Abstract

Although most people today believe that global integration such as China s predominance in global trade is a new phenomenon it is actually not a recent development Destined for China heightened profit opportunities resulted in an unprecedented surge in silver production in Mexico Silver demand grew along with China s population which consequently led to a fifty percent silver price premium in China Giraldez Flynn 1945 392 No one disputes the existence of a world market for silver The issue is how to model it Flynn in Tracy 1991 337 Therefore I will discuss how trade of silver between China and Mexico affected both countries economic development