Question
Write a brief note on ‘history of international trade’.
Solution
History of International Trade:
(i) In ancient times, transporting goods over long distances was risky thus trade was restricted to local markets. People then spent most of their resources on basic necessities - food, clothes. Only the rich people brought jewellery, showy dresses and this resulted in the trade of luxury items.
(i) In ancient times, transporting goods over long distances was risky thus trade was restricted to local markets. People then spent most of their resources on basic necessities - food, clothes. Only the rich people brought jewellery, showy dresses and this resulted in the trade of luxury items.
The Silk Route is an early example of long distance trade connecting Rome to China - along 6000 km route, and the traders transported Chinese silk, Roman wool and precious metals and many other high value commodities from intermediate points in India and Arabia.
(ii) After the disintegration of the Roman Empire, European commerce grew during 12th and 13th century with the development of ocean going warships trade between Europe and Asia grew and the Americas were discovered.
(iii) 15th century onwards, the European colonialism began and along with trade of exotic commodities, a new form of trade emerged which was called slave trade. The Portuguese, Dutch, Spaniards, and British captured African natives and forcefully transported them to the newly discovered Americas for their labour in the plantations. Slave trade was a lucrative business for more than two hundred years till it was abolished in Denmark in 1792, Great Britain in 1807 and United States in 1808.
(iv) After the Industrial Revolution the demand for raw materials like grains, meat, wool also expanded, but their monetary value declined in relation to the manufactured goods.
(v) In the later half of the 19th century, regions producing primary goods were no more important and Industrial nations became each other's principle customers. During two World Wars countries imposed trade taxes and quantitative restrictions for the first time. During the Post War period, organisations like GATT (which later become WTO), helped in reducing traffs.
