Trade
Gabrielle Hyrny
Background
Humans are social creatures. There is an innate desire within the human species to explore, discover, and meet new people. The realization that foreign people possessed exotic goods is what prompted the spreading of materials, and eventually people, all over the world. The material benefits of trade were one of the factors that prompted its expansion. People became curious about the cultures and customs of faraway places and wanted contact with the unfamiliar. Advances in technology such as boats, textiles, and metals came as a result of human innovation fueled by curiosity. These gave people the means to travel long-distance and the ability to exchange products that were different depending on the origin of those travelling. The eagerness to expand, find out the unknown, and obtain rare goods, is what compelled ancient people to make voyages through treacherous conditions. This long-lasting curiosity is what has kept trade continuing despite obstacles throughout history. Differences between countries and societies are overcome by merchants and peace is sustained for the sake of trade.
Turning Point
Trade is the act of buying, selling, or exchanging commodities within a country or between countries. Trade provides mankind's most significant meeting place, the market. In primitive societies, only religious events brought people together in a comparable way. But in these cases, the participants were already linked by custom or kinship[1]. Since ancient times, bartering has been a practice of humans. However, this process began as random encounters between hunting bands or during times of war. It was only after the agricultural revolution that trade, in the true sense of the word, began[2].
When people first settled down into larger towns in Mesopotamia and Egypt around 3500 B.C., the idea that one had to produce absolutely everything that one wanted or needed to survive started to fade. Self-sufficiency was no longer a necessity.[3] A farmer could now trade grain for meat, or produce for textiles, at the local market, which was seldom too far away. Agricultural produce and everyday household goods tended to make short journeys to and from a local market. Cities began to realize the potential of this type of distribution. They could acquire goods they did not have at hand from other cities far away[4], resources are unevenly distributed and different climates produce different things[5]. This longer-distance trade was slow and often dangerous, but was lucrative for the middlemen willing to make the journey[6]. Trade in a grander sense involves entrepreneurs and middlemen, people willing to accept delay and risk in the hope of a large profit.[7] Merchants forged the first links between the East and West Mediterranean because any commercial transaction is first and foremost a legal transaction; therefore, they had protection[8].
The first long-distance trade occurred between Mesopotamia and the Indus Valley around 3000 B.C. This was limited to luxury goods such as spices, textiles and precious metals that gave the most value relative to their size.[9] The easiest method of transporting goods was by water, and major rivers became the trade routes for the Phoenicia, Egypt, Cyprus, and China. In areas where water was scarce, such as North Africa and Asia, camels were domesticated allowing the creation of caravan routes to link these areas with the flourishing Mediterranean. The most famous of these was the Silk Road linking East Asia to Western Europe.[10] Starting in the 5th century A.D. powerful kingdoms in West Africa such as Ghana became wealthy and powerful as a result of trade rather than conquest. The Vikings penetrated Russia in the 9th century A.D. a result of trade and not plunder; the rise of the Hanseatic League created alliances and European prosperity for a few centuries. The Portuguese slave trade, East India Trading Company and Bermuda Triangle are other examples of large enterprises based on trade that had large implications on those nations involved.[11] In modern times, advances in technology have had profound effects on trade and business. The whole process has sped up and the human contact that was needed in the past is no longer a necessity.[12] The methods of trade have changed extensively over time from ways of transportation, to materials being exchanged, to nations trading, to currency used. However, the act of trading is always the same; it involves the exchange of commodities between two parties that is supposed to benefit both.
Effect
Trade began in an unorganized fashion, but as networks became more elaborate so did the methods of trade. The most common institutional form was trade settlement. Commercial specialists would remove themselves and live in another town to serve as cross-cultural brokers for their original nation. This newly found merchant class created an interrelated net of commercial communities, forming a trade diaspora. This was one of the most widespread and long-lasting human institutions that spanned from the agricultural age to the industrial age.[13] These diaspora forced cultures to interact and exposed people to different ways of living. This is an example of cultural exchange, a term used to describe the transference of ideas, values, traditions, and belief systems that takes place when two civilizations come in contact with one another.
