4) Overland Trade Routes in The Middle East
4) Overland Trade Routes in The Middle East
4) Overland Trade Routes in The Middle East
EAST
Introduction:
A trade route is a logistical network identified as a
series of pathways and stoppages used for the commercial transport
of cargo. The term can also be used to refer to trade over bodies of
water. Allowing goods to reach distant markets. The trade routes
were the communication highways of ancient times.
The goods and raw
materials, were transmitted by people moving from one place to
another to conduct business. The major and most important trade
route of that time was the “Silk Trade Route”.
Importance of Trade:
The theory of comparative
advantage states that countries should specialise in those goods
where they have a relatively lower opportunity cost. Some
countries are naturally abundant in raw materials. Without trade,
these countries would not benefit from the natural endowments
of raw materials. Because of trade nations, firms, individuals can
easily utilize their goods and services and prosper even more. So,
economists call it comparative advantage of international trade.