1.
Commercial policy
–
A commercial policy is a governmental policy governing economic transactions across international borders. These are sometimes agreed by treaty within a customs union, in the case of the European Union, commercial policy has been governed in common since the EU was created in 1957. A common commercial policy is also an aim of Mercosur, commerce minister European Commissioner for Trade Free trade Protectionism Trade policy of Japan Trade policy of the United States
Commercial policy
2.
Export
–
The payload originally consisted of two independent modules, EXPOSE and Sky Polarization Observatory. The EXPOSE experiment had 12 sample compartments, each held a sample carrier, EXPOSE was placed in 2008 on an external platform on the Columbus – External Payload Facility where it remained for 1.5 years. The second instrument, Sky Polarization Observatory, was an Italian astrophysical instrument to measure celestial polarisation range of 20–90 GHz, however, due to the projects reliance on the Space Shuttle, and the setback of the Columbia disaster, the observatory was canceled in 2005. Bion BIOPAN Biosatellite program O/OREOS Scientific research on the ISS SPOrt Homepage SPOrt page at the Italian National Institute for Astrophysics
Export
3.
Balance of trade
–
The balance of trade, commercial balance, or net exports, is the difference between the monetary value of a nations exports and imports over a certain period. Sometimes a distinction is made between a balance of trade for goods versus one for services, generally trade surplus is seen as positive economic indicator, however in exceptional circumstances a trade deficit is due to government forex policy to achieve other macroeconomic goals. The balance of trade part of the current account, which includes other transactions such as income from the net international investment position as well as international aid. If the current account is in surplus, the net international asset position increases correspondingly. Equally, a deficit decreases the net asset position. The trade balance is identical to the difference between a countrys output and its domestic demand, measuring the balance of trade can be problematic because of problems with recording and collecting data. This cannot be true, because all transactions involve an equal credit or debit in the account of each nation, the discrepancy is widely believed to be explained by transactions intended to launder money or evade taxes, smuggling and other visibility problems. Especially for developing countries, the statistics are likely to be inaccurate. In export-led growth, the balance of trade will shift towards exports during an economic expansion, however, with domestic demand led growth the trade balance will shift towards imports at the same stage in the business cycle. Monetary balance of trade is different from physical balance of trade, developed countries usually import a lot of raw materials from developing countries. Typically, these materials are transformed into finished products. Financial trade balance statistics conceal material flow, most developed countries have a large physical trade deficit, because they consume more raw materials than they produce. Many civil society organisations claim this imbalance is predatory and campaign for ecological debt repayment. S debt that has funded the consumption, the U. S. has a trade surplus with nations such as Australia. The issue of trade deficits can be complex, Trade deficits generated in tradeable goods such as manufactured goods or software may impact domestic employment to different degrees than trade deficits in raw materials. Economies such as Japan and Germany which have savings surpluses, typically run trade surpluses, china, a high-growth economy, has tended to run trade surpluses. A higher savings rate generally corresponds to a trade surplus, correspondingly, the U. S. with its lower savings rate has tended to run high trade deficits, especially with Asian nations. The economist Paul Craig Roberts notes that the comparative advantage principles developed by David Ricardo do not hold where the factors of production are internationally mobile. In 2010, economist Ian Fletcher wrote Free Trade Doesnt Work, What Should Replace It and Why, small trade deficits are generally not considered to be harmful to either the importing or exporting economy
Balance of trade
–
Terminology
Balance of trade
–
Cumulative current account balance 1980–2008 based on
International Monetary Fund data.
4.
International trade law
–
International Trade Law includes the appropriate rules and customs for handling trade between countries. However, it is used in legal writings as trade between private sectors, which is not right. This branch of law is now an independent field of study as most governments have become part of the world trade, International trade law should be distinguished from the broader field of international economic law. The latter could be said to not only WTO law. Modern trade law began shortly after the Second World War, with the negotiation of a treaty to deal with trade in goods. International trade law is based on theories of economic liberalism developed in Europe, International Trade Law is an aggregate of legal rules of “international legislation” and new lex mercatoria, regulating relations in international trade. “International legislation” – international treaties and acts of international intergovernmental organizations regulating relations in international trade, lex mercatoria - the law for merchants on land. Alok Narayan defines lex mercatoria as any law relating to businesses which was criticised by Professor Julius Stone. alok in his recent article criticised this definition to be too narrow and merely-creative. Professor Dodd and Professor Malcolm Shaw of Leeds University supported this proposition, in 1995, the World Trade Organization, a formal international organization to regulate trade, was established. It is the most important development in the history of trade law. The purposes and structure of the organization is governed by the Agreement Establishing The World Trade Organization and it does not specify the actual rules that govern international trade in specific areas. These are found in separate treaties, annexed to the Marrakesh Agreement and it contains rules relating to unfair trading practices — dumping and subsidies. Many things impacted GATT like the Uruguay Round and the North American Free Trade Agreement, in 1994 the World Trade Organization was established to take the place of the GATT. This is because the GATT was meant to be a fix to trade issues. It took many years for this to come however, because of the lack of money. The British Economy was in crisis and there was not much backing from congress to pass the new agreement, the idea of these agreements ( WTO and GATT was to create an equal field for all countries in trade. This way all countries got something of equal value out of the trade and this was a difficult thing to do since every country has a different economy size. This led to the Trade Expansion act of 1962, the World Trade Organization Trade Related Aspects of Intellectual Property Rights agreement required signatory nations to raise intellectual property rights
International trade law
5.
Trade agreement
–
A trade agreement is a wide ranging tax, tariff and trade treaty that often includes investment guarantees. The most common trade agreements are of the preferential and free trade types are concluded in order to reduce tariffs, quotas and other trade restrictions on items traded between the signatories. A trade agreement is classified as bilateral when signed between two sides, where each side could be a country, a trade bloc or a group of countries. A trade agreement signed between more than two sides is classified as multilateral, there are a variety of trade agreements, with some being quite complex, while others are less intensive. All agreements concluded outside of the WTO framework are called preferential by the WTO, the trade agreements called preferential by the WTO are also known as regional, despite not necessarily concluded by countries within a certain region. There are currently 205 agreements in force as of July 2007, over 300 have been reported to the WTO. The number of FTA has increased significantly over the last decade, between 1948 and 1994, the General Agreement on Tariffs and Trade, the predecessor to the WTO, received 124 notifications. Since 1995 over 300 trade agreements have been enacted, increasing efficiency through free trade is a common goal. For the most part, governments are supportive of trade agreements. There have been some concerns expressed by the WTO. Indianapolis, Library of Economics and Liberty
Trade agreement
Trade agreement
–
Terminology
6.
