Colonial Trade and International Exchange

Book excerpt: International trade theory implicitly assumes that countries participating in external trade each have sovereign status. Its failure to recognise the pervasive importance of colonial trade as an intermediate stage of external trade development, interposed between autarky and 'international trade' narrowly defined creates a serious gap In its explanatory structure and direct applicability. Anthony John's book is an attempt to examine the properties of colonial resource management on the process of territorial specialisation. He considers the implications of such foreign involvement for the trade patterns which may ensue after political independence when formal 'international' trade entry is effected.