Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
An early form of trade, barter, saw the direct exchange of goods and services for other goods and services,[1] i.e. trading things without the use of money.[1] Modern traders generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and letter of credit, paper money, and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade.
In one modern view, trade exists due to specialization and the division of labour, a predominant form of economic activity in which individuals and groups concentrate on a small aspect of production, but use their output in trades for other products and needs.[2] Trade exists between regions because different regions may have a comparative advantage (perceived or real) in the production of some trade-able commodity—including production of natural resources scarce or limited elsewhere. For example: different regions' sizes may encourage mass production. In such circumstances, trade at market prices between locations can benefit both locations. Different types of traders may specialize in trading different kinds of goods; for example, the spice trade and grain trade have both historically been important in the development of a global, international economy.
Retail trade consists of the sale of goods or merchandise from a very fixed location[3] (such as a department store, boutique or kiosk), online or by mail, in small or individual lots for direct consumption or use by the purchaser.[4]Wholesale trade is traffic in goods that are sold as merchandise to retailers, or to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services.
Historically, openness to free trade substantially increased in some areas from 1815 to the outbreak of World War I in 1914. Trade openness increased again during the 1920s but collapsed (in particular in Europe and North America) during the Great Depression of the 1930s. Trade openness increased substantially again from the 1950s onwards (albeit with a slowdown during the oil crisis of the 1970s). Economists and economic historians contend that current levels of trade openness are the highest they have ever been.[5][6][7]
Etymology
Trade is from Middle Englishtrade ("path, course of conduct"), introduced into English by Hanseatic merchants, from Middle Low Germantrade ("track, course"), from Old Saxontrada ("spoor, track"), from Proto-Germanic*tradō ("track, way"), and cognate with Old Englishtredan ("to tread").
Commerce is derived from the Latincommercium, from cum "together" and merx, "merchandise."[8]
In the Mediterranean region, the earliest contact between cultures involved members of the species Homo sapiens, principally using the Danube river, at a time beginning 35,000–30,000 BP.[10][11][12][13][need quotation to verify]
Some[who?] trace the origins of commerce to the very start of transactions in prehistoric times. Apart from traditional self-sufficiency, trading became a principal facility of prehistoric people, who bartered what they had for goods and services from each other.
The caduceus, traditionally associated with Mercury (the Roman patron-god of merchants), continues in use as a symbol of commerce.
Trade is believed to have taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the Stone Age. Trade in obsidian is believed[by whom?] to have taken place in New Guinea from 17,000 BCE.[15][16]
The earliest use of obsidian in the Near East dates to the Lower and Middle paleolithic.[17]
Archaeological evidence of obsidian use provides data on how this material was increasingly the preferred choice rather than chert from the late Mesolithic to Neolithic, requiring exchange as deposits of obsidian are rare in the Mediterranean region.[22][23][24]
Obsidian is thought[by whom?] to have provided the material to make cutting utensils or tools, although since other more easily obtainable materials were available, use was found[by whom?] exclusive to the higher status of the tribe using "the rich man's flint".[25] Interestingly, Obsidian has held its value relative to flint.
