History of International Trade

MANAGERIAL ECONOMICS II
HISTORY
The classical theory was first developed by Adam Smith in his
famous book The Wealth of Nations, published in 1776. Many other economists of that and subsequent decades made important Ricardo, Robert Torrens, and John Stuart Mill. contributions to this theory. These economists include David contributions to international trade theory there are other reasons for studying the classical theory. First, the assumptions of the today. In particular, they help us to understand the basis for a developed and a developing country. Second, this theory explains yet American goods can still compete in world markets. Finally, it the international specialization of production. model are suggestive of certain real-world situations that exist mutually beneficial trading relationship that can occur between a how wages can be high in a country like the United States and illustrates, perhaps better than any other theory, the gains from Ricardos
INTRODUCTION OF IMPORT AND EXPORT

Starting an import business is a goal of more than thousands of merchants and businessman. Like an export business, import business is also very profitable business, if an importer proceeds with the right strategies. However, the long term success and profitability of an import business greatly depends on the importers knowledge and understanding about the international market and foreign market analysis. Today, importing goods from abroad has becomes a big business. Everything from beverages to cars--and a staggering list of other products that one might have never imagined has now become the part of the global import. Millions of products are bought, sold, represented and distributed somewhere in the world on a daily basis.
INTRODUCTION OF OUR THEORY

(THE THEORY OF TRASPORTO)
It has been seen that the country with high and efficient market. transportation As most of transact the more in international international
transactions depend upon transportation because of the vast distance between two countries. The name of our theory is THE THEORY OF TRASPORTO. The trasporto is derived from Italian word which means transportation. This theory suggests that every country should adopt effective transportation system. The main aim of taking this theory is to promote transportation transportation system system of plays every an country, role as in significant
international trade. In earlier years it was believed that the real wealth and richness of the nation is based on the quantity of the gold in the nation. However according to THEORY OF TRASPORTO, the real wealth and
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richness of the country is the effective transportation system. As the country with poor transportation facility will face difficulty in transacting with other countries. Features of theory are: It leads to Economic development. Proper delivery of goods. It generates employment opportunities. Good relations with other countries. Reduces the cost of transportation. Availability of goods. Specliazation.
POINTS FOCUSED IN THE THEORY

1. GENERAL OBSERVATIONS ON THE RELATION OF TRANSPORTATION TO NATURAL CONDITIONS:
Import and export is mainly done through water transport. It is safer than other modes of transports. It is observed that the country which is importing and exporting the goods should have the complete knowledge about the climatic conditions. As the natural calamities like tsunami , high tides, cyclones in sea and etc. can affect the international trade. According to us, the person should properly survey the climatic conditions of both the nations and if there is any risk in transporting goods he should wait for the climate to settle down and then should deliver the goods.
2. THE
RELATION
OF
TRANSPORTATION
TO
MARKETS, PRICES, COMPETITION, ETC.:

Every economic activity in import and export is linked with each other, so if there is change in price of transportation of goods it will affect the market. affecting the market. There is huge competition in transport industry which leads to change in prices indirectly
According to us, one should keep an eye on the competition and price fluctuation of transport industry in this way if there is any change the person will not be badly affected and could manage his deals properly.
3. TRANSPORTATION AND RENT:

Transportation plays a vital role in international trade without transportation there would be irregular supply of goods. The expenses incurred on transporting goods and rent incurred to store these goods is increasing day by day. This makes our product more expensive which might decrease its sale. According to us, one should have proper ware housing facilities where he is storing his goods so that the rent and other expenses that are to be incurred are reduced and he should go for cheap and reliable modes of transport.
4. THE POLITICAL RELATION OF TRANSPORTATION:

One has to pay a number of duties and taxes while transporting goods from one country to another fixed by the political bodies of a nation. There is a lot of interference of political bodies in international trade but now after globalization
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the number of duties and taxes has been decreased so there is smooth trade. According to us, one should maintain good relation with the government of a country as they have the power to import number of duties and taxes which will not be favorable for our business.
5. THE LOCATION OF TOWNS AND CITIES:

If towns and cities are located far away then the transportation charges will increase which will lead to more expenses of our firm. If one transports goods to towns and cities located far away this also increases the risk of goods being destroyed during transportation. According to us, one should select the proper location of towns and cities where goods can be transported easily this will also decreased the risk involved in the transporting of goods to towns and cities.
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CONCLUSION
As per our theory every country must have effective transportation while dealing in international trade. Country should select the proper location of towns and cities while dealing in goods. Importer and exporter should maintain good relation with the government of a country as they have the power to import number of duties and taxes which will not be favorable for our business. Trader should have proper ware housing facilities
where he is storing his goods so that the rent and other expenses that are to be incurred are reduced and he should go for cheap and reliable modes of transport.
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History of International Trade

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MANAGERIAL ECONOMICS II

INTRODUCTION OF IMPORT AND EXPORT

INTRODUCTION OF OUR THEORY

POINTS FOCUSED IN THE THEORY

MARKETS, PRICES, COMPETITION, ETC.:

3. TRANSPORTATION AND RENT:

4. THE POLITICAL RELATION OF TRANSPORTATION:

5. THE LOCATION OF TOWNS AND CITIES:

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