POLI 243 Study Guide - Midterm Guide: Perfect Competition, Henri Bourassa, Imperial Preference
18 Apr 2016
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In 1870s, most major economies had adopted free trade in the wake of the cobden-chevalier. However, became unpopular in many countries as many markets were flooded with commodities, prices dropped, and countries faced painful adjustments. 1878 sir john a. mcdoanld won election on protectionism as us interest in trade liberalization declined with severe economic downturn of 1870s and was unable to negotiate good trade deal. Industrial sector wanted protectionism, but protectionism at the same time hurts grain growers (because they export) agricultural subsidies offered. The national policy led to the canadian pacific railway (cpr), making it easier and cheaper for farmers to ship goods to markets. Economic downturn in 1870s had severely affected many countries. Cobden-chevalier treaty, an international arrangement, did not have widespread treaty conventions, no broad rules spelling out obligations or norms. When one country defected on the liberal norms, so did others in a ripple fashion.
