If you trace back the origin of exchange and observe its gradual progress, you will understand why the title of this book is so appropriate. Trade not only affects the financial/commercial aspect of the trading partners, but also has the ability to revolutionize people's way of living and thinking, not to mention the international political atmosphere.
The early form of trade was carried out in a very honest, moral manner. Trade was a way for an economy to obtain crude resources that were unavailable from a trading partner who had the same resource in abundance, who in return demanded something from the other party. It then transformed to a means of reaping profit, and people began to trade even the things that were not scarce - as illustrated by Ricardo's Theory of Comparative Advantage.
Trade, which served the human race by increasing the availability of goods available to us, can also create conflict. The rivalry between the Dutch India Company and the British East India Company in the 17th and 18th centuries eventually led to widespread imperialism in Europe. This later becomes one of the contributing factors towards instigating the First World War. Plantation and immigration are both products of trade.
Nations have debated the dichotomy of free trade and protectionism for centuries, and the topic is still hotly debated. Although a few countries still adhere to their strict protectionist policies, most of us live in an economy which is becoming increasing more liberal towards trade. The establishment of GATT, WTO and FTAs between neighboring and faraway nations illustrate this modern trend in trade.
No comments:
Post a Comment