Tradeis the transfer of ownership of goods and services from one person or entity to another by getting something in exchange from the buyer. Trade is sometimes called commerce or financial transaction or barter.
ChronologyAncient Time - 19th century BC • Evolution of Silk Route • The route is established after the travels of Chinese merchants envoy to Central Asia, with Chinese goods making their way to India, Persia, and the Roman Empire, and vice versa. • The Roman Empire also starts trade relations with India and middle east
• The middle eastern empire starts entry ports to India and China. Importing silk from China and spices from the Indian sub continent.• Indian exports of spices find mention in the works of Ibn Khurdadhbeh (850), al-Ghafiqi (1150), Ishak bin Imaran (907) and Al Kalkashandi (14th century).
Portuguese explorer and adventurer Vasco da Gama is credited with establishing sea route from Europe to India. The first Dutch expedition left from Amsterdam (April 1595) for South East Asia. A Dutch convoy sailed in 1598 and returned one year later with 600,000 pounds of spices and other East Indian products. The Dutch East India Company is formed in 1602. In 1799, The Dutch East India company, formerly the worlds largest company goes bankrupt, due to the rise of competitive free trade. Opium War (1840)- Britain invades China to overturn the Chinese ban on opium imports. Late entry of America in the spice trade, merchants from Massachusets trade profitably with Sumatran traders during the early half of the 19th century. Siamese American Treaty of 1833 calls for free trade, except for export of rice and import of munitions of war.
Free Trade Agreement (1860) finalized between Britain and France under the presidency of Napoleon III. 1873, slump of Wiener Börse initiates continental depression during which support for protectionism grew.
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. Initiated in the USA after stocks in the US market fell drastically leading to recession and failure across the primary and secondary sector.
1946. the Bretton Woods System goes into effect; it had been planned since 1944 as an international economic structure to prevent further depressions and wars. It included institutions and rules intended to prevent national trade barriers being erected, as the lack of free trade was considered by many to have been a principal cause of war. The Bretton Woods conference was a milestone moment in world financial history, the first negotiated monetary order intended to regulate commercial and financial relations among a broad spectrum of nation-states.
The International Monetary Fund was created on July 22, 1944 at the Bretton Woods Conference. The IMFs stated goal was to stabilize exchange rates and assist the reconstruction of the world’s international payment system post – World War II. In 1947, 23 countries agree to the General Agreement on Tariff and Trade (GATT) to rationalize trade among the nations. European Economic Community (EEC) is established with a common commerical policy in 1958. • EEC is an international organization created by the Treaty of Rome of 1957. Its aim was to bring about economic integration, including a common market, among its six founding members : Belgium, France, Italy, Luxembourg, The Netherlands and West Germany.