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issued subsidies for domestic products and lowered corporate taxes, with increased profits to be reinvested in developing additional jobs, supporting research, and creating advanced technology. In addition to tariffs, other trade barriers were imposed. These included limits on the number of imported goods and restrictions on imports from some countries, favoring oth- ers. Trade barriers were seen as an excellent strategy for boosting a domestic economy. In the short term, domestic businesses reaped increased profits and governments increased their revenue. But the positive gains were only short term. The negative aspects of restricted trade soon appeared. Over time businesses declined in efficiency, due to a lack of competition. They also saw their profits drop as sub- stitutes for their products hit the market and consumers needed to restrict purchases of high-cost items. The long- term effect of subsidies caused an increased demand on government for public services, since higher prices reduced the amount of disposable income available to consumers. Isolationism curbed social and cultural interaction and the exchange of ideas. The twentieth century brought with it the need for change. The Impact of World War The Great Depression of the 1930s and the Second World War (1939-1945) had drastic impacts on economies across the globe. The world seemed smaller, more connected. Isolated economies were more vulnerable to crisis and

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Global Trade Organizations