Trade

Short description: Exchange of goods and services

Two traders in 16th century Germany The San Juan de Dios Market in Guadalajara, Jalisco The Liberty to Trade as Buttressed by National Law (1909) by George Howard Earle, Jr. Business administration

Management of a business

Accounting

* Management accounting
* Financial accounting
* Financial audit

Business entities

* Corporate group
* Conglomerate
* Holding company
* Cooperative
* Corporation
* Joint-stock company
* Limited liability company
* Partnership
* Privately held company
* Sole proprietorship
* State-owned enterprise

Corporate governance

* Annual general meeting
* Board of directors
* Supervisory board
* Advisory board
* Audit committee

Corporate law

* Commercial law
* Constitutional documents
* Contract
* Corporate crime
* Corporate liability
* Insolvency law
* International trade law
* Mergers and acquisitions

Corporate title

* Chairman
* Chief business officer/Chief brand officer
* Chief executive officer/Chief operating officer
* Chief financial officer
* Chief human resources officer
* Chief information officer/Chief marketing officer
* Chief product officer/Chief technology officer

Economics

* Commodity
* Public economics
* Labour economics
* Development economics
* International economics
* Mixed economy
* Planned economy
* Econometrics
* Environmental economics
* Open economy
* Market economy
* Knowledge economy
* Microeconomics
* Macroeconomics
* Economic development
* Economic statistics

Finance

* Financial statement
* Insurance
* Factoring
* Cash conversion cycle
* Insider dealing
* Capital budgeting
* Commercial bank
* Derivative
* Financial statement analysis
* Financial risk
* Public finance
* Corporate finance
* Managerial finance
* International finance
* Liquidation
* Stock market
* Financial market
* Tax
* Financial institution
* Working capital
* Venture capital

Types of management

* Asset
* Brand
* Business intelligence
* Business development
* Capacity
* Change
* innovation
* Commercial
* marketing
* Communications
* Configuration
* Conflict
* Content
* Customer relationship
* Distributed
* Earned value
* Electronic business
* Enterprise resource planning
* management information system
* Financial
* Human resource
* development
* Incident
* Integrated
* Knowledge
* Materials
* Network
* administrator
* Office
* Operations
* services
* Performance
* Power
* Problem
* Process
* Product life-cycle
* Product
* Project
* Quality
* Records
* Resource
* Risk
* crisis
* Sales
* Security
* Service
* Strategic
* Supply chain
* Systems
* administrator
* Talent
* Technology

Organization

* Architecture
* Behavior
* Communication
* Culture
* Conflict
* Development
* Engineering
* Hierarchy
* Patterns
* Space
* Structure

Trade

* Business analysis
* Business ethics
* Business plan
* Business judgment rule
* Consumer behaviour
* Business operations
* International business
* Business model
* International trade
* Business process
* Business statistics

* v
* t
* e

Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.

An early form of trade, barter, saw the direct exchange of goods and services for other goods and services,[1] i.e. trading things without the use of money.[1] Modern traders generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and letters of credit, paper money, and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade.

In one modern view, trade exists due to specialization and the division of labor, a predominant form of economic activity in which individuals and groups concentrate on a small aspect of production, but use their output in trade for other products and needs.[2] Trade exists between regions because different regions may have a comparative advantage (perceived or real) in the production of some trade-able commodity - including the production of scarce or limited natural resources elsewhere. For example, different regions' sizes may encourage mass production. In such circumstances, trading at market price between locations can benefit both locations. Different types of traders may specialize in trading different kinds of goods; for example, the spice trade and grain trade have both historically been important in the development of a global, international economy.

A busy market in Mile 12. Lagos - Nigeria

Retail trade consists of the sale of goods or merchandise from a very fixed location[3] (such as a department store, boutique, or kiosk), online or by mail, in small or individual lots for direct consumption or use by the purchaser.[4] Wholesale trade is the traffic in goods that are sold as merchandise to retailers, industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.

Historically, openness to free trade substantially increased in some areas from 1815 until the outbreak of World War I in 1914. Trade openness increased again during the 1920s but collapsed (in particular in Europe and North America) during the Great Depression of the 1930s. Trade openness increased substantially again from the 1950s onward (albeit with a slowdown during the oil crisis of the 1970s). Economists and economic historians contend that current levels of trade openness are the highest they have ever been.[5][6][7]

## Contents

* 1 Etymology
* 2 History
* 2.1 Prehistory
* 2.2 Ancient history
* 2.3 Later trade
* 2.3.1 Mediterranean and Near East
* 2.3.2 Indo-Pacific
* 2.3.3 Mesoamerica
* 2.4 Middle Ages
* 2.5 The Age of Sail and the Industrial Revolution
* 2.6 19th century
* 2.7 20th century
* 2.8 21st century
* 2.9 Free trade
* 3 Perspectives
* 3.1 Protectionism
* 3.2 Religion
* 3.3 Development of money
* 4 Trends
* 4.1 Doha rounds
* 4.2 China
* 5 International trade
* 5.1 Trade sanctions
* 5.2 Fair trade
* 6 See also
* 7 Notes
* 8 Bibliography
* 9 External links

## Etymology

Trade is from Middle English trade ("path, course of conduct"), introduced into English by Hanseatic merchants, from Middle Low German trade ("track, course"), from Old Saxon trada ("spoor, track"), from Proto-Germanic *tradō ("track, way"), and cognate with Old English tredan ("to tread").

