You are already familiar with the term “trade” | Class 12 Geography Notes

History of International Trade

In ancient times, long-distance trade was limited due to transportation risks and difficulties. Trade was mostly local, focusing on basic necessities like food and clothes. Luxury items such as jewellery and costly dresses were traded among the rich. The Silk Route is a notable example of early long-distance trade, connecting Rome to China over 6,000 km. Traders transported Chinese silk, Roman wool, precious metals, and other high-value commodities through intermediate points in India, Persia, and Central Asia. After the Roman Empire's disintegration, European commerce grew in the 12th and 13th centuries, aided by ocean-going warships, expanding trade between Europe and Asia and leading to the discovery of the Americas. From the 15th century, European colonialism began, introducing the slave trade, where African natives were forcibly transported to the Americas for plantation labor. This trade was lucrative for over two centuries until abolished by Denmark (1792), Great Britain (1807), and the United States (1808). The Industrial Revolution increased demand for raw materials like grains, meat, and wool, but their monetary value declined relative to manufactured goods. Industrialized nations imported raw materials and exported finished products to non-industrialized nations. By the late 19th century, industrial nations became principal customers of each other. World Wars I and II saw countries impose trade taxes and restrictions. Post-war, organizations like the General Agreement for Tariffs and Trade (GATT), later the World Trade Organization (WTO), helped reduce tariffs and promote trade liberalization.

📊 Diagram: Figure 8.2 shows an advertisement for a slave auction in 1829, illustrating the historical context of the slave trade.

🔗 Connection: Explains the basis and reasons for international trade and its evolution.