Contents Introduction to International Trade 3 History and Evololution of International Trade 3 Trends in International Trade 3 Theories of International Trade 5 Absolute Advantage by Adam Smith 5 Comparative Advantage by David Ricardo 6 Gravity Model by Tinbergen 7 Benefits form trade for the poorest of nations 8 Conclusion and Recommendations 9 Bibliography 10 Introduction to International Trade International trade is an activity wherein there is an exchange of goods, services, and capital for a consideration that happens across the national borders of a nation. Thus, the two parties which undertake such an activity ate called importer (the one who is buying) and an exporter (the one who is selling). This usually represents a significant proportion a nation’s overall output which is measured through its GDP (Gross Domestic Product). The only reason why such a trade happens is because there are gains from trade and like what we see in any transaction, be it domestic or international, the aim is to benefit from that transaction for both the parties where one or both fulfils their needs for a consideration being given in exchange. History and Evololution of International Trade The very history of International Trade can be traced back to the 19th century B.C. where the records attest to the existence of a merchant colony of Assyrian at Kanesh in Cappadocia, now in Turkey. Then we have traces of Cargo being shipped from India and Egypt for trade in Aden. Then we have Alexandria in the 5th century A.D. to the Portuguese explorer, Vasco De Gama in India in the end of the 15th century A.D. In the modern times we have the East India Company, Dutch Expeditions, and more. As trade modernized, technology developments, growth in popul... ... middle of paper ... ...on and Sovereignty- a struggle against opportunism. the journal of international business, 56-61. Ricardo, D. (2013). The Principles of Political Economy and Taxation . Retrieved November 27, 2013, from http://socserv2.socsci.mcmaster.ca: http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/ricardo/prin/index.html Smith, A. (1776). An Inquiry into the Nature and Causes of the international trade. London. stat.wto.org. (2010). Time-Series. Retrieved nov 25, 2013, from Time Series-subject selection: http://stat.wto.org/Statistical Program/WSDBstatProgramseries.aspx Stearns, P. (2001). The Encyclopedia of World History: Ancient, Medieval, and Modern, Chronologically Arranged. Houghton Mifflin Company. www.wto.org. (2013). International Trade Statistics, 2012. Retrieved November 28, 2013, from www.wto.org: http://www.wto.org/english/res_e/statis_e/its2012_e/its2012_e.pdf
Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations, (London: 1776), 190-91, 235-37.
Trade, of course, is only part of a larger network of relationships between our two countries. This network evolves in response to many complex influences, and exporters need to consider how our two countries' ever-expanding, ever-changing relationships will affect their activities. To take just a few examples:
Smith, Adam. 1981 [1776]. An Inquiry Into the Nature and Causes of the Wealth of Nations. Indianapolis, Indiana: Liberty Press.
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Holt, Sol. Exploring World History. New Jersey: Globe Book Company Inc, 1990. Pg. 204-205, 311.
Slaves and slave trade has been an important part of history for a very long time. In the years of the British thirteen colonies in North America, slaves and slave trade was a very important part of its development. It even carried on to almost 200 years of the United States history. The slave trade of the thirteen colonies was an important part of the colonies as well as Europe and Africa. In order to supply the thirteen colonies efficiently through trade, Europe developed the method of triangular trade. It is referred to as triangular trade because it consists of trade with Africa, the thirteen colonies, and England. These three areas are commonly called the trades “three legs.”
Beck, Roger B., Linda Black, Larry S. Krieger, Phillip C. Naylor, and Dahia I. Shabaka. World History: Patterns of Interaction. Evanston, IL: McDougal Littell, 2009.
Ellis, Elizabeth Gaynor, and Anthony Esler. World History: The Modern Era. Boston: Pearson Prentice Hall, 2007. Print.
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Damrosch, David, and David Pike. The Longman Anthology of World Literature. The Ancient World. Volume A. Second Edition. New York: Pearson/Longman, 2009. Pgs. .656-691. Print.
Reprinted in Peter N. Stearns, ed., Documents in World History, Vol. II (New York: Harper
Duiker, William J., and Jackson J. Spielvogel. World History. 3rd ed. Belmont, CA: Wadsworth/Thomsom Learning, 2001. 374-438.
McKay, J/P/, Hill, B.D., Buckler, J., Ebrey, P.B., Beck, R.B., Crowston, C.H., & Wiesner-Hanks, M.E. (2008). A History of World Societies, Volume A: From Antiquity to 1500. New York, NY: Bedford/St. Martin's
Duiker, William J. , and Jackson J. Spielvogel. World History . 6th. Boston, MA: Wadsworth Pub Co, 2010. print.
International trade is an economic practice where countries can import and export goods with no concerns to government intervention which includes tariffs and import/export bans or limitations. International trade has several advantages on developing countries; who are nations with low levels of economic resources or low standard of living. Developing countries can advance their economy through strategic free trade agreements. Free trade generally improves the quality of life of poor nations. Nations can import goods that are not easily available within their borders; importing goods may be cheaper for than trying to produce consumer goods. Many developing nations do not have the production procedures available for translating raw materials into valuable goods.