Commerce is derived from the Latin commercium, from cum "together" and merx, "merchandise."[8]

## History

### Prehistory

Trade originated from human communication in prehistoric times. Trading was the main facility of prehistoric people,[citation needed] who exchanged goods and services with each other in a gift economy before the innovation of modern-day currency. Peter Watson dates the history of long-distance commerce to c. 150,000 years ago.[9]

In the Mediterranean region, the earliest contact between cultures involved members of the species Homo sapiens, principally using the Danube river, at a time beginning 35,000–30,000 BP.[10][11][12][13][need quotation to verify]

Some[who?] trace the origins of commerce to the very start of transactions in prehistoric times. Apart from traditional self-sufficiency, trading became a principal facility for prehistoric people, who bartered what they had for goods and services from each other.

The caduceus, traditionally associated with Mercury (the Roman patron-god of merchants), continues in use as a symbol of commerce.[14]

### Ancient history

Ancient Etruscan "aryballoi" terracota vessels unearthed in the 1860s at Bolshaya Bliznitsa tumulus near Phanagoria, South Russia (formerly part of the Bosporan Kingdom of Cimmerian Bosporus, present-day Taman Peninsula); on exhibit at the Hermitage Museum in Saint Petersburg

Trade is believed to have taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the Stone Age. Trade in obsidian is believed to have taken place in New Guinea from 17,000 BCE.[15][16]

> The earliest use of obsidian in the Near East dates to the Lower and Middle paleolithic.[17]

> -- HIH Prince Mikasa no Miya Takahito

Robert Carr Bosanquet investigated trade in the Stone Age by excavations in 1901.[18][19] Trade is believed[by whom?] to have first begun in south west Asia.[20][21]

Archaeological evidence of obsidian use provides data on how this material was increasingly the preferred choice rather than chert from the late Mesolithic to Neolithic, requiring exchange as deposits of obsidian are rare in the Mediterranean region.[22][23][24]

Obsidian provided the material to make cutting utensils or tools, although since other more easily obtainable materials were available, use was exclusive to the higher status of the tribe using "the rich man's flint".[25] Interestingly, Obsidian has held its value relative to flint.

Early traders traded Obsidian at distances of 900 kilometres within the Mediterranean region.[26]

Trade in the Mediterranean during the Neolithic of Europe was greatest in this material.[22][27] Networks were in existence at around 12,000 BCE[28] Anatolia was the source primarily for trade with the Levant, Iran and Egypt according to Zarins study of 1990.[29][30][31] Melos and Lipari sources produced among the most widespread trading in the Mediterranean region as known to archaeology.[32]

The Sari-i-Sang mine in the mountains of Afghanistan was the largest source for trade of lapis lazuli.[33][34] The material was most largely traded during the Kassite period of Babylonia beginning 1595 BCE.[35][36]

### Later trade

#### Mediterranean and Near East

Ebla was a prominent trading center during the third millennia BCE, with a network reaching into Anatolia and north Mesopotamia.[32][37][38][39]

A map of the Silk Road trade route between Europe and Asia

Materials used for creating jewelry were traded with Egypt since 3000 BCE. Long-range trade routes first appeared in the 3rd millennium BCE, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, traveling across the Mediterranean Sea, and as far north as Britain for sources of tin to manufacture bronze. For this purpose they established trade colonies the Greeks called emporia.[40] Along the coast of the Mediterranean, researchers have found a positive relationship between how well-connected a coastal location was and the local prevalence of archaeological sites from the Iron Age. This suggests that a location's trade potential was an important determinant of human settlements.[41]

From the beginning of Greek civilization until the fall of the Roman Empire in the 5th century, a financially lucrative trade brought valuable spice to Europe from the far east, including India and China. Roman commerce allowed its empire to flourish and endure. The latter Roman Republic and the Pax Romana of the Roman empire produced a stable and secure transportation network that enabled the shipment of trade goods without fear of significant piracy, as Rome had become the sole effective sea power in the Mediterranean with the conquest of Egypt and the near east.[42]

In ancient Greece Hermes was the god of trade[43][44] (commerce) and weights and measures.[45] In ancient Rome, Mercurius was the god of merchants, whose festival was celebrated by traders on the 25th day of the fifth month.[46][47] The concept of free trade was an antithesis to the will and economic direction of the sovereigns of the ancient Greek states. Free trade between states was stifled by the need for strict internal controls (via taxation) to maintain security within the treasury of the sovereign, which nevertheless enabled the maintenance of a modicum of civility within the structures of functional community life.[48][49]

The fall of the Roman empire and the succeeding Dark Ages brought instability to Western Europe and a near-collapse of the trade network in the western world. Trade, however, continued to flourish among the kingdoms of Africa, the 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) of Jewish merchants who traded between the Christians in Europe and the Muslims of the Near East.[50]

#### Indo-Pacific

Austronesian proto-historic and historic maritime trade network in the Indian Ocean[51]

The first true maritime trade network in the Indian Ocean was by the Austronesian peoples of Island Southeast Asia.[51] Initiated by the indigenous peoples of Taiwan and the Philippines , the Maritime Jade Road was an extensive trading network connecting multiple areas in Southeast and East Asia. Its primary products were made of jade mined from Taiwan by Taiwanese indigenous peoples and processed mostly in the Philippines by indigenous Filipinos, especially in Batanes, Luzon, and Palawan. Some were also processed in Vietnam, while the peoples of Malaysia, Brunei, Singapore, Thailand, Indonesia, and Cambodia also participated in the massive trading network. The maritime road is one of the most extensive sea-based trade networks of a single geological material in the prehistoric world. It was in existence for at least 3,000 years, where its peak production was from 2000 BCE to 500 CE, older than the Silk Road in mainland Eurasia and the later Maritime Silk Road. The Maritime Jade Road began to wane during its final centuries from 500 CE until 1000 CE. The entire period of the network was a golden age for the diverse societies of the region.[52][53][54][55]

