Question

tariffs to protect domestic industries do not always work as expected. a classic example of unintended consequences is the smoot - hawley tariff. read the following passage. then follow the instructions.
the smoot - hawley tariff was passed in 1930 with the goal of helping u.s. businesses and farmers that were struggling during the great depression. it raised already - high tariffs on agricultural and manufacturing imports by an average of 20%. other countries were also suffering from the effects of the great depression. they retaliated, or fought back, by imposing their own tariffs on u.s. imports.
economists estimate that smoot - hawley significantly contributed to a 60% decline in global trade from 1929 to 1934, worsening the effects of the great depression. in 1934, president franklin d. roosevelt reduced the tariffs and negotiated agreements with other countries to reopen trade.
put the events related to the adoption of the smoot - hawley tariff in order.
earlier
international trade declines by 60%, worsening the effects of the great depression.
the u.s. adopts a high tariff to protect u.s. businesses and farmers during the great depression.
foreign goods become more expensive for u.s. consumers, making people less likely to buy them.
u.s. goods become more expensive in other countries and demand for u.s. goods drops abroad.
in response, other countries impose their own high tariffs on u.s. goods.

Explanation:

The U.S. adopted the tariff first (1930). Then foreign goods became more expensive for U.S. consumers (as a direct result of the tariff). After that, other countries retaliated by imposing their own tariffs on U.S. goods. This made U.S. goods more expensive in other countries and demand dropped. Finally, global trade declined by 60%.

Answer:

1. The U.S. adopts a high tariff to protect U.S. businesses and farmers during the Great Depression.
2. Foreign goods become more expensive for U.S. consumers, making people less likely to buy them.
3. In response, other countries impose their own high tariffs on U.S. goods.
4. U.S. goods become more expensive in other countries and demand for U.S. goods drops abroad.
5. International trade declines by 60%, worsening the effects of the Great Depression.