Trade bloc
–
Surges of trade bloc formation were seen in the 1960s and 1970s, as well as in the 1990s after the collapse of Communism. By 1997, more than 50% of all commerce was conducted within regional trade blocs. Economist Jeffrey J. Advocates of worldwide free trade are generally opposed to trading blocs, scholars and economists continue to debate whether regional trade blocs are leading to a more fragmented world economy or encouraging the extension of the existing global multilateral trading system. Trade blocs can be stand-alone agreements between states or part of a regional organization. There are five major advantages of trade agreements, foreign direct investment, economies of scale, competition, trade effects. Foreign Direct Investment, An increase in direct investment results from trade blocs. Larger markets are created, resulting in costs to manufacture products locally. Economies of Scale, The larger markets created via trading blocs permit economies of scale, the average cost of production is decreased because mass production is allowed. Competition, Trade blocs bring manufacturers in countries closer together. Accordingly, the increased competition promotes greater efficiency within firms, Trade Effects Trade blocs eliminate tariffs, thus driving the cost of imports down. As a result, demand changes and consumers make purchases based on the lowest prices, market Efficiency, The increased consumption experienced with changes in demand combines with a greater amount of products being manufactured to result in an efficient market. The disadvantages, on the hand, include, regionalism vs. multinationalism, loss of sovereignty, concessions. Regionalism vs. Multinationalism, Trading blocs bear an inherent bias in favor of their participating countries, for example, NAFTA, a free trade agreement between the United States, Canada and Mexico, has contributed to an increased flow of trade among these three countries. Trade among NAFTA partners has risen to more than 80 percent of Mexican and Canadian trade and more than a third of U. S. trade, according to a 2009 report by the Council on Foreign Relations. However, regional economies establish tariffs and quotas that protect intra-regional trade from outside forces, loss of Sovereignty, A trading bloc, particularly when it is coupled with a political union, is likely to lead to at least partial loss of sovereignty for its participants. Concessions, No country wants to let foreign firms gain domestic market share at the expense of local companies without getting something in return, any country that wants to join a trading bloc must be prepared to make concessions. Interdependence, Because trading blocs increase trade among participating countries, the countries become increasingly dependent on each other, regional integration Continental organization Continental union
Trade bloc
Trade bloc
–
Terminology
7.
Trade creation
–
Trade creation is an economic term related to international economics in which trade flows are redirected due to the formation of a free trade area or a customs union. The issue was brought into discussion by Jacob Viner, together with the trade diversion effect. In the former case after the formation of union, the cost of the goods considered is decreased. In practice, both creation and diversion effects take place due to formation of economic union. When a customs union is formed, the member nations establish a trade area amongst themselves. The result is an increase in trade among nations in the good or service of each nations comparative advantage. In other words, increase in trade causes greater revenues, the creation of trade is important to the nation entering the customs union in that increased specialization may hurt other industries. Arguments for protectionism, such as the infant industry argument, national defense, outsourcing, however, customs unions are typically formed with friendly nations, eliminating the national defense argument. Trade diversion Regional Integration and Cooperation in Sub-Saharan Africa, Are Formal Trade Agreements the Right Strategy, - this Harvard Institute for International Development discussion paper from 1997 argues that here is little reason to expect significant economic gains from formal trade agreements at this time. Such agreements, in and of themselves, are unlikely to yield appreciable benefits unless they are preceded by decisions within member countries to more general open trade strategies. It summarizes the conclusion of empirical research that there has been little, if any, many possible reasons are listed for the lack of trade creation evidence, given that developed nation customs unions do seem to have stimulated increased trade and economic growth. The dynamics of trade creation and diversion effects under international economic integration, current Research Journal of Economic Theory,2009, vol. - An article proposes to use similarity between dynamics of gas and liquid moving under pressure difference, and the dynamics of trade flows moved under price difference and this allowed to use Navier-Stokes equation applied for the dynamics of gas and liquid towards the dynamics of inter-regional trade flows. An input of the method to analysis of the trade flows lies in direct linking of price and output dynamics, while Jacob Viners analysis was classically static consideration
Trade creation
8.
Trade diversion
–
When a country applies the same tariff to all nations, it will always import from the most efficient producer, since the more efficient nation will provide the goods at a lower price. With the establishment of a bilateral or regional trade agreement. In other words, this would cause a trade diversion, the term was coined by Jacob Viner in The Customs Union Issue in 1950. In its literal meaning the term was however incomplete, as it failed to capture all welfare effects of discriminatory tariff liberalization, economists have however dealt with this incompleteness in two ways. Either they stretched the meaning to cover all welfare effects. Viners article became and still is the foundation of the theory of economic integration. It considered only two states comparing their trade flows with the rest of the world after they abolish customs tariffs on inner border of their union, opposite to economically efficient trade creation effect, the trade diversion flow is cost-inefficient compared with the rest of the world. Balance between trade creation and trade diversion effects due to the creation of economic union makes the union either economically efficient or inefficient. It is based on the fact that unification of states usually applies mergers of more than 1 sector in economy leading to the creation of trade creation or diversion effects. Diverted trade may hurt the non-member nation economically and politically, and it is widely believed by economists that trade diversion is harmful to consumers. The dynamics of trade diversion was described by Ravshanbek Dalimov in 2009 and he used similarity of trade flows to the flux of gas or liquid stimulated by the pressure difference, while the flows of trade flows are stimulated by the price difference. This allowed use of Navier-Stokes equations for the dynamics of trade flows. An example of trade diversion is the UKs import of lamb, before Britain joined the EU, most lamb imports came from New Zealand, the cheapest lamb producer. Trade was diverted from New Zealand and created between France and the UK, current Research Journal of Economic Theory,2009, vol. An article proposes to use similarity between dynamics of gas and liquid moving under pressure difference, and the dynamics of trade flows moved under price difference and this allowed to use Navier-Stoxes equation applied for the dynamics of gas and liquid towards the dynamics of trade flows
Trade diversion
9.
