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hip. The prudent exporter purchases insurance for his cargo’s voyage. While at sea, a cargo is vulnerable to many dangers. Thus, insurance is another service in which some nations specialize. Great Britain, because of the development of Lloyd’s of London, is a leading exporter of this service, earning fees for insuring other nations’ foreign trade. Some nations possess little in the way of exporter modities or manufactured goods, but they have a mild and sunny climate. During the winter, the Bahamas attract large numbers of countries, who spend money for hotel acmodations, meals, taxis, and so on. Tourism, therefore, is another form of invisible trade. Invisible trade can be as important to some nations as the export of raw materials or modities is to other. In both cases, the nations as the export of raw materials or modities is to other. In both cases, the nations earn money to buy necessities. International trade today little resembles European merce as it existed between the 16th century and the 19th century. Trade in earlier times was conducted largely between a mother country and its colonies. It was conducted according to strict mercantilist principles. The colonies were supposed to supply the mother country with raw materials, and they were expected to buy all finished goods from the mother country. Other forms of trade were forbidden to the colonies, but many of them evaded these restrictions. A result of the Industrial Revolution, which began in England in the 18th century, was the transformation of trade from a colonial exchange into a many sided international institution. Cottage industries gave way to mass production in factories. Railroads and steamships lowered the cost of transportation at the same time that new markets were being sought for the expanding output of goods. The Industrial Revolution also brought an end to mercantilist policies. The laissezfaire attitudes that emerged in their stead permitted businessmen to manufacture what they pleased and to trade freely with other nations. Trade was also stimulated by the growth of banking facilities, insurance panies, and improved mercial shipping and munications. The repeal of the Corn Laws by Great Britain in 1846 ended Britain’s longstanding policy of protectionism. During the 19th century, many European nations made mercial agreements with each other easing their tariff rates. Lower tariffs and the growth of population and industry caused trade to soar in the 19th century. In the 20th century two world wars and a major depression caused severe disturbances in international trade. Nations, sensing a threat to their domestic economies, sought to protect themselves from further disturbances by erecting various barriers to trade. The situation became even worse after Great Britain abandoned the gold standard. The nations that were closely related to Britain, including most of the members of the Commonwealth of gold standard. As the means of making international payments broke down and trade restrictions increased, some countries had to resort to barter to obtain foreign goods. International trade was in such severe straits during