Answer :
The correct answer is d. I, II, and III.
All three factors—high tariffs, currency devaluation, and reduced import quotas—contributed to the crisis of the international financial system during the 1930s. Here's how each factor played a role:
I. High tariffs: The implementation of high tariffs, most notably the Smoot-Hawley Tariff Act in the United States, led to a significant reduction in international trade. This protectionist measure aimed to shield domestic industries but resulted in retaliatory tariffs from other countries, further exacerbating the decline in global trade.
II. Currency devaluation: Many countries devalued their currencies in an attempt to make their exports cheaper and more competitive on the international market. While this provided temporary relief to individual countries, it led to a "beggar-thy-neighbor" policy, causing competitive devaluations that destabilized the global financial system.
III. Reduced import quotas: Countries imposed import quotas to protect their domestic industries from foreign competition. These quotas further restricted international trade, contributing to the overall decline in global economic activity.
Thus, all three factors—high tariffs, currency devaluation, and reduced import quotas—played significant roles in the financial turmoil of the 1930s.
All three factors—high tariffs, currency devaluation, and reduced import quotas—contributed to the crisis of the international financial system during the 1930s. Here's how each factor played a role:
I. High tariffs: The implementation of high tariffs, most notably the Smoot-Hawley Tariff Act in the United States, led to a significant reduction in international trade. This protectionist measure aimed to shield domestic industries but resulted in retaliatory tariffs from other countries, further exacerbating the decline in global trade.
II. Currency devaluation: Many countries devalued their currencies in an attempt to make their exports cheaper and more competitive on the international market. While this provided temporary relief to individual countries, it led to a "beggar-thy-neighbor" policy, causing competitive devaluations that destabilized the global financial system.
III. Reduced import quotas: Countries imposed import quotas to protect their domestic industries from foreign competition. These quotas further restricted international trade, contributing to the overall decline in global economic activity.
Thus, all three factors—high tariffs, currency devaluation, and reduced import quotas—played significant roles in the financial turmoil of the 1930s.
