customs and trade

957 Words4 Pages
Customs and Trade Much of the history of international relations and trade concerns efforts to promote free trade among nations. The 17th century saw the growth of restrictive policies that later came to be known as mercantilism. The mercantilists held that economic policy should be nationalistic and should aim at securing the wealth and power of the state. Governments were led to impose price and wage controls, promote exports of finished goods and imports of raw materials, and prohibit the exports of raw materials and the import of finished goods. In the middle of the 18th century a strong reaction against mercantilist attitudes began. In France, the economists demanded liberty of production and trade. In England, Adam Smith…show more content…
It has brought immense gains for consumers in terms of new products and products of better quality and lower price. Despite the obvious advantages, governments have to explain to their citizens the advantages of the open, rules-based trading system and that the trade with either developed or developing countries offers enormous opportunities and, as with all trade, mutual benefits. The Organization for Economic Cooperation and Development (OECD), from its inception, contributes to the expansion of world trade on a multilateral, non-discriminating basis. The OECD helps the WTO move forward on trade liberalization, stressing the importance of ensuring that non-OECD countries become fully integrated into the global trading system. The importance, and inevitability, of change has been stressed in many aspects of OECD work, including the OECD Job Study. The main aim is to improve job prospects. The OECD also has an important role to play in recognizing that the nature of trade in changing. The trade agenda of the future must move well beyond the traditional issues of trade between national economies to meet the demands of a globalizing one. Investment issues are at the forefront; firms invest to trade and trade to invest. The old model of manufacture in one country and sale in another has given way to an international process of manufacture assembly, finishing and marketing, which leapfrogs national boundaries. A change reflected in
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