ABSTRACT
This chapter provides an historical analysis of the use of tariffs and other barriers to trade and of the effects of these polices on the world economy. Throughout history, the sentiment has fluctuated concerning protectionism versus free trade. The rise of mercantilism and the establishment of colonies in the New World were closely tied to regulated trade. During this period (1500–1800) nations used a variety of measures to control the quantity and composition of imports and exports. The theory of comparative advantage, suggesting that two-way trade is mutually beneficial, contradicted the assumptions of a mercantilist world. The notion that imports were actually a good idea was a shocking concept.
