| Free Trade Doctrine | |
|---|---|
| |
| Requires | Wealth of Nations |
| Building Needed | Modern University |
| Leads To | Classical Economics |
| Stream | Philosophy |
| Effects | |
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Free Trade Doctrine is a Technology in Empire: Total War.
Description[]
The concept that trade should be unimpeded by taxes, tariffs or any other restriction enacted by authority.
Free trade is an intensely pleasing prospect for traders. The basic principle is that the less those in power involve themselves in matters of trade the more it will be able to flourish and grow, thus creating wealth. Taxes, tariffs or other restrictions that can be laid upon trade will only prove counterproductive. This runs entirely counter to the medieval idea of guilds, that sought to limit trade and production of goods to those who had spent years learning their craft. Historically, David Ricardo (1772-1823) was one of the leading minds in the advancement of the free trade doctrine. He sought to prove it could be beneficial not only to be economically strong, by also to be economically weak. He developed this theory and it became known as the theory of "Comparative Advantage." The key point of the theory was the idea that a region or country should specialise in goods that are easily and economically made within their borders. By doing this, a sizable yet easy profit would result and grow from trade with others.
General Information[]
Research of Free Trade Doctrine requires Wealth of Nations to have been researched and a Modern University or an equivalent to be constructed or captured. In turn, researching Free Trade Doctrine unlocks research for Classical Economics.