Export-oriented industrialization
–
Export-led growth implies opening domestic markets to foreign competition in exchange for market access in other countries. For example, many East Asian countries had strong barriers on imports from the 1960s to the 1980s, reduced tariff barriers, a floating exchange rate, and government support for exporting sectors are all an example of policies adopted to promote EOI and, ultimately, economic development. Export-led growth is a strategy used by some developing countries. This strategy seeks to find a niche in the economy for a certain type of export. Industries producing this export may receive governmental subsidies and better access to the local markets, by implementing this strategy, countries hope to gain enough hard currency to import commodities manufactured more cheaply somewhere else. From the Great Depression to the years after World War II, under-developed, during this time, many foreign markets were closed and the danger of trading and shipping in war-time waters drove many of these countries to look for another solution to development. The initial solution to this dilemma was called import substitution industrialization, both Latin American and Asian countries used this strategy at first. However, during the 1950s and 1960s the Asian countries, like Taiwan and South Korea, started focusing their development outward, many of the Latin American countries continued with import substitution industrialization, just expanding its scope. Some have pointed out that because of the success of the Asian countries, especially Taiwan and South Korea, export-led growth is important for mainly two reasons. The first is that growth can create profit, allowing a country to balance their finances, as well as surpass their debts as long as the facilities. The second, much more debatable reason is that increased export growth can trigger greater productivity, the importance of this concept can be shown in the model below from J. S. L McCombie and A. P. Thirwalls Economic Growth and the Balance-of-Payments Constraint. There are essentially two types of exports used in context, manufactured goods and raw materials. Manufactured goods are the exports most commonly used to achieve export-led growth, however, many times these industries are competing against industrialized countries industries, which often have better technology, better educated workers, and more capital to start with. Therefore, this strategy must be thought out and planned. A country must find a certain export that they can manufacture well, raw materials are another export option. However, this strategy is risky compared to manufactured goods, if the terms of trade shift unfavorably, a country must export more and more of the raw materials to import the same amount of commodities, making the trade profits very difficult to come by. It is also criticized for its lack of diversity as economies pursue their comparative advantage. This is something which occurred during the crisis of 2007–08
Export-oriented industrialization
Export-oriented industrialization
–
Terminology
10.
Import substitution industrialization
–
Import substitution industrialization is a trade and economic policy which advocates replacing foreign imports with domestic production. ISI is based on the premise that a country should attempt to reduce its foreign dependency through the production of industrialized products. The term primarily refers to 20th-century development economics policies, although it has been advocated since the 18th century by such as Friedrich List. ISI policies were enacted by countries in the Global South with the intention of producing development, ISI works by having the state lead economic development through nationalization, subsidization of vital industries, increased taxation, and highly protectionist trade policies. Import substitution was heavily practiced during the century as a form of developmental theory that advocated increased productivity. This was an economic theory practiced by developing nations after WW2. Many economists at the time considered the ISI approach as a remedy to mass poverty, mercantilist economic theory and practices of the 16th, 17th, and 18th centuries frequently advocated building up domestic manufacturing and import substitution. This formed the basis of the American School in economics, which was a force in the United States during its 19th-century industrialization. As a set of development policies, ISI policies are theoretically grounded on the Singer-Prebisch thesis, on the infant industry argument, in many cases, however, these assertions did not apply. Volkswagen, Ford, GM, and Mercedes all established production facilities in Brazil in the 1950s and 1960s, import substitution policies were adopted by most nations in Latin America from the 1930s until the late 1980s. This served as an incentive for the production of the goods they needed. Positivist thinking, which sought a government to modernize society. Among the officials, many of whom rose to power, like Perón and Vargas, ISI gained a theoretical foundation only in the 1950s, when Argentine economist and UNECLAC head Raúl Prebisch was a visible proponent of the idea, as well as Brazilian economist Celso Furtado. Prebisch had experience running his country’s central bank and started to question the model of export-led growth and these unequal powers were taking the wealth from third world countries leaving them with no way to prosper. He believed that developing countries needed to create local vertical linkages, the tariffs were designed to allow domestic infant industries to prosper. ISI was most successful in countries with populations and income levels which allowed for the consumption of locally produced products. Latin American countries such as Argentina, Brazil, Mexico, and Chile, Uruguay, thus, smaller and poorer countries, such as Ecuador, Honduras, and the Dominican Republic, could implement ISI only to a limited extent. Peru implemented ISI in 1961, and the policy lasted through to the end of the decade in some form, in Latin American countries in which ISI was most successful, it was accompanied by structural changes to the government
Import substitution industrialization
Import substitution industrialization
–
Terminology
11.
Trade finance
–
Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer, various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade. While a seller can require the purchaser to prepay for goods shipped, Banks may assist by providing various forms of support. For example, the bank may provide a letter of credit to the exporter providing for payment upon presentation of certain documents. The exporters bank may make a loan to the exporter on the basis of the export contract, other forms of trade finance can include Documentary Collection, Trade Credit Insurance, Finetrading, Factoring or forfaiting. Some forms are designed to supplement traditional financing. Secure trade finance depends on verifiable and secure tracking of physical risks, the advent of new information and communication technologies allows the development of risk mitigation models which have developed into advance finance models. This allows very low risk of advance payment given to the Exporter, while preserving the Importers normal payment credit terms, as trade transactions become more flexible and increase in volume, demand for these technologies has grown. Banks and financial institutions offer the products and services in their trade finance branches. Bank guarantee, It is a given by a Bank on behalf of the Applicant. Bank guarantee has various types like 1, labour Export Import Collection and discounting of bills, It is a major trade service offered by the Banks. Popular methods of payment used in international trade include, cash with order-the buyers pay cash when he places an order, cash on delivery-the buyer pays cash when the goods are delivered. Documentary credit-a Letter of credit is used, gives the seller two guarantees that the payment will be made by the buyer, one guarantee from the buyers bank and another from the sellers bank. Open account-this method can be used by business partners who trust each other, exporters, International Trade Administration, U. S. Department of Commerce Federation of International Trade Associations AplonTrade, Free sample tool for trade financing with SWIFT messages. The Complete Guide to Trade Finance for Export Businesses
Trade finance
–
Terminology
Trade finance
12.
