INTERNATIONAL MARKETING 6e Chapter 2 International trade Institutions and U.S. Trade Policy
INTERNATIONAL MARKETING 6e International Trade Institutions and U.S. Trade Policy Chapter 2
The historical dimension n Ancient Traders Rome and the pax romana European Feudalism in the Middle Ages Protectionism in the 1930s and Hawley-Smoot Act The Emergence of Global Division (1945) Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 2-2 The Historical Dimension Ancient Traders Rome and the Pax Romana European Feudalism in the Middle Ages Protectionism in the 1930’s and Hawley-Smoot Act The Emergence of Global Division (1945)
A Brief hi iStory of in ternate al Business onai Pax romana The "Roman Peace"ensured that merchants were able to travel safely and rapidly on roads built, protected, and maintained by the Roman legions European Feudalism By delivering a portion of their earnings to a protector, medieval farmers were shielded from the depredations of outsiders While local economies were largely closed, East-West export /import trade thrived Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 2-3 A Brief History of International Business Pax Romana • The “Roman Peace” ensured that merchants were able to travel safely and rapidly on roads built, protected, and maintained by the Roman legions. European Feudalism • By delivering a portion of their “earnings” to a protector, medieval farmers were shielded from the depredations of outsiders. While local economies were largely closed, East-West export /import trade thrived
A Brief History.. continue Protectionism in the 1930s and the Smoot-Hawley Act The Act raised import duties to reduce the volume of imports into the United states with the intent of fostering increased domestic employment. World trade collapsed as other nations countered with raised duties and tariffs of their own Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 2-4 A Brief History … continued Protectionism in the 1930’s and the Smoot-Hawley Act • The Act raised import duties to reduce the volume of imports into the United States, with the intent of fostering increased domestic employment. World trade collapsed as other nations countered with raised duties and tariffs of their own
The Emergence of Global Division(194 The post-war East and West ideological split The Soviet Union and the eastern bloc Council for Mutual Economic Assistance(CMEA or COMECON 53 Western countries The International Trade Organization(TO)-1948 o Pax Americana The"American Peace" ensuring safety in the Western world from 1945 to 1990 helped world trade grow dramatically. Copyright 2001 by Harcourt, Inc. All rights reserved 5
Copyright © 2001 by Harcourt, Inc. All rights reserved. 2-5 The Emergence of Global Division (1945) The post-war East and West ideological split • The Soviet Union and the Eastern Bloc – Council for Mutual Economic Assistance (CMEA or COMECON) • 53 Western countries – The International Trade Organization (ITO) - 1948 Pax Americana • The “American Peace” ensuring safety in the Western world from 1945 to 1990 helped world trade grow dramatically