Early traders traded Obsidian at distances of 900 kilometres within the Mediterranean region.[26]
Trade in the Mediterranean during the Neolithic of Europe was greatest in this material.[22][27] Networks were in existence at around 12,000 BCE[28] Anatolia was the source primarily for trade with the Levant, Iran and Egypt according to Zarins study of 1990.[29][30][31]Melos and Lipari sources produced among the most widespread trading in the Mediterranean region as known to archaeology.[32]
The Sari-i-Sang mine in the mountains of Afghanistan was the largest source for trade of lapis lazuli.[33][34] The material was most largely traded during the Kassite period of Babylonia beginning 1595 BCE.[35][36]
Later trade
Mediterranean and Near East
Ebla was a prominent trading center during the third millennia BCE, with a network reaching into Anatolia and north Mesopotamia.[32][37][38][39]
A map of the Silk Road trade route between Europe and Asia
Materials used for creating jewelry were traded with Egypt since 3000 BCE. Long-range trade routes first appeared in the 3rd millennium BCE, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, traveling across the Mediterranean Sea, and as far north as Britain for sources of tin to manufacture bronze. For this purpose they established trade colonies the Greeks called emporia.[40] Along the coast of the Mediterranean, researchers have found a positive relationship between how well-connected a coastal location was and the local prevalence of archaeological sites from the Iron Age. This suggests that a location's trade potential was an important determinant of human settlements.[41]
From the beginning of Greek civilization until the fall of the Roman Empire in the 5th century, a financially lucrative trade brought valuable spice to Europe from the far east, including India and China. Roman commerce allowed its empire to flourish and endure. The latter Roman Republic and the Pax Romana of the Roman empire produced a stable and secure transportation network that enabled the shipment of trade goods without fear of significant piracy, as Rome had become the sole effective sea power in the Mediterranean with the conquest of Egypt and the near east.[42]
In ancient Greece Hermes was the god of trade[43][44] (commerce) and weights and measures.[45] In ancient Rome, Mercurius was the god of merchants, whose festival was celebrated by traders on the 25th day of the fifth month.[46][47] The concept of free trade was an antithesis to the will and economic direction of the sovereigns of the ancient Greek states. Free trade between states was stifled by the need for strict internal controls (via taxation) to maintain security within the treasury of the sovereign, which nevertheless enabled the maintenance of a modicum of civility within the structures of functional community life.[48][49]
The fall of the Roman empire and the succeeding Dark Ages brought instability to Western Europe and a near-collapse of the trade network in the western world. Trade, however, continued to flourish among the kingdoms of Africa, the Middle East, India, China, and Southeast Asia. Some trade did occur in the west. For instance, Radhanites were a medieval guild or group (the precise meaning of the word is lost to history) of Jewish merchants who traded between the Christians in Europe and the Muslims of the Near East.[50]
The first true maritime trade network in the Indian Ocean was by the Austronesian peoples of Island Southeast Asia.[51] Initiated by the animist indigenous peoples of Taiwan and the Philippines, the Maritime Jade Road was an extensive trading network connecting multiple areas in Southeast and East Asia. Its primary products were made of jade mined from Taiwan by animist Taiwanese indigenous peoples and processed mostly in the Philippines by animist indigenous Filipinos, especially in Batanes, Luzon, and Palawan. Some were also processed in Vietnam, while the peoples of Malaysia, Brunei, Singapore, Thailand, Indonesia, and Cambodia also participated in the massive animist-led trading network. Participants in the network at the time had a majority animist population. The maritime road is one of the most extensive sea-based trade networks of a single geological material in the prehistoric world. It was in existence for at least 3,000 years, where its peak production was from 2000 BCE to 500 CE, older than the Silk Road in mainland Eurasia and the later Maritime Silk Road. The Maritime Jade Road began to wane during its final centuries from 500 CE until 1000 CE. The entire period of the network was a golden age for the diverse animist societies of the region.[52][53][54][55]
Tajadero or axe money used as currency in Mesoamerica. It had a fixed worth of 8,000 cacao seeds, which were also used as currency.
The emergence of exchange networks in the Pre-Columbian societies of and near to Mexico are known to have occurred within recent years before and after 1500 BCE.[61]
Trade networks reached north to Oasisamerica. There is evidence of established maritime trade with the cultures of northwestern South America and the Caribbean.
Middle Ages
During the Middle Ages, commerce developed in Europe by trading luxury goods at trade fairs. Wealth became converted into movable wealth or capital. Banking systems developed where money on account was transferred across national boundaries. Hand to hand markets became a feature of town life and were regulated by town authorities.
Western Europe established a complex and expansive trade network with cargo ships being the main carrier of goods; Cogs and Hulks are two examples of such cargo ships.[62] Many ports would develop their own extensive trade networks. The English port city of Bristol traded with peoples from what is modern day Iceland, all along the western coast of France, and down to what is now Spain.[63]
During the Middle Ages, Central Asia was the economic center of the world.[64] The Sogdians dominated the east–west trade route known as the Silk Road after the 4th century CE up to the 8th century CE, with Suyab and Talas ranking among their main centers in the north. They were the main caravan merchants of Central Asia.