Sea-faring Southeast Asians also established trade routes with Southern India and Sri Lanka as early as 1500 BC, ushering an exchange of material culture (like catamarans, outrigger boats, sewn-plank boats, and paan) and cultigens (like coconuts, sandalwood, bananas, and sugarcane); as well as connecting the material cultures of India and China. Indonesians, in particular were trading in spices (mainly cinnamon and cassia) with East Africa using catamaran and outrigger boats and sailing with the help of the Westerlies in the Indian Ocean. This trade network expanded to reach as far as Africa and the Arabian Peninsula, resulting in the Austronesian colonization of Madagascar by the first half of the first millennium AD. It continued up to historic times, later becoming the Maritime Silk Road.[51][56][57][58][59]

#### Mesoamerica

Tajadero or axe money used as currency in Mesoamerica. It had a fixed worth of 8,000 cacao seeds, which were also used as currency.[60]

The emergence of exchange networks in the Pre-Columbian societies of and near to Mexico are known to have occurred within recent years before and after 1500 BCE.[61]

Trade networks reached north to Oasisamerica. There is evidence of established maritime trade with the cultures of northwestern South America and the Caribbean.

### Middle Ages

During the Middle Ages, commerce developed in Europe by trading luxury goods at trade fairs. Wealth became converted into movable wealth or capital. Banking systems developed where money on account was transferred across national boundaries. Hand to hand markets became a feature of town life and were regulated by town authorities.

Western Europe established a complex and expansive trade network with cargo ships being the main carrier of goods; Cogs and Hulks are two examples of such cargo ships.[62] Many ports would develop their own extensive trade networks. The English port city of Bristol traded with peoples from what is modern day Iceland, all along the western coast of France, and down to what is now Spain.[63]

A map showing the main trade routes for goods within late medieval Europe

During the Middle Ages, Central Asia was the economic center of the world.[64] The Sogdians dominated the east–west trade route known as the Silk Road after the 4th century CE up to the 8th century CE, with Suyab and Talas ranking among their main centers in the north. They were the main caravan merchants of Central Asia.

From the Middle Ages, the maritime republics, in particular Venice, Pisa and Genoa, played a key role in trade along the Mediterranean. From the 11th to the late 15th centuries, the Venetian Republic and the Republic of Genoa were major trade centers. They dominated trade in the Mediterranean and the Black Sea, having the monopoly between Europe and the Near East for centuries.[65][66]

From the 8th to the 11th century, the Vikings and Varangians traded as they sailed from and to Scandinavia. Vikings sailed to Western Europe, while Varangians to Russia. The Hanseatic League was an alliance of trading cities that maintained a trade monopoly over most of Northern Europe and the Baltic, between the 13th and 17th centuries.

### The Age of Sail and the Industrial Revolution

Portuguese explorer 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 tip of the African continent. Prior to this, the flow of spice into Europe from India was controlled by Islamic powers, especially Egypt. The spice trade was of major economic importance and helped spur the Age of Discovery in Europe. Spices brought to Europe from the Eastern world were some of the most valuable commodities for their weight, sometimes rivaling gold.

From 1070 onward, kingdoms in West Africa became significant members of global trade.[67] This came initially through the movement of gold and other resources sent out by Muslim traders on the Trans-Saharan trading network.[67] Beginning in the 16th century, European merchants would purchase gold, spices, cloth, timber and slaves from West African states as part of the triangular trade.[67] This was often in exchange for cloth, iron, or cowrie shells which were used locally as currency.[67]

Founded in 1352, the Bengal Sultanate was a major trading nation in the world and often referred to by Europeans as the wealthiest country with which to trade.[68]

In the 16th and 17th centuries, the Portuguese gained an economic advantage in the Kingdom of Kongo due to different philosophies of trade.[67] Whereas Portuguese traders concentrated on the accumulation of capital, in Kongo spiritual meaning was attached to many objects of trade. According to economic historian Toby Green, in Kongo "giving more than receiving was a symbol of spiritual and political power and privilege."[67]

In the 16th century, the Seventeen Provinces were the center of free trade, imposing no exchange controls, and advocating the free movement of goods. Trade in the East Indies was dominated by Portugal in the 16th century, the Dutch Republic in the 17th century, and the United Kingdom in the 18th century. The Spanish Empire developed regular trade links across both the Atlantic and the Pacific Oceans.

Danzig in the 17th century, a port of the Hanseatic League

In 1776, Adam Smith published the paper An Inquiry into the Nature and Causes of the Wealth of Nations. It criticized Mercantilism, and argued that economic specialization could benefit nations just as much as firms. Since the division of labour was restricted by the size of the market, he said that countries having access to larger markets would be able to divide labour more efficiently and thereby become more productive. Smith said that he considered all rationalizations of import and export controls "dupery", which hurt the trading nation as a whole for the benefit of specific industries.

In 1799, the Dutch East India Company, formerly the world's largest company, became bankrupt, partly due to the rise of competitive free trade.

Berber trade with Timbuktu, 1853

### 19th century

In 1817, David Ricardo, James Mill and Robert Torrens showed that free trade would benefit the industrially weak as well as the strong, in the famous theory of comparative advantage. In Principles of Political Economy and Taxation Ricardo advanced the doctrine still considered the most counterintuitive in economics:

When an inefficient producer sends the merchandise it produces best to a country able to produce it more efficiently, both countries benefit.

The ascendancy of free trade was primarily based on national advantage in the mid 19th century. That is, the calculation made was whether it was in any particular country's self-interest to open its borders to imports.