Trade facilitation
–
Understanding and use of the term “trade facilitation” varies in the literature and amongst practitioners. Trade facilitation is used by institutions which seek to improve the regulatory interface between government bodies and traders at national borders. In defining the term, many trade facilitation proponents will also make reference to trade finance, notably, most countries have focused their trade facilitation efforts on establishing electronic single windows and other paperless trade systems to further reduce trade costs. Trade facilitation looks at operational improvements at the interface between business and government and associated transaction costs, Trade facilitation has become a key feature in supply chain security and customs modernisation programmes. Within the context of development it has also come to prominence in the Doha Development Round. However, it is a prominent feature in unilateral and bilateral initiatives that seek to improve the trade environment. Reference to trade facilitation is sometimes made in the context of better regulation. Some organisations promoting trade facilitation will emphasize the cutting of red tape in international trade as their main objective, ODI Project Briefing 12, Overseas Development Institute Grainger, A2011. Trade Facilitation, A Conceptual Review, Journal of World Trade,45, ISSN ISSN 1011-6702 Grainger, A2007. Customs and Trade Facilitation, from concepts to implementation World Customs Journal, Volume 2, global Facilitation Partnership, A collaborative tool for practitioners and policy makers involved in trade facilitation and transport facilitation. SITPRO, United Kingdoms Trade Facilitation Agency dedicated to making international trade simpler by cutting red tape, SWEPRO, SWEPRO is Swedens forum for discussion and information on international work for all issues related to simplification of trade procedures. TFC Publications Collection of trade facilitation papers Trade Costs and Facilitation, The Development Dimension, A World Bank research project on trade facilitation, United Nations Centre for Trade Facilitation and Electronic Business Webage with links to UN Trade Facilitation Recommendations World Customs Journal, Special Issue on Trade Facilitation
Trade facilitation
13.
Trade route
–
A trade route is a logistical network identified as a of pathways and stoppages used for the commercial transport of cargo. The term can also be used to refer to trade over bodies of water, among notable trade routes was the Amber Road, which served as a dependable network for long-distance trade. Maritime trade along the Spice Route became prominent during the Middle Ages, during the Middle Ages, organizations such as the Hanseatic League, aimed at protecting interests of the merchants, and trade became increasingly prominent. In modern times, commercial activity shifted from the trade routes of the Old World to newer routes between modern nation-states. Innovative transportation of modern times includes pipeline transport and the relatively well-known trade involving rail routes, automobiles, one of the vital instruments which facilitated long distance trade was portage and the domestication of beasts of burden. Organized caravans, visible by the 2nd millennium BCE, could carry goods across a distance as fodder was mostly available along the way. The domestication of camels allowed Arabian nomads to control the long distance trade in spices, caravans were useful in long-distance trade largely for carrying luxury goods, the transportation of cheaper goods across large distances was not profitable for caravan operators. With productive developments in iron and bronze technologies, newer trade routes—dispensing innovations of civilizations—began to rise, evidence of maritime trade between civilizations dates back at least 90 millennia. Navigation was known in Sumer between the 4th and the 3rd millennium BCE, and was known by the Indians. The Egyptians had trade routes through the Red Sea, importing spices from the Land of Punt, maritime trade began with safer coastal trade and evolved with the manipulation of the monsoon winds, soon resulting in trade crossing boundaries such as the Arabian Sea and the Bay of Bengal. South Asia had multiple maritime trade routes which connected it to Southeast Asia, Indian connections to various Southeast Asian states buffered it from blockages on other routes. By making use of the trade routes, bulk commodity trade became possible for the Romans in the 2nd century BCE. A Roman trading vessel could span the Mediterranean in a month at one-sixtieth the cost of over-land routes, the peninsula of Anatolia lay on the commercial land routes to Europe from Asia as well as the sea route from the Mediterranean to the Black Sea. Records from the 19th century BCE attest to the existence of an Assyrian merchant colony at Kanesh in Cappadocia, trading networks of the Old World included the Grand Trunk Road of India and the Incense Road of Arabia. Parts of the Mediterranean world, Roman Britain, Tigris-Euphrates river system, beyond this was a margin which included not only temperate areas such as Europe, but the dry steppe corridor of central Asia. This was truly a world system, even though it occupied only a portion of the western Old World. Whilst each civilization emphasized its ideological autonomy, all were part of a common world of interacting components. These routes - spreading religion, trade and technology - have historically been vital to the growth of urban civilization
Trade route
–
Much of the
Radhanites '
Indian Ocean trade would have depended on coastal cargo-ships such as this
dhow.
Trade route
–
The economy of the
Kingdom of Qataban (light blue) was based on the cultivation and trade of spices and aromatics including frankincense and myrrh. These were exported to the Mediterranean, India and
Abyssinia where they were greatly prized by many cultures, using camels on routes through Arabia, and to India by sea.
Trade route
–
For centuries, the Grand Trunk Road has served as the main artery for travel across Northern India. A scene from the
Ambala cantonment during the days of the
British Raj.
Trade route
–
High-capacity freeway
interchange in
Los Angeles, California, USA.
14.
Domestic trade
–
Domestic trade, also known as internal trade or home trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail, wholesale trade is concerned with buying goods from manufacturers or dealers or producers in large quantities and selling them in smaller quantities to others who may be retailers or even consumers. Wholesale trade is undertaken by wholesale merchants or wholesale commission agents, retail trade is concerned with the sale of goods in small quantities to consumers. This type of trade is taken care of by retailers, in actual practice, however, manufacturers and wholesalers may also undertake retail distribution of goods to bypass the intermediary retailer, by which they earn higher profits. The importance of trade in a country is that it facilitates exchange of goods within the country. By doing this it makes sure that factors of production reach to the right places so that the economy of the country can grow. And it helps the growth of an industry by ensuring the availability of raw materials, traders from outside the country will have to come in contact with internal traders, because it is not easy to come directly into another country and get the required products. Wholesalers play a role in working of domestic trade. One could even say that it is the backbone of the domestic market, a wholesaler is one is directly in contact with the manufacturers but in indirect contact with the consumers. A wholesaler generally deals with one type of industry, a wholesaler is not only into selling of products as it is also involved in packaging, advertising, grading, and market research. They have their own go downs which saves the manufacturers from bothering about storage and they normally make cash payments from retailers and sometimes consumers themselves and give advance payments which benefits the manufacturers. They sell in smaller quantities to retailers, which refrains the retailers from requiring storage space and they do allow credit facilities to retailers at times. A retailer is normally the final seller of a product and it makes its purchases made from Wholesalers and sales are made to the customers directly. Retailers do not particularly have to be from one industry i. e. they can trade in a variety of products at the same time and it generally has purchases made by credit and sales made in cash. Sales as compared to wholesalers are made in small quantities
Domestic trade
–
Contents
15.