From the Middle Ages, the maritime republics, in particular Venice, Pisa and Genoa, played a key role in trade along the Mediterranean. From the 11th to the late 15th centuries, the Venetian Republic and the Republic of Genoa were major trade centers. They dominated trade in the Mediterranean and the Black Sea, having the monopoly between Europe and the Near East for centuries.[65][66]
From the 8th to the 11th century, the Vikings and Varangians traded as they sailed from and to Scandinavia. Vikings sailed to Western Europe, while Varangians to Russia. The Hanseatic League was an alliance of trading cities that maintained a trade monopoly over most of Northern Europe and the Baltic, between the 13th and 17th centuries.
The Age of Sail and the Industrial Revolution
Portuguese explorer Vasco da Gama pioneered the European spice trade in 1498 when he reached Calicut after sailing around the Cape of Good Hope at the southern tip of the African continent. Prior to this, the flow of spice into Europe from India was controlled by Islamic powers, especially Egypt. The spice trade was of major economic importance and helped spur the Age of Discovery in Europe. Spices brought to Europe from the Eastern world were some of the most valuable commodities for their weight, sometimes rivaling gold.
Founded in 1352, the Bengal Sultanate was a major trading nation in the world and often referred to by Europeans as the wealthiest country with which to trade.[68]
In the 16th and 17th centuries, the Portuguese gained an economic advantage in the Kingdom of Kongo due to different philosophies of trade.[67] Whereas Portuguese traders concentrated on the accumulation of capital, in Kongo spiritual meaning was attached to many objects of trade. According to economic historian Toby Green, in Kongo "giving more than receiving was a symbol of spiritual and political power and privilege."[67]
In the 16th century, the Seventeen Provinces were the center of free trade, imposing no exchange controls, and advocating the free movement of goods. Trade in the East Indies was dominated by Portugal in the 16th century, the Dutch Republic in the 17th century, and the British in the 18th century. The Spanish Empire developed regular trade links across both the Atlantic and the Pacific Oceans.
In 1776, Adam Smith published the paper An Inquiry into the Nature and Causes of the Wealth of Nations. It criticized Mercantilism, and argued that economic specialization could benefit nations just as much as firms. Since the division of labour was restricted by the size of the market, he said that countries having access to larger markets would be able to divide labour more efficiently and thereby become more productive. Smith said that he considered all rationalizations of import and export controls "dupery", which hurt the trading nation as a whole for the benefit of specific industries.
In 1799, the Dutch East India Company, formerly the world's largest company, became bankrupt, partly due to the rise of competitive free trade.
When an inefficient producer sends the merchandise it produces best to a country able to produce it more efficiently, both countries benefit.
The ascendancy of free trade was primarily based on national advantage in the mid 19th century. That is, the calculation made was whether it was in any particular country's self-interest to open its borders to imports.
John Stuart Mill proved that a country with monopoly pricing power on the international market could manipulate the terms of trade through maintaining tariffs, and that the response to this might be reciprocity in trade policy. Ricardo and others had suggested this earlier. This was taken as evidence against the universal doctrine of free trade, as it was believed that more of the economic surplus of trade would accrue to a country following reciprocal, rather than completely free, trade policies. This was followed within a few years by the infant industry scenario developed by Mill promoting the theory that the government had the duty to protect young industries, although only for a time necessary for them to develop full capacity. This became the policy in many countries attempting to industrialize and out-compete English exporters. Milton Friedman later continued this vein of thought, showing that in a few circumstances tariffs might be beneficial to the host country; but never for the world at large.[69]
20th century
The Great Depression was a major economic recession that ran from 1929 to the late 1930s. During this period, there was a great drop in trade and other economic indicators.
The lack of free trade was considered by many as a principal cause of the depression causing stagnation and inflation.[70] Only during World War II did the recession end in the United States. Also during the war, in 1944, 44 countries signed the Bretton Woods Agreement, intended to prevent national trade barriers, to avoid depressions. It set up rules and institutions to regulate the international political economy: the International Monetary Fund and the International Bank for Reconstruction and Development (later divided into the World Bank $ Bank for International Settlements). These organizations became operational in 1946 after enough countries ratified the agreement. In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade.[71]
The European Union became the world's largest exporter of manufactured goods and services, the biggest export market for around 80 countries.[72]
Today, trade is merely a subset within a complex system of companies which try to maximize their profits by offering products and services to the market (which consists both of individuals and other companies) at the lowest production cost. A system of international trade has helped to develop the world economy but, in combination with bilateral or multilateral agreements to lower tariffs or to achieve free trade, has sometimes harmed third-world markets for local products.
