The oriental trading post is a place where different people come together to exchange their goods and services for a price. The route that is travelled between trading posts is referred to as trade route. These posts were considered as joint-spots for people for exchanging their goods and news of their home town.
The trading posts have a direct reference to the history of currency. As from the ancient of trading post history, there always occurred a need to have something as a medium of exchange. A medium to pay, for buying a good. Soon the barter system bud as medium to exchange goods. Eventually trade coins were discovered and were innovated and produced with metals like silver, gold and copper. And soon were brought into use as an exchange medium.
Today trade is even being done across nations which have a positive impact on the countries GDP (gross domestic product). There has been a marked growth in the field of economic, political, industrialisation, advanced transportations and outsourcings etc, have doubled the significance of international trade.
There are very few restrictions by the government while trading with different countries, except for a small amount of taxes known as tariffs. These tariffs are usually charged on imports and often charges tariffs on exports of trading post. Thus all these restrictions are referred to as trade barriers.
There are various organisations that provide free trade areas, these are:
1) European free trade association: it was established on May 3, 1960. The EFTA convention was signed on 4th January 1960 in Stockholm by seven states. And liberalised trade among member states. This development of the EFTA states ensured the modernisation of their convention and ensured further expansion and liberalisation of trade among their neighbouring countries as well as with the rest of the world.
2) Free trade areas of America: the FTAA was proposed to minimise the trade barriers among the countries in America. In the last round of talks which was held among 34 nations in November.
3) North America free trade agreement: it is created by the governments of the United States, Mexico and Canada. It was reckoned as a trilateral trade bloc. This agreement was proposed in January 1st 1994 and superseded the U.S-Canada free agreement.
4) Union of South American nations: it was constituted on May 23, 2008 during the third summit of the heads of the state in Brazil. This agreement too supported free trade posting in many countries like the Quito, Ecuador, Cochabamba and Bolivia.
5) South Asian free trade association: this came to act on January 1, 2006. In this agreement pact seven Asian countries have come together to lower down tariffs. It was signed during the 12th summit of the SAARC (south Asian association for regional cooperation). Thus India provided a pact that strengthened economic ties, reduced tariffs and promoted free trades.
Thus, the trade government has provided a common platform for oriental trading posts to meet their diversified needs.