Introduction to international business
The Evolution of Global Trade
Always somebody that can make something better or cheaper than anybody else
Self Sufficiency: is the ability to provide for all your basic needs (food, clothing, water, shelter) without relying on anyone else.
A country is self efficient if it can provide everything its population needs to survive without trading with other countries
Relative self-sufficiency has been typical of every developing civilization across the globe.
As technology has advanced and the transportation developed, more cultures have been in contact with one another and started to share their cultures. This led to the beginning of a desire to not want to be self-sufficient so that people could try new things. This resulted in people living longer, more jobs and leading easier lives
Many groups today have refused to give up as self sufficiency. Some of these groups include. Amish and Mennonite groups as well as different communes (self- sufficient communities based on communal property and shared responsibility) Examples of commune type living include kibbutz is Israel Los Horcones in Mexico and either places thought the world.
History of Trade
Trade between countries has been going on for thousand of year (Europe clothes, metals, china silk Indian spics). As each new empire conquered new lands (Greek, Roman) new goods flowed in and out throughout the world. Different places bartered/exchange their goods, for other goods with no governmental interference.
As the Roman Empire declined, different groups from Mongolia conquered different lands taking whatever goods they wanted. This focused everybody to become self sufficient again.
Eventually these communities started to rebuild (by religion army etc..) taxes were collected for protection and to maintain a strong community. This started feudalism.
As town got stronger, merchants began to get together and formed guild (Associations of common...