Trade Theories assignment How Trade Shaped the World

Trade Theories How Trade Shaped the World - Assignment ExampleThe policies that government make to protect business came in many puddles and in varying degrees. State could use their power to pay new business, permit or disable monopolies, impose tariffs, prohibit a wide range of contraband, control condition labour, and if necessary blockade competing nation. The Europeans, the Asians and the Arabs all recognized the importationance of shipping as a means to elevate and protect exportation, though none took it as such an extreme as the European powers.On export power, the mercantilist policies were based on the notion that if a nation could expand its imports of gold by exporting goods, it would thereby deprive its rival nation of gold needed to protect a nation commerce, gold but bought more protection. The argument persisted in Europe into 18th century until the convincing argument of Adam metalworker and David Ricardo demonstrated the values of specialization and comparativ e economic advantage.A number of factors led to the decline and shoemakers last of the great period of mercantilism. By 1860, England had dismantled its mercantilist legal structure and risen to power as the unchallenged ruler of both the newly industrialized world and its seas.In the modern age, the mercantilist spirit has re-emerged in the form of numerous non-tariff barriers that the free market nation employ to protect very specific industries. The export/import licensing, quarantines, and trading blocs are now manifesting as mercantile protectionism. In many of the closed and semi closed economies of the world e.g. Cuba and China protection of domestic producers is still very strong (Bernstein, 2012)Free trade principles were mostly appealing in an export-driven colonial economy long before publication of Adams Smiths Wealth of Nation basal patriot who mobilized against British imperial trade regulation. Dismantling colonial monopoly would