THIS TEXTBOOK HASNT BEEN TO PRINT YET. VERY CURRENT. OUR
PROFESSOR IS MAKING US WRITE THE TEST TO EACH CHAPTER. GO FIGURE.
SO, HERE IT IS BEFORE IT IS PUBLISHED! :) TESTS TO FOLLOW.
CHAPTER 1
THE HISTORICAL OVERVIEW OF EXPORTING
Introduction
The history of exporting is an interesting study to understand the development of the
world, as we know it. A journey back through time will create an interest and greater
understanding of how exporting has developed into what it is today. The shipping of goods
by different countries has been around since before recorded history. A tremendous
contributor to our economy today can be attributed to exporting. Many of the goods we use
today have been imported from other countries for economic or resource reasons.
Exporting has been a way of life as far back as recorded history. It has been a way of life
for centuries as countries have shipped and received good and products. The unique
resources to various areas of the world have helped to necessitate trade around the world.
Trading has proven to be an avenue to meet the wants and needs of all corners of the world
as well as stimulate the economy on a global level.
This chapter will explore the history of exporting and consider significant factors that have
helped to shape the world economy to this day. From the early days of free trade in Asia to
the twenty first century challenges, exporting has evolved into a global network that spans
across all countries.
One of the earliest considerations that will be discussed is the need that developed for
major legislation. Government has had to intervene on the issue of exporting to create
guidelines and enforce them in order to ensure proper conduct. Ethical issues needed to be
addressed to eliminate possibilities of monopolies. Monopolies give certain companies too
much control of a good or product that creates the possibility of unfair price hikes.
Legislation implemented by the United States will be considered. Much of the legislation
that will be discussed is in still in tact today with some revisions to adapt to the changes in
society.
Global impacts of exporting will also be introduced. The petroleum industry and the
formation of the Organization of the Petroleum Exporting Countries (OPEC) in 1960 are
major historical landmarks to be considered as one considers the history of exporting.
Petroleum exporting is still a viable part of the world economy today and history can be a
great tool to understand the global economy today.
History of Exporting
Countries have been trading goods since there were established political boundaries and
concepts of economy. As means were available to facilitate the movement of goods,
market expansion has called for the trade of materials that were common in one geography
or region to markets in which they were rare, unattainable, or economically difficult to
obtain. As transportation methods advanced beyond the carrying of goods by people and
animals, the range of trade expanded. Today, goods are traded freely throughout the world
subject to local laws and tariffs.
Very early records indicate that prehistoric Britain was engaged in active exports. Tin was
being exported from the British Isles as early as 325 B.C. Researchers believe that Ancient
Britons traded extensively with continental Europe and thus established cultural links as
early as the Neolithic period. Modern European trade was not established until much later
however. While Europe is often thought of as the founders of international trade with the
Spanish galleons and Dutch traders gaining many of the pages in western history books,
the center of trade and commerce was not always in Europe.
The earliest exporters in modern history came from Asia. During the early years of
international trade and commerce, Asia was the primary source of economic activity. In
fact, European trade did not come about until much later. In fact, some believe that the
development European trade was actually late in developing. Between 1450 and 1750,
Asian influences, trade, and culture dominated the world. The Chinese, Turkish Indian and
Persian empires were powerful economically and politically. In fact, they were the
dominant world cultures until the end of the 18th century. Spices, tea, and porcelain were
among the products coming from China, India and the other Asian geographies. In the
1800s, tin was being mined in Seangor and exported around the world. In 1874, Seangor
came under British occupation. Resultantly, in 1880 the Selangor government was
uprooted to and moved from Klang to Kuala Lampur.
Europe and Asia began trading in earnest in the 1700s. The shipping lanes were heavily
guarded, as the free exchange of goods was vital to the economies and survival of both
regions. Currencies and commodities were freely traded across the Indian and Atlantic
Oceans by the 1800s via British, French, and Dutch companies. State power was directly
tied to controlling the movement of goods and services. Nations directly sponsored such
commercial enterprises using their treasuries. This mercantile practice and expansion in the
Indian Ocean reflected the portfolio capitalism of Asia in the 1700s.
With the colonization of the New World, America made its entrance into the world of
global commerce and exports with tobacco. It is said that in 1614, one of the most historic
events in western history took place. The first shipment of tobacco from Virginia was sold
in London. [1] Despite political wrangling in England, James I allowed the trade of
tobacco to Europe to continue. It was vastly successful.
By 1639, Jamestown had exported 750 tons of tobacco. Tobacco was the American
