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Contradictions in International Trade - Essay Example
Author : rmorissette
Pages 18 (4518 words)
This paper aims to study whether a multilateral approach to trade policy, using the WTO, is necessarily in conflict with a bilateral approach, involving trade deals between individual countries or groups of countries. This paper makes insight to trade and its origin and how it evolved to a system that surrounds multilateral and bilateral trade agreements and policies in general…
Market is a medium that allows trade. In the olden days trade was called barter, where people used to exchange mostly goods directly. But with the invention of money (and credit, non-physical money and paper money very much later on), trading has now become convenient and been made easier.
There are many reasons why trade exists. People trade for other products because of specialization and division of labor, concentrating on small factors of production. Another, different regions have a relative advantage in terms of producing of some exchangeable products. Mass production is allowed owing to the regions' size. That's why both locations benefit from trading at market prices. Trading could also be applied to the action done by the traders and agents in the stock markets. (Bond, E. W., and Syropoulos C., 1996)
In the prehistoric times, trade began with the advent of communication. People there bartered goods and services from each other. In the Egyptian times, materials used for making jewerly had been bartered since 3000 BCE. (Wikipedia contributors 2006)
A financially lucrative commerce began in during the Greek civilization until the fall of the Roman Empire. It brought spice to Europe to the Far East. ...