INTERNATIONAL

BUSINESS AND TRADE

Ralfh Julius T . Delator
 EVOLUTION OF INTERNATIONAL
TRADE
• Globalization is here. The traditional and orientation of
companies working just within national borders is declining
worldwide. The world has come a long way. Some seven
hundred generations ago, in 15,000 BC there may have been
600,000 polities on Earth, each consisting of ten or hundreds of
individuals.
Today, there are 200 nations, consisting of
millions of people. We are in a rapid process of
conquering nature and we have embarked on
process of massive morphing and expansion of
our moral arcs.
-After the Roman
Empire collapsed,
Europe became the
pulse of trade in the
twelfth and thirteenth
Century.
THERE ARE 45 COUNTRIES IN EUROPE
TODAY, ACCORDING TO THE UNITED
NATIONS(2020).
• In the fourteenth to fifteenth Century, Columbus, Vespucci, Dias Da
Gama, and many other sailors explored the New World, by order from
their Kings, Christopher Columbus, an Italian explorer sailed across the
Atlantic Ocean in the 1492.
• Vasco Da Gama, a Portuguese sailor found a route from Spain to the
East. There is also Bartolomeu Dias, a marvelous Portuguese navigator
with his famous expedition. who led the first From the fifteenth century
to the early eighteenth century the development of voyage and
navigation improved rapidly, especially through the discovery of new
routes, y of since then, it helped the seafarer to reduce the costs and
improve the efficiency of their cruise.
Christopher Columbus Vasco Da Gama Bartolomeu Dias Amerigo Vespucci
• Besides through sailing the international trade in 1800s
to the early 1900s enhanced through land route. The
most prominent land route for the merchants back then
was through the Silk Road, named by Von Richthofen.
When the Han Dynasty ruled China, he sent the
merchants to sell commodities like ivory, gold, and silk.
The Silk Route was divided to three main routes, which
are North, Central, and South.
 • Besides through sailing the international
trade in 1800s to the early 1900s
FERDINAND VON enhanced through land route. The most
RICHTHOFEN prominent land route for the merchants
back then was through the Silk Road,
named by von Richthofen. When the Han
Dynasty ruled China, he sent the
merchants to sell commodities like ivory,
gold, and silk. The Silk Route was
divided to three main routes, which are
North, Central, and South.
-Silk Road, also called Silk
Route, ancient trade route,
linking China with the West,
that carried goods and ideas
between the two great
civilizations of Rome and
China. Silk went westward,
and wools, gold, and silver
went east. China also
received Nestorian Christian
ity and Buddhism (from
India) via the Silk Road. Retrieved
from:https://www.britannica.com/topic
/Silk-Road-trade-route
 MERCANTILISM
• From the 16th to 18th century, European countries depended on
international trade as the revenue. Since the currency of trade was gold
and silver, countries measure the trade surplus by adding precious metals
and treasure to the country's stock.
• To increase stock, they restrict the import but then, the export eventually
became the first regulation devoted to international trade, mercantilism.
• This mercantile system was based on the premise that national wealth
and power were best served by increasing imports and collecting
precious metals in return.
• According to the encyclopedia, mercantilism is based on five principles.
First, amount of wealth system in the world is steady. Second, a country
counts their wealth by the amount of gold and silver in their stock.
Third, mercantilists favor exports but restrict the import. It's to keep their
stock from decreasing. Fourth, the value of country's population was
seen as a key to self-reliance and state power. Finally, in mercantile
system the role of leader such as kingdom or state, was seen as the
dominant role to lead his country to welfare.
• According to mercantilism idea, the preference to export but
limit the import is not just as far as to earn precious metals, but
it's also for building up the industries and strengthened the
economy, Balance of trade surplus was not the main concern to
the mercantilists. The main focus was on the value of
commodities that were being exported.
• Exporting manufactured goods were considered beneficial, but
importing ones were harmful. Whilst, importing raw materials
were advantageous and exporting ones for the used of foreign
manufacturers was lethal.
