trade introdution

8/3/2019 Trade Introdution

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INTRODUCTION TO TRADEJERRY JOHN. MBA,PGDM

ABBS


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WHAT IS TRADE?

Trade is the transfer ofownership of goods andservices from one person or entity to another.

Trade is sometimes loosely

called commerce or financial transaction or barter. A network that allows trade is called a market. The

original form of trade was barter, the direct

exchange of goods and services. Later one side of the barter were the metals,

precious metals (poles, coins), bill, paper money.
http://en.wikipedia.org/wiki/Ownershiphttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Barter_(economics)http://en.wikipedia.org/wiki/Barter_(economics)http://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Financial_transactionhttp://en.wikipedia.org/wiki/Commercehttp://en.wikipedia.org/wiki/Ownership


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Modern traders instead generally negotiatethrough a medium of exchange, such

as money. As a result, buying can be separated

from selling, or earning.

The invention of money (and later credit,paper money and non-physical money)greatly simplified and promoted trade.

Trade between two traders is called bilateraltrade, while trade between more than twotraders is called multilateral trade.
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Trade exists for man due to specialization anddivision of labour, most people concentrate

on a small aspect of production, trading forother products.

Trade exists between regions because

different regions have a comparativeadvantage in the production of some tradablecommodity, or because different regions' size

allows for the benefits ofmass production. As such, trade at market prices between

locations benefits both locations.
http://en.wikipedia.org/wiki/Comparative_advantagehttp://en.wikipedia.org/wiki/Comparative_advantagehttp://en.wikipedia.org/wiki/Mass_productionhttp://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/wiki/Market_pricehttp://en.wikipedia.org/wiki/Mass_productionhttp://en.wikipedia.org/wiki/Comparative_advantagehttp://en.wikipedia.org/wiki/Comparative_advantage


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Retail trade consists of the sale of goods ormerchandise from a very fixed location, such

as a department store, boutique or kiosk, orby mail, in small or individual lots fordirect consumption by the purchaser.

Wholesale trade is defined as the sale ofgoods or merchandise to retailers, toindustrial, commercial, institutional, or other

professional business users, or to otherwholesalers and related subordinated services
http://en.wikipedia.org/wiki/Retailhttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/Merchandisehttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Retailerhttp://en.wikipedia.org/wiki/Merchandisehttp://en.wikipedia.org/wiki/Wholesalehttp://en.wikipedia.org/wiki/Consumption_(economics)http://en.wikipedia.org/wiki/Mailhttp://en.wikipedia.org/wiki/Kioskhttp://en.wikipedia.org/wiki/Boutiquehttp://en.wikipedia.org/wiki/Department_storehttp://en.wikipedia.org/wiki/Saleshttp://en.wikipedia.org/wiki/Retail


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PRE-HISTORY

Trade originated with the start ofcommunication in prehistoric times.

Trading was the main facility of prehistoricpeople, who bartered goods and servicesfrom each other before the innovation of themodern day currency. Peter Watson dates

the history of long-distancecommerce from circa 150,000 years ago
http://en.wikipedia.org/wiki/History_of_communicationhttp://en.wikipedia.org/wiki/History_of_communicationhttp://en.wikipedia.org/wiki/Prehistorichttp://en.wikipedia.org/wiki/Peter_Watson_(business_writer)http://en.wikipedia.org/wiki/History_of_international_tradehttp://en.wikipedia.org/wiki/History_of_international_tradehttp://en.wikipedia.org/wiki/Circahttp://en.wikipedia.org/wiki/Circahttp://en.wikipedia.org/wiki/History_of_international_tradehttp://en.wikipedia.org/wiki/History_of_international_tradehttp://en.wikipedia.org/wiki/History_of_international_tradehttp://en.wikipedia.org/wiki/History_of_international_tradehttp://en.wikipedia.org/wiki/Peter_Watson_(business_writer)http://en.wikipedia.org/wiki/Prehistorichttp://en.wikipedia.org/wiki/History_of_communicationhttp://en.wikipedia.org/wiki/History_of_communication


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ANCIENT HISTORY

Trade is believed to have taken placethroughout much of recorded human history.

