The Impact Of Global Trade On Economic Growth (Essay Sample)

The impact of trade is an enduring issue whose effects have been seen from the Medieval Ages to the modern-day. Trade is the interaction of two or more groups of people who, while exchanging goods, also exchange social and cultural ideas. In addition to the spread of beliefs, trade can lead to a loss of jobs, may increase or decrease technology, impact one’s living standards, and influence the transfers of wealth. The impact of trade is a significant enduring issue because those who benefit from trade may abuse their commercial power, as demonstrated by the markets and fairs in Medieval Europe, Venetian trade during the High Middle Ages, and globalized trade that is seen today.

Markets and fairs in Medieval Europe were crucial roles in the economy. Europe had fallen into a feudal society during the Dark Ages. Vikings, Magyars, and Muslims invaded Europe, forcing the poor or the weak to find protection. Lords and Overlords offered lands for peasants to live on in return for protection. As most of the Medieval population moved to a manor-centered life, the number of artisans and merchants diminished. With little to no merchants left, Europe’s trade declined. However, decades later, when Europe started to revive from the Dark Ages, trade rose with it. As Europe surged, markets and fairs became popular again. In these fairs, merchants set up stalls to sell items. According to Humbert de Romans, the markets also sold necessities that the people needed to live. Because people needed these items to live, the items would be constantly bought. Thus, these weekly markets were constant, stable sources of income that “large estate owners, town councils, and some churches and monasteries” (Cartwright) found profitable. These groups of people charged fees to merchants who held stalls. Eventually, as demands for goods increased and the influx of goods rose, more stalls had to be established, increasing the profit landowners, town councils, and churches and monasteries gained from the fees. A significance found in this is that the Church, known for teaching that material wealth should not be desired, was gaining materialistic profits from the people’s need for necessary items. Furthermore, landowners, churches, and town officials placed stalls selling similar items near each other to increase competition. Competition between these stalls forced prices to stay low, keeping merchants’ profits at a minimum. However, landowners, town councils, and churches continued to gain wealth from the fees. This ensured that the power of the merchants, which was determined by wealth, was restricted while large landowners, town officials, and churches and monasteries gained power. Even in the Medieval Ages, as trade was just starting to revive, corruption of powerful groups of peoples was evident as they sought wealth and power over others.

Venetian trade during the Medieval Ages can be seen as an example of corruption taking place on a larger scale. A Venetian merchant, Marco Polo, went on several expeditions to discover new lands and goods. His expeditions reached most of the world, from Venice, Italy, to the eastern borders of China. These expeditions and the records of his travels also increased Venice’s desire for trade with foreign lands. As Marco Polo brought back valued riches from foreign lands such as China, interest in Chinese goods arose. Trading these riches became popular, so the Venetians profited off of the goods and began to flourish from the trade. Additionally, their extensive trade routes added to their growing wealth. “Venice controlled much of the trade in the Eastern Mediterranean and Adriatic Seas, [and the] goods that flowed into Europe were often transported through their hands” (Document 4). Other empires and/or peoples had to trade through Venice, generating great profit for them, the middlemen. Their geographical location helped Venice become rich, and would eventually lead to their corruption. As the Venetians became corrupted by their wealth, arrogance, and their increasing power, conflicts began to arise between the Venetians and Constantinople. During the Fourth Crusades starting in 1202, Venice used its commercial power “to influence the rest of western Europe into conducting a raid of Constantinople” (Alen). They had offered to transport the Crusaders to Europe, but instead, convinced them to attack Constantinople. Two years after the beginning of the Fourth Crusade, the Venetians seized Constantinople. The Venetian’s commercial power that stemmed from their vast trade routes eventually caused the corruption of the city-state. With their power, they could influence the Crusaders to violently take over Constantinople. Contrastingly to the small-scale corruption seen by the people who benefitted from Medieval markets and fairs, the Venetians’ commercial profits led to large-scale conflicts.

In a more modern-day lens, international trade has led to the corruption of large business owners. The world has become greatly interconnected through trade and cultural exchanges. Since the mid-1900s, globalization has rapidly increased due to various technological advancements, one of them being improvements in the shipping industry. The improvements in the shipping industry led to efficient trade and exchanges. However, while globalized trade became more popular, international company owners gained more power and wealth. This is because the increased demand for certain goods increased international trade. International companies became rich off of this- shipping their goods to an international market instead of a national one, bringing in more money. As these companies gained wealth, they gained power in the world. Eventually, some company owners “[moved] their factories to countries where workers [would] work for the least amount of money” (Document 5) to increase their profits. By moving to “cheaper” locations, these companies produce the same amount of goods- or more, and sell them at the same price, while spending much less on the workers’ wages. But while the higher-ups of these companies prosper and gain wealth, many workers lose their jobs when factories or companies move away. These individuals would have to find new jobs, which is no easy feat. Additionally, they would not be able to make any money during this time. This would greatly hinder the financial state of these individuals and even cause long-lasting damage. In modern-day today, international companies use their power to increase their profits despite that while doing so, they are causing the downfall of many individuals.

The impact of trade is a significant enduring issue that has existed for centuries. The effects of trade have been seen in the Medieval Ages to modern times. As trade began to become popular and markets and fairs arose, a negative effect of trade can be seen. Powerful people, mainly churches, town officials, and landowners at the time, sought to gain wealth and power. This led to corruption- the churches, town owners and landowners wanted to be wealthier than others. During the same period in Venice, the Venetian’s power gained through commerce made them arrogant. A conflict with Byzantines ensued, and the Venetians eventually took over Constantinople with their commercial power. Finally, in the modern-day, international companies have utilized the power gained from their commercial activities to increase their profits, despite it affecting their workers. A common theme can be seen from these three examples, where commercial powers use their influence to reap greater benefits for themselves. However, their power may cause them to become corrupted, and as a result, they may harm others.