Triangular, or triangle, trade was a system of buying and selling that involved cooperation among three separate geographic areas. The arrangement began during the colonial period in New England. Some New England rum was exported to West Africa, where it was traded for slaves.Know More
The captives obtained from this trade did not travel to New England. Instead, they were transported to the West Indies. There they were exchanged for money and molasses.
In the final step, the molasses was sent to New England, where it was used as an ingredient in the manufacture of rum.
The route between Africa and the Caribbean was known as the “Middle Passage." Ships carried their prisoners in atrocious environments. It was not unusual for 12 percent or more of the captured people to die during a crossing. The slavers accepted the losses as business expenses.
In the colonies, triangular trade was an economic boon. Massachusetts and Rhode Island, in particular, opened large numbers of rum distilleries. Ship builders were in greater demand as more vessels were needed for voyages to Africa.
England did not profit greatly from its colonies' triangular trade system. Although the ruling nation required customs fees, many businessmen, including John Hancock, smuggled the molasses into ports in order to avoid these payments.Learn more about Economics
Because different nations have different natural resources and human capabilities, trade has become a popular method of allowing nations to get the products people need, such as when the United States exports goods like wheat and corn to Japan and imports goods like computers and cars from Japan. In this example, Japan and the U.S. engage in trade in order to sell the surplus of the things they make and gain access to the things they don't make, allowing for a balance of a wide range of goods rather than a surplus of just a few things.Full Answer >
International trade allows people to pay less for products. Some areas of the world can manufacture products for less money. Other areas excel at producing high-end, innovative products.Full Answer >
International trade is the exchange of goods and services between two different countries. International trade creates a mutually beneficial set up between countries and companies that operate within them, as the market for goods and services produced in a country expands globally.Full Answer >
Multilateral trade agreements are agreements on trade issues between three or more countries. They are difficult to negotiate because of their complexity, but once agreed upon, they are very powerful and beneficial for the nations involved, giving each nation equal status in terms of trade.Full Answer >