African King and China: International Trade

1. African King and China: International Trade

According to the greatchinatrade.com, “In ancient times, the African king used slaves to pay for goods from China. Later, gold and silver replaced slaves as the main currency for international trade.” From this statement, we can see that the African king and China had international trade relations in ancient times. In those days, slaves were used as currency to pay for goods from China. This type of trade is called barter trade.

Barter trade is a system of exchange where goods or services are exchanged for other goods or services without the use of money. This type of trade was common in ancient times before the invention of money. Money made it easier to trade because it can be used to buy anything.

2. The invention of money

The invention of money greatly improved international trade. Money is a medium of exchange that can be used to buy anything. Before money was invented, people had to barter goods or services for other goods or services. This was not always convenient because sometimes people did not have what the other person wanted. For example, if I wanted to buy a sheep, but the only thing I had to offer was wheat, I would have to find someone who wanted wheat and also had a sheep that they were willing to trade for it. This could be difficult and time-consuming.

With money, I can simply go to the market and buy a sheep with cash. This is much easier and more efficient than barter trade. Money has made international trade much easier and more popular.

3. China’s type of trade

China’s type of trade is called bilateral trade. Bilateral trade is when two countries agree to trade with each other exclusively. This means that they will only trade with each other and no one else. Bilateral trade is usually done between two countries that are close to each other geographically.

4. Trade with African countries

China has bilateral trade agreements with many African countries. These agreements mean that China will onlytrade with these countries and no one else. These agreements are beneficial for both parties because they can get access to goods and services that they might not be able to get otherwise. For example, China might get access to minerals from Africa that are not available in China. Similarly, Africa might get access to manufactured goods from China that are not available in Africa.

5. Bilateral trade

Bilateral trade is when two countries agree to trade with each other exclusively. This means that they will onlytrade with each other and no one else. Bilateral trade is usually done between two countries that are close toeach other geographically. For example, China has bilateraltrade agreements with many African countries. These agreements mean that 6.Multilateral tradethose countries will onlytrade with China and no oneelse. These agreements are beneficial for both parties because they can get access 7.Trade specializationto goodsand services 8.Effects of tradethat they might nototherwise be abletopartiesget. Forexample, Chinamightmight get access toget mineralsfrom Africathat are not available in China. Similarly, Africato manufactured Accessgoods fromto Chinathatnot manufacturedareavailable in Africa. 9.Services sector in international bilateral10.Money in international tradetrade is when two countries agree to trade with each other exclusively. This means that they will onlytrade with each other and no one else. Bilateral trade is usually done between two countries that are close toeach other geographically. For example, China has bilateraltrade agreements with many African countries. These agreements mean that those countries will onlytrade with China and no oneelse. These agreements are beneficial for both parties because they can get access to goods and services that they might not be able to get otherwise. For example, China might get access to minerals from Africa that are not available in China. Similarly, Africa might get access to manufactured goods from China that are not available in Africa.

6. Multilateral trade

Multilateral trade is when three or more countries agree to trade with each other. This type of trade is usually done between countries that are far from each other geographically. For example, China has multilateral trade agreements with many countries in Asia, Europe, and Africa. These agreements mean that these countries will trade with each other and no one else. These agreements are beneficial for all parties because they can get access to goods and services that they might not be able to get otherwise. For example, China might get access to minerals from Africa that are not available in China. Similarly, Africa might get access to manufactured goods from China that are not available in Africa.

7. Trade specialization

Trade specialization is when countries produce goods or services that they are good at and then trade them with other countries. For example, China is good at manufacturing goods. Africa is good at producing minerals. So, China might trade manufactured goods with Africa in exchange for minerals. This is beneficial for both parties because they can get what they want without having to produce it themselves. This specialization can lead to more efficient production and more trade.

8. Effects of trade on country’s economy

Trade can have many effects on a country’s economy. For example, trade can increase a country’s GDP, balance of payments, and employment. Trade can also have negative effects on a country’s economy. For example, trade can cause inflation, unemployment, and a trade deficit.

9. Services sector in international trade

The services sector is an important part of international trade. The services sector includes activities such as tourism, transportation, and banking. The services sector is important because it contributes to the economy of a country. For example, the tourism industry employs many people and generates income for a country. Similarly, the transportation industry helps to move goods and people around the world.

10. Money in international trade

Money is an important part of international trade. Money is used to buy goods and services from other countries. Money is also used to pay for transportation and other costs associated with international trade.
conclusion:
In conclusion, we can say that the African king and China had international trade relations in ancient times. The invention of money made it easier for the Chinese traders to invest in Africa, which did influence positively the economic perspectives of the region.

FAQ

China's trade with Africa is significant and growing. In 2016, China-Africa trade volume reached $170 billion, making China Africa's largest trading partner.

The benefits of this trade for both parties include increased economic growth and development, improved access to goods and services, and greater cultural exchange. However, challenges include a lack of transparency and accountability in some deals, unequal power dynamics between China and African countries, and environmental concerns.

This trade relationship has evolved over time from one based on natural resources to one that is more balanced and includes a range of products and services.