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Why Did Many European Countries Abandon Free-Trade Policies in the Late

Question 36

Multiple Choice

Why did many European countries abandon free-trade policies in the late nineteenth century?


A) As socialist and communist governments came to power across Europe, they rejected all liberal and capitalist economic ideas, which centered around free trade.
B) In an era of increasing national competition, governments saw free trade as a hindrance to the growth of nationalist sentiment among their citizens.
C) Free trade caused huge trade deficits that slowed job growth and increased social unrest, so governments had broad popular support to tax imports and prevent outside competition.
D) Amid the rush to extract resources from their new overseas territories, European governments and economists saw free-trade policies within Europe as obsolete.

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