There is evidence of the exchangeofobsidian and flint during the stone age.

Materials used for creatingjewellery weretraded with Egypt since 3000 BC.
http://en.wikipedia.org/wiki/Obsidianhttp://en.wikipedia.org/wiki/Flinthttp://en.wikipedia.org/wiki/Stone_agehttp://en.wikipedia.org/wiki/Jewelryhttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Egypthttp://en.wikipedia.org/wiki/Jewelryhttp://en.wikipedia.org/wiki/Stone_agehttp://en.wikipedia.org/wiki/Flinthttp://en.wikipedia.org/wiki/Obsidian


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Long-range trade routes first appeared in the 3rdmillennium BC, when Sumerians in Mesopotamia tradedwith the Harappa civilization of the Indus Valley.

ThePhoenicians were noted sea traders, travelling acrossthe Mediterranean Sea, and as far north as Britain forsources often to manufacture bronze.

For this purpose they established trade colonies the Greekscalled emporia.

From the beginning ofGreekcivilization until the fall of

the Roman empire in the 5th century, a financially lucrativetrade brought valuable spice to Europe from the far east,including India and China.
http://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/Sumerianshttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Sumerianshttp://en.wikipedia.org/wiki/Indus_Riverhttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Indus_Riverhttp://en.wikipedia.org/wiki/Mediterranean_Seahttp://en.wikipedia.org/wiki/Mediterranean_Seahttp://en.wikipedia.org/wiki/Mediterranean_Seahttp://en.wikipedia.org/wiki/Prehistoric_Britainhttp://en.wikipedia.org/wiki/Mediterranean_Seahttp://en.wikipedia.org/wiki/Bronzehttp://en.wikipedia.org/wiki/Prehistoric_Britainhttp://en.wikipedia.org/wiki/Bronzehttp://en.wikipedia.org/wiki/Emporia_(ancient_Greece)http://en.wikipedia.org/wiki/Emporia_(ancient_Greece)http://en.wikipedia.org/wiki/Roman_empirehttp://en.wikipedia.org/wiki/Greecehttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Roman_empirehttp://en.wikipedia.org/wiki/Spicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Spicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Spicehttp://en.wikipedia.org/wiki/Roman_empirehttp://en.wikipedia.org/wiki/Civilizationhttp://en.wikipedia.org/wiki/Greecehttp://en.wikipedia.org/wiki/Emporia_(ancient_Greece)http://en.wikipedia.org/wiki/Bronzehttp://en.wikipedia.org/wiki/Prehistoric_Britainhttp://en.wikipedia.org/wiki/Mediterranean_Seahttp://en.wikipedia.org/wiki/Phoenicianshttp://en.wikipedia.org/wiki/Indus_Riverhttp://en.wikipedia.org/wiki/Indus_Valley_Civilizationhttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Sumerianshttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/3rd_millennium_BC


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Roman commerce allowed its empire to flourish andendure.

The Roman empire produced a stable and secure

transportation network that enabled the shipment of tradegoods without fear of significant piracy.

The fall of the Roman empire, and the succeeding DarkAges brought instability to Western Europe and a nearcollapse of the trade network in the western world.

Trade however continued to flourish among the kingdomsof Africa, Middle East, India, China and Southeast Asia.

Some trade did occur in the west.