John Stuart Mill proved that a country with monopoly pricing power on the international market could manipulate the terms of trade through maintaining tariffs, and that the response to this might be reciprocity in trade policy. Ricardo and others had suggested this earlier. This was taken as evidence against the universal doctrine of free trade, as it was believed that more of the economic surplus of trade would accrue to a country following reciprocal, rather than completely free, trade policies. This was followed within a few years by the infant industry scenario developed by Mill promoting the theory that the government had the duty to protect young industries, although only for a time necessary for them to develop full capacity. This became the policy in many countries attempting to industrialize and out-compete English exporters. Milton Friedman later continued this vein of thought, showing that in a few circumstances tariffs might be beneficial to the host country; but never for the world at large.[69]

### 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 as a principal cause of the depression causing stagnation and inflation.[70] Only during World War II did the recession end in the United States. Also during the war, in 1944, 44 countries signed the Bretton Woods Agreement, intended to prevent national trade barriers, to avoid depressions. It set up rules and institutions to regulate the international political economy: the International Monetary Fund and the International Bank for Reconstruction and Development (later divided into the World Bank $ Bank for International Settlements). These organizations became operational in 1946 after enough countries ratified the agreement. In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade.[71]

The European Union became the world's largest exporter of manufactured goods and services, the biggest export market for around 80 countries.[72]

### 21st century

Today, trade is merely a subset within a complex system of companies which try to maximize their profits by offering products and services to the market (which consists both of individuals and other companies) at the lowest production cost. A system of international trade has helped to develop the world economy but, in combination with bilateral or multilateral agreements to lower tariffs or to achieve free trade, has sometimes harmed third-world markets for local products.

### Free trade

Main article: Social:Free trade

Free trade is a policy by which a government does not discriminate against imports or exports by applying tariffs or subsidies. This policy is also known as laissez-faire policy. This kind of policy does not necessarily imply because a country will then abandon all control and taxation of imports and exports.[73]

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 the WTO.
* January 1, 1995 World Trade Organization was created to facilitate free trade, by mandating mutual most favored nation trading status between all signatories.
* EC was transformed into the European Union, which accomplished the Economic and Monetary Union (EMU) in 2002, through introducing the Euro, and creating this way a real single market between 13 member states as of January 1, 2007.
* File:Accarias de Sérionne - Intérêts des nations de l'Europe, dévélopés relativement au commerce, 1766 - 5790093.tif2005, the Central American Free Trade Agreement was signed; It includes the United States and the Dominican Republic.

## Perspectives

### Protectionism

Main article: Finance:Protectionism

Protectionism is the policy of restraining and discouraging trade between states and contrasts with the policy of free trade. This policy often takes the form of tariffs and restrictive quotas. Protectionist policies were particularly prevalent in the 1930s, between the Great Depression and the onset of World War II.

### Religion

Islamic teachings encourage trading (and condemn usury or interest).[74][75]

Judeao-Christian teachings do not prohibit trade. They do prohibit fraud and dishonest measures. Historically they forbade charging interest on loans.[76][77]

### Development of money

A Roman denarius

The first instances of money were objects with intrinsic value. This is called commodity money and includes any commonly available commodity that has intrinsic 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 the Aztec Empire, under the rule of Montezuma cocoa beans became legitimate currency.[78]

Currency was introduced as standardised money to facilitate a wider exchange of goods and services. This first stage of currency, where metals were used to represent stored value, and symbols to represent 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 these were initially unmarked lumps of precious metal.[79]

## Trends

### Doha rounds

The Doha round of World Trade Organization negotiations aimed to lower barriers to trade around the world, with a focus on making trade fairer for developing countries. Talks have been hung over a divide between the rich developed countries, represented by the G20, and the major developing countries. Agricultural subsidies are the most significant issue upon which agreement has been the hardest to negotiate. By contrast, there was much agreement on trade facilitation and capacity building. The Doha round began in Doha, Qatar, and negotiations were continued in: Cancún, Mexico; Geneva, Switzerland; and Paris, France, and Hong Kong.[citation needed]

### 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 progressively relaxed restrictions on farming, agricultural distribution and, several years later, urban enterprises and labor. The more market-oriented approach reduced inefficiencies and stimulated private investment, particularly by farmers, which led to increased productivity and output. One feature was the establishment of four (later five) Special Economic Zones located along the South-east coast.[80]

The reforms proved spectacularly successful in 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. On a real per capita basis, doubling from the 1978 base took place in 1987, 1996 and 2006. By 2008, the economy was 16.7 times the size it was in 1978, and 12.1 times its previous per capita levels. International trade progressed even more rapidly, doubling on average every 4.5 years. Total two-way trade in January 1998 exceeded that for all of 1978; in the first quarter of 2009, trade exceeded the full-year 1998 level. In 2008, China's two-way trade totaled US$2.56 trillion.[81]

In 1991 China joined the Asia-Pacific Economic Cooperation group, a trade-promotion forum.[82] In 2001, it also joined the World Trade Organization.[83]

## International trade

Main article: Finance:International trade

Part of a series on

World trade

Policy

* Import
* Export
* Balance of trade
* Trade law
* Trade pact
* Trade bloc
* Trade creation
* Trade diversion
* Export orientation
* Import substitution
* Trade finance
* Trade facilitation
* Trade route
* Domestic trade
* Tax

Restrictions

* Trade barriers
* Tariffs
* Non-tariff barriers
* Import quotas
* Tariff-rate quotas
* Import licenses
* Customs duties
* Export subsidies
* Technical barriers
* Bribery
* Exchange rate controls
* Embargo
* Safeguards
* Countervailing duties
* Anti-dumping duties
* Voluntary export restraints

History

* Mercantilism
* Protectionism
* Laissez-faire
* Free trade
* Economic nationalism
* Economic integration

Organizations

* International Monetary Fund
* International Trade Centre
* World Trade Organization
* World Customs Organization
* International Chamber of Commerce

Economic integration

* Preferential trading area
* Free-trade area
* Currency union
* Customs union
* Single market
* Economic union
* Fiscal union
* Customs and monetary union
* Economic and monetary union

