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INTERNATIONAL TRADE HISTORY - Coggle Diagram

- - - - Origin of Modern Trade
        
        Political Frictions
        
        Technical Revolution
        
        Search for the Markets
        
        Mercantilist Period
        
        Just as Columbus
        landed in the west Indies and Vasco da Gama reached India in search
        of trade avenues beyond the borders of industrialised nations, so also
        need was felt to search new markets which could absorb the surplus of
        industrial production
        
        Technological developments created disparities among the nations
        of the world. The mechanised economy was a monopoly of a few nations
        in the world during nineteenth century, it was at the cost of hundreds of
        millions of poverty
        
        There were a problems between germany and great britain By the end of the nineteenth century, Germany had become a first rate sea power. After having established commercial relations with
        South America, China and Japan, Germany could challenge Great
        Britain in the latter's customary overseas markets and even in the British
        colonies
        
        In the fourth century B.C. world trade expanded from two centres,
        from Greece and Rome eastward and from China southward and
        westward. Chinese merchants reached Malaya, Java, Ceylon and the
        eastern coast of India by sea and pushed overland across the expanses
        of Asia to the valleys of the Indus and to Persia, Syria and the Black
        Sea.
      - Very early traders discovered that long-distance trade was the most
        profitable and that they could cover great distance with the primitive
        means of transportation at their disposal. The products of India, of
        Arabia, and even those of Central Africa were dispatched from Arabia
        to Babylonia, to Syria to Egypt, or even much farther to north and
        south
  - - - Revival of Protectionism
        
        In the
        latter half of the 19th century, many governments started levying tariff
        duties to gain funds for rising government expenditure on defence, social
        and economic development schemes
      - Its goals have included stabilisation of exchange
        rates, support of national currencies, increase in productivity, elimination
        of obstacles to international trade, limitation of quantitative restrictions
        on imports, reduction of tariffs, restoration of exports disorganised by
        the war, promotion of multilateral trade (trade between many countries)
  - - - The import taxes, which were created to protect the prices of national products
    - - So it is concerned with physical prohibition of a commodity
        beyond a given limit. Quota is assigned on the amount of
        imports/exports which is permitted by the government
    - - Avoid attempts to establish complete government domination over
        the foreign exchange
    - - It refers to the government's
        participation in the foreign trade. It implies partial or complete
        state monopoly in international trade.
    - - Avoid unfair price competition in international trade
    - - Subsidy is a type of concession
        given by the government to the producer engaged in export
    - - the ban on importing a product into a certain country
  - - - Growth of World Trade (1991-2000)
        
        The decade of nineties saw the era of free trade. There was
        transformatin of countries economies from 'regulated' to 'liberalised',
        from 'protective' to 'integrative' and from 'planned economy' to 'market
        economy'.
      - The world economy became more unstable since 1973 due to
        instability of prices and exchange rates. After that, there was increase in protectionism in industrial countries. An undesirable feature of protectionism has been the use of non-tariff
        barriers, e.g., voluntary export restraints, subsidies, exchange rate
        manipulation, anti-dumping and countervailing measures.
- - - - Taking 1938-39 as the base year it is found that India's foreign
        trade declined by 50 per cent during the second World War period. This decline in India's foreign trade was for the reason that India could not trade with the enemy countries and also with certain neutral countries like Sweden and Switzerland as they were situated near the enemy countries