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Showing posts from January 23, 2010

International Trade

Chapter 9
Trade may be conducted at two levels international and national
International trade is the exchange of goods and services among countries across national boundaries.
Countries need to trade to obtain commodities
The initial form of trade in primitive societies was the barter system

The difficulties of barter system were overcome by the introduction of money.

The Silk Route is an early example of long distance trade connecting Rome to China along the 6,000 km route. The traders transported Chinese silk, Roman wool and precious metals and many other high value commodities from intermediate points in India, Persia and Central Asia.
Fifteenth 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 plantati…