Activity 1 Basic concepts in foreign trade
ACTIVITY # 1. HISTORY AND BASIC CONCEPTS OF FOREIGN TRADE FOREING TRADE Exchange of goods and services between two or more countries to export (sell products in which we are competitive) and import (buy products in which we are not competitive), the objetive of these nations is to be present in the entirety of the world economy. HISTORY OF ECONOMIC INTEGRATION From the second half of the 19th century until the First World War, Great Britain was the leading nation in international trade with a system based on free trade, without tariff barriers, without obstacles to the movement of workers and capital. The world economic crisis unleashed by the depression of 1929, accelerated the fall of the trading system, which is why countries began to apply protectionist policies such as the increase in customs duties and the imposition of obstacles to imports. In 1930, the United States enacted the Smooth Hawley Act, increasing the tariffs of 900 items. Likewise, Great Britain abandons the go