Tax, tariff and trade
–
A tax is a financial charge or other levy imposed upon a taxpayer by a state or the functional equivalent of a state to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent, the legal definition and the economic definition of taxes differ in that economists do not regard many transfers to governments as taxes. For example, some transfers to the sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments, governments also obtain resources by creating money and coins, through voluntary gifts, by imposing penalties, by borrowing, and by confiscating wealth. In modern taxation systems, governments levy taxes in money, but in-kind and corvée taxation are characteristic of traditional or pre-capitalist states, the method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics. Tax collection is performed by a government agency such as the Canada Revenue Agency, when taxes are not fully paid, the state may impose civil penalties or criminal penalties on the non-paying entity or individual. The levying of taxes aims to raise revenue to fund governing and/or to alter prices in order to affect demand, States and their functional equivalents throughout history have used money provided by taxation to carry out many functions. A governments ability to raise taxes is called its fiscal capacity, when expenditures exceed tax revenue, a government accumulates debt. A portion of taxes may be used to service past debts, governments also use taxes to fund welfare and public services. These services can include education systems, pensions for the elderly, unemployment benefits, energy, water and waste management systems are also common public utilities. A tax effectively changes relative prices of products and they have therefore sought to identify the kind of tax system that would minimize this distortion. Governments use different kinds of taxes and vary the tax rates, historically, taxes on the poor supported the nobility, modern social-security systems aim to support the poor, the disabled, or the retired by taxes on those who are still working. A states tax system often reflects its communal values and the values of those in current political power. To create a system of taxation, a state must make choices regarding the distribution of the tax burden—who will pay taxes and how much they will pay—and how the taxes collected will be spent. In democratic nations where the public elects those in charge of establishing or administering the tax system, in countries where the public does not have a significant amount of influence over the system of taxation, that system may reflect more closely the values of those in power. All large businesses incur administrative costs in the process of delivering revenue collected from customers to the suppliers of the goods or services being purchased. Taxation is no different, the resource collected from the public through taxation is always greater than the amount which can be used by the government, the difference is called the compliance cost and includes the labour cost and other expenses incurred in complying with tax laws and rules
Tax, tariff and trade
–
Pieter Brueghel the Younger, The tax collector's office, 1640
Tax, tariff and trade
–
Taxation
Tax, tariff and trade
–
Egyptian
peasants seized for
non-payment of taxes. (
Pyramid Age)
16.
Trade restriction
–
A trade restriction is an artificial restriction on the trade of goods and/or services between two countries. It is the byproduct of protectionism, however, the term is controversial because what one part may see as a trade restriction another may see as a way to protect consumers from inferior, harmful or dangerous products. For instance Germany required the production of beer to adhere to its purity law, the law, originally implemented in Bavaria in 1516 and eventually becoming law for newly unified Germany in 1871, made many foreign beers unable to be sold in Germany as beer. This law was struck down in 1987 by the European Court of Justice, rectangular headlamps were promoted in the United States where round lamps were required until 1975. By 1979, the majority of new cars now had the rectangular headlamps, in 1968, the US Department of Transportation outlawed any decorative or protective element in front of the headlamps if the headlamps are switched on. The change meant that vehicles designed for aerodynamic performance could not achieve it for the US market. In 1984, the Department changed the rule to allow replaceable-bulb headlamps of nonstandard shapes, however, some automaker could equip a vehicle with the same type of headlamps in the US as in the rest of the world. US headlamp standards are governed by Federal Motor Vehicle Safety Standard 108, canada has its own headlamp standards that are similar to the US standard but allows UNECE-compliant headlamps. Headlamps were used in cars but also for traffic violation stops
Trade restriction
17.
Trade barrier
–
Trade barriers are government-induced restrictions on international trade. If two or more nations repeatedly use trade barriers against each other, then a trade war results, economists generally agree that trade barriers are detrimental and decrease overall economic efficiency, this can be explained by the theory of comparative advantage. In theory, free trade involves the removal of all such barriers, in practice, however, even those countries promoting free trade heavily subsidize certain industries, such as agriculture and steel. High income countries tend to have less trade barriers than middle income countries which, in turn, small states tend to have lower trade barriers than large states. The most common trade barriers are on agricultural goods, textiles, apparel and footwear are the manufactured goods which are most commonly protected by trade barriers. Tariffs have been declining in the last twenty years but states have increased their non-tariff barriers, according to Chad Bown and Meredith Crowley, world trade is probably vastly more liberal in current times than was the case historically. According to Ronald Findlay and Kevin H. O’Rourke, for the nineteenth and twentieth centuries trade barriers and transport costs were the most important barriers to trade. They also write, during the mercantilist era price gaps were as likely to be due to trade monopolies, pirates, and wars as to costs and tariffs. Due to steadily decreasing tariff barriers since WWII, countries have become increasingly likely to trade barriers in the form of non-tariff barriers. National firms often lobby their own governments to enact regulations that are designed to keep out foreign firms, trade barriers are often criticized for the effect they have on the developing world. Because rich-country players call most of the shots and set trade policies, tariffs also tend to be anti-poor, with low rates for raw commodities and high rates for labor-intensive processed goods. The Commitment to Development Index measures the effect that rich country trade policies actually have on the developing world, trade barriers are mostly a combination of conformity and per-shipment requirements requested abroad, and weak inspection or certification procedures at home. The impact of trade barriers on companies and countries is highly uneven, one particular study showed that small firms are most affected. Another negative aspect of trade barriers is that they result in a choice of products and would therefore force customers to pay higher prices. Before exporting or importing to other countries, firstly, they must be aware of restrictions that the government imposes on the trade, sometimes the situation becomes even more complicated with the changing of policy and restrictions of a country
Trade barrier
–
Terminology
Trade barrier
18.
Tariff
–
A tariff is a tax on imports or exports. In other languages and very occasionally in English, tariff or its equivalent may also be used to any list of prices. A customs duty or due is the tax levied on the import or export of goods in international trade. In economic sense, a duty is also a kind of consumption tax, a duty levied on goods being imported is referred to as an import duty. Similarly, a duty levied on exports is called an export duty, a tariff, which is actually a list of commodities along with the leviable rate of customs duty, is popularly referred to as a customs duty. This is no longer the case, Customs duty is calculated on the determination of the assessable value in case of those items for which the duty is levied ad valorem. This is often the transaction value unless a customs officer determines assessable value in accordance with the Harmonized System, However, for certain items like petroleum and alcohol, customs duty is realized at a specific rate applied to the volume of the import or export consignments. For the purpose of assessment of duty, products are given an identification code that has come to be known as the Harmonized System code. This code was developed by the World Customs Organization based in Brussels, a Harmonized System code may be from four to ten digits. For example,17.03 is the HS code for molasses from the extraction or refining of sugar, However, within 17.03, the number 17.03.90 stands for Molasses. Introduction of Harmonized System code in 1990s has largely replaced the Standard International Trade Classification, in drawing up the national tariff, the revenue departments often specifies the rate of customs duty with reference to the HS code of the product. A Customs authority in each country is responsible for collecting taxes on the import into or export of goods out of the country, Evasion of customs duties takes place mainly in two ways. In one, the trader under-declares the value so that the value is lower than actual. In a similar vein, a trader can evade customs duty by understatement of quantity or volume of the product of trade, a trader may also evade duty by misrepresenting traded goods, categorizing goods as items which attract lower customs duties. The Evasion of customs duty may take place with or without the collaboration of customs officials, Evasion of customs duty does not necessarily constitute smuggling. Many countries allow a traveler to bring goods into the country duty-free and these goods may be bought at ports and airports or sometimes within one country without attracting the usual government taxes and then brought into another country duty-free. Some countries impose allowances which limit the number or value of items that one person can bring into the country. These restrictions often apply to tobacco, wine, spirits, cosmetics, gifts, often foreign diplomats and UN officials are entitled to duty-free goods
Tariff
Tariff
–
See also
Protective Tariffs for the policies of using tariffs, and
tariff (disambiguation) for other uses.
