AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
When the US doubled its import duties during the Great Depression, it severely damaged world trade. Other countries retaliated with their own tariffs, causing international trade to collapse further. This worsened the global economic crisis instead of helping any single nation.
This illustrates the danger of narrow self-interest because: when every country raises trade barriers to protect itself, world trade shrinks for everyone. What seems beneficial for one country triggers retaliation, leading to a downward spiral. Global crises require cooperative solutions — not competitive protectionism — as the Depression demonstrated.
Source: Chapter 3, Section 3.4 – The Great Depression
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