Free trade is a policy by which a government does not discriminate against imports or exports by applying tariffs or subsidies. This policy is also known as laissez-faire policy. This kind of policy does not necessarily imply because a country will then abandon all control and taxation of imports and exports.[73]
Free trade advanced further in the late 20th century and early 2000s:
EC was transformed into the European Union, which accomplished the Economic and Monetary Union (EMU) in 2002, through introducing the Euro, and creating this way a real single market between 13 member states as of January 1, 2007.
Intérêts des nations de l'Europe, dévélopés relativement au commerce (1766)2005, the Central American Free Trade Agreement was signed; It includes the United States and the Dominican Republic.
Protectionism is the policy of restraining and discouraging trade between states and contrasts with the policy of free trade. This policy often takes the form of tariffs and restrictive quotas. Protectionist policies were particularly prevalent in the 1930s, between the Great Depression and the onset of World War II.
Judeao-Christian teachings do not prohibit trade. They do prohibit fraud and dishonest measures. Historically they forbade charging interest on loans.[76][77]
The first instances of money were objects with intrinsic value. This is called commodity money and includes any commonly available commodity that has intrinsic value; historical examples include pigs, rare seashells, whale's teeth, and (often) cattle. In medieval Iraq, bread was used as an early form of money. In the Aztec Empire, under the rule of Montezuma cocoa beans became legitimate currency.[78]
Currency was introduced as standardised money to facilitate a wider exchange of goods and services. This first stage of currency, where metals were used to represent stored value, and symbols to represent commodities, formed the basis of trade in the Fertile Crescent for over 1500 years.
Numismatists have examples of coins from the earliest large-scale societies, although these were initially unmarked lumps of precious metal.[79]
The Doha round of World Trade Organization negotiations aimed to lower barriers to trade around the world, with a focus on making trade fairer for developing countries. Talks have been hung over a divide between the rich developed countries, represented by the G20, and the major developing countries. Agricultural subsidies are the most significant issue upon which agreement has been the hardest to negotiate. By contrast, there was much agreement on trade facilitation and capacity building. The Doha round began in Doha, Qatar, and negotiations were continued in: Cancún, Mexico; Geneva, Switzerland; and Paris, France, and Hong Kong.[citation needed]
China
Beginning around 1978, the government of the People's Republic of China (PRC) began an experiment in economic reform. In contrast to the previous Soviet-style centrally planned economy, the new measures progressively relaxed restrictions on farming, agricultural distribution and, several years later, urban enterprises and labor. The more market-oriented approach reduced inefficiencies and stimulated private investment, particularly by farmers, which led to increased productivity and output. One feature was the establishment of four (later five) Special Economic Zones located along the South-east coast.[80]
The reforms proved spectacularly successful in terms of increased output, variety, quality, price and demand. In real terms, the economy doubled in size between 1978 and 1986, doubled again by 1994, and again by 2003. On a real per capita basis, doubling from the 1978 base took place in 1987, 1996 and 2006. By 2008, the economy was 16.7 times the size it was in 1978, and 12.1 times its previous per capita levels. International trade progressed even more rapidly, doubling on average every 4.5 years. Total two-way trade in January 1998 exceeded that for all of 1978; in the first quarter of 2009, trade exceeded the full-year 1998 level. In 2008, China's two-way trade totaled US$2.56 trillion.[81]
International trade is the exchange of goods and services across national borders. In most countries, it represents a significant part of GDP. While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance have increased in recent centuries, mainly because of Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing.[citation needed]
Empirical evidence for the success of trade can be seen in the contrast between countries such as South Korea, which adopted a policy of export-oriented industrialization, and India, which historically had a more closed policy. South Korea has done much better by economic criteria than India over the past fifty years, though its success also has to do with effective state institutions.[84]
Trade sanctions
Trade sanctions against a specific country are sometimes imposed, in order to punish that country for some action. An embargo, a severe form of externally imposed isolation, is a blockade of all trade by one country on another. For example, the United States has had an embargo against Cuba for over 40 years.[85] Embargoes are usually on a temporary basis. For example, Armenia put a temporary embargo on Turkish products and bans any imports from Turkey on December 31, 2020. The situation is prompted by food security concerns given Turkey's hostile attitude towards Armenia.[86]
Importing firms voluntarily adhere to fair trade standards or governments may enforce them through a combination of employment and commercial law. Proposed and practiced fair trade policies vary widely, ranging from the common prohibition of goods made using slave labour to minimum price support schemes such as those for coffee in the 1980s. Non-governmental organizations also play a role in promoting fair trade standards by serving as independent monitors of compliance with labeling requirements.[88][89] As such, it is a form of Protectionism.