Tariff
–
Terminology
19.
Duty (economics)
–
In economics, a duty is a kind of tax levied by a state. It is often associated with customs, in context they are also known as tariffs or dues. The term is used to describe a tax on certain items purchased abroad. Properly, a duty differs from a tax in being levied on specific commodities, financial transactions, estates, duties may be import duties, excise duties, stamp duties, death or succession duties, etc. but not such direct impositions as personal income taxes. An estate duty is a tax levied on the estate of a person in many jurisdictions or on the inheritance of a person. The tax is sometimes referred to, formally or informally, as a death duty, often, the rate of the duty is similar to a gift duty. Tariff Free economic zone Free port Duty-free shop Smuggling Tax Evasion Likin, tax collected on transportation of goods in Qing China
Duty (economics)
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Taxation
20.
Export subsidy
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An export subsidy reduces the price paid by foreign importers, which means domestic consumers pay more than foreign consumers. The World Trade Organization prohibits most subsidies directly linked to the volume of exports, Export subsidies are also generated when internal price supports, as in a guaranteed minimum price for a commodity, create more production than can be consumed internally in the country. Instead of letting the commodity rot or destroying it, the government exports it, saudi Arabia is a net exporter of wheat, Japan often is a net exporter of rice. Export subsidies can cause inflation, the government subsidises the industry based on costs, some countries provide indirect export subsidies in the form of tax reductions. In the United States closely held exporters of U. S. made goods may get a reduction of tax using an Interest Charge Domestic International Sales Corporation, International Trade Theory and Policy, Export Subsidies by Steven M. Suranovicby
Export subsidy
21.
Technical barriers to trade
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Here, technical barriers to trade refer to measures such as labelling requirements, standards on technical specifications and quality standards, and other measures protecting the environment. Chapter B also includes all conformity-assessment measures related to requirements, such as certification, testing. Other examples of TBTs are rules for product weight, size, or packaging, ingredient or identity standards, shelf-life restrictions, the Agreement on Technical Barriers to Trade gives rules for the use of such barriers. However, trade experts widely view TBTs as having potential for being misused by importing countries as nontransparent obstacles to trade. The OECD has been working to make common standardization easier with the ISTR Template allowing common standards to aid in the implementation of the WTO Agreement, sanitary and phytosanitary measures and agreements ITCs Market Access Map, interactive portal providing information on customs tariffs and market requirements. ITCs Non-Tariff Measures Business Survey database, including regulatory and procedural obstacles that trading companies face both at home and abroad, uNCTADs Classification of Non-Tariff Measures report
Technical barriers to trade
22.
Bribery
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Bribery is the act of giving money, goods or other forms of recompense to a recipient in exchange for an alteration of their behavior that the recipient would otherwise not alter. Gifts of money or other items of value which are available to everyone on an equivalent basis. Offering a discount or a refund to all purchasers is a rebate and is not bribery. Giving the rebate to influence them to look favorably on the utilitys rate increase applications, however. The bribe is the gift bestowed to influence the recipients conduct, in economics, the bribe has been described as rent. Bribery in bureaucracy has been viewed as a reason for the higher cost of production of goods, one must be careful of differing social and cultural norms when examining bribery. Expectations of when a transaction is appropriate can differ from place to place. Tipping, for example, is considered bribery in some societies, in some Spanish-speaking countries, bribes are referred to as mordida. In Arab countries, bribes may be called baksheesh or shay, french-speaking countries often use the expressions dessous-de-table, pot-de-vin, or commission occulte. While the last two expressions contain inherently a negative connotation, the expression dessous-de-table can be understood as a commonly accepted business practice. In German, the term is Schmiergeld. The forms that bribery take are numerous, for example, a motorist might bribe a police officer not to issue a ticket for speeding, a citizen seeking paperwork or utility line connections might bribe a functionary for faster service. Bribery may also take the form of a commission, a profit made by an agent, in the course of his employment. Euphemisms abound for this Bribers and recipients of bribery are likewise numerous although bribers have one common denominator, Bribery around the world is estimated at about $1 trillion. The reason for this dissociation is to make the steps of a corrupt deal already an offence and, thus. Besides, such a dissociation makes the prosecution of bribery offences easier since it can be difficult to prove that two parties have formally agreed upon a corrupt deal. A grey area may exist when payments to smooth transactions are made, in some countries, this practice is the norm, often resulting from a developing nation not having the tax structure to pay civil servants an adequate salary. Nevertheless, most economists regard bribery as a bad thing because it encourages rent seeking behaviour, a state where bribery has become a way of life is a kleptocracy
Bribery
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Photo of cash found in Congressman
William J. Jefferson 's freezer in the August 2005 raid was shown to jurors on 8 July 2009
Bribery
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Article II, Section 4 of the
United States Constitution
Bribery
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Demonstration in Washington, DC
Bribery
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A campaign to prevent bribes in
Zambia.
23.
Foreign exchange controls
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Foreign exchange controls are various forms of controls imposed by a government on the purchase/sale of foreign currencies by residents or on the purchase/sale of local currency by nonresidents. Such controls used to be common in most countries, particularly poorer ones, until the 1990s when free trade, today, countries which still impose exchange controls are the exception rather than the rule. Often, foreign exchange controls can result in the creation of markets to exchange the weaker currency for stronger currencies. This leads to a situation where the rate for the foreign currency is much higher than the rate set by the government. As such, it is unclear whether governments have the ability to enact effective exchange controls, note that this list is very incomplete. Currency transaction tax Financial transaction tax Spahn tax Sterling Area Tobin tax
Foreign exchange controls
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Four exchange control stamps in a South African passport from the mid-1980s allowing the passport holder to take a particular amount of currency out of the country. Exchange controls such as these were imposed by the
apartheid -era South African government to restrict the outflow of capital from the country.
