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SLOTS 17 - 18 - Free download as PDF File (.pdf), Text File (.txt) or read online for free. 1. Comparative advantage theory explains that nations benefit most from specializing in industries where they have relative production advantages and trading with other nations, rather than trying to produce all goods domestically. 2. The 1930 Smoot-Hawley Tariff in the US, which raised tariffs significantly, backfired by worsening the Great Depression as other nations retaliated with their own tariffs. 3. Nations that have embraced free trade through history have generally seen more economic growth, while countries trying to be self-sufficient, like China was for decades, missed opportunities until opening up to world trade based on their advantages in manufacturing.

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