International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.
Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited ...view middle of the document...
Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor. One report in 2010 suggested that international trade was increased when a country hosted a network of immigrants, but the trade effect was weakened when the immigrants became assimilated into their new country.
International trade is also a branch of economics, which, together with international finance, forms the larger branch of international economics. For more, see The Observatory of Economic Complexity.
history of international trade
The history of international trade chronicles notable events that have affected the trade between various countries.
In the era before the rise of the nation state, the term 'international' trade cannot be literally applied, but simply means trade over long distances; the sort of movement in goods which would represent international trade in the modern world.
Chronology of events
The desert Cities in the Negev were linked to the Mediterranean end of the ancient Incense Route.
* Records from the 19th century BC 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 and silk from the Far East.
* 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 control 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.
Roman trade with India according to the Periplus Maris Erythraei, 1st century CE.
* The Silk Road is established after the diplomatic travels of the Han Dynasty Chinese envoy Zhang Qian to Central Asia, with Chinese goods making their way to India, Persia, and the Roman Empire, and vice versa.
* 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 (rose to prominence during the 1st century BCE) 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.
The economy of the Kingdom of Qataban (light blue) was based...