Notes
1 2 Samuelson, P (1939). "The Gains from International Trade". The Canadian Journal of Economics and Political Science. 5 (2): 195–205. doi:10.2307/137133. JSTOR137133.
↑ Compare peddling and other types of retail trade:Hoffman, K. Douglas, ed. (2005). Marketing principles and best practices (3ed.). Thomson/South-Western. p.407. ISBN978-0-324-22519-8. Retrieved 2018-05-03. Five types of nonstore retailing will be discussed: street peddling, direct selling, mail-order, automatic-merchandising machine operators, and electronic shopping.
↑ D Abulafia; O Rackham; M Suano (2008-07-31), The Mediterranean in History, Getty Publications, 1 Mar 2011, ISBN978-1-60606-057-5, archived from the original on 2021-05-11, retrieved 2019-09-07, [...] the Danube played an extremely important role in connecting East and West before the Mediterranean became the main link between these regions. This period runs for about 25,000 years, from 35,000/30,000 to around 10,000/8,000 before the present.
↑ Compare: Barbier, Edward (2015). "The Origins of Economic Wealth". Nature and Wealth: Overcoming Environmental Scarcity and Inequality. Springer. ISBN9781137403391. Archived from the original on 5 February 2021. Retrieved 7 September 2019. Even before domestication of plants and animals occurred, long-distance trading networks were prominent among some hunter-gathering societies, such as the Natufians and other sedentary populations who inhabited the Eastern Mediterranean around 12,000-10,000 BC.
↑ Smith, Richard L. (2008). Premodern Trade in World History. Themes in World History. Routledge. p.19. ISBN9781134095803. Archived from the original on 22 May 2020. Retrieved 7 September 2019. [...] modern observers have sometimes referred to obsidian as 'rich man's flint.'
↑ Williams-Thorpe, O. (1995). "Obsidian in the Mediterranean and the Near East: A Provenancing Success Story". Archaeometry. 37 (2): 217–48. doi:10.1111/j.1475-4754.1995.tb00740.x.
↑ Ivan Dikov (July 12, 2015). "Bulgarian Archaeologists To Start Excavations of Ancient Greek Emporium in Thracians' the Odrysian Kingdom". Archaeology in Bulgaria. Archived from the original on 12 July 2015. Retrieved 28 October 2010. An emporium (in Latin; "emporion" in Greek) was a settlement reserved as a trading post, usually for the Ancient Greeks, on the territory of another ancient nation, in this case, the Ancient Thracian Odrysian Kingdom (5th century BC – 1st century AD), the most powerful Thracian state.
↑ Tsang, Cheng-hwa (2000), "Recent advances in the Iron Age archaeology of Taiwan", Bulletin of the Indo-Pacific Prehistory Association, 20: 153–158, doi:10.7152/bippa.v20i0.11751
↑ Turton, M. (2021). Notes from central Taiwan: Our brother to the south. Taiwan's relations with the Philippines date back millennia, so it's a mystery that it's not the jewel in the crown of the New Southbound Policy. Taiwan Times.
↑ Everington, K. (2017). Birthplace of Austronesians is Taiwan, capital was Taitung: Scholar. Taiwan News.
↑ Bellwood, P., H. Hung, H., Lizuka, Y. (2011). Taiwan Jade in the Philippines: 3,000 Years of Trade and Long-distance Interaction. Semantic Scholar.
↑ Doran, Edwin Jr. (1974). "Outrigger Ages". The Journal of the Polynesian Society. 83 (2): 130–140. Archived from the original on 2019-06-08. Retrieved 2019-07-14.
↑ Mahdi, Waruno (1999). "The Dispersal of Austronesian boat forms in the Indian Ocean". In Blench, Roger; Spriggs, Matthew (eds.). Archaeology and Language III: Artefacts languages, and texts. One World Archaeology. Vol.34. Routledge. pp.144–179. ISBN0415100542.
