History of International Trade

  • 5000 BCE

    global trade

    Man finds agriculture at the end of the Neolithic (9000 BC – 4000 BC) and starts trading surplus crops.
  • 4000 BCE


    the system of barter is where Ancient civilizations first engaged in trade through the barter of product
  • 201

    The grand turk road

    The grand turk road
    to help bridge India's eastern and western areas and to shorten the distance between India and Pakistan.
  • 1271

    the silk route

    the silk route
    With the establishment of the Silk Route in the far east, Marco Polo played a key role in the development of European trade.
  • 1492

    Discovery of amerca

    Discovery of amerca
    Christopher Columbus discovers America
  • 1565

    North America

    North America
    St Augustine, also known as Florida was first founded by the Spanish, It is inhabited by several distinct groups of people whose population percentage seems to decline following the arrival of new settlers
  • Mercantilism

    a form of economic nationalism that favored trade limitations as a means of enhancing a nation's power and prosperity. Including: Encouraging international trade agreements.
    Encourage the import of raw materials and the export of completed items.
  • tobacco plants

    tobacco plants
    virginia, first founded by English settlers, began to grow tobacco in order to trade.
  • Favorable” balance of trade

    where an item of equal worth is traded
  • Japan

    Japan established a closed-door trade policy (only extremely little trade with the Dutch and Chinese was permitted).
  • english navigation act

    english navigation act
    Acts of Parliament attempted to increase the British Empire's self-sufficiency by restricting colonial trade to England and lowering dependency on imports.
  • liberalism

    The Physiocrat economists in France demanded freedom of production and trade. including the rights to private property, individual freedom, political equality, consent of the controlled, and property rights.
  • the first great trade collapse and changes in trade composition

    from 1916 to 1900, world exports increased by a factor of roughly 30 percent
  • The Reciprocity of charges Act

    The Reciprocity of charges Act
    The Reciprocity of charges Act allowed for the reciprocal reduction of import charges under bilateral trade agreements with foreign countries, considerably assisting British carry trade.
  • Repeal of the Corn Laws

    Repeal of the Corn Laws
    allowed free trade
  • UK on protectionism

    UK on protectionism
    protectionism policies are dropped which would no longer affect British imports
  • protectionist policies

    In order to defend their economy from international competition, many nations adopted protective customs policies, employing customs taxes as a tool to limit imports and promote domestic production. These regulations took the place of explicit import prohibitions and were thought to be necessary up to a point
  • The Cobden Chevalier treaty

    The Cobden Chevalier treaty
    The Cobden-Chevalier Treaty of 1860 was the first international free trade agreement, and it established a standard for subsequent commercial relations between the UK and France. It contained provisions for the gradual lowering of French protective duties, with exceptions granted for specific items.
  • French Tariffs

    French Tariffs
    France enacted a tariff on British imports in 1860, with rates as high as 60% for pig iron, 40% for machinery, and 600–800% for wool blankets. By severely discouraging imports from Britain, these policies aimed to safeguard native businesses.
  • Italy

    Italy increases increases its tariffs
  • Resurgen of protectionism

    Resurgen of protectionism
    Germany led the way by enacting a systematic protectionist strategy that was later imitated by many other countries as the demand for protectionism spread throughout the Western world. Germany's "iron and rye" tariff later strengthened its protectionist attitude.
  • The Mckinley Tariff

    The Mckinley Tariff
    The McKinley Tariff of 1890 increased protective tariff rates by nearly 50% for American products, with sugar and coffee on the free list. Despite opposition from Democrats, the bill passed the House and Senate, leading to a 93-seat swing in the House.
  • melinne tariff

    melinne tariff
    a protectionist action taken in 1892 in France. The most important economic law of the Third Republic, it indicated a return to previous protectionist practices.
  • regional shares of world

    regional shares of world
    between 1900 to 1920,The erosion in market share, in combination with relatively anaemic levels of trade worldwide, hampered repayment of the large amount of debt accrued by European nations during the prosecution of the war. This was particularly a problem for Germany, which was saddled with reparations and which saw its 21.0% share of European exports in 1913
  • world exports

    world exports
    the graph shown above/below shows a lasting trauma for the global economy
  • Russian Empire

    Russian Empire
    between 1913 and 1923, the dissolution of the Russian empire generated an immediate 99.8% drop in exports
  • real exports

    Real exports from Canada and the US to Germany collapsed from $4.6 billion in that year to zero in 1918
  • first economic world conference

    first economic world conference
    Twenty-nine states, including the main industrial countries, subscribed to an international convention that was the most minutely detailed and balanced multilateral trade agreement approved to date.
  • protectionists

    protectionists policies protect the producers, businesses, and workers of the import-competing sector in a country from foreign competitors
  • the Great Depression

    the Great Depression
    High unemployment rates during the Great Depression prompted an increase in protectionist policies, such as higher customs charges, import quotas, and exchange restrictions as nations sought to balance their budgets.
  • Period: to

    international trade

    about 30% of world import and export volume in the industrialized nations decreased
  • Smoot Hawley Tariff Act

    Smoot Hawley Tariff Act
    US tariffs are raised on over 20,000 imported goods
  • Reciprocal Trade Agreements Act

    Reciprocal Trade Agreements Act
    lower rates of tariffs would be extended to all major US trading partners
  • IMF

    The International Monetary Fund (IMF) is an organization of 190 countries that strives to alleviate poverty throughout the world, ensure financial stability, facilitate international trade, and support high employment and sustainable economic growth.
  • GATT

    The General Agreement on Tariffs and Trade aimed to eliminate protectionism, promote free trade among nations, and restore economic prosperity post-WWII.
  • abolishing trade restrictions

    The benefits of abolishing trade restrictions were illustrated by English economist Adam Smith in his book The Wealth of Nations.
  • Trade, Investment, and Development Agreements

     Trade, Investment, and Development Agreements
    the United States and other nations a place to meet and talk about issues of mutual concern.
  • 9/11

    The terrorist attack on Sept. 11, 2001 was marked by a sharp plunge in the stock market, causing a $1.4 trillion loss in market value.
  • CETA

    The Comprehensive Economic and Trade Agreement is a free trade agreement between Canada the European Union and its member states. Due to its temporary use, 98% of the previous tariffs between the two regions have been abolished.
  • Covid-19

    2020 saw significant trade and output reductions, similar to the Great depression, but quickly recovered, with trade continuing to grow in 2021.