For instance, Radhanites were a medieval guild or group(the precise meaning of the word is lost to history)ofJewish merchants who traded between

the Christians in Europe and the Muslims of the Near East.
http://en.wikipedia.org/wiki/Roman_commercehttp://en.wikipedia.org/wiki/Piracyhttp://en.wikipedia.org/wiki/Piracyhttp://en.wikipedia.org/wiki/Dark_Ages_(historiography)http://en.wikipedia.org/wiki/Western_Europehttp://en.wikipedia.org/wiki/Dark_Ages_(historiography)http://en.wikipedia.org/wiki/Dark_Ages_(historiography)http://en.wikipedia.org/wiki/Western_Europehttp://en.wikipedia.org/wiki/Radhanitehttp://en.wikipedia.org/wiki/Jewhttp://en.wikipedia.org/wiki/Jewhttp://en.wikipedia.org/wiki/Christianhttp://en.wikipedia.org/wiki/Christianhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Muslimhttp://en.wikipedia.org/wiki/Christianhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Muslimhttp://en.wikipedia.org/wiki/Near_Easthttp://en.wikipedia.org/wiki/Near_Easthttp://en.wikipedia.org/wiki/Muslimhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Christianhttp://en.wikipedia.org/wiki/Jewhttp://en.wikipedia.org/wiki/Radhanitehttp://en.wikipedia.org/wiki/Western_Europehttp://en.wikipedia.org/wiki/Dark_Ages_(historiography)http://en.wikipedia.org/wiki/Dark_Ages_(historiography)http://en.wikipedia.org/wiki/Piracyhttp://en.wikipedia.org/wiki/Roman_commerce


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MIDDLE AGES During the Middle Ages, Central Asia was the

economic centre of the world.

The Sogdians dominated the East-West trade routeknown as the Silk Road after the 4th century AD up tothe 8th century AD, with Suyab and Talas rankingamong their main centres in the north.

They were the main caravan merchants ofCentralAsia.

From the 8th to the 11th century,theVikings and Varangians traded as they sailed fromand to Scandinavia.

Vikings sailed to Western Europe, while Varangiansto Russia. The Hanseatic League was an alliance oftrading cities that maintained a trade monopoly overmost ofNorthern Europe and the Baltic, between the

13th and 17th centuries.
http://en.wikipedia.org/wiki/Sogdianahttp://en.wikipedia.org/wiki/Silk_Roadhttp://en.wikipedia.org/wiki/Silk_Roadhttp://en.wikipedia.org/wiki/Suyabhttp://en.wikipedia.org/wiki/Tarazhttp://en.wikipedia.org/wiki/Suyabhttp://en.wikipedia.org/wiki/Tarazhttp://en.wikipedia.org/wiki/Central_Asiahttp://en.wikipedia.org/wiki/Caravan_(travellers)http://en.wikipedia.org/wiki/Central_Asiahttp://en.wikipedia.org/wiki/Central_Asiahttp://en.wikipedia.org/wiki/Vikinghttp://en.wikipedia.org/wiki/Vikinghttp://en.wikipedia.org/wiki/Varangianshttp://en.wikipedia.org/wiki/Scandinaviahttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Hanseatic_Leaguehttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Hanseatic_Leaguehttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Northern_Europehttp://en.wikipedia.org/wiki/Baltic_regionhttp://en.wikipedia.org/wiki/Baltic_regionhttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Northern_Europehttp://en.wikipedia.org/wiki/Baltic_regionhttp://en.wikipedia.org/wiki/Baltic_regionhttp://en.wikipedia.org/wiki/Northern_Europehttp://en.wikipedia.org/wiki/Monopolyhttp://en.wikipedia.org/wiki/Hanseatic_Leaguehttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/Scandinaviahttp://en.wikipedia.org/wiki/Varangianshttp://en.wikipedia.org/wiki/Vikinghttp://en.wikipedia.org/wiki/Central_Asiahttp://en.wikipedia.org/wiki/Central_Asiahttp://en.wikipedia.org/wiki/Caravan_(travellers)http://en.wikipedia.org/wiki/Tarazhttp://en.wikipedia.org/wiki/Suyabhttp://en.wikipedia.org/wiki/Silk_Roadhttp://en.wikipedia.org/wiki/Sogdiana


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AGE OF DISCOVERY

Vasco da Gama pioneered the European Spice trade in1498 when he reached Calicut after sailing aroundthe Cape of Good Hope at the southern tip of theAfrican continent.