Early agriculture and trade led to population growth and cities, which in turn led to the introduction of formal government and military. These establishments have had an enormous effect on humankind; without them history would have never been the same. The overpowering and conquest associated with empires came about, at least partially, as a result of trade.[14] When the Ottoman conquest of Constantinople slammed shut the sea route, Europe began to seek other routes to obtain the goods from the East. This is when Columbus was sent West and stumbled upon the New World, and Vasco da Gama reached India by rounding the southern tip of Africa. The modern world began and was connected by trade.[15]
New ideas, along with precious artifacts, have always travelled along trade routes. Trade influenced the spread of religions such as Christianity, Buddhism, and Hinduism which led to their spreading but also to wars such as the Crusades. Art, technology, and education were also exchanged as a result of trade. The use of trade routes is also one of the strongest causes of the spread of some of the most deadly plagues in history.[16] It is quite apparent that not only goods were traded as a result of commerce. The trade industry even established the banking system that is in place today. Commerce gave the opportunity for people to be exposed to things they otherwise never would have been exposed to. People went to great lengths to establish new opportunities for trade, not only for the goods. People are simply built for contact, and with new civilizations more knowledge is gained and possibilities uncovered.[17] The importance is that this exchange does continue to happen, not the reasons why or methods of exchange. Once a society becomes wrapped up in itself and does not learn from others, it becomes stagnant and can no longer evolve or support its people. This would allow for no progression and the advances we have seen in modern times for equal rights and tolerance would not be a reality.
[1] Goscoigne, Bamber. “History of Trade”. 2001. p.1.
[2] Curtin, Philip. Cross-Cultural Trade in World History. 1984. p.2.
[3] Gordon, John. “Silk, Spices, Gold and Destiny: Global History is Part of the Bargain”. 2008. p. 1.
[4] Whipps, Heather. “How Ancient Trade Changed the World”. 2008. p.1.
[5] Irwin, Douglas. Against the Tide: An Intellectual History of Free Trade.1996. p.15
[6] Whipps, Heather. “How Ancient Trade Changed the World”. 2008. p.1.
[7] Goscoigne, Bamber. “History of Trade”. 2001. p.1.
[8] Samaber, Ernst. Merchants Make History. 1964. p.34.
[9] Whipps, Heather. “How Ancient Trade Changed the World”. 2008. p.1.
[10] Goscoigne, Bamber. “History of Trade”. 2001. p.1.
[11] Goscoigne, Bamber. “History of Trade”. 2001. p.2-3.
[12] Curtin, Philip. Cross-Cultural Trade in World History. 1984.251.
[13] Curtin, Philip. Cross-Cultural Trade in World History. 1984. p.2-4.
[14] Samaber, Ernst. Merchants Make History. 1964. p.119-124.
[15] Gordon, John. “Silk, Spices, Gold and Destiny: Global History is Part of the Bargain”. 2008. p. 1.
[16] Irwin, Douglas. Against the Tide: An Intellectual History of Free Trade. 1996. p.14-16.
[17] Martin, Philippe and Mayer, Theirry. The Review of Economic Studies. 2008. p. 865-871.
Bibliography
Curtin, Philip. Cross-Cultural Trade in World History. Cambridge University Press. Cambridge. 1984.
Gascoigne, Bamber. “History of Trade”. HistoryWorld. From 2001, ongoing. http://www.historyworld.net/wrldhis/plaintexthistories.asp?
historyid=ab72.
Gordon, John. “Silk, Spices, Gold and Destiny: Global History is Part of the Bargain”. The New York Times. 2008.
http://www.nytimes.com/2008/04/30/books/30gord.html.
Irwin, Douglas. Against the Tide: An Intellectual History of Free Trade. Princeton University Press. Princeton. 1996. p.12-18.
Martin, Philippe and Mayer, Theirry. The Review of Economic Studies. Oxford University Press. 2008. p.865-900.
Samaber, Ernst. Merchants Make History: How Trade has Influenced the Course of History throughout the World. The John Day Company.
New York. 1964 .p.15-124.
Whipps, Heather. “How Ancient Trade Changed the World”. Live Science. 2008.