NOTE: Mercantilism was an economic system of
trade that spanned from the 16th century to the
18th century. Mercantilism is based on the principle
that the world's wealth was static, and consequently,
many European nations attempted to accumulate
the largest possible share of that wealth by
maximizing their exports and by limiting their
imports via tariffs.
Retrieved from: https://www.google.com/search?q=mercantilism&source=lnms&tbm=isch&sa=X&ved=2ahUKEwju19e9w-
v2AhUVAd4KHbe1CuAQ_AUoAXoECAEQAw&biw=1366&bih=600&dpr=1#imgrc=cY5E9o6amrYgVM
-European countries hence, sent their sailors to explore new land
as its resources of export. The discovery of New World means
new market and new resources waiting to be explored.
-The sources in European countries were not enough not as
beneficial as the silk from Chinese Dynasty. Many European
states to expand their business to increase foreign trades so they
could gain more gold for the stock.
-As such, they established new colonies around the world. This
mercantilism became bigger and fueled European countries to
the imperialism.
 ADAM SMITH'S WEALTH OF
NATIONS
-The term of mercantilism didn't exist until 1763 by Victor de
Riqueti, Marquis de Mirabeau, and as popularized by Adam
Smith in his book The Wealth of Nations.
-Through his book, Smith changed the basic economic thinking
in international trade. Critics of Smith though argue that to
maintain economic growth, a country should produce the
commodities they specialized in and the division of labor.
• -In France, Smith's concept was known as
laissez-faire. During Louis XIV regime's, the
finance minister, Jean-Baptiste Colbert asked
a group of business what the government
could do to aid the cause of commerce, and
their response was that the solution was
laissez-faire, which means, for state to let the
people do as they freely choose.
-Smith's idea of specialization and labor division, in a way, obscured mercantilism
policies of Henry VIII, Elizabeth I and Oliver Cromwell, N from Adam Smith, critics
also came from David Hume, Dudley North, Ricardo.
-According to Smith, specialization helps the country to gain advantage, where it is
more productive if one country production cost is lower than other country's
production cost on the same good.
-The other way are more beneficial to import goods than to produce with higher
production co the illustration, it's better to buy a phone if it's cheaper than the costs
produce it. While the division of labor is determined by the market breadth other
hand, small markets would not be able to support a great deal of production, whereas
larger market could.
-Critics also came from David Hume, famously noted the inconceivable goals of
mercantilists which is the positive balance of trade.
• In the eighteenth century, Britain was the largest empire in the world.
Ruled under the reign of Queen Victoria, British Empire conquered
about one-fifth of the earth's surface.
• Not only to take over, the British armies also brought missionaries to
spread the virtue along when they conquering.
• The discovery of steam machine brought Britain to a higher throne
along. with the turning point in human history ever. Originally by
Englishman Thomas Newcomen who developed the steam engine, then
improved by James Watt to power machinery, locomotives, and ships.
• The development of spinning machine by Richard Awkright led directly
to the rise of Industrial Revolution, and a new world of manufacturing
history.
• The Industrial Revolution brought human to a more sophisticated
production, distribution, and consumption. Shortly, the industrial
revolution encouraged the cycle of commerce to a larger market.
• The machinery and ships helped exporting goods to a widen range of
products. Time efficiency, costs of production, and the wider scope made
Britain the largest supplier and also a hegemon back to that time.
• There is The Navigation Acts, which regulated the trade of Britain with
the world. This ended up on the increasing demand of British products,
and because of the higher demand, the producers introduced to the mass
production that stimulated the establishment of factories.
• The highest demand at British products was coal and cotton
followed by iron and agriculture. Since the factories were
established, the call of workers increased. The gap between
Bourgeoise and proletarian became wider. The Smith's liberal
capitalist idea was criticized by Karl Marx socialism.
• The industrial revolution brought human to a greater
commerce. Economic growth rose up rapidly and so did the
politic. Greater economy made countries scrambled to be the
most powerful one even if it means by destroying others.
Political views, paradigms, and critics raced to gain the most
followers.