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1、CarolH.ShiueHistoricalDevelopmentsinTradeJuly12,2015FirstwaveofGlobalization,from1800to1900.MostoftheincreasesinMarketIntegrationcanbetracedtomainlyfallsintransportcostsormoreliberaltradepolicy.•Fallingtransportcostsandimprovementsintransporttechnologycanstimulateintegration•CanalsinBritain,a
2、ndcontinentalEurope.(InBritain,waterwaysincreased4foldfrom1750-1820,cheaperthanoverland.AlocalgroupcouldpetitionParliamentforpermissiontoforma“turnpiketrust”,levytolls,andimproveroads.•SuezCanal,1869th•TransatlanticSteamships(early19century)•Railways:!Germany~3600milesin1850to36,000milesin191
3、0!U.S.~9000milesin1850to~250,000milesin1910•Periodsofprotectionismandfreetrade—unliketransporttechnology,politicsdidnothavenearlyasmuchconsistencyacrosstimeth•Late18century,periodofopentrade(from1850-1913),changingfromastanceofmercantilismtofreetrade•NapoleonicWarsresultedintraderestrictionsa
4、ndblockades•Waterloo,endoftheNapoleonicwarsin1815•CornLawsabolishedin1846•CobdenChevaliertreatybetweenFranceandU.K.in1860abolishedallFrenchimportprohibitions;Britishallowedmanygoodsdutyfree.UseoftheconceptofMostFavoredNationclauseextendedtradeconcessionstothirdpartiesaswell.•TheZollverein,aPr
5、ussiancustomsunionthateliminatedeconomictariffswithinGermanstatesbetween1834and1870"Increaseinthenumberoftreaties,decreaseinprotection(customsrevenuestovalueoftotalthimportsfrom15%in1850tolessthan10%inlate19century),andincreasesintrade(importstoGDPfrom14%in1850to20%atendofthecentury)withinEur
6、ope.Postscripttothisperiodofliberalization:•OverthetwoWorldWarsandtheGreatDepression,declineintradeandincreasesinprotection•Renewedeffortsatliberalizationafter1945oGATT(GeneralAgreementsonTariffsandTrade)in1947,nowreplacedbytheWorldTradeOrganization(WTO).Fallinworldaveragetrariffsfrom26%to8.8
7、%between1986-2006.Tradegrowthtwicethatofworldoutputgrowth.oEuropeanunion,loweringoftariffswithinEuropeWhat’stheformaltheoryonconsequencesofthetransportrevolutionandliberaltradepolicyinththelate19century?•LawofOnePrice(LOOP)—with+transportcost
