“The Ottawa Conference has, I believe, laid the foundation of a new era of imperial cooperation. In a world of rising trade barriers and economic paralysis, the establishment of preferential tariffs within the British Empire will secure our markets, protect our industries, and stimulate trade among our dominions. We must abandon the old dogmas of unrestricted free trade and adapt to a world where national and imperial interests dictate economic policy.”
— Neville Chamberlain, British Chancellor of the Exchequer, speech at the Ottawa Imperial Economic Conference, 1932
Which of the following best explains the response of democratic states like Great Britain to the Great Depression, as illustrated by Chamberlain's speech?
- AThey implemented socialist reforms, dismantling private property and establishing state-controlled command economies.
- BThey utilized the League of Nations mandate system to establish direct administrative control over new East Asian territories.
- They retreated from global free trade, adopting protectionist policies and forming regional trade blocs to shield their economies.Answer
- DThey returned to early modern mercantilist systems by granting state-sponsored monopolies exclusive trading rights in the Americas.
Answer
The correct answer is that democratic states retreated from global free trade, adopting protectionist policies and forming regional trade blocs to shield their economies.
The correct answer is that democratic states retreated from global free trade, adopting protectionist policies and forming regional trade blocs to shield their economies. Faced with global economic paralysis, Great Britain and other democratic powers abandoned their traditional support for free trade. By creating the imperial preference system at the Ottawa Conference, Britain established a protected economic bloc with its dominions, reflecting the era's widespread shift toward economic nationalism.
Step-by-Step Solution
Key Concept
Economy in the Interwar Period
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