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Jan 1, 1000
How international trade started
-Tradings started with barter system.
-According to a Greek travel manuscript, one of the first few international trade was between the Romans and Indians with the use of ships because there were demands for aromatic in India.
-In acient times, Myos Hormos and Berenice are the main trading ports of Roman. -
Jan 1, 1102
Something other than Barter
-Song Dynasty from China created the first paper printed money, which was used to pay countries who traded with China. -
Jan 1, 1325
Aztec trade
During the Aztec period there are two kinds of traders: The
Local and metropolitan traders who were mostly small, and the caravans that traveled to what is now Costa Rica and Panama for larger foreign trade. -
Worlds largest trading company.
-Song Dynasty from China created the first paper printed money and were used to pay countries which trade with China.
-The Dutch East India Company (also known as VOC) was formed, it was started in the Netherlands (known as the Dutch Republic at the time).
-Its purpose was to protect Netherland’s trade with India and also to provide aid during the Dutch war of independence against Spain.
-The company is considered to be the first multinational corporation in the world. -
The opium war
Frustrated by the trade imbalance and that Great Britain was trading an addicting drug the Chinese government put a boycott on trade with Great Britain which slowed down the global market for at least some time. For numbers 19% of GB's trade to china was Opium -
The fall of the VOC
-The Dutch East India Company, which was used to be called the world's largest company, has declared bankruptcy.
-The fall of the company was partly caused by the rise of competitive free trade.
-The event made other businesses aware that even huge and successful companies like the VOC can also fall and die out. -
The Cobden–Chevalier Treaty
-The Cobden–Chevalier Treaty was signed between the UK and France.
-It was a free trade agreement between both countries.
-The treaty was named after Richard Cobden and Michael Chevalier who were both the main contributor to the formation of the treaty.
-The treaty reduced the taxes and tariffs on products from both countries. -
Japan opens up to the world
-The Meiji Restoration in Japan allowed Japan to open up their country for industrialization and to be able to trade.
-When Emperor Meiji was back in power in Japan, he changed the rules of the nation to open up Japan to the global trading scene.
-This event allowed Japan to rise in power as a military power due to the accelerated industrialization as a result of the restoration of the emperor. -
New fixed exchange rates
-The Bretton Woods System was introduced, intended to stop wars and minimize depressions.
-The international monetary arrangement created the IMF and the World Bank, which created a system of, fixed exchange rates with the US dollar as the international currency.
-The system eventually ended on August 15, 1971, and was replaced by Richard Nixon’s New Economic Policy. -
General Agreement on Tariffs and Trade (GATT)
-23 countries agreed to the General Agreement on Tariffs and Trade (GATT) to regulating international trade among the various countries.
-The purpose of the agreement was to reduce tariffs and other trade barriers so that all nations involved benefited mutually. -
The European Free Trade Association (EFTA)
-The European Free Trade Association (EFTA) was founded by Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom.
-The organization’s purpose was to allow the countries within the organization to have free trade as well as build partnerships and closer economic cooperation. -
North American Free Trade Agreement (NAFTA)
-The North American Free Trade Agreement (NAFTA) is an agreement between Canada, the U.S, and Mexico.
-The agreement sets up rules and regulations for international trade and investment. -
The World Trade Organization (WTO)
-The World Trade Organization (WTO) was created for the purpose to supervise and promote free trade between the numerous countries.
-The organization handles the regulation of trade between all the participating countries.
-The organization created new partnerships between countries and created more trading opportunities for the participating nations. -
The World trade recession
All countries were impacted due to the US crisis and depression.
- Trade exports were limited and the rise of unemployment led to the limited amount of imports, because of that world trade declined 4.5% in 2009 -
ASEAN–China Free Trade Area
-The ASEAN–China Free Trade Area is a free trade area between China and the ten members of the ASEAN, including Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
-The free trade area is the actually the largest populated free trade area and has the third highest nominal GDP.
-The agreement has created closer bonds among the nations who are in the agreement.
