Export Management - Strategy

THIS TEXTBOOK HASN'T BEEN TO PRINT YET. VERY CURRENT. OUR PROFESSOR IS MAKING US WRITE THE TEST TO EACH CHAPTER. GO FIGURE. SO, HERE IT IS BEFORE IT IS PUBLISHED! :) TESTS TO FOLLOW.

CHAPTER 1

THE HISTORICAL OVERVIEW OF EXPORTING

Introduction

The history of exporting is an interesting study to understand the development of the world, as we know it. A journey back through time will create an interest and greater understanding of how exporting has developed into what it is today. The shipping of goods by different countries has been around since before recorded history. A tremendous contributor to our economy today can be attributed to exporting. Many of the goods we use today have been imported from other countries for economic or resource reasons.

Exporting has been a way of life as far back as recorded history. It has been a way of life for centuries as countries have shipped and received good and products. The unique resources to various areas of the world have helped to necessitate trade around the world. Trading has proven to be an avenue to meet the wants and needs of all corners of the world as well as stimulate the economy on a global level.

This chapter will explore the history of exporting and consider significant factors that have helped to shape the world economy to this day. From the early days of free trade in Asia to the twenty first century challenges, exporting has evolved into a global network that spans across all countries.

One of the earliest considerations that will be discussed is the need that developed for major legislation. Government has had to intervene on the issue of exporting to create guidelines and enforce them in order to ensure proper conduct. Ethical issues needed to be addressed to eliminate possibilities of monopolies. Monopolies give certain companies too much control of a good or product that creates the possibility of unfair price hikes. Legislation implemented by the United States will be considered. Much of the legislation that will be discussed is in still in tact today with some revisions to adapt to the changes in society.

Global impacts of exporting will also be introduced. The petroleum industry and the formation of the Organization of the Petroleum Exporting Countries (OPEC) in 1960 are major historical landmarks to be considered as one considers the history of exporting. Petroleum exporting is still a viable part of the world economy today and history can be a great tool to understand the global economy today.

History of Exporting

Countries have been trading goods since there were established political boundaries and concepts of economy. As means were available to facilitate the movement of goods, market expansion has called for the trade of materials that were common in one geography or region to markets in which they were rare, unattainable, or economically difficult to obtain. As transportation methods advanced beyond the carrying of goods by people and animals, the range of trade expanded. Today, goods are traded freely throughout the world subject to local laws and tariffs.

Very early records indicate that prehistoric Britain was engaged in active exports. Tin was being exported from the British Isles as early as 325 B.C. Researchers believe that Ancient Britons traded extensively with continental Europe and thus established cultural links as early as the Neolithic period. Modern European trade was not established until much later however. While Europe is often thought of as the founders of international trade with the Spanish galleons and Dutch traders gaining many of the pages in western history books, the center of trade and commerce was not always in Europe.

The earliest exporters in modern history came from Asia. During the early years of international trade and commerce, Asia was the primary source of economic activity. In fact, European trade did not come about until much later. In fact, some believe that the development European trade was actually late in developing. Between 1450 and 1750, Asian influences, trade, and culture dominated the world. The Chinese, Turkish Indian and Persian empires were powerful economically and politically. In fact, they were the dominant world cultures until the end of the 18th century. Spices, tea, and porcelain were among the products coming from China, India and the other Asian geographies. In the 1800's,