Posted: February 17th, 2022
Trading Before World War I
Trading Before World War I
Before World War I, trade interdependence between the United States and Britain relied on policies from interest groups such as consumer unions and traders associations to maintain economic ties and business treaties. The international economic policies enabled traders, consumers and middlemen to transact beyond borders as they were assured of the protection of goods, free from exploitation and other business-related fraud. The United States and Britain had specific agreements about trading tariffs to ease barriers to international trade and achieve trade liberalization that depended on domestic politics of either side trading.
Before World War I, the major trade issues were tariffs, subsidies, and taxation, which needed the intervention of interest groups for trade liberalization. On the United Sates’ side, the trade policies were about the endowment from the mighty oceans for the interest groups that were neutral on central powers’ matters to have conducive submarine transactions. Merchants, consumers and manufacturers benefited from the national allies that the US made to reduce warfare anxieties and get in control of international trade as per the Embargo act of 1807. The act enabled the United States to retain its sovereignty, create trading diplomacy, and leverage economic power with Britain and France. On the other hand, Britain dominated foreign trade because of the industrial revolution and had peace, which was necessary for trade. The inventions in the 1800s also enable Britain to meet the merchants’ demands, such as by having ready transportation of goods through canal boats. The imperialists controlled most trading as an interest group who wanted total dominance in the foreign merchandise using naval power. Britain remained relevant because of having achieved foreign policy of political stability to access colonial resources needed for trade. Trading institutions from both United States and Britain were controlled by trade policies and customs unions to control revenue and solve trade-related conflicts.
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