly in the U.S as European nations responded in the same manner by raising their own tariffs against American products. So exporters, and mostly farmers, were hit by the ensuing race between the old continent and the U.S to outdo the other in raising rates. Finally, the act also affected the ability of European nations to pay back their debt, as they depended on the income from selling products in America. This was part of what was denounced by Democrats, and other sectors in the U.S after the Tariff was accepted.

Answer 2

During the 1920s, European nations retaliated against U.S. tariff hikes by increasing their own tariffs. Rising tariffs resulted in decreased sales for exporters like farmers. Since tariffs are higher, then foreign countries would not depend on imported products and instead local produced products. Hope this helps!!