↑ Doran, Edwin B. (1981). Wangka: Austronesian Canoe Origins. Texas A&M University Press. ISBN9780890961070.
1 2 3 4 5 6 Green, Toby (2019-03-21). A fistful of shells: West Africa from the rise of the slave trade to the age of revolution. Chicago. ISBN9780226644578. OCLC1051687994.
↑ Nanda, J. N (2005). Bengal: the unique state. Concept Publishing Company. p. 10. 2005. ISBN978-81-8069-149-2. Bengal [...] was rich in the production and export of grain, salt, fruit, liquors and wines, precious metals and ornaments besides the output of its handlooms in silk and cotton. Europe referred to Bengal as the richest country to trade with.
↑ Nomani & Rahnema (1994), p.?. "I want nine out of ten people from my Ummah (nation) as traders" and "Trader, who did trading in truth, and sold the right quantity and quality of goods, he will stand along with Prophets and Martyrs, on Judgment day".
↑ "O ye who believe! Eat not up your property among yourselves in vanities, but let there be among you traffic and trade by mutual good-will." Quran4:29 and "Allah has allowed trading and forbidden usury." Quran2:275
↑ Davenport, Eileen; Low, Will (1 January 2012). "The labour behind the (Fair Trade) label". Critical Perspectives on International Business. 8 (4): 329–348. doi:10.1108/17422041211274200. ISSN1742-2043.
Bibliography
Beckwith, Christopher I (2011) [2009]. Empires of the Silk Road: A History of Central Eurasia from the Bronze Age to the Present. Princeton: University Press. ISBN978-0-691-15034-5.
Nomani, Farhad; Rahnema, Ali (1994). Islamic Economic Systems. New Jersey: Zed Books. ISBN978-1-85649-058-0.
Paine, Lincoln (2013). The Sea and Civilisation: a Maritime History of the World. Atlantic. (Covers sea-trading over the whole world from ancient times)
The Foreign relations of Egypt are the Egyptian government's external relations with the outside world. Egypt's foreign policy operates along a non-aligned level. Factors such as population size, historical events, military strength, diplomatic expertise and a strategic geographical position give Egypt extensive political influence in the Middle East, Africa, and within the Non-Aligned Movement as a whole. Cairo has been a crossroads of the Arab world's commerce and culture for centuries, and its intellectual and religious institutions are at the center of the region's social and cultural landmarks.
The foreign relations of the Italian Republic are the Italian government's external relations with the outside world. Located in Europe, Italy has been considered a major Western power since its unification in 1860. Its main allies are the NATO countries and the EU states, two entities of which Italy is a founding member. Italy was admitted to the United Nations in 1955, and it is a member and a strong supporter of a wide number of international organisations, such as the Organisation for Economic Co-operation and Development (OECD), the General Agreement on Tariffs and Trade and World Trade Organization, the Organization for Security and Co-operation in Europe (OSCE), the Council of Europe, and the Central European Initiative.
Morocco is a member of the United Nations and belongs to the African Union, Arab League, Arab Maghreb Union (UMA), Organisation of Islamic Cooperation (OIC), the Non-Aligned Movement and the Community of Sahel-Saharan States (CEN_SAD). Morocco's relationships vary greatly between African, Arab, and Western states. Morocco has had strong ties with the West in order to gain economic and political benefits. France and Spain remain the primary trade partners, as well as the primary creditors and foreign investors in Morocco. From the total foreign investments in Morocco, the European Union invests approximately 73.5%, whereas, the Arab world invests only 19.3%. Many countries from the Persian Gulf and Maghreb regions are also getting more involved in large-scale development projects in Morocco.
Obsidian is a naturally occurring volcanic glass formed when lava extruded from a volcano cools rapidly with minimal crystal growth. It is an igneous rock.
Fair trade is a term for an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The fair trade movement combines the payment of higher prices to exporters with improved social and environmental standards. The movement focuses in particular on commodities, or products that are typically exported from developing countries to developed countries but is also used in domestic markets, most notably for handicrafts, coffee, cocoa, wine, sugar, fruit, flowers and gold.
A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Protective tariffs are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade.
A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade are reduced or eliminated among the participating states.
