History of International Trade

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History of International Trade

We all know that international trade has been around for centuries and that all civilizations have traded with the rest of the world.

There is a need for business because of changing resource availability and the comparative advantage.


In the current situation where technology and innovation in all fields have pushed open borders for globalization, no country can be isolated and self-sufficient.

history of International Trade

History of International Trade

It has a rich history with the transformation of the guild system in the markets of the sixteenth and seventeenth centuries by mercantilism.

The 18th century saw a shift towards liberalism.

It was during this period that Adam Smith, the father of economics, wrote the famous Wealth of Nations in 1776, in which he defined the importance of specialization in production and brought international trade into the field.

David Ricardo developed the principle of comparative advantage, which is still true today.

All these economic ideas and principles have influenced the international trade policies of each country.

In recent centuries, however, countries have entered into various treaties to move towards free trade, in which countries do not impose import tariffs and allow trade in goods and services to proceed freely.

At the beginning of the nineteenth century, there was a tendency to be professional, which was meaningless until the end of the century.

Around 1913, Western countries wanted to move toward a sweeping change in economic freedom in which quantitative restrictions were imposed to reduce customs duties.

All currencies were freely converted to gold, which was the international currency.

 

Creating a job or finding a job was very simple, and it can be said that trade between these countries was really free.

World War I changed the entire course of world trade, and countries built their own walls by controlling the time of war.

After World War II, it took almost five years for trade to return to normal.

But then the recession changed the balance of world trade again, and many countries saw their assets change due to market fluctuations.

Reducing capital and economic pressures on various governments to adopt ways to increase duties and taxes.

The need to reduce economic pressures and facilitate international trade between countries led to the United Nations World Economic Forum being held in May 1927 to participate in the most important industrialized countries and lead to the conclusion of a multilateral trade agreement.

This was later followed by the General Agreement on Tariffs and Trade (GATT) in 1947.

However, once again, the recession of the 1930s disrupted the economy in all countries, leading to increased import duties so that they could meet the desired balance of payments and import quotas or limited restrictions, such as import bans and licenses.

To maintain.

Gradually, countries became aware of the fact that old ideas were no longer practical.

They should to constantly change their international trade policies, and this led all countries to pass international trade laws.

International trade rules and agreements with special conditions of international trade.

history of International Trade

International organizations and trade

History of International Trade

Today, the understanding of international trade and the factors affecting world trade is much better understood.

The context of global markets is driven by the understanding and theories developed by economists based on the natural resources available in different countries to which they have a comparative advantage, economies of scale, large-scale production, technology in terms of e-commerce, and product life.

 

Cycle changes as technology advances as well as financial market structures.

For professionals who hold managerial or leadership positions in organizations, understanding the background of international trade and international economic policies is essential because it provides the context for business organizations to make their path to growth conditional.

 

History of International Trade

In the 17th century, ships called the Clippers transported tea from China and spices from the East Indies to European countries, and even later, in the 14th and 15th centuries, from the time of Marco Polo, caravans There were large shipments of silk and spices, which were sent to different countries from the place of production.

And again, if we go back to earlier times, some tribes offered their products to other tribes for the exchange of goods, there is always a group or country that has products and services that are demanded by another country, and according to this The fact that the world is witnessing more and more industrial and technological progress

and international trade is becoming more important and valuable, so the economic, political, and social importance of international trade in today’s industrial age has been considered.

History of International Trade

Over the years it has flourished because of the many benefits it offers to different countries of the world.

In fact, international trade is the exchange of services, goods, and capital between different countries and regions moreover is an important part of the country’s GDP, which is also an important source of income for developing countries.

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