Issues

* Intellectual property rights
* Smuggling
* Competition policy
* Government procurement
* Outsourcing
* Globalization
* Fair trade
* Trade justice
* Emissions trading
* Trade sanctions
* War
* Currency war
* Trade costs
* Trade war
* Trade and development

Lists

* Imports
* Exports
* Tariffs
* Largest consumer markets
* Leading trade partners

By country

* Trade mission
* Trading nation
* United States
* Argentina
* Pakistan
* Romania
* Vietnam
* India

Theory

* Comparative advantage
* Competitive advantage
* Heckscher–Ohlin model
* New trade theory
* Economic geography
* Intra-industry trade
* Gravity model of trade
* Ricardian trade theories
* Balassa–Samuelson effect
* Linder hypothesis
* Leontief paradox
* Lerner symmetry theorem
* Terms of trade

* v
* t
* e

International trade is the exchange of goods and services across national borders. In most countries, it represents a significant part of GDP. While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance have increased in recent centuries, mainly because of Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing.[citation needed]

Empirical evidence for the success of trade can be seen in the contrast between countries such as South Korea , which adopted a policy of export-oriented industrialization, and India, which historically had a more closed policy. South Korea has done much better by economic criteria than India over the past fifty years, though its success also has to do with effective state institutions.[84]

### Trade sanctions

Trade sanctions against a specific country are sometimes imposed, in order to punish that country for some action. An embargo, a severe form of externally imposed isolation, is a blockade of all trade by one country on another. For example, the United States has had an embargo against Cuba for over 40 years.[85] Embargoes are usually on a temporary basis. For example, Armenia put a temporary embargo on Turkish products and bans any imports from Turkey on December 31, 2020. The situation is prompted by food security concerns given Turkey's hostile attitude towards Armenia.[86]

### Fair trade

The "fair trade" movement, also known as the "trade justice" movement, promotes the use of labour, environmental and social standards for the production of commodities, particularly those exported from the Third and Second Worlds to the First World. Such ideas have also sparked a debate on whether trade itself should be codified as a human right.[87]

Importing firms voluntarily adhere to fair trade standards or governments may enforce them through a combination of employment and commercial law. Proposed and practiced fair trade policies vary widely, ranging from the common prohibition of goods made using slave labour to minimum price support schemes such as those for coffee in the 1980s. Non-governmental organizations also play a role in promoting fair trade standards by serving as independent monitors of compliance with labeling requirements.[88][89] As such, it is a form of Protectionism.

