History of international trade

History of International Trade

Introduction

International trade is simply the exchange of goods and services between nations . This trade is carried out between the territories or the boundaries that exist internationally . International trade has existed since long time ago . This trade has gone through so much change since it was started . It has also led to development in so many sectors . These include the social political and the economic sectors among others There have been developments in the transport sector over the years

Industrialization has really advanced in many continents with

time There is so much sprouting of many multinational corporations which have highly impacted the international trade . This trade involves policies tariffs and quotas . The countries participating in this trade have to adhere to the set rules and policies . Failure to do this leads to harsh measures carried out on the nation 's imports or export . Many countries produce more than what they can consume . This encourages international trade . With increase in technology , communication has become easier and far much cheaper . While long ago international trade was carried out with so much strain , technology has really simplified things in this era . This has led to globalization

International trade history

International trade has existed since the genesis of the world Initially nations traded in products like cloth , wood , animals , metals etc . This was in the 3000BC . There were sea and land routes that were used during the ancient times . There were routes like the Silk Road which connected the Roman Empire with China . This road was used to transport goods like perfumes gemstones and silk

In the 15th and 16th centuries the Portuguese used sea going vessels for accessing other nations . Africa and Asia became the markets for the merchants from Europe . During the 18th and the 19th century factories started developing . Many of these required raw materials . It really affected the world trade positively . Railways were built which helped in the transportation of these products . After one century , North America and Europe became industrialized . During this period very few nations dominated in the international trade . Steam ships were also incorporated to aid in the navigation . Many nations in this era used to trade in primary products only . In the 20th and the 21st century nations started trading in tertiary and secondary products

Initially , barter trade was carried out between nations . There was no medium of exchange so the nations simply exchanged the goods for other goods . During this time it was not easy to measure the value of the products . After some time a medium of exchange was introduced . This made international trade much easier

There was the invention of money which came in many forms . There was the money , non- physical money and even the credit cards . This led to the development of international trade . With time there was the division of labor . Many nations started to concentrate in producing small sector of products and then import the others . Through this many nations embraced specialization . International trade...