Effectiveness Of Britain 's Trade Policy On Economic Recovery

954 Words Aug 17th, 2016 4 Pages
The inter-war period saw a multitude of different trade policies being used throughout the world. Britain’s was one of protectionism, but in their situation their policies seemed to be effective and played a significant role in the quick economic recovery Britain experienced during the 1930s. To explain my evaluation of the effectiveness of Britain’s trade policy on their economic recovery in the 1930s, the differing views on the effect of the General Tariff will be examined, taking into account effective protection rates, nominal tariffs, and import substitutions. Additionally, the role trade regionalization played and the legacies that the trade policies left will be inspected. The most debated aspect of the effectiveness of their, now more protectionist, trade policies were the tariffs imposed by Britain. In Forrest Capie’s The British Tariff and Industrial Protection in the 1930 's, he argues that the tariffs were a hindrance to the economic recovery. His conclusion is drawn from calculations on the effective protection rates on the tariffs from the General Tariff in 1932; where he found that the iron and steel industries’ effective protection rates were in the bottom 5% and construction was experiencing negative rates. This is important to him because these were industries that are supposed to have played a role in the recovery of the British economy in the 1930s, causing Capie to believe that if there were no tariffs Britain’s economic recovery would have been…
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