European Union became the world's largest exporter of manufactured goods and services, the biggest export market for around 80 countries. 21st century Today, trade is merely a subset within a complex system of companies which try to maximize their profits by offering products and services to the market (which consists both of individuals and other companies) at the lowest production cost. A system of international trade has helped to develop the world economy but, in combination with bilateral or multilateral agreements to lower tariffs or to achieve free trade, has sometimes harmed third-world markets for local products. Free trade Free trade is a policy by which a government does not discriminate against imports or exports by applying tariffs or subsidies. This policy is also known as laissez-faire policy. This kind of policy does not necessarily imply because a country will then abandon all control and taxation of imports and exports. Free trade advanced further in the late 20th century and early 2000s: 1992 European Union lifted barriers to internal trade in goods and labour. January 1, 1994 the North American Free Trade Agreement (NAFTA) took effect. 1994 The GATT Marrakech Agreement specified formation of the WTO. January 1, 1995 World Trade Organization was created to facilitate free trade, by mandating mutual most favored nation trading status between all signatories. EC was transformed into the European Union, which accomplished the Economic and Monetary Union (EMU) in 2002, through introducing the Euro, and creating this way a real single market between 13 member states as of January 1, 2007. 2005, the Central American Free Trade Agreement was signed; It includes the United States and the Dominican Republic. Perspectives Protectionism Protectionism is the policy of restraining and discouraging trade between states and contrasts with the policy of free trade. This policy often takes the form of tariffs and restrictive quotas. Protectionist policies were particularly prevalent in the 1930s, between the Great Depression and the onset of World War II. Religion Islamic teachings encourage trading (and condemn usury or interest). Judeao-Christian teachings do not prohibit trade. They do prohibit fraud and dishonest measures. Historically they forbade charging interest on loans. Development of money The first instances of money were objects with intrinsic value. This is called commodity money and includes any commonly available commodity that has intrinsic value; historical examples include pigs, rare seashells, whale's teeth, and (often) cattle. In medieval Iraq, bread was