What Is Trade?
Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. Economists refer to a system or network that enables trade as a market. One of the earliest forms of commerce, the gift economy, saw the exchange of goods and services without an explicit agreement for immediate or future rewards. A gift economy involves the trading of things without using money. Modern traders usually trade through a medium of exchange, such as money. Therefore, the purchase can be separated from the sale, or win. The invention of money greatly simplified and facilitated commerce. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade. In a modern view, trade exists due to specialization and division of labor, a predominant form of economic activity in which individuals and groups focus on a small aspect of production, but use their production in exchange. other products and needs. Trade exists between regions because different regions may have a comparative advantage in the production of certain marketable goods, including the production of scarce or limited natural resources elsewhere.For example: different sizes of regions can promote mass production. Under such circumstances, trading at market prices between locations can benefit both locations. Retailing is the sale of goods or merchandise from a very fixed location, online or by mail, in small lots or single lots for consumption or direct use by the buyer. Wholesale trade refers to the trafficking of goods sold as goods to retailers, or to industrial, commercial, institutional or other professional users, or to other wholesalers and related subordinate services. Historically, openness to free trade increased dramatically in some areas from 1815 to the outbreak of World War I in 1914. Trade openness increased again during the 1920s, but collapsed during the Great Depression of the 1930s. Trade openness increased dramatically again from the 1950s. Economists and economic historians argue that current levels of trade openness are the highest ever. and similar to the old English tredan.Trade derives from the Latin commercium, from cum "together" and merx, "commodity. Prehistoric History Trade arose out of human communication in prehistoric times. Trade was the main structure of prehistoric people, who traded goods and services in a gift economy before modern money innovation. Peter Watson traces the history of long-distance commerce years ago. In the Mediterranean region, the first contact between cultures involved members of the species Homo sapiens, mainly using the Danube, until "Beginning of 35,000 - 30,000 BP. Some trace the origins of commerce back to the beginning of transactions in prehistoric times. In addition to traditional self-sufficiency, trade became a main structure for prehistoric peoples, who traded what they had for goods and services. Ancient historyTrade is thought to have taken place for much of recorded human history. There is evidence of the exchange of obsidian and flint during the Stone Age. The obsidian trade is said to have taken place in New Guinea since 17,000 BC. Robert Carr Bosanquet studied the Stone Age trade from excavations in 1901. The trade is thought to have begun in Southwest Asia. Archaeological evidence of obsidian use provides data on how this material was increasingly the preferred choice rather than late Mesolithic to Neolithic flint, requiring exchange because obsidian deposits are rare in the Mediterranean region. Obsidian is thought to have provided the material for making tools or cutting tools, although other more readily available materials were available, the use was found to be exclusive to the higher status of the tribe that uses "the rich flints of the man ". Interestingly, obsidian has retained its value relative to flint. The first traders traded obsidian at distances of 900 kilometers in the Mediterranean region. Trade in the Mediterranean in Europe's Neolithic was the most important of this material.Nets existed around 12,000 BC. Anatolia was the main source of trade with the Levant, Iran and Egypt according to the 1990 Zarins study. The sources of Melos and Lipari produced some of the most widespread trade in the Mediterranean region known from archeology. The SariiSang mine in the mountains of Afghanistan was the largest source for the lapis lazuli trade. The material was widely marketed during the Kassite period of Babylon from 1595 BC.
International Trade
What Is International/Global Trade?
