Wednesday, July 30, 2008

A brief history of trade

"18th-19th centuries:

Agricultural and industrial revolutions in Europe give the continent, and notably Britain, a huge advantage.

Economists such as Adam Smith and David Ricardo suggest that unrestricted, or free, trade can benefit both partners. This idea is gradually accepted.

However the building of empires, notably in south Asia and Africa, also entails the destruction of many local industries.

Both trade and economic growth are cyclical, with crises coming on the heels of periods of expansion."

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