## See also

* Commerce
* Business
* Economics

## Notes

1. ↑ 1.0 1.1 Samuelson, P (1939). "The Gains from International Trade". The Canadian Journal of Economics and Political Science 5 (2): 195–205. doi:10.2307/137133.
2. ↑ Dollar, D; Kraay, A (2004). "Trade, Growth, and Poverty". The Economic Journal 114 (493): F22–F49. doi:10.1111/j.0013-0133.2004.00186.x. http://econ.worldbank.org/files/1820_dollar.pdf. Retrieved 2017-10-26.
3. ↑ Compare peddling and other types of retail trade:Hoffman, K. Douglas, ed (2005). Marketing principles and best practices (3 ed.). Thomson/South-Western. p. 407. ISBN 978-0-324-22519-8. https://www.shantraader.co.in/. Retrieved 2018-05-03. "Five types of nonstore retailing will be discussed: street peddling, direct selling, mail-order, automatic-merchandising machine operators, and electronic shopping."
4. ↑ "Distribution Services". Foreign Agricultural Service. 2000-02-09. http://www.fas.usda.gov/info/factsheets/China/distribution.html.
5. ↑ Federico, Giovanni; Tena-Junguito, Antonio (2019). "World Trade, 1800-1938: A New Synthesis". Revista de Historia Economica – Journal of Iberian and Latin American Economic History 37 (1): 9–41. doi:10.1017/S0212610918000216. ISSN 0212-6109.
6. ↑ Federico, Giovanni; Tena-Junguito, Antonio (2018-07-28). "The World Trade Historical Database". https://voxeu.org/article/world-trade-historical-database.
7. ↑ Bown, C. P.; Crowley, M. A. (2016-01-01), Bagwell, Kyle; Staiger, Robert W., eds., The Empirical Landscape of Trade Policy, Handbook of Commercial Policy, 1, North-Holland, pp. 3–108, doi:10.1016/bs.hescop.2016.04.015, ISBN 978-0444632807, http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1624.pdf, retrieved 2019-10-07
8. ↑ Chisholm, Hugh, ed (1911). "Commerce". Encyclopædia Britannica. 6 (11th ed.). Cambridge University Press. p. 766.
9. ↑ Watson (2005), Introduction.
10. ↑ D Abulafia; O Rackham; M Suano (2011), The Mediterranean in History, Getty Publications, ISBN 978-1-60606-057-5, https://books.google.com/books?id=9Cvrq-Vs-2wC, retrieved 2019-09-07, "[...] the Danube played an extremely important role in connecting East and West before the Mediterranean became the main link between these regions. This period runs for about 25,000 years, from 35,000/30,000 to around 10,000/8,000 before the present."
11. ↑ Compare: Barbier, Edward (2015). "The Origins of Economic Wealth". Nature and Wealth: Overcoming Environmental Scarcity and Inequality. Springer. ISBN 978-1137403391. https://books.google.com/books?id=GlveCgAAQBAJ. Retrieved 7 September 2019. "Even before domestication of plants and animals occurred, long-distance trading networks were prominent among some hunter-gathering societies, such as the Natufians and other sedentary populations who inhabited the Eastern Mediterranean around 12,000-10,000 BC."
12. ↑ Stefansson, Vilhjalmur; Wilcox, Olive Rathbun, eds (2013). Great Adventures and Explorations: From the Earliest Times to the Present As Told by the Explorers Themselves. Literary Licensing. ISBN 978-1258868482. https://books.google.com/books?id=HdJrngEACAAJ&q= ISBN 1-4179-9090-2. Retrieved 2020-01-23.
13. ↑ National Maritime Historical Society. Sea History, Issues 13-25 published by National Maritime Historical Society 1979. Retrieved 2012-06-26
14. ↑ Hans Biedermann, James Hulbert (trans.), Dictionary of Symbolism Cultural Icons and the Meanings behind Them, p. 54.
15. ↑ Lowder, Gary George (1970). Studies in volcanic petrology: I. Talasea, New Guinea. II. Southwest Utah. University of California. https://books.google.com/books?id=LcESAQAAIAAJ.
16. ↑ Darvill, Timothy (2008). "obsidian". Concise Oxford Dictionary of Archaeology. Oxford Quick Reference (2 ed.). Oxford: Oxford University Press. ISBN 978-0191579042. https://books.google.com/books?id=gzEclkBq0u0C. Retrieved 7 September 2019. "[...] obsidian from Talasea was traded from at least 17 000 BC."
17. ↑ HIH Prince Mikasa no Miya Takahito – Essays on Anatolian Archaeology Otto Harrassowitz Verlag, 1993 Retrieved 2012-06-16
18. ↑ Vernon Horace Rendall, ed (1904). The Athenaeum. J. Francis. https://books.google.com/books?id=LDs6AQAAIAAJ. Retrieved 2016-10-26.
19. ↑ Donald A. Mackenzie – Myths of Crete and Pre-Hellenic Europe – published 1917 – ISBN 1-60506-375-4 Retrieved 2012-06-09
20. ↑ R L Smith (2008), Premodern Trade in World History, Taylor & Francis, ISBN 978-0-415-42476-9, https://books.google.com/books?id=Ewjeoio1U-QC&q=Obsidian+trade&pg=PA20, retrieved 2012-06-15
21. ↑ P Singh – Neolithic cultures of western Asia Seminar Press, 20 Aug 1974
22. ↑ 22.0 22.1 J Robb (2007), The Early Mediterranean Village: Agency, Material Culture, and Social Change in Neolithic Italy, Cambridge University Press, 23 July 2007, ISBN 978-0-521-84241-9, https://books.google.com/books?id=0HeNr9h56uEC&q=Obsidian+trade&pg=PA192, retrieved 2012-06-11
23. ↑ P Goldberg, V T Holliday, C Reid Ferring – Earth Sciences and Archaeology Springer, 2001 ISBN 0-306-46279-6 Retrieved 2012-06-28
24. ↑ S L Dyson, R J Rowland – Archaeology And History In Sardinia From The Stone Age To The Middle Ages: Shepherds, Sailors, & Conquerors University of Pennsylvania – Museum of Archaeology, 2007 ISBN 1-934536-02-4 Retrieved 2012-06-28
25. ↑ Smith, Richard L. (2008). Premodern Trade in World History. Themes in World History. Routledge. p. 19. ISBN 978-1134095803. https://books.google.com/books?id=WBB9AgAAQBAJ. Retrieved 7 September 2019. "[...] modern observers have sometimes referred to obsidian as 'rich man's flint.'"
26. ↑ Williams-Thorpe, O. (1995). "Obsidian in the Mediterranean and the Near East: A Provenancing Success Story". Archaeometry 37 (2): 217–48. doi:10.1111/j.1475-4754.1995.tb00740.x.
27. ↑ D Harper – etymology online Retrieved 2012-06-09
28. ↑ A. J. Andrea (2011), World History Encyclopedia, Volume 2, ABC-CLIO, ISBN 978-1-85109-930-6, https://books.google.com/books?id=LEqaIGsT8SsC&q=Obsidian+trade&pg=PA250, retrieved 2012-06-11
29. ↑ T A H Wilkinson – Early Dynastic Egypt: Strategies, Society and Security
30. ↑ secondary – [1] \+ + [2] \+ [3] \+ [4]
31. ↑ (was secondary)Pliny the Elder (translated by J Bostock, H T Riley) (1857), The natural history of Pliny, Volume 6, H G Bohn 1857, ISBN 978-1-85109-930-6, https://books.google.com/books?id=IEoMAAAAIAAJ&q=Obsius&pg=PA381, retrieved 2012-06-11
32. ↑ 32.0 32.1 Emma Blake; A. Bernard Knapp (2008-04-15), The Archaeology Of Mediterranean Prehistory, John Wiley & Sons, 21 Feb 2005, ISBN 978-0-631-23268-1, https://books.google.com/books?id=F15vfrJq8LUC&q=ancient+mediterranean+obsidian+trading&pg=PA35, retrieved 2012-06-22
33. ↑ Toby A. H. Wilkinson – Early Dynastic Egypt: Strategies, Society and Security Routledge, 8 Aug 2001 Retrieved 2012-07-03 [|permanent dead link|dead link}}]
34. ↑ Collon, Dominique (1990). Near Eastern Seals. University of California Press. p. 33. ISBN 0-520-07308-8. https://books.google.com/books?id=xt8fydZIT4IC&pg=PA33. Retrieved 2012-07-03.
35. ↑ Vermaak, P. S. (2 June 2009). "Relations between Babylonia and the Levant during the Kassite period". in Leick, Gwendolyn. The Babylonian world. Routledge. p. 520. ISBN 978-1134261284. https://books.google.com/books?id=akYorRIWPBEC&pg=PA520. Retrieved 2015-06-27. Routledge 2007 Retrieved 2012-07-03 ISBN 1-134-26128-4
36. ↑ S Bertman – Handbook To Life In Ancient Mesopotamia Oxford University Press, 2005 Retrieved 2012-07-03 ISBN 0-19-518364-9
37. ↑ Etheredge, Laura S., ed. (2011), Syria, Lebanon, and Jordan, The Rosen Publishing Group, p. 44, ISBN 978-1-61530-329-8, https://books.google.com/books?id=rLZQrmRQafcC&pg=PA44, retrieved 2012-06-15
38. ↑ M Dumper; B E Stanley (2007), Cities of The Middle East and North Africa: A Historical Encyclopedia, ABC-CLIO, 2007, ISBN 978-1-57607-919-5, https://books.google.com/books?id=3SapTk5iGDkC&q=Ebla+trade&pg=PA141, retrieved 2012-06-28