Gabrielle Hyrny
Background
Humans are social creatures. There is an innate desire within the human species to explore, discover, and meet new people. The realization that foreign people possessed exotic goods is what prompted the spreading of materials, and eventually people, all over the world. The material benefits of trade were one of the factors that prompted its expansion. People became curious about the cultures and customs of faraway places and wanted contact with the unfamiliar. Advances in technology such as boats, textiles, and metals came as a result of human innovation fueled by curiosity. These gave people the means to travel long-distance and the ability to exchange products that were different depending on the origin of those travelling. The eagerness to expand, find out the unknown, and obtain rare goods, is what compelled ancient people to make voyages through treacherous conditions. This long-lasting curiosity is what has kept trade continuing despite obstacles throughout history. Differences between countries and societies are overcome by merchants and peace is sustained for the sake of trade.
Turning Point
Trade is the act of buying, selling, or exchanging commodities within a country or between countries. Trade provides mankind's most significant meeting place, the market. In primitive societies, only religious events brought people together in a comparable way. But in these cases, the participants were already linked by custom or kinship[1]. Since ancient times, bartering has been a practice of humans. However, this process began as random encounters between hunting bands or during times of war. It was only after the agricultural revolution that trade, in the true sense of the word, began[2].
When people first settled down into larger towns in Mesopotamia and Egypt around 3500 B.C., the idea that one had to produce absolutely everything that one wanted or needed to survive started to fade. Self-sufficiency was no longer a necessity.[3] A farmer could now trade grain for meat, or produce for textiles, at the local market, which was seldom too far away. Agricultural produce and everyday household goods tended to make short journeys to and from a local market. Cities began to realize the potential of this type of distribution. They could acquire goods they did not have at hand from other cities far away[4], resources are unevenly distributed and different climates produce different things[5]. This longer-distance trade was slow and often dangerous, but was lucrative for the middlemen willing to make the journey[6]. Trade in a grander sense involves entrepreneurs and middlemen, people willing to accept delay and risk in the hope of a large profit.[7] Merchants forged the first links between the East and West Mediterranean because any commercial transaction is first and foremost a legal transaction; therefore, they had protection[8].
The first long-distance trade occurred between Mesopotamia and the Indus Valley around 3000 B.C. This was limited to luxury goods such as spices, textiles and precious metals that gave the most value relative to their size.[9] The easiest method of transporting goods was by water, and major rivers became the trade routes for the Phoenicia, Egypt, Cyprus, and China. In areas where water was scarce, such as North Africa and Asia, camels were domesticated allowing the creation of caravan routes to link these areas with the flourishing Mediterranean. The most famous of these was the Silk Road linking East Asia to Western Europe.[10] Starting in the 5th century A.D. powerful kingdoms in West Africa such as Ghana became wealthy and powerful as a result of trade rather than conquest. The Vikings penetrated Russia in the 9th century A.D. a result of trade and not plunder; the rise of the Hanseatic League created alliances and European prosperity for a few centuries. The Portuguese slave trade, East India Trading Company and Bermuda Triangle are other examples of large enterprises based on trade that had large implications on those nations involved.[11] In modern times, advances in technology have had profound effects on trade and business. The whole process has sped up and the human contact that was needed in the past is no longer a necessity.[12] The methods of trade have changed extensively over time from ways of transportation, to materials being exchanged, to nations trading, to currency used. However, the act of trading is always the same; it involves the exchange of commodities between two parties that is supposed to benefit both.
Effect
Trade began in an unorganized fashion, but as networks became more elaborate so did the methods of trade. The most common institutional form was trade settlement. Commercial specialists would remove themselves and live in another town to serve as cross-cultural brokers for their original nation. This newly found merchant class created an interrelated net of commercial communities, forming a trade diaspora. This was one of the most widespread and long-lasting human institutions that spanned from the agricultural age to the industrial age.[13] These diaspora forced cultures to interact and exposed people to different ways of living. This is an example of cultural exchange, a term used to describe the transference of ideas, values, traditions, and belief systems that takes place when two civilizations come in contact with one another.
