#Trading blocs definition economics free

In a letter written in the 1630s to his son, he said: “The ordinary means therefore to increase our wealth and treasure is by Foreign Trade, wherein wee must ever observe this rule to sell more to strangers yearly than wee consume of theirs in value…By this order duly kept in our trading,…that part of our stock which is not returned to us in wares must necessarily be brought home in treasure.” One of the better-known advocates of this philosophy, known as mercantilism, was Thomas Mun, a director of the British East India Company. This would allow the country to have a bigger and more powerful army and navy and more colonies. In the seventeenth and eighteenth centuries, the predominant thinking was that a successful nation should export more than it imports and that the trade surplus should be used to expand the nation’s treasure, primarily gold and silver. trade agreements and how they should proceed in the future, it is important to review economic theory and see how it has evolved and where it is today. However, economic theory has evolved substantially since the time of Adam Smith, and it has evolved rapidly since the GATT was founded. And this was the view after World War II, when Western leaders launched the General Agreement on Tariffs and Trade (GATT) in 1947.

#Trading blocs definition economics free

Careers, Fellowships, and Internships Open/CloseĪlmost all Western economists today believe in the desirability of free trade, and this is the philosophy advocated by international institutions such as the World Bank, the International Monetary Fund, and the World Trade Organization (WTO).

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