39. ↑ B.Gascoigne et al. – History World .net
40. ↑ Ivan Dikov (July 12, 2015). "Bulgarian Archaeologists To Start Excavations of Ancient Greek Emporium in Thracians' the Odrysian Kingdom". Archaeology in Bulgaria. http://archaeologyinbulgaria.com/2015/07/12/bulgarian-archaeologists-to-start-excavations-of-ancient-greek-emporium-in-thracians-odrysian-kingdom/. Retrieved 28 October 2010. "An emporium (in Latin; “emporion" in Greek) was a settlement reserved as a trading post, usually for the Ancient Greeks, on the territory of another ancient nation, in this case, the Ancient Thracian Odrysian Kingdom (5th century BC – 1st century AD), the most powerful Thracian state.".
41. ↑ Jan David Bakker, Stephan Maurer, Jörn-Steffen Pischke and Ferdinand Rauch. 2021. "Of Mice and Merchants: Connectedness and the Location of Economic Activity in the Iron Age." Review of Economics and Statistics 103 (4): 652–665.
42. ↑ Pax Romana let average villagers throughout the Empire conduct day-to-day affairs without fear of armed attack.
43. ↑ P D Curtin – Cross-Cultural Trade in World History Cambridge University Press, 1984 ISBN 0-521-26931-8 Retrieved 2012-06-25
44. ↑ N. O. Brown – Hermes the Thief: The Evolution of a Myth SteinerBooks, 1990 ISBN 0-940262-26-6 Retrieved 2012-06-25
45. ↑ D Sacks, O Murray – A Dictionary of the Ancient Greek World Oxford University Press, 1997 ISBN 0-19-511206-7 Retrieved 2012-06-26
46. ↑ Alexander S. Murray – Manual of Mythology Wildside Press LLC, 2008 ISBN 1-4344-7028-8 Retrieved 2012-06-25
47. ↑ John R. Rice – Filled With the Spirit Sword of the Lord Publishers, 2000 ISBN 0-87398-255-X Retrieved 2012-06-25
48. ↑ Johannes Hasebroek – Trade and Politics in Ancient Greece Biblo & Tannen Publishers, 1933 Retrieved 2012-07-04 ISBN 0-8196-0150-0
49. ↑ Cambridge dictionaries online[full citation needed]
50. ↑ Gil, Moshe. "The Rādhānite Merchants and the Land of Rādhān". Journal of the Economic and Social History of the Orient 17 (3): 299.
51. ↑ 51.0 51.1 51.2 Manguin, Pierre-Yves (2016). "Austronesian Shipping in the Indian Ocean: From Outrigger Boats to Trading Ships". in Campbell, Gwyn. Early Exchange between Africa and the Wider Indian Ocean World. Palgrave Macmillan. pp. 51–76. ISBN 9783319338224. https://books.google.com/books?id=XsvDDQAAQBAJ&pg=PA50. Retrieved 2020-10-29.
52. ↑ Tsang, Cheng-hwa (2000), "Recent advances in the Iron Age archaeology of Taiwan", Bulletin of the Indo-Pacific Prehistory Association, 20: 153–158, doi:10.7152/bippa.v20i0.11751
53. ↑ Turton, M. (2021). Notes from central Taiwan: Our brother to the south. Taiwan's relations with the Philippines date back millennia, so it's a mystery that it's not the jewel in the crown of the New Southbound Policy. Taiwan Times.
54. ↑ Everington, K. (2017). Birthplace of Austronesians is Taiwan, capital was Taitung: Scholar. Taiwan News.
55. ↑ Bellwood, P., H. Hung, H., Lizuka, Y. (2011). Taiwan Jade in the Philippines: 3,000 Years of Trade and Long-distance Interaction. Semantic Scholar.
56. ↑ Doran, Edwin Jr. (1974). "Outrigger Ages". The Journal of the Polynesian Society 83 (2): 130–140. http://www.jps.auckland.ac.nz/document//Volume_83_1974/Volume_83,_No._2/Outrigger_ages,_by_Edwin_Doran_Jnr.,_p_130-140/p1. Retrieved 2019-07-14.
57. ↑ Mahdi, Waruno (1999). "The Dispersal of Austronesian boat forms in the Indian Ocean". in Blench, Roger. Archaeology and Language III: Artefacts languages, and texts. One World Archaeology. 34. Routledge. pp. 144–179. ISBN 0415100542.
58. ↑ Doran, Edwin B. (1981). Wangka: Austronesian Canoe Origins. Texas A&M University Press. ISBN 978-0890961070.
59. ↑ Blench, Roger (2004). "Fruits and arboriculture in the Indo-Pacific region". Bulletin of the Indo-Pacific Prehistory Association 24 (The Taipei Papers (Volume 2)): 31–50. https://journals.lib.washington.edu/index.php/BIPPA/article/viewFile/11869/10496. Retrieved 2019-07-14.
60. ↑ "Aztec Hoe Money". http://americanhistory.si.edu/collections/search/object/nmah_835166.
61. ↑ K G Hirth – American Antiquity Vol. 43, No. 1 (Jan., 1978), pp. 35–45 Retrieved 2012-06-28
62. ↑ McGrail, Sean (2001). Boats of the World : From the Stone Age to Medieval Times. Oxford: Oxford University Press.
63. ↑ Poole, Austin Lane (1958). Medieval England. Oxford: Clarendon Press.
64. ↑ Beckwith (2011), p. xxiv.
65. ↑ "Italian Trade Cities | Western Civilization". https://courses.lumenlearning.com/atd-herkimer-westerncivilization/chapter/italian-trade-cities/#:~:text=The main trade routes from,and then resold throughout Europe..
66. ↑ "History of Genoa, Rival to Venice" (in en). https://www.odysseytraveller.com/articles/history-of-genoa-rival-to-venice/.
67. ↑ 67.0 67.1 67.2 67.3 67.4 67.5 Green, Toby (2019). A fistful of shells : West Africa from the rise of the slave trade to the age of revolution. Chicago. ISBN 978-0226644578. OCLC 1051687994.
68. ↑ Nanda, J. N (2005).  Bengal: the unique state. Concept Publishing Company. p. 10.. 2005. ISBN 978-81-8069-149-2. "Bengal [...] was rich in the production and export of grain, salt, fruit, liquors and wines, precious metals and ornaments besides the output of its handlooms in silk and cotton. Europe referred to Bengal as the richest country to trade with."
69. ↑ Friedman, Milton (1970). Price Theory. Transaction Publishers. ISBN 9780202309699.
70. ↑ (secondary) British Broadcasting Corporation – history
71. ↑ (secondary) M Smith – V. Gollancz, 1996 ISBN 0-575-06150-2
72. ↑ "EU position in world trade". European Commission. http://ec.europa.eu/trade/policy/eu-position-in-world-trade/.
73. ↑ "Free-trade zone | international trade | Britannica". https://www.britannica.com/topic/free-trade-zone.
74. ↑ Nomani & Rahnema (1994), p. ?. "I want nine out of ten people from my Ummah (nation) as traders" and "Trader, who did trading in truth, and sold the right quantity and quality of goods, he will stand along with Prophets and Martyrs, on Judgment day".
75. ↑ Quran 4:29: "O believers! Do not devour one another’s wealth illegally, but rather trade by mutual consent."
Quran 2:275: "But Allah has permitted trading and forbidden interest."
76. ↑ Leviticus 19:13
77. ↑ Leviticus 19:35
78. ↑ "Is There Slavery In Your Chocolate?". http://www.foodrevolution.org/slavery_chocolate.htm.
79. ↑ Gold was an especially common form of early money, as described in Davies (2002).
80. ↑ "Documents & Reports– The World Bank". http://documents.worldbank.org/curated/en/home.
81. ↑ Division, US Census Bureau Foreign Trade. "Foreign Trade: Data". https://www.census.gov/foreign-trade/balance/c5700.html.
82. ↑ "Asia-Pacific Economic Cooperation". https://www.apec.org/About-Us/About-APEC/Member-Economies.
83. ↑ "China and the WTO". https://www.wto.org/english/thewto_e/countries_e/china_e.htm.
84. ↑ Storper, Michael (2000). "Globalization, localization and trade.". The Oxford Handbook of Economic Geography: 146–165.
85. ↑ "U.S.–Cuba Relations". Council on Foreign Relations. http://www.cfr.org/cuba/us-cuba-relations/p11113.
86. ↑ LLC, Helix Consulting. "On temporary ban on imports of goods having Turkish origin" (in en). https://www.gov.am/en/news/item/9840/.
87. ↑ "Should trade be considered a human right?". COPLA. 9 December 2008. http://www.cop-la.net/en/node/523.
88. ↑ "FAIRTRADE Certification Mark. Guidelines Issue 1 – Autumn 2011". Fairtrade Labelling Organizations International e.V.. 2011. https://fairtrade.es/mm/file/FCM-Guidelines-Final_2011-11_low.pdf.
89. ↑ Davenport, Eileen; Low, Will (1 January 2012). "The labour behind the (Fair Trade) label". Critical Perspectives on International Business 8 (4): 329–348. doi:10.1108/17422041211274200. ISSN 1742-2043.