Early agriculture and trade led to population growth and cities, which in turn led to the introduction of formal government and military. These establishments have had an enormous effect on humankind; without them history would have never been the same. The overpowering and conquest associated with empires came about, at least partially, as a result of trade.[14] When the Ottoman conquest of Constantinople slammed shut the sea route, Europe began to seek other routes to obtain the goods from the East. This is when Columbus was sent West and stumbled upon the New World, and Vasco da Gama reached India by rounding the southern tip of Africa. The modern world began and was connected by trade.[15]
New ideas, along with precious artifacts, have always travelled along trade routes. Trade influenced the spread of religions such as Christianity, Buddhism, and Hinduism which led to their spreading but also to wars such as the Crusades. Art, technology, and education were also exchanged as a result of trade. The use of trade routes is also one of the strongest causes of the spread of some of the most deadly plagues in history.[16] It is quite apparent that not only goods were traded as a result of commerce. The trade industry even established the banking system that is in place today. Commerce gave the opportunity for people to be exposed to things they otherwise never would have been exposed to. People went to great lengths to establish new opportunities for trade, not only for the goods. People are simply built for contact, and with new civilizations more knowledge is gained and possibilities uncovered.[17] The importance is that this exchange does continue to happen, not the reasons why or methods of exchange. Once a society becomes wrapped up in itself and does not learn from others, it becomes stagnant and can no longer evolve or support its people. This would allow for no progression and the advances we have seen in modern times for equal rights and tolerance would not be a reality.
[1] Goscoigne, Bamber. “History of Trade”. 2001. p.1.
[2] Curtin, Philip. Cross-Cultural Trade in World History. 1984. p.2.
[3] Gordon, John. “Silk, Spices, Gold and Destiny: Global History is Part of the Bargain”. 2008. p. 1.
[4] Whipps, Heather. “How Ancient Trade Changed the World”. 2008. p.1.
[5] Irwin, Douglas. Against the Tide: An Intellectual History of Free Trade.1996. p.15
[6] Whipps, Heather. “How Ancient Trade Changed the World”. 2008. p.1.
[7] Goscoigne, Bamber. “History of Trade”. 2001. p.1.
[8] Samaber, Ernst. Merchants Make History. 1964. p.34.
[9] Whipps, Heather. “How Ancient Trade Changed the World”. 2008. p.1.
[10] Goscoigne, Bamber. “History of Trade”. 2001. p.1.
[11] Goscoigne, Bamber. “History of Trade”. 2001. p.2-3.
[12] Curtin, Philip. Cross-Cultural Trade in World History. 1984.251.
[13] Curtin, Philip. Cross-Cultural Trade in World History. 1984. p.2-4.
[14] Samaber, Ernst. Merchants Make History. 1964. p.119-124.
[15] Gordon, John. “Silk, Spices, Gold and Destiny: Global History is Part of the Bargain”. 2008. p. 1.
[16] Irwin, Douglas. Against the Tide: An Intellectual History of Free Trade. 1996. p.14-16.
[17] Martin, Philippe and Mayer, Theirry. The Review of Economic Studies. 2008. p. 865-871.
Bibliography
Curtin, Philip. Cross-Cultural Trade in World History. Cambridge University Press. Cambridge. 1984.
Gascoigne, Bamber. “History of Trade”. HistoryWorld. From 2001, ongoing. http://www.historyworld.net/wrldhis/plaintexthistories.asp?
historyid=ab72.
Gordon, John. “Silk, Spices, Gold and Destiny: Global History is Part of the Bargain”. The New York Times. 2008.
http://www.nytimes.com/2008/04/30/books/30gord.html.
Irwin, Douglas. Against the Tide: An Intellectual History of Free Trade. Princeton University Press. Princeton. 1996. p.12-18.
Martin, Philippe and Mayer, Theirry. The Review of Economic Studies. Oxford University Press. 2008. p.865-900.
Samaber, Ernst. Merchants Make History: How Trade has Influenced the Course of History throughout the World. The John Day Company.
New York. 1964 .p.15-124.
Whipps, Heather. “How Ancient Trade Changed the World”. Live Science. 2008.