customs and trade
Customs and Trade
Much of the history of international relations and trade concerns efforts to promote free trade among nations. The 17th century saw the growth of restrictive policies that later came to be known as mercantilism. The mercantilists held that economic policy should be nationalistic and should aim at securing the wealth and power of the state. Governments were led to impose price and wage controls, promote exports of finished goods and imports of raw materials, and prohibit the exports of raw materials and the import of finished goods.
In the middle of the 18th century a strong reaction against mercantilist attitudes began. In France, the economists demanded liberty of production and trade. In England, Adam Smith demonstrated the advantages of removing trade restrictions. Economists and businessmen urged the negotiation of trade agreements with foreign powers.
In the middle of the 19th century Customs walls effectively sheltered many national economies from outside competition. In the later part of the 19th century England was the only country to remain faithful to the principles of free trade. Protectionism during the last quarter of the 19th century was mild in comparison with the mercantilist policies that had been common in the 17th century.
When World War 2 ended the lesson learned from the growth of protectionism since 1871allowed the development of multilateral trade agreements and other forms of international economic co-operation. These developments culminated in the General Agreement on Tariffs and Trade (GATT) which was signed at Geneva on October, 30, 1947 by 23 countries. GATT takes the form of a multilateral trade agreement setting forth the principles under which the countries shall negotiate.
International trade includes all economic transactions that are made between countries.
All nations interfere with international transactions to at least some degree. Tariffs may be imposed on imports. Quotas may limit the
Much of the history of international relations and trade concerns efforts to promote free trade among nations. The 17th century saw the growth of restrictive policies that later came to be known as mercantilism. The mercantilists held that economic policy should be nationalistic and should aim at securing the wealth and power of the state. Governments were led to impose price and wage controls, promote exports of finished goods and imports of raw materials, and prohibit the exports of raw materials and the import of finished goods.
In the middle of the 18th century a strong reaction against mercantilist attitudes began. In France, the economists demanded liberty of production and trade. In England, Adam Smith demonstrated the advantages of removing trade restrictions. Economists and businessmen urged the negotiation of trade agreements with foreign powers.
In the middle of the 19th century Customs walls effectively sheltered many national economies from outside competition. In the later part of the 19th century England was the only country to remain faithful to the principles of free trade. Protectionism during the last quarter of the 19th century was mild in comparison with the mercantilist policies that had been common in the 17th century.
When World War 2 ended the lesson learned from the growth of protectionism since 1871allowed the development of multilateral trade agreements and other forms of international economic co-operation. These developments culminated in the General Agreement on Tariffs and Trade (GATT) which was signed at Geneva on October, 30, 1947 by 23 countries. GATT takes the form of a multilateral trade agreement setting forth the principles under which the countries shall negotiate.
International trade includes all economic transactions that are made between countries.
All nations interfere with international transactions to at least some degree. Tariffs may be imposed on imports. Quotas may limit the