ABSTRACT
Trade is one of the oldest activities undertaken by humans. Maritime trade boomed in Southeast Asia as seafarers from the Middle East, India and China engaged in exchanges of cotton, sugar, tin, spices and tea and silk destined for Europe. Within many national economies, trade helped forge new social classes (merchants), becoming a major instrument of wealth. Trade also shaped new institutions that contributed to market stability. Based on World Bank data, and summing imports and exports to generate a total trade value, more than 161 countries around the world posted a trade to GDP ratio greater than 50% in 2008. Trade within Asia makes up the second most important intra-regional flow, accounting for approximately 11% of world trade. North American trade flows are dominated by exchanges between Canada and the US, and these make up only about 4% of world trade. The chapter also presents an overview of the key concepts discussed in this book.
