State Historical Society of Iowa

Trade

Why do countries trade goods?

Trade is as old as civilization itself. Before the advent of money, people bartered goods with one another to secure what they could not produce themselves. In trade, one side brings goods or services that it can produce more readily than their trading partner. Pottery, jewelry, metal items and other durable goods are evidence that archaeologists rely on to document the existence of trade among prehistoric peoples.

Influence and Consequences of Trade

The control of trade can be a very significant economic and political factor in the history of a nation. In the late 1200s, Marco Polo traveled over land to Persia (now Iran), then through the Pamir Mountains and the Gobi Desert, to Beijing, China. The book he wrote of his adventures stimulated European interest in trade. Venice merchants became wealthy and used the navy of the city to protect its superiority. Spanish and Portuguese ships set sail for the New World in search of gold and spices but came back with new products like potatoes, sugar and corn that greatly improved European diets. In exchange, they took metal tools and horses that impacted indigenous societies.

For the past several centuries, nations with highly developed manufacturing bases have looked to less developed countries to supply raw materials and to become markets for their products. In the 1700s, Britain and France adopted a policy of mercantilism that sought to protect domestic industries, often at the expense of their colonies. They instituted tariffs on foreign products coming into the country and restricted their colonies from trading with any other nations. This led to global competition for empires. In North America, Britain and France competed for the fur trade along the Great Lakes and the Ohio River valley. In 1763, the British defeated French forces in the battle for Canada and eliminated French influence on the continent. In the United States, the demands for slave labor in the 19th century and in recent times for oil, rubber, foods and metals have greatly influence American foreign policy.

Fair Trade Practices

Sometimes the policies are enforced by military intervention or the support of dictators or the wealthy who permit the practices for the own benefit. Not everyone supports trading practices that put one side at a disadvantage. "Fair trade" rules try to insure that the interests of the producers of the natural resources, often small farmers or factory workers, are protected. Fair trade practices may include demands that the workers who produce the goods receive decent wages and have safe working conditions. The elimination of child labor or sweat shops is often a goal of fair trade negotiations. Those products that follow fair trade practices are allowed to publicize their compliance in the hope the consumers will support their efforts, even if it means the product may cost more than competitors. It is often difficult to enforce fair trade provisions when the source of products is hard to determine. Sometimes consumers prefer the less expensive products despite the manner in which they were produced

Trade in Iowa

Since its first days in the Union, Iowa has been a major exporter of agriculture products. Because of the expense of shipping corn, 19th century farmers converted corn into hogs and shipped meat first by rivers and then by rails. Corn and soybeans are major U.S. exports, especially to Asia. In recent times, disputes over tariffs have been a source of growing tension between the United States and China.

Supporting Questions

What is importing and exporting goods?

What is fair trade?

How did the North American Free Trade Agreement (NAFTA) impact the U.S. and Mexico?

Trade Teaching Guide
Printable Image and Document Guide

 

 

 

English Map of the Island of Grenada Updated from the 1763 French Survey, 1780

Download Resource

Description

This hand drawn map by Monsieur Pinel was made from the original French survey of the Caribbean island of Grenada, located just north of South America. The new plan was created in 1780 by order of the English government, and was published with the additio...

Read More

Letter from Thomas Jefferson to Charles Thomson Estimating Imports to the United States, April 22, 1786

Download Resource

Description

This is one of three pages of a letter sent from Thomas Jefferson which estimated the imports into the United States. Some of the commodities listed include sugar, molasses and salt. Also among the listed commodities from 1786 were "slaves." As ...

Read More

Statement of the Quantity of Spirits, Molasses, Coffee, Cocoa and Sugar from the United States, 1818

Drying Cocoa on the Island of Dominica in the West Indies, ca. 1906

Download Resource

Description

This photograph from 1906 shows local inhabitants, including children, working to dry cocoa beans in Dominica. The island, located in the Caribbean Sea, was a British colony in the West Indies at the time. The British used Dominica in the 1800s as part of...

Read More

"Child Labor and Slavery in the Chocolate Industry," 2017

Download Resource

Description

This article from the Food Empowerment Project highlights the dark side of the chocolate industry. The article suggests that the labor of children who are enslaved and unfair compensation for farmers are driving the industry. It also states that children ...