Prior to this, the flow of spice into Europe from Indiawas controlled by Islamic powers, especially Egypt.

The spice trade was of major economic importanceand helped spur the Age of Discovery in Europe.

Spices brought to Europe from the Eastern worldwere some of the most valuable commodities for theirweight, sometimes rivalling gold.
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In the 16th century, the SeventeenProvinces were the centre of free trade,

imposing no exchange controls, andadvocating the free movement of goods.

Trade in the East Indies was dominated

by Portugal in the 16th century, Holland in the17th century, and the British in the 18thcentury.

The Spanish Empire developed regular tradelinks across both the Atlantic andthe Pacific Oceans.
http://en.wikipedia.org/wiki/Seventeen_Provinceshttp://en.wikipedia.org/wiki/Seventeen_Provinceshttp://en.wikipedia.org/wiki/Exchange_controlhttp://en.wikipedia.org/wiki/East_Indieshttp://en.wikipedia.org/wiki/Portugalhttp://en.wikipedia.org/wiki/Hollandhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Spanish_Empirehttp://en.wikipedia.org/wiki/Atlantic_Oceanhttp://en.wikipedia.org/wiki/Pacific_Oceanhttp://en.wikipedia.org/wiki/Pacific_Oceanhttp://en.wikipedia.org/wiki/Atlantic_Oceanhttp://en.wikipedia.org/wiki/Spanish_Empirehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Hollandhttp://en.wikipedia.org/wiki/Portugalhttp://en.wikipedia.org/wiki/East_Indieshttp://en.wikipedia.org/wiki/Exchange_controlhttp://en.wikipedia.org/wiki/Seventeen_Provinceshttp://en.wikipedia.org/wiki/Seventeen_Provinces


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In 1776, Adam Smith published the paperAn Inquiry intothe Nature and Causes of the Wealth of Nations.

It criticised Mercantilism, and argued

that economicspecialisation could benefit nations just asmuch as firms.

Since the division of labour was restricted by the size ofthe market, he said that countries having access to larger

markets would be able to divide labour more efficientlyand thereby become more productive.

Smith said that he considered all rationalisationsofimport and export controls "dupery", which hurt the

trading nation as a whole for the benefit of specificindustries.

In 1799, the Dutch East India Company, formerly theworld's largest company, became bankrupt, partly due to

the rise of competitive free trade.
http://en.wikipedia.org/wiki/Adam_Smithhttp://en.wikipedia.org/wiki/An_Inquiry_into_the_Nature_and_Causes_of_the_Wealth_of_Nationshttp://en.wikipedia.org/wiki/An_Inquiry_into_the_Nature_and_Causes_of_the_Wealth_of_Nationshttp://en.wikipedia.org/wiki/Mercantilismhttp://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Specialization_(functional)http://en.wikipedia.org/wiki/Division_of_labourhttp://en.wikipedia.org/wiki/Productivehttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/Dutch_East_India_Companyhttp://en.wikipedia.org/wiki/Bankrupthttp://en.wikipedia.org/wiki/Bankrupthttp://en.wikipedia.org/wiki/Dutch_East_India_Companyhttp://en.wikipedia.org/wiki/Exporthttp://en.wikipedia.org/wiki/International_tradehttp://en.wikipedia.org/wiki/Productivehttp://en.wikipedia.org/wiki/Division_of_labourhttp://en.wikipedia.org/wiki/Specialization_(functional)http://en.wikipedia.org/wiki/Economichttp://en.wikipedia.org/wiki/Mercantilismhttp://en.wikipedia.org/wiki/An_Inquiry_into_the_Nature_and_Causes_of_the_Wealth_of_Nationshttp://en.wikipedia.org/wiki/An_Inquiry_into_the_Nature_and_Causes_of_the_Wealth_of_Nationshttp://en.wikipedia.org/wiki/Adam_Smith


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AGE OF REASON

In 1817,David Ricardo, James Mill and RobertTorrens showed that free trade would benefit theindustrially weak as well as the strong, in thefamous theory of comparative advantage.