24.
Embargo
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An embargo is the partial or complete prohibition of commerce and trade with a particular country or a group of countries. Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, embargoes are similar to economic sanctions and are generally considered legal barriers to trade, not to be confused with blockades, which are often considered to be acts of war. In response to embargoes, an independent economy or autarky often develops in an area subjected to heavy embargo, effectiveness of embargoes is thus in proportion to the extent and degree of international participation. Companies must be aware of embargoes that apply to the export destination. Embargo check is difficult for both importers and exporters to follow, before exporting or importing to other countries, firstly, they must be aware of embargoes. Sometimes the situation even more complicated with the changing of politics of a country. If an embargo situation exists, the blocks the transaction for further processing. The Embargo of 1807 was a series of laws passed by the U. S. Congress 1806–1808, during the second term of President Thomas Jefferson. Britain and France were engaged in a war, the U. S. wanted to remain neutral. The American national-interest goal was to use the new laws to avoid war, one of the most comprehensive attempts at an embargo happened during the Napoleonic Wars. In an attempt to cripple the United Kingdom economically, the Continental System – which forbade European nations from trading with the UK – was created, in practice it was not completely enforceable and was as harmful if not more so to the nations involved than to the British. The United States imposed an embargo on Cuba on February 7,1962, referred to by Cuba as el bloqueo, the US embargo on Cuba remains one of the longest-standing embargoes. The embargo was embraced by few of the United States allies, in 1973–1974, Arab nations imposed an oil embargo against the United States and other industrialized nations that supported Israel in the Yom Kippur War. China, arms embargo, enacted in response to the Tiananmen Square protests of 1989, enacted 1979, increased through the following years and reached its tightest point in 2010. North Korea, luxury goods, enacted 2006 Turkish Republic of Northern Cyprus, consumer goods, Indonesia, live cattle because of cruel slaughter methods in Indonesia. Gaza Strip by Israel since 2001, under blockade since 2007 due to the large number of illicit arms traffic used to wage war. Syria, arms and imports of oil, EU, US, Australia, Canada and Norway since August 2014, beef, pork, fruit and vegetable produce, poultry, fish, cheese, milk and dairy. On August 13,2015, the embargo was expanded to Albania, Montenegro, Switzerland, Japan, Iceland, federal Republic of Yugoslavia North Vietnam and later Vietnam, trade embargo by the US Republic of Macedonia, complete trade embargo
Embargo
25.
Safeguard
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A safeguard, in international law, is a restraint on international trade or economic development to protect communities from development aggression or home industries from foreign competition. The WTO and UNFCCC concepts are related within international law, with UNFCC processes, safeguards became of concern in the 2010 United Nations Climate Change Conference. Within the WTO, safeguard measures were available under the General Agreement on Tariffs, however, they were infrequently used, and some governments preferred to protect their industries by grey area measures. As part of the WTO deal, members gave up the area measures. Safeguards are usually seen as responses to economic development and trade processes that align with international law, as opposed to negative practices, in the context of world trade, they are supposed to be used only in very specific circumstances, with compensation, and on a universal basis. For example, a member restricting imports for safeguard purposes would have to restrict imports from all other countries, however, exceptions to the nondiscriminatory rule are provided for in the Agreement on Safeguards itself as well as in some ad hoc agreements. In the last respect, it is worthwhile to note that the Peoples Republic of China accepted that discriminatory safeguards may be imposed on its exports to other WTO members until 2013, regional trading arrangements have their own rules relating to safeguards. Some safeguard measures can be resorted to in the area of services, paolo Farah Five Years of China’s WTO Membership
Safeguard
26.
Voluntary export restraints
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They are sometimes referred to as Export Visas. Typically VERs arise when industries seek protection from competing imports from particular countries, VERs are then offered by the exporting country to appease the importing country and deter it from imposing explicit trade barriers. VERs are typically implemented on exports from one country to another. VERs have been used since the 1930s at least, and have applied to products ranging from textiles and footwear to steel, machine tools. They became a form of protection during the 1980s, they did not violate countries agreements under the General Agreement on Tariffs. This quota was originally intended to expire three years, in April 1984. However, with a deficit in trade with Japan, and under pressure from domestic manufacturers. The cap was raised to 1.85 million cars for this additional year, the voluntary restraint was removed in 1994. The Japanese automobile industry responded by establishing assembly plants or transplants in the United States to produce mass market vehicles. Some Japanese manufacturers who had their transplant assembly factories in the Rust Belt e. g. Mazda, Mitsubishi had to have a joint venture with a Big Three manufacturer. S. The Japanese Big Three also began exporting bigger, more cars in order to make more money from a limited number of cars. autonewseurope. com/ stories0604/japanese604. htm. Voluntary export restraints, Finance & Development, Vol.24 No.4, multinational Enterprise and Economic Analysis, Cambridge University Press, Cambridge. Local production didnt help the Japanese, Automotive News Europe, Vol.7 No.17, EC imports of VCRs from Japan – a costly precedent, Journal of World Trade, Vol.20 No.2, pp. 168–84. The safeguard/VER dilemma, the Jekyll and Hyde of trade protection, Northwestern Journal of International Law & Business, Vol.15 No.1, marketing strategies and voluntary export restraints, Journal of World Trade, Vol.25 No.4, pp. 87–100. Magee, S. P. Brock, W. A. Young, L. Black Hole Tariffs, political Economy in General Equilibrium, Cambridge University Press, New York, NY. Preusse, H. G.47 No. III, pp. 361–88, schuknecht, L. Trade Protection in the European Community, Harwood Academic Publishers, Chur. The effects of protection on a domestic oligopoly, the case of the US auto market, Journal of Policy Modeling, Vol.16 No.3, pp. 299–325. Life after the voluntary restraint agreements, the future of the US steel industry, George Washington Journal of International Law and Economics, Vol.25 No.1, pp. 875–905
Voluntary export restraints
27.
