USA HISTORY

Detailed explanation-1: -World War I destroyed the global integration of capital markets. The Gold Standard never returned despite attempts after the war to revive it. The system of issuing bonds and shares internationally failed to recover from the war, and stock exchanges listed fewer international shares.

Detailed explanation-2: -When a country imposes a tariff, foreign exporters have greater difficulty in selling their products. As their exports decline, they may cut prices in order to keep their sales from falling drastically. Thus, for example, when a tariff of $10.00 is imposed, foreign exporters may cut their price by, say, $6.00.

Detailed explanation-3: -Tariffs hurt consumers because it increases the price of imported goods. Because an importer has to pay a tax in the form of tariffs on the goods that they are importing, they pass this increased cost onto consumers in the form of higher prices.

Detailed explanation-4: -Specifically, a one per cent reduction in input tariffs raises total factor productivity levels by about two percent. The productivity gains from liberalization appear to materialize rather quickly, within 1-5 years, with the estimated impact leveling off over time.