In Principles of Political Economy andTaxation Ricardo advanced the doctrine stillconsidered the most counterintuitivein economics:

When an inefficient producer sends themerchandise it produces best to a country able to

produce it more efficiently, both countries benefit.
http://en.wikipedia.org/wiki/Robert_Torrenshttp://en.wikipedia.org/wiki/David_Ricardohttp://en.wikipedia.org/wiki/James_Millhttp://en.wikipedia.org/wiki/Robert_Torrenshttp://en.wikipedia.org/wiki/Robert_Torrenshttp://en.wikipedia.org/wiki/Principles_of_Political_Economy_and_Taxationhttp://en.wikipedia.org/wiki/Principles_of_Political_Economy_and_Taxationhttp://en.wikipedia.org/wiki/Principles_of_Political_Economy_and_Taxationhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Principles_of_Political_Economy_and_Taxationhttp://en.wikipedia.org/wiki/Principles_of_Political_Economy_and_Taxationhttp://en.wikipedia.org/wiki/Robert_Torrenshttp://en.wikipedia.org/wiki/Robert_Torrenshttp://en.wikipedia.org/wiki/James_Millhttp://en.wikipedia.org/wiki/David_Ricardo


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The ascendancy of free trade was primarily basedon national advantage in the mid 19th century.

That is, the calculation made was whether it was inany particular country's self-interest to open itsborders to imports.

John Stuart Mill proved that a country withmonopoly pricing power on the internationalmarket could manipulate the terms of

trade through maintaining tariffs, and that theresponse to this might be reciprocity in trade policy
http://en.wikipedia.org/wiki/John_Stuart_Millhttp://en.wikipedia.org/wiki/Pricing_powerhttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Reciprocity_(international_relations)http://en.wikipedia.org/wiki/Tariffhttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/Terms_of_tradehttp://en.wikipedia.org/wiki/Pricing_powerhttp://en.wikipedia.org/wiki/John_Stuart_Mill


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Ricardo and others had suggested this earlier.

This was taken as evidence against the universal doctrineof free trade, as it was believed that more of the economic

surplus of trade would accrue to a countryfollowing reciprocal, rather than completely free, tradepolicies.

This was followed within a few years by the infantindustry scenario developed by Mill promoting the theory

that government had the "duty" to protect youngindustries, although only for a time necessary for them todevelop full capacity.

This became the policy in many countries attempting

to industrialise and out-compete English exporters. Milton Friedman later continued this vein of thought,

showing that in a few circumstances tariffs might bebeneficial to the host country; but never for the world atlarge.
http://en.wikipedia.org/wiki/Economic_surplushttp://en.wikipedia.org/wiki/Economic_surplushttp://en.wikipedia.org/wiki/Economic_surplushttp://en.wikipedia.org/wiki/Economic_surplushttp://en.wikipedia.org/wiki/Infant_industryhttp://en.wikipedia.org/wiki/Infant_industryhttp://en.wikipedia.org/wiki/Infant_industryhttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Industrializehttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/Industrializehttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/Englandhttp://en.wikipedia.org/wiki/Industrializehttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Infant_industryhttp://en.wikipedia.org/wiki/Infant_industryhttp://en.wikipedia.org/wiki/Economic_surplushttp://en.wikipedia.org/wiki/Economic_surplus


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20TH CENTURY The Great Depression was a major economic

recession that ran from 1929 to the late 1930s. During this period, there was a great drop in

trade and other economic indicators.

The lack of free trade was considered by many asa principal cause of the depression.

Only during the World War II the recession endedin the United States.