Read More

Fair Trade Certified Article about an Indian Factory and Their Use of Community Development Funds, 2018

Download Resource

Description

This document highlights how a factory becoming Fair Trade Certified has helped a community in a variety of ways. It focuses on a worker's story from Bestitch Knits, a factory in Tiruppur, India.

Read More

"Brick by Brick: Rebuilding Public Schools in Côte d'Ivoire," January 23, 2019

Download Resource

Description

This article explains how Fair Trade community funds in Cote d'Ivoire are being used to build schools and stock them with school supplies. The article suggests that choosing Fair Trade chocolate products directly benefits families in Cote d'Ivorie...

Read More

Open Letter from a Certified Fair Trade Farm in Amado, Arizona, Date Unknown

Description

This open letter was written to the Fair Trade Certified organization thanking them for their help in becoming Fair Trade Certified. Since becoming a part of the Fair Trade community, this farm (Wholesum Harvest) has been able to re-invest in health insur...

Read More

"Six Problems with NAFTA," June 25, 2019

Description

Kimberly Amadeo's article from The Balance explains how the North American Free Trade Agreement (NAFTA) has been bad for both the United States and Mexico. An example she includes is that it cost the United States a lot of jobs, especially in manufact...

Read More

"Did NAFTA Help Mexico? An Assessment After 20 Years," February 2014

Download Resource

Description

The North American Free Trade Agreement (NAFTA) was a trade agreement signed by Canada, Mexico and the United States that took effect in 1994. Its purpose was to create a trilateral trade bloc in North America. The Center for Economic and Policy Research ...

Read More

"NAFTA's 'Broken Promises': These Farmers Say They Got The Raw End Of Trade Deal," August 7, 2017

Download Resource

Description

In this article from National Public Radio, reporters interview ranchers and farmers from Montana and Florida to highlight how the North American Free Trade Agreement (NAFTA) has affected their livelihoods. According to the interviewees, the trade agreeme...

Read More

"Why Des Moines and Iowa business leaders support NAFTA," February 7, 2018

Download Resource

Description

This opinion editorial from The Des Moines Register was written by Jay Byers, chief executive officer of the Greater Des Moines Partnership, and Mike Ralston, president of the Iowa Association of Business and Industry (ABI). Their column focuses on reason...

Read More

"Six Problems with NAFTA," June 25, 2019

Download Resource

Description

Kimberly Amadeo's article from The Balance explains her opinion about how the North American Free Trade Agreement (NAFTA) has been bad for both the United States and Mexico. An example she includes is that NAFTA has cost the United States a lot of job...

Read More

Photograph of President William J. Clinton Meeting with Former Presidents Gerald Ford, George H.W. Bush, and Jimmy Carter to Discuss the North American Free Trade Agreement, September 1993

Download Resource

Description

This photograph shows President Bill Clinton meeting with former Presidents, Gerald Ford, George H.W. Bush, and Jimmy Carter, to discuss the North American Free Trade Agreement (NAFTA) in the private residence of the White House. The presidents met togeth...

Read More

Additional Resources:

  • Fair Trade Certified

    This website provides multiple resources related to "Fair Trade" practices. It includes definitions and examples of companies that are fair trade certified and the impact this as on their community and the global economy. There also is a product feature where the user can search for products to buy that are fair trade certified.

  • Food Empowerment Project

    This website focuses on the work of the Food Empowerment Project, which seeks to create a more just and sustainable world by recognizing the power of one's food choices. The organization encourages healthy food choices that reflect a more compassionate society by spotlighting the abuse of animals on farms, the depletion of natural resources, unfair working conditions for produce workers and the unavailability of healthy foods in low-income areas.

 

 

Iowa Core Social Studies Standards (6th Grade)

Listed below are the Iowa Core Social Studies content anchor standards that are best reflected in this source set. The content standards applied to this set are elementary-age level and encompass the key disciplines that make up social studies for sixth-grade students.

 

No.Standard Description
SS.6.18. Explain how changes in transportation, communication, and technology influence the movement of people, goods, and ideas in various countries.