International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries.
Industrialization, advanced in technology transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders.
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)". Political economy was the earlier name for the subject, but economists in the late 19th century suggested "economics" as a shorter term for "economic science" that also avoided a narrow political-interest connotation and as similar in form to "mathematics", "ethics", and so forth.
A focus of the subject is how economic agents behave or interact and how economies work. Consistent with this, a primary textbook distinction is between microeconomics and macroeconomics. Microeconomics examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy.
International economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the international institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and migration.
The Parliament of Great Britain was formed in 1707 following the ratification of the Acts of Union by both the Parliament of England and the Parliament of Scotland. The Acts created a new unified Kingdom of Great Britain and dissolved the separate English and Scottish parliaments in favour of a single parliament, located in the former home of the English parliament in the Palace of Westminster, near the City of London. This lasted nearly a century, until the Acts of Union 1800 merged the separate British and Irish Parliaments into a single Parliament of the United Kingdom with effect from 1 January 1801.
The English Navigation Acts were a continuation of laws that restricted the use of foreign shipping for trade between England (after 1707, Great Britain) and its colonies, a process which had started in 1651. Their goal was to force colonial development into lines favorable to England, and stop direct colonial trade with the Netherlands, France, and other European countries. The original ordinance of 1651 was renewed at the Restoration by Acts of 1662, 1663, 1670, and 1673 subsequently subject to minor amendment. These Acts also formed the basis for British overseas trade for nearly 200 years.
On the whole, the Acts of Trade and Navigation were obeyed, except for the Molasses Act of 1733, which led to extensive smuggling because no effective means of enforcement was provided until the 1750s. Irritation because of stricter enforcement under the Sugar Act of 1764 became one source of resentment by merchants in the American colonies against Great Britain. This in turn helped push the colonies to start the American Revolution.