Also during the war, in 1944, 44 countries signedthe Bretton Woods Agreement, intended toprevent national trade barriers, to avoiddepressions.
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It set up rules and institutions to regulatethe international political economy: the

International Monetary Fund and theInternational Bank for Reconstruction andDevelopment (later divided into the World

Bank and Bank for International Settlements). These organisations became operational in

1946 after enough countries ratified the

agreement. In 1947, 23 countries agreed tothe General Agreement on Tariffs and Trade topromote free trade.
http://en.wikipedia.org/wiki/International_political_economyhttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/General_Agreement_on_Tariffs_and_Tradehttp://en.wikipedia.org/wiki/International_political_economy


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FREE TRADE..

Free trade advanced further in the late 20th century and early

2000s: 1992 European Union lifted barriers to internal trade

in goods and labour. January 1, 1994 the North American Free Trade

Agreement (NAFTA) took effect

1994 The GATT Marrakech Agreement specified formation of theWTO. January 1, 1995 World Trade Organizationwas created to

facilitate free trade, by mandating mutual most favourednation trading status between all signatories.

EC was transformed into the European Union, which accomplished

the Economic and Monetary Union (EMU) in 2002, throughintroducing the Euro, and creating this way a real single marketbetween 13 member states as of January 1, 2007.

2005, the Central American Free Trade Agreement was signed; Itincludes the United States and the Dominican Republic.
http://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Good_(accounting)http://en.wikipedia.org/wiki/Labour_(economics)http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Marrakech_Agreementhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/Most_favoured_nationhttp://en.wikipedia.org/wiki/Most_favoured_nationhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/Most_favoured_nationhttp://en.wikipedia.org/wiki/Most_favoured_nationhttp://en.wikipedia.org/wiki/Central_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Central_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Most_favoured_nationhttp://en.wikipedia.org/wiki/Most_favoured_nationhttp://en.wikipedia.org/wiki/Free_tradehttp://en.wikipedia.org/wiki/World_Trade_Organizationhttp://en.wikipedia.org/wiki/Marrakech_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/North_American_Free_Trade_Agreementhttp://en.wikipedia.org/wiki/Labour_(economics)http://en.wikipedia.org/wiki/Good_(accounting)http://en.wikipedia.org/wiki/European_Union


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PROTECTIONISM

Protectionism is the policy of restraining anddiscouraging trade between states andcontrasts with the policy of free trade.

This policy often takes of form oftariffs andrestrictive quotas.

Protectionist policies were particularly

prevalent in the 1930s, between the greatdepression and the onset of World War II.
http://en.wikipedia.org/wiki/Tariffshttp://en.wikipedia.org/wiki/Import_quotahttp://en.wikipedia.org/wiki/Great_depressionhttp://en.wikipedia.org/wiki/Great_depressionhttp://en.wikipedia.org/wiki/Great_depressionhttp://en.wikipedia.org/wiki/Great_depressionhttp://en.wikipedia.org/wiki/Import_quotahttp://en.wikipedia.org/wiki/Tariffs


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RELIGION

Muslim teachings encourage trading (andcondemn usury).

Judeo-Christian teachings encourage tradersto avoid dishonest gain
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DEVELOPMENT OF MONEY

The first instances of money were objects

with intrinsic value. This is called commodity money and includes

any commonly available commodity that hasintrinsic value; historical examples include

pigs, rare seashells, whale's teeth, and (often)cattle.

In medieval Iraq, bread was used as an early

form of money. In Mexico under Montezuma cocoa beans

were money.
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Currency was introduced as a standardisedmoney to facilitate a wider exchange of goodsand services.

This first stage of currency, where metals wereused to represent stored value, and symbols torepresent commodities, formed the basis of

trade in the Fertile Crescent for over 1500 years. Numismatists have examples of coins from the

earliest large-scale societies, although thesewere initially unmarked lumps of precious metal.

