Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Evolution of international trade


Published on

International Trade evolution

Published in: Business
  • Be the first to comment

Evolution of international trade

  1. 1. Evolution of International Trade
  2. 2. History of International Business  Early traders  Well before the time of Christ, Phoenician and Greek merchants  China stimulated the emergence of an internationally integrated trading system “all roads lead to China”  17th Century mercantilism/colonialism  British East India Company  Dutch East India Company  Portugal and France
  3. 3. Business by the Romans  Pax Romana, or Roman Peace ensured that merchants were able to travel safely and rapidly.  Common coinage simplified business transactions.  Rome developed a systematic law, central market locations, and an effective communication system; all of which enabled international business to flourish in the Roman Empire.  The growth of the Roman Empire occurred mainly through the linkages of business
  4. 4. Other important International Trade Relations  Greek and Phoenician merchants traded before Christ  China, world’s leading manufacturer for 1,800 years, replaced by Britain about 1840  Ottoman Empire trade routes before 1300: Middle East, Europe, North Africa, Asia  East India Company 1600: branches throughout Asia; Dutch East India Company  The 17th and 18th centuries: the “age of mercantilism”  Significant multinationals in late 1800s: Singer Sewing Machine, J&P Coates, Ford Motor Company
  5. 5. The Smoot-Hawley Act  In 1930’s, the U.S. passed the Smoot-Hawley Act, which raised import duties to reduce the volume of goods coming into the U.S.  The act was passed in the hope that it would restore domestic employment.  The result was a worldwide depression and the collapse of the world financial system.
  6. 6. A gradual display of events in International Business  19th Century: Broader concept of the integration of economies and societies  1870: Began first phase of Globalization  1919: World War II:  End of first phase of Globalization, Industrial revolution in UK, Germany and the USA  Sharp increase in the trade with import and export by colonial empires  1913: GDP 22.1  After 1913: Increased Trade Barriers to Protect Domestic Production  1930’s: Declined Trade Ratio, GDP 9.1
  7. 7. A gradual display of events in International Business  After 1930’s: World Nations felt the need for International Co- operation in global trade and balance of payments affairs  Establishment of IMF and IBRD (World Bank)  1947: 23 countries conducted negotiations in order to prevent the protectionist policies and to revive the economies from recession aiming at establishment of World Trade organization  1947: Establishment of GATT (General Agreement on Trade and Tariffs)
  8. 8. A gradual display of events in International Business  1980s: efforts to convert GATT into WTO  1st Jan 1995: GATT was replaced by WTO (World Trade Organization)  Trade Liberalization  1990 – 2000: The Term IB (International Business) has emerged from the term International Marketing.  There are two Phases of the evolution of the term International Business 1. International Trade to International Marketing 2. International Marketing to International Business  After 1990: Rapid Internationalization ad globalization  Today: Interpreting the PESTIN factors of International Trade environment more clearly.