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This book provides a unique insight into the world of commodity trading companies, often depicted as the hidden companies of the global economy and showcases how they were instrumental in bringing about the economic integration of new commodities and far-flung regions into the first global economy in the late nineteenth and early twentieth century. The late nineteenth century witnessed an unprecedented phase of global economic integration. As organisers of global trade, trading companies specialising in commodities were instrumental in creating this first global economy. From soybeans to cultural artefacts, from seal hides to rubber, trading companies connected far-flung regions at or beyond the frontier of empires to a growing global market for these commodities. Satisfying the unsatiable appetite for commodities of industrializing economies in North America, Europe and East Asia, their nimble organisations and specialised trading skills allowed trading companies to harness imperial geopolitics, latch onto local networks and move across borders. This book brings together a collection of case studies of commodity trading companies across a range of commodities and regions between the 1870s and the 1930s. Through the lens of global value chains, the contributions showcase how these companies continuously adapted their businesses to a world that was at once economically more integrated but politically increasingly competitive in this age of high imperialism and national competition. The chapters in this book were originally published as a special issue of Business History.
There is a common belief that until recently Americans have preferred isolation to interest in remote areas such as Southeast Asia. This thesis can be tested by examining the history of American relations with a place on the opposite side of the globe from the United States. Such a land is Sumatra. It is one of the largest islands in the world. Its I66,789 square mile area exceeds that of the third largest American state, California, and is larger than Italy. Lying halfway around the world from the United States, its I050 mile length is almost divided by the equator, which runs across it for 285 miles. Sumatra's strategic importance is two-fold. Firstly, it is the first island stepping stone from the Asiatic mainland into the Australasian archipelago. This was demonstrated in I942 when the United States stationed planes on Sumatra in an attempt to stem the Japanese advance southward. Secondly, it lies athwart the shortest sea routes from Eastern Asia to Europe and the Eastern United States. Sumatra's southern tip forms one side of the Straits of Sunda which guards the access to the Java, China and Philippine Seas. At the island's northern tip is the entrance to the Straits of Malacca, the shortest sea lane be tween the Near and Far East. The opening of the Suez Canal in I869 shifted the shortest route between the Far East and the Western World from the Sunda to the Malacca Straits.