Ancient Sparta minted coins from iron todiscourage its citizens from engaging in foreigntrade.
http://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Numismatisthttp://en.wikipedia.org/wiki/Precious_metalhttp://en.wikipedia.org/wiki/Coinshttp://en.wikipedia.org/wiki/Coinshttp://en.wikipedia.org/wiki/Precious_metalhttp://en.wikipedia.org/wiki/Numismatisthttp://en.wikipedia.org/wiki/Currency


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CURRENT TRENDS Doha rounds.

The Doha round of World Trade Organization negotiationsaims to lower barriers to trade around the world, with afocus on making trade fairer for developing countries.

Talks have been hung over a divide between therich developed countries, represented by the G20, and themajor developing countries.

Agricultural subsidies are the most significant issue uponwhich agreement has been hardest to negotiate.

By contrast, there was much agreement on tradefacilitation and capacity building.

The Doha round began in Doha, Qatar, and negotiationshave subsequently continued in: Cancn,Mexico; Geneva, Switzerland; and Paris, France and HongKong.
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CHINA Beginning around 1978, the government of

the People's Republic of China (PRC) began an

experiment in economic reform. In contrast to the previous Soviet-style centrally

planned economy, the new measures progressivelyrelaxed restrictions on farming, agriculturaldistribution and, several years later, urban enterprisesand labour.

The more market-oriented approach reducedinefficiencies and stimulated private investment,particularly by farmers, that led to increased

productivity and output. One feature was theestablishment of four (later five) Special EconomicZones located along the South-east coast.
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The reforms proved spectacularly successfulin terms of increased output, variety,

quality, price and demand. In real terms, the economy doubled in size

between 1978 and 1986, doubled again by

1994, and again by 2003. In 2008, China's two-way trade totaled

US$2.56 trillion.

In 1991 the PRC joined the Asia-PacificEconomic Cooperation group, a trade-promotion forum. In 2001, it also joined theWorld Trade Organization.
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INTERNATIONAL TRADE

International trade is the exchange of goods and

services across national borders. In most countries, it represents a significant part

ofGDP. While international trade has been presentthroughout much of history (see Silk Road, Amber

Road), its economic, social, and politicalimportance have increased in recent centuries,mainly because ofIndustrialization, advancedtransportation, globalization , multinational

corporations, and outsourcing. In fact, it is probably the increasing prevalence of

international trade that is usually meant by theterm "globalization".
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Empirical evidence for the success of tradecan be seen in the contrast between countries

such as South Korea, which adopted a policyofexport-oriented industrialization, and India,which historically had a more closed policy

(although it has begun to open its economy,as of 2005)

South Korea has done much better by

economic criteria than India over the past fiftyyears, though its success also has to do witheffective state institutions.
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TRADE SANCTIONS

Trade sanctions against a specific country aresometimes imposed, in order to punish thatcountry for some action.

An embargo, a severe form of externallyimposed isolation, is a blockade of all trade byone country on another.

For example, the United States has hadan embargo against Cuba for over 40 years.
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TRADE BARRIERS

Although there are usually few trade restrictionswithin countries, international trade is usuallyregulated by governmental quotas andrestrictions, and often taxed by tariffs.

Tariffs are usually on imports, but sometimescountries may impose export tariffs or subsidies.All of these are called trade barriers.

If a government removes all trade barriers, a

condition of free trade exists. A government that implements a protectionist

policy establishes trade barriers.
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FAIR TRADE

The fair trade movement, also known as the tradejustice movement, promotes the useoflabour, environmental and social standards for theproduction ofcommodities, particularly thoseexported from the Third and Second Worlds tothe First World.

Such ideas have also sparked a debate on whethertrade itself should be codified as a human right.

Importing firms voluntarily adhere to fair tradestandards or governments may enforce them througha combination ofemployment and commercial law.
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Proposed and practiced fair trade policiesvary widely, ranging from the common

prohibition ofgoods made using slavelabour to minimum price support schemessuch as those for coffee in the 1980s.

Non-governmental organizations also play arole in promoting fair trade standards byserving as independent monitors of

compliance with fair trade labelingrequirements.
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THANK U

trade introdution

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