Economic sanctions are commercial and financial penalties applied by one or more countries against a targeted self-governing state, group, or individual. Economic sanctions are not necessarily imposed because of economic circumstances—they may also be imposed for a variety of political, military, and social issues. Economic sanctions can be used for achieving domestic and international purposes.
A trade route is a logistical network identified as a series 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. Allowing goods to reach distant markets, a single trade route contains long-distance arteries, which may further be connected to smaller networks of commercial and noncommercial transportation routes. 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, when nations resorted to military means for control of this influential route. During the Middle Ages, organizations such as the Hanseatic League, aimed at protecting interests of the merchants and trade became increasingly prominent.
Sustainable transport refers to ways of transportation that are sustainable in terms of their social and environmental impacts. Components for evaluating sustainability include the particular vehicles used for road, water or air transport; the source of energy; and the infrastructure used to accommodate the transport. Transport operations and logistics as well as transit-oriented development are also involved in evaluation. Transportation sustainability is largely being measured by transportation system effectiveness and efficiency as well as the environmental and climate impacts of the system. Transport systems have significant impacts on the environment, accounting for between 20% and 25% of world energy consumption and carbon dioxide emissions. The majority of the emissions, almost 97%, came from direct burning of fossil fuels. In 2019, about 95% of the fuel came from fossil sources. The main source of greenhouse gas emissions in the European Union is transportation. In 2019 it contributes to about 31% of global emissions and 24% of emissions in the EU. In addition, up to the COVID-19 pandemic, emissions have only increased in this one sector. Greenhouse gas emissions from transport are increasing at a faster rate than any other energy using sector. Road transport is also a major contributor to local air pollution and smog.
BRIC is a grouping acronym referring to the developing countries of Brazil, Russia, India, and China, which are identified as rising economic powers. It is typically rendered as "the BRIC," "the BRIC countries," "the BRIC economies," or alternatively as the "Big Four." The name has since been changed to BRICS after the addition of South Africa in 2010.
The Council of Arab Economic Unity (CAEU) was founded by Egypt, Iraq, Jordan, Kuwait, Libya, Mauritania, Palestine, Saudi Arabia, Sudan, Tunisia, Syria, United Arab Emirates and Yemen on May 30, 1964, following an agreement in 1957 by the Economic Council of the Arab League.
The European Neighbourhood Policy (ENP) is a foreign relations instrument of the European Union (EU) which seeks to tie those countries to the east and south of the European territory of the EU to the Union. These countries, primarily developing countries, include some who seek to one day become either a member state of the European Union, or more closely integrated with the European Union. The ENP does not apply to neighbours of the EU's outermost regions, specifically France's territories in South America, but only to those countries close to EU member states' territories in mainland Europe.
The International Fairtrade Certification Mark is an independent certification mark used in over 50 countries. It appears on products as an independent guarantee that a product has been produced according to Fairtrade political standards.
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of scarce resources. A given economy is a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure, legal systems, and natural resources as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. In other words, the economic domain is a social domain of interrelated human practices and transactions that does not stand alone.
Israel is an associated state of the European Union. The relations between the two are framed in the European Neighbourhood Policy (ENP), the Euro-Mediterranean Partnership, and the Union for the Mediterranean.
Trade in Maya civilization was a crucial factor in maintaining Maya cities.
Turkey is a founding member of the United Nations, the Organisation of the Islamic Conference, the Organisation for Economic Co-operation and Development and the Organization for Security and Co-operation in Europe, a member state of the Council of Europe since 1949, and of NATO since 1952. Since 2005, Turkey is in accession negotiations with the European Union, having been an associate member since 1963 and is also in European Customs Union. Turkey is also a member of the G20 industrial nations which brings together the 20 largest economies of the world.
Made in China 2025 is a national strategic plan and industrial policy of the Chinese Communist Party (CCP) to further develop the manufacturing sector of China, issued by CCP general secretary Xi Jinping and Chinese Premier Li Keqiang's cabinet in May 2015. As part of the Thirteenth and Fourteenth Five-year Plans, China aims to move away from being the "world's factory"—a producer of cheap low-tech goods facilitated by lower labour costs and supply chain advantages. The industrial policy aims to upgrade the manufacturing capabilities of Chinese industries, growing from labor-intensive workshops into a more technology-intensive powerhouse.
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