## Bibliography

* Beckwith, Christopher I (2011). Empires of the Silk Road: A History of Central Eurasia from the Bronze Age to the Present. Princeton: University Press. ISBN 978-0-691-15034-5.
* Bernstein, William (2008). A Splendid Exchange: How Trade Shaped the World. New York: Grove Press. ISBN 978-0-8021-4416-4.
* Davies, Glyn (2002). Ideas: A History of Money from Ancient Times to the Present Day. Cardiff: University of Wales Press. ISBN 978-0-7083-1773-0. http://www.ex.ac.uk/~RDavies/arian/origins.html.
* Nomani, Farhad; Rahnema, Ali (1994). Islamic Economic Systems. New Jersey: Zed Books. ISBN 978-1-85649-058-0.
* Paine, Lincoln (2013). The Sea and Civilisation: a Maritime History of the World. Atlantic. (Covers sea-trading over the whole world from ancient times)
* Rössner, Philipp, Economy / Trade, EGO – European History Online, Mainz: Institute of European History, 2017, retrieved: March 8, 2021 (pdf).
* Watson, Peter (2005). Ideas: A History of Thought and Invention from Fire to Freud. New York: HarperCollins Publishers. ISBN 978-0-06-621064-3.

## External links

* Agritrade Resource material on trade by ACP countries
* World Bank's World Integrated Trade Solution provides summary trade statistics and custom query features
* World Bank's Preferential Trade Agreement Database

az:Kommersiya

0.00

(0 votes)

Original source: https://en.wikipedia.org/wiki/Trade. Read more

|

Retrieved from "https://handwiki.org/wiki/index.php?title=Social:Trade&oldid=989110"
*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template
*[c.]: circa