Later trade
Subsequent trade in the Mediterranean and the Near East Ebla was an important trading center during the third millennium, with a network reaching Anatolia and northern Mesopotamia. The materials used to create jewelry were traded with Egypt from 3000 BC. Long-distance trade routes first appeared in the 3rd millennium BC. , when the Sumerians of Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were well-known maritime traders, who traveled across the Mediterranean Sea and to Brittany for sources of tin for making bronze. To this end, they established trading colonies that the Greeks called emporia. Along the Mediterranean coast, researchers have found a positive relationship between the degree of connection of a coastal location and the local prevalence of Iron Age archaeological sites. This suggests that the commercial potential of a place was a determining factor in human settlements, including India and China.Roman trade allowed his empire to prosper and endure. This later Roman Republic and the Pax Romana of the Roman Empire produced a stable and secure transport network that allowed the shipment of goods without fear of significant piracy, as Rome had become the only effective maritime power in the Mediterranean with the conquest from Egypt and the Near East. In ancient Greece Hermes was the god of commerce and weights and measures, for the Romans Mercury was also the god of merchants, whose feast was celebrated by merchants on the 25th of the fifth month. of the ancient Greek states. Free trade between states was stifled by the need for strict internal controls to maintain security within the sovereign's treasury, which nevertheless allowed the maintenance of a minimum of civilization in the structures of functional community life. The fall of the Roman Empire and the Dark Ages that followed led to instability in Western Europe and a virtual collapse of the trade network in the Western world. Trade, however, continued to flourish between the kingdoms of Africa, the Middle East, India, China, and Southeast Asia. Some exchanges have taken place in the West. For example, the Radhanites were a medieval guild or group of Jewish merchants who traded between Christians from Europe and Muslims from the Near East. trademark
global trade management
Indo-Pacific
The first true maritime trade network in the Indian Ocean was that of the Austronesian peoples of the island of Southeast Asia, initiated by the animist indigenous peoples of Taiwan and the Philippines, the Maritime Jade Road was a vast trading network connecting several regions of South - East and East Asia. Its main products were made from jade mined from Taiwan by Taiwanese animist indigenous peoples and processed primarily in the Philippines by indigenous animist Filipinos, especially in Batanes, Luzon and Palawan. Some also worked in Vietnam, while the people of Malaysia, Brunei, Singapore, Thailand, Indonesia and Cambodia also participated in the massive animist trade network. The participants in the network then had a majority animist population. The sea route is one of the most extensive maritime trade networks of a single geological material in the prehistoric world. It has been around for at least 3,000 years, and its peak production dates back to 2000 BC. to AD 500, older than the Silk Road in mainland Eurasia and the subsequent Maritime Silk Road. The Sea Jade Way began to decline in its final centuries from AD 500. to 1000 AD The entire period of the network was a golden age for the various animist societies in the region. Sailors from Southeast Asia also established trade routes with southern India and Sri Lanka as early as 1500 BC, ushering in an exchange of material culture and worship; as well as connecting the material cultures of India and China. Indonesians, in particular, traded spices with East Africa using catamarans and rocking boats and sailing with the help of westerly winds in the Indian Ocean.This trade network expanded to reach Africa and the Arabian Peninsula, resulting in the Austronesian colonization of Madagascar in the first half of the first millennium AD. It continued until historic times, later becoming the Maritime Silk Road. Mesoamerica The emergence of trade networks in pre-Columbian societies in Mexico and neighboring Mexico is known to have occurred in recent years before and after 1500 BC.
Middle Ages
In the Middle Ages, trade developed in Europe by exchanging luxury products at fairs. Wealth was converted into mobile wealth or capital. Developed banking systems in which account money was transferred across national borders. Markets gradually became a feature of city life and were regulated by municipal authorities. Western Europe has established a complex and extensive trade network, with freighters being the main workhorse for the movement of goods, with Cogs and Hulks being two examples of such freighters. Many ports would develop their own extensive trade networks. The English port city of Bristol traded with the peoples of present-day Iceland, all along the west coast of France and up to what is now Spain. In the Middle Ages, Central Asia was the economic center of the world. The Sogdians dominated the east-west trade route known as the Silk Road after the 4th century AD. until the 8th century AD, with Suyab and Talas among their main centers in the north. they were the main caravan merchants of Central Asia.From the 8th to the 11th century, the Vikings and the Varangians traded as they sailed to and from Scandinavia. The Vikings sailed to Western Europe, while the Varangians to Russia. The Hanseatic League was an alliance of trading towns that maintained a trading monopoly over most of northern Europe and the Baltic, between the 13th and 17th centuries. The Age of Sailing and the Industrial Revolution Vasco da Gama pioneered the European spice trade in 1498 when he reached Calicut after sailing around the Cape of Good Hope at the southern end of the African continent. Europe from India was controlled by the Islamic powers, especially Egypt. . The spice trade was of great economic importance and helped spur the Age of Discovery in Europe. Spices imported from the eastern world to Europe were among the most valuable raw materials for their weight, sometimes rivaling gold. From 1070, the West African kingdoms became important members of world trade. This is primarily due to the movement of gold and other resources sent by Muslim traders over the Trans-Saharan trade network.In the 16th and 17th centuries, the Portuguese gained an economic advantage in the Kingdom of Kongo through various business philosophies. 20th Century The Great Depression was a severe economic recession that lasted from 1929 to the late 1930s. During this period there was a sharp decline in trade and other economic indicators. The lack of free trade was seen by many to be the main cause of the depression that caused stagnation and inflation. It was not until World War II that the recession in the United States ended. Even during the war, in 1944, 44 countries signed the Bretton Woods Agreement, intended to prevent national trade barriers, to avoid depressions. It established rules and institutions to regulate the international political economy: the International Monetary Fund and the International Bank for Reconstruction and Development. These organizations became operational in 1946 after a sufficient number of countries had ratified the agreement. In 1947, 23 countries entered into the General Agreement on Tariffs and Trade to promote free trade.
