Free tradeFree trade is a trade policy that does not restrict imports or exports. In government, free trade is predominantly advocated by political parties that hold economically liberal positions, while economic nationalist and left-wing political parties generally support protectionism, the opposite of free trade. Most nations are today members of the World Trade Organization multilateral trade agreements. Free trade was best exemplified by the unilateral stance of Great Britain who reduced regulations and duties on imports and exports from the mid-nineteenth century to the 1920s.
Spanish EmpireThe Spanish Empire, sometimes referred to as the Hispanic Monarchy or the Catholic Monarchy, was a colonial empire governed by Spain and its predecessor states between 1492 and 1976. In conjunction with the Portuguese Empire, it was the first empire to usher the European Age of Discovery and achieve a global scale, controlling vast portions of the Americas, Africa, various islands in Asia and Oceania, as well as territory in other parts of Europe.
ProtectionismProtectionism, sometimes referred to as trade protectionism, is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Proponents argue that protectionist policies shield the producers, businesses, and workers of the import-competing sector in the country from foreign competitors.
Kingdom of Great BritainThe 'Kingdom of Great Britain, officially Great Britain', was a sovereign country in Western Europe from 1 May 1707 to the end of 31 December 1800. The state was created by the 1706 Treaty of Union and ratified by the Acts of Union 1707, which united the kingdoms of England (which included Wales) and Scotland to form a single kingdom encompassing the whole island of Great Britain and its outlying islands, with the exception of the Isle of Man and the Channel Islands.
Nation stateA nation-state is a political unit where the state, a centralized political organization ruling over a population within a territory, and the nation, a community based on a common identity, are congruent. It is a more precise concept than "country", since a country does not need to have a predominant national or ethnic group. A nation, sometimes used in the sense of a common ethnicity, may include a diaspora or refugees who live outside the nation-state; some nations of this sense do not have a state where that ethnicity predominates.
RenaissanceThe Renaissance (UKrᵻˈneɪsəns , USˈrɛnəsɑːns ) is a period in European history marking the transition from the Middle Ages to modernity and covering the 15th and 16th centuries, characterized by an effort to revive and surpass ideas and achievements of classical antiquity. It occurred after the Crisis of the Late Middle Ages and was associated with great social change. In addition to the standard periodization, proponents of a "long Renaissance" may put its beginning in the 14th century and its end in the 17th century.
The Wealth of NationsAn Inquiry into the Nature and Causes of the Wealth of Nations, generally referred to by its shortened title The Wealth of Nations, is the magnum opus of the Scottish economist and moral philosopher Adam Smith (1723-1790). First published in 1776, the book offers one of the world's first connected accounts of what builds nations' wealth, and has become a fundamental work in classical economics. Reflecting upon economics at the beginning of the Industrial Revolution, Smith addresses topics such as the division of labour, productivity, and free markets.
Early modern periodThe early modern period of modern history spans the period after the Late Middle Ages of the post-classical era (1400–1500) to the beginning of the Age of Revolutions (1800). Although the chronological limits of this period are open to debate, the timeframe is variously demarcated by historians as beginning with the fall of Constantinople in 1453, the Renaissance period in Europe and Timurid Central Asia, the end of the Crusades, the Age of Discovery (especially the voyages of Christopher Columbus beginning in 1492 but also Vasco da Gama's discovery of the sea route to India in 1498), and ending around the French Revolution in 1789, or Napoleon's rise to power.
Adam SmithAdam Smith (baptised 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics" or "The Father of Capitalism", he wrote two classic works, The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The latter, often abbreviated as The Wealth of Nations, is considered his magnum opus and the first modern work that treats economics as a comprehensive system and as an academic discipline.
Laissez-faireLaissez-faire (ˌlɛseɪˈfɛər ; from laissez faire lɛse fɛːʁ, let do) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, laissez-faire rests on the following axioms: "the individual is the basic unit in society, i.e. the standard of measurement in social calculus; the individual has a natural right to freedom; and the physical order of nature is a harmonious and self-regulating system.
Classical economicsClassical economics, classical political economy, or Smithian economics is a school of thought in political economy that flourished, primarily in Britain, in the late 18th and early-to-mid 19th century. Its main thinkers are held to be Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Robert Malthus, and John Stuart Mill. These economists produced a theory of market economies as largely self-regulating systems, governed by natural laws of production and exchange (famously captured by Adam Smith's metaphor of the invisible hand).
SpainSpain (España, esˈpaɲa), or the Kingdom of Spain (Reino de España), is a country located in Southwestern Europe, with parts of its territory in the Atlantic Ocean and across the Mediterranean Sea. The largest part of Spain is situated on the Iberian Peninsula; its territory also includes the Canary Islands in the Atlantic Ocean, the Balearic Islands in the Mediterranean Sea, and the autonomous cities of Ceuta and Melilla in Africa.
Market (economics)In economics, a market is a composition of systems, institutions, procedures, social relations or infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labour power) to buyers in exchange for money. It can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society.
TariffA tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Protective tariffs are among the most widely used instruments of protectionism, along with import quotas and export quotas and other non-tariff barriers to trade.
TradeTrade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct exchange of goods and services for other goods and services, i.e. trading things without the use of money. Modern traders generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning.
HegemonyHegemony (hɪˈdʒɛməni, hɪˈɡɛməni, ˈhɛdʒəmoʊni) is the political, economic, and military predominance of one state over other states. Hegemony can be regional or global. In Ancient Greece (8th BC – AD 6th ), hegemony denoted the politico-military dominance of the hegemon city-state over other city-states. In the 19th century, hegemony denoted the "social or cultural predominance or ascendancy; predominance by one group within a society or milieu" and "a group or regime which exerts undue influence within a society".
RecessionIn economics, a recession is a business cycle contraction that occurs when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic).
PrussiaPrussia (ˈprʌʃə; Preußen, ˈpʁɔʏsn̩, Old Prussian: Prūsa or Prūsija) was a German state located on most of the North European Plain, also occupying southern and eastern regions. It formed the German Empire when it united the German states in 1871. It was de facto dissolved by an emergency decree transferring powers of the Prussian government to German Chancellor Franz von Papen in 1932 and de jure by an Allied decree in 1947. For centuries, the House of Hohenzollern ruled Prussia, expanding its size with the Prussian Army.
Reformation_The Reformation The Reformation (alternatively named the Protestant Reformation, and the European Reformation) was a major movement in Western Christianity in 16th-century Europe that posed a religious and political challenge to the Catholic Church and in part, it also posed a challenge to papal authority. The Reformation marked the start of Protestantism and in the Western Church, the Latin Church, remained the Catholic Church. It is considered one of the events that signified the end of the Middle Ages and the beginning of the early modern period in Europe.
Economic interventionismEconomic interventionism, sometimes also called state interventionism, is an economic policy position favouring government intervention in the market process with the intention of correcting market failures and promoting the general welfare of the people. An economic intervention is an action taken by a government or international institution in a market economy in an effort to impact the economy beyond the basic regulation of fraud, enforcement of contracts, and provision of public goods and services.
