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Jan 7, 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 Berencie are the main trading ports of Roman. -
Feb 21, 1157
Market Rights introduced
-Song Dynasty from China created the first paper printed money and were used to pay countries which trade with China.
-Hanseatic League in England introduced market rights and trading benefits to secure their goods. -
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Introduction of Foreign Trade License
-Japan establish Foreign Trade Licenses to prevent piracy and smuggling.
-Dutch East India Company established in the year of 1602, declared bankruptcy in 1799 because of the rise in competition in free trade.
-The result of the Indian company might have taught other companies to be more aware of Free Trades. -
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War happens
-On 1860, Britain and France strikes over the Free Trade Agreement. Bretton Woods System was introduced in the year 1946 with the purpose to stop wars.
-In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to rationalize trade among nations. -
Standardization in transport
-European Free Trade Association is established.
-Four significant International Organization for Standardization recommendations standardized containerization (transportation of cargo in containers) of globally. -
Formation of WTO
-World Trade Organization was formed, an intergovernmental organization which deals with rules of trade between nations at a global level.
-This organization is to promote free trade between various nations and help improve the quality of international trade allowing trades to flow smoothly. -
International Trade declined
-World War One and World War Two resulted the decline percentage of international trade and the increasing amount of protectionism policies.
-Countries like US, Argentina, and Australia have establish a trade barrier with average tariff barriers to Russia, France and Germany.
-Western Europe for world trade shares declined from 60%(year 1880) to 35(year 1948) -
Crisis
Cause of Financial Crisis in 2008:
-Banks created too much money
-Uses this money to increase house prices and speculate on financial markets
-eventually people's personal debts became unpayable, debt rising quicker than incomes -
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World Recession
All countries were impacted due to the crisis
-falling of exports
-rising of unemployement leading to falling income World trade declined 4.5% in 2009 -
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Recovery of economy
-trade volume increased nearly 20% (mid 2009 to mid 2010), resulting recovery of economy 2011:
-economic delay and growth could not be sustained -