Timeline of international trade
–
The history of international trade chronicles notable events that have affected the trade between various countries. In the 21st century, China, the European Union and the United States are the three largest trading markets in the world, records from the 19th century BCE attest to the existence of an Assyrian merchant colony at Kanesh in Cappadocia. The domestication of camel allows Arabian nomads to control long distance trade in spices, the Egyptians trade in the Red sea, importing spices from the Land of Punt and from Arabia. Indian goods are brought in Arabian vessels to Aden, the ships of Tarshish, a Tyrian fleet equipped at Ezion Geber, make several trading voyages to the East bringing back gold, silver, ivory and precious stones. Tiglath-Pileser III attacks Gaza in order to trade along the Incense Route. The Greek Ptolemaic dynasty exploits trading opportunities with India prior to the Roman involvement, the cargo from the India and Egypt trade is shipped to Aden. With the establishment of Roman Egypt, the Romans initiate trade with India, the goods from the East African trade are landed at one of the three main Roman ports, Arsinoe, Berenice or Myos Hormos. Myos Hormos and Berencie appear to have been important ancient trading ports, gerrha controls the Incense trade routes across Arabia to the Mediterranean and exercises control over the trading of aromatics to Babylon in the 1st century BC. Additionally, it served as a port of entry for goods shipped from India to the East, due to its prominent position in the incense trade, Yemen attracts settlers from the fertile crescent. Pre-Islamic Meccans use the old Incense Route to benefit from the heavy Roman demand for luxury goods, in Java and Borneo, the introduction of Indian culture creates a demand for aromatics. These trading outposts later serve the Chinese and Arab markets, following the demise of the incense trade Yemen takes to the export of coffee via the Red Sea port of al-Mocha. The Abbasids use Alexandria, Damietta, Aden and Siraf as entry ports to India, at the eastern terminus of the Silk Road, the Tang Dynasty Chinese capital at Changan becomes a major metropolitan center for foreign trade, travel, and residence. This role would be assumed by Kaifeng and Hangzhou during the Song Dynasty, guangzhou was Chinas greatest international seaport during the Tang Dynasty, but its importance was eclipsed by the international seaport of Quanzhou during the Song Dynasty. Merchants arriving from India in the city of Aden pay tribute in form of musk, camphor, ambergris and sandalwood to Ibn Ziyad. Indian exports of spices find mention in the works of Ibn Khurdadhbeh, al-Ghafiqi, Ishak bin Imaran, the Hanseatic League secures trading privileges and market rights in England for goods from the Leagues trading cities in 1157. Due to the Turkish hold on the Levant during the half of the 15th century the traditional Spice Route shifts from the Persian Gulf to the Red Sea. In 1492 a Spanish expedition commanded by Christopher Columbus arrive in America, Portuguese diplomat Pero da Covilha undertakes a mission to explore the trade routes of the Near East and the adjoining regions of Asia and Africa. The exploration commenced from Santarém to Barcelona, Naples, Alexandria, Cairo, Portuguese explorer and adventurer Vasco da Gama is credited with establishing another sea route from Europe to India
Timeline of international trade
Timeline of international trade
–
The desert Cities in the Negev were linked to the
Mediterranean end of the ancient
Incense Route.
Timeline of international trade
–
The economy of the
Kingdom of Qataban (light blue) was based on the cultivation and trade of spices and aromatics including frankincense and myrrh. These were exported to the Mediterranean, India and
Abyssinia where they were greatly prized by many cultures, using camels on routes through Arabia, and to India by sea.
Timeline of international trade
–
Monopolistic activity by the company triggered the
Boston Tea Party.
28.
Mercantilism
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Mercantilism was an economic theory and practice that was dominant in Western Europe during the 15th to the mid-18th centuries. Mercantilism is a form of economic nationalism and its goal is to enrich and empower the nation and state to the maximum degree, by acquiring and retaining as much economic activity as possible within the nations borders. Manufacturing and industry, particularly of goods with military applications, were prioritized, Mercantilism sought to ensure the nation produced as much volume and variety of output as possible, so as to limit its dependence upon foreign suppliers. Economic autarky was an element of mercantilism. These aims were primarily accomplished by, Imposing high tariffs on the importation of finished goods, Imposing low, or no taxes on the export of finished goods, and imposing high taxes on the exportation of raw materials. Seeking new markets for manufactured products, so as to artificially increase the demand for domestic production. These policies generally resulted in a balance of trade, which led to the accumulation of precious metals. Historically, such policies sometimes led to war and may have motivated colonial expansion, high tariffs, especially on manufactured goods, are an almost universal feature of mercantilist policy. Mercantilism has been linked to bullionism ever since Adam Smith made the accusation, however, due to the fact that no author self-consciously used the label to refer to their own thoughts mercantilist authors can only be identified retrospectively. It is the supply of things necessary for life and suitable for clothing, the core of mercantile policy was a coherent national industrial policy, which was aimed at generating as much material wealth within the nation as possible. Doing so, it was thought, was the best way to increase the states military, the term mercantile system was used by its foremost critic, Adam Smith, but mercantilism had been used earlier by Mirabeau. Many nations applied the theory, one example being France which was the most important state economically in Europe at the time. King Louis XIV followed the guidance of Jean Baptiste Colbert, his general of finances. Mercantilism was the dominant school of thought in Europe throughout the late Renaissance. Evidence of mercantilistic practices appeared in early modern Venice, Genoa, however, as a codified school of economic theories, mercantilisms real birth was marked by the empiricism of the Renaissance, which first began to quantify large-scale trade accurately. England began the first large-scale and integrative approach to mercantilism during the Elizabethan Era, queen Elizabeth promoted the Trade and Navigation Acts in Parliament and issued orders to her navy for the protection and promotion of English shipping. It was written in the 1620s and published in 1664, numerous French authors helped cement French policy around mercantilism in the 17th century. This French mercantilism was best articulated by Jean-Baptiste Colbert, though policy liberalised greatly under Napoleon, in Europe, academic belief in mercantilism began to fade in the late 18th century, especially in Britain, in light of the arguments of Adam Smith and the classical economists
Mercantilism
–
An imaginary seaport with a transposed
Villa Medici, painted by
Claude Lorrain around 1637, at the height of mercantilism
Mercantilism
–
Merchants in
Venice
Mercantilism
–
French finance minister and mercantilist
Jean-Baptiste Colbert served for over 20 years.
Mercantilism
–
The
Anglo-Dutch Wars were fought between the English and the Dutch for control over the seas and trade routes.
European Union
United States
China
Germany
Japan
United Kingdom
France
Netherlands
Hong Kong
South Korea
Italy
Canada
Belgium
India
Singapore
Mexico
Spain
Switzerland
Taiwan
Russia
Ireland
United Arab Emirates
. 
