International Business and Trade in a Historical Perspective

The objective of this course is to discuss the development of world trade from early modern times until today. Firstly, the historical development of world trade and trade policies are discussed in terms of causes and effects of international trade. A central aspect is the discussion of the importance of trade for growth and distribution of wealth over the world. The role of trade for countries in the less industrialised world is compared to its role for the industrialised world. Linked to this, is the discussion of whether protectionism or free trade has been the best way to promote economic development. Secondly, the course relates to the development of “big business”. The aim is to achieve an understanding for the present situation of multinational companies by studying their historical development. The studies start with how multi-national companies were formed. Multinationals have sometimes been accused of contributing to social injustice in countries in the third world. In the industrialised world they are accused of disrupting competition. The effects of big business establishment are to a large extent decided by how the activities are regulated. The national state can build institutions and regulate business activities by for example introducing tariffs, different forms of taxation, regulation of wages and so on. An important issue is to study under what circumstances multinational companies are contributing to growth and redistribution and when they are not.