Development of Trade Regulations: An OverviewDevelopment of Trade Regulations An Overview * Trade Regulations in Ancient Times + Trade in middle ages- Lex Mercatoria or law of merchants + Trade between 18 & 19" centuries Theories ~ Laissez-faire or free trade SUCOOm eee Cte ee ee nT Cece LEC AAC Orc UC mas Monet Crtt ee OE EEEBBreCem oen LLB Tw AUiete Tae Bete) * Trade predates the nations states and it pre dates IL * People have always brought and sold to others outside their family, their community, towns, cities or people who spoke different ree POUR ON Cem CLC one ca ean Greeks of Ancient times, the Romans, the Italian city states * Trade was linked to the development of IL. o Pe EE rare * To War, Trade was most frequent subject of inter-state relations. Trade Regulations Cont... Douglas Irwin in his book Against the Tide: An Intellectual Elistory OORT Co Sere CINE Coyne) Rea Ze) NETO eye Teo Tee Or tcicl ad BRRosntcre Se com avec er ecm Plato argued gains from division of Labour It is viewed that God has created the seas, geographic separation & diversity in endowments, in order to promote interaction through Bret lace aCe MB BeCilcm Crean Le Com cotta Ml etcm reyes Teco mey acon Agreements between kingdoms were existed Ex. A commercial treaty between the king of Egypt & Babylonican existed in 2500 JERNegative views on Trade + Earlier Merchants or traders regarded as an Tiros Oma Ts « They have notions like foreign trade is a disturbance to domestic life iteTrade Regulations in Middle Ages + Int. Economic relations were dominated by the principle of Lex Mercatoria or Law of Merchants * Origin is uncertain- 1. Middle ages in Italy 2. some urged that Romaine's period Romans Jus Genetium — the body of law that Eg seat eect hans artnd Miia ettni Seaver ee CON omen yy eR Ronen ome on ce Na ne cometary Ce Tato tow SLC eRe Coe A eer eas UNE ecco Cre RRS OLR ae BN Cre trade community to over come the fragmentary and obsolete rules of Feudal and Roman Law which could not respond to the needs of the Broa aoe Re eRe ETCCont., * Merchants created a superior law which helped great expansion of Int. Commerce SES a CCR Cun aa Ce Lae icy CRB USMC ROMY RCo Race * Counsels and Cree OREN com re ene TCO Ce A Teese Avra . + Sea Transport also helped in this period Bonne Aca mae cee (a Ree Ore Coe trecmmwa No Meyscel eM ce sebrcererris rc tereBeene re tinge ena eA Ce WS Seon oon CO ae cee Se ed ALN SS onuceiiCene nce ny ee ence ee meee em reece Pr) * Role of Govts. Should restrict imports and encourage exportsFree Trade Theory See eRe Baro eeont Oe Ne MIC ECE rag oy Doom st T Ron te Coe mtn ote nao oem TCon a ns eced ee it propagates a policy of no restrictions on the movement of ee eee Derry ESB oC TTes a eS rea Rey ce peat ee te Lal ore ee ee ee is A arate Rata nenClassical Theories and Their Effects on a aes) * Principle Exponents: Adam Smith & David Ricardo ome ETeIMcrere Cen CRAZIES ITO Ted NMeTec Tam CC Coane TLE CoB Ceo Cedars Te MereresiTe nat Come Tacatr eCesnT moore SCA P Zot Tem Toe TTT TLE BeveCols RO eno gtre tere Se SP Ce Ties heTT Une TR) e aa eS Cre RET nation’s standard of living’ which indicates its wealth and not the government’s stock of precious metals as the mercantilists assumed.Theory of Absolute Advantage : L dove errreere Se es Se ee cheesey eres ane esis ECON eereeR oem Cc Te O era ener EUSTACE By vee FR LUNA fearon ee soi at lower Nome nism cesta Nae Va oO Sir lca ee a aldTheory of Comparative Advantage a ersten te Gg British Economist David Ricardo. Rete a a Ce Mee rc A CTR LTC] production of ee ee ee Oyu SEU cea . en a eeThe Heckscher-Ohlin Theory * Acc. To this theory, The price of a commodity is determined by the mE ROM Oho nN oe ors COD TS eC MUON SCLC REL DeOeLUCCU OM OSSLTE Co Re meee a Cia aXe rot , What needs to be reached is ‘the aerial Se peepee Taber tI 2 SMe yy Even Mtn eT COT ams ona ater ae Bieta eee aes ee eee Bren TS AZo elesPNK CM MR KaMa CASI EMD acoso SHIM R erro Ten tom re ames MTT Tom ETC De eR K eB UCR ORCI EE ey oe goods, restrictive quotas, trade restriction ACC ou icra Comer celinetexcm Tn yee ae Tite TT Hates * This policy is adopted to encourage home industries by RNR MRM nmin eT Comoe tea mat Cont duties on foreign products7 Fair Trade Arguments og reg epee apeiron Pena _ 7 0 e:5 CRUE e SE er paearg BUeu trons crete nm eTat RoR eo uCBicerny STitemeeuts CS) STSCI RSAC Dua NRO Coed a CcrmeC n conditions to, and securing te rights of marginalized producers and ee ne Soe cote EM ree eae mice ara t fer oOFree Trade v. Fair Trade * One of the most popular recent arguments in favour of RE Settled Gat achat + Fairness should be seen as a process. A transaction is fair sla muni free to enter into it without being coere See CCB Crtm tla tin ocerccel) Ce om Nm cate cena without having to pay a higher price due to some PO ou cum Tecate a CRMC Lets mo esti lous tele eeDevelopment of ITL by Institutions * Role of Global and Regional Trade Organizations * Bretton Woods Institutions of IMF and IBRD and their role + UN and its Role in Int. Economic and Trade Regulations * GATT/WTO and Its role in Int. Trade Regulations Pee ator BCR O geen TATION COM ToT m COSTS development of Int. Trade Regulations