jobs for British work-ers,” the French president urged French car compa-nies to invest at home rather than elsewhere in the European Union, the government of Spain launched a “Buy Spanish” campaign. It may not be Smoot-Hawley, but the global implications could be the same. Answer in Case Analyis format. Is the Smoot-Hawley plan better or worse than “Buy American? Buy Spanish? Or British jobs for British workers?
Buy American! Buy Spanish! British jobs for British workers! The ideology of economic nationalism seeks to implement trade policies that help to keep jobs and investment at home, while ignoring the advantages of open international trade and invest-ment. Economic nationalism was popular during the Great Depression of 1929–33, when it served to protect domestic firms from international competi-tion. However, this led to curtailing international business activity, making the global economic slow-down worse. Widely recognized as a myopic policy, economic nationalism nevertheless re-emerged dur-ing the global financial crisis that originated in the United States in 2008, prompting many analysts to wonder whether the public has learned anything from international business history.Soon after the U.S. stock market crash of 1929, Willis Hawley and Reed Smoot, two Republicans in the U.S. Congress, sponsored a bill to raise import tariffs to the highest level in U.S. history.21 Given the high rate of U.S.
Answer in Case Analyis format.
Is the Smoot-Hawley plan better or worse than “Buy American? Buy Spanish? Or British jobs for British workers?
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