The European Union
The European Union has become the world's largest exporter of manufactured goods and services, the largest export market for some 80 countries. 21st century Commerce today is only a subset of a complex system of companies seeking to maximize their profits by bringing products and services to market at the lowest cost of production. An international trading system has helped develop the world economy but, in combination with bilateral or multilateral agreements to lower tariffs or achieve free trade, has sometimes damaged third world markets for local products. Free trade Free trade made further progress between the end of the 20th century and the beginning of the 2000s: in 1992, the European Union lifted the barriers to internal trade in goods and labor. On January 1, 1994, the North American Free Trade Agreement came into effect. 1994 The Marrakesh Agreement of the GATT specifies the formation of the WTO. 1, 1995 The World Trade Organization was created to facilitate free trade by enforcing reciprocal most-favored-nation trade status among all signatories.The EC was transformed into the European Union, which created the Economic and Monetary Union in 2002, introducing the euro, thus creating a true single market among 13 member states. From January 1, 2007-2005, the Central American Free Trade Agreement was signed; Includes the United States and the Dominican Republic. Prospects Protectionism Protectionism is the policy of restricting and discouraging trade between states and contrasts with the policy of free trade. This policy often takes the form of restrictive tariffs and quotas. Protectionist policies were particularly prevalent in the 1930s, between the Great Depression and the start of World War II. Religion Islamic teachings encourage commerce. Judeo-Christian teachings prohibit fraud and dishonest actions, and historically also prohibit the application of interest on loans.Development of Money The earliest examples of money were objects of intrinsic value. This is called commodity money and includes any commonly available asset that has intrinsic value; historical examples include pigs, rare seashells, whale teeth, and cattle. In medieval Iraq, bread was used as the first form of currency. In Mexico under Montezuma, cocoa beans were money. Money was introduced as a standardized currency to facilitate a wider exchange of goods and services. This early phase of money, in which metals were used to represent stored value and symbols to represent commodities, formed the basis of commerce in the Fertile Crescent for over 1,500 years. Numismatists have examples of coins from the first large-scale company, although initially they were unmarked precious metal coins.
Doha rounds
Doha rounds The Doha Round negotiations of the World Trade Organization aimed to reduce trade barriers around the world, with the aim of making trade fairer for developing countries. Talks have been suspended on a gap between rich developed countries, represented by the G20, and large developing countries. Agricultural subsidies are the most important issue on which the agreement has been the most difficult to negotiate. On the contrary, there was a lot of agreement on trade facilitation and capacity building. The Doha Round began in Doha, Qatar, and negotiations continued in: Cancun, Mexico; Geneva, Switzerland; and Paris, France and Hong Kong.
China
China From 1978, the government of the People's Republic of China initiated an experiment in economic reform. Unlike the old Soviet-style planned economy, the new measures gradually relaxed restrictions on agriculture, agricultural distribution and, a few years later, urban businesses and labor. The more market-oriented approach reduced inefficiencies and stimulated private investment, especially from farmers, which led to increased productivity and production.One of the features was the creation of four special economic zones located along the southeast coast. The reforms have been spectacularly successful in terms of increasing production, variety, quality, prices and demand. In real terms, the economy doubled between 1978 and 1986, doubled again in 1994 and again in 2003. On a real per capita basis, the doubling from the 1978 base occurred in 1
, 1996 and 2006. In 2008, the economy was 16.7 times the size of 1978 and 12.1 times its previous levels per capita. International trade has grown even faster, doubling on average every 4.5 years. Total bilateral trade in January 1998 exceeded that of 1978 as a whole; in the first quarter of 2009, trade exceeded the level of 1998.In 2008, China's two-way trade amounted to $ 2.56 trillion. In 1991, China joined the Asia-Pacific Economic Cooperation Group, a trade promotion forum. In 2001, it also joined the World Trade Organization. International trade International trade is the exchange of goods and services across national borders. In most countries, it represents a significant share of GDP. While international trade has been present for much of history, its economic, social and political dimension has increased over the past few centuries, mainly due to industrialization, advanced transport, globalization, multinationals and outsourcing. The empirical evidence for the success of trade can be seen in the contrast between countries like South Korea, which adopted an export-oriented policy of industrialization, and India, which historically had a more closed policy. South Korea has achieved much better economic benchmarks than India over the past fifty years, although its success is also linked to effective state institutions.
