Formation of Trade Networks

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Description

A complete description of how trade develops with old and new countries.

Vocal Characteristics

Language

English

Voice Age

Middle Aged (35-54)

Accents

North American (General)

Transcript

Note: Transcripts are generated using speech recognition software and may contain errors.
in the beginnings of international trade, the older countries exchange their products for the raw materials and food produced by the new ones. Then, as immigrants from the old country go out into the new ones, they want to be supplied with the comforts and appliances of the older civilizations, such as to take an obvious example. Railways. But as the productions of the new countries at the early stage of development do not suffice to pay for all the material and machinery needed for building railways, they borrow in effect, thes materials in the expectation that the railways will open out there. Resource is enable them to put more land under the plough and bring more stuff to the seaboard to be exchanged for the products of Europe, the new country, New Zealander, Japan or whichever. It may be raises alone in England for the purpose of building a railway. But it does not take the money raised by the loan in the form of money, but in the form of goods needed for the railway and sometimes in the form of services of those who plan and build it. It does not follow that all the stuff and services needed for the enterprise or necessarily bought in the country That lends the money. For instance, if Japan borrows money from us for a railway, she may by some of the steel rails and locomotives in Belgium and instruct us to pay Belgium for her purchases. If so, instead of sending goods to Japan, we shall have to send goods or services to Belgium or pay Belgium with the claim on some other country that we have established by sending goods or services to it. But however, along the chain, maybe the practical fact is that when we lend money, we lend somebody the right to claim goods or services from us, whether they're taken from us by the borrower or by somebody toe whom the borrower gives a claim on us.