CH1- EVOLUTION OF INTERNATIONAL TRADE Flashcards
The direct trade/exchange of goods and services.
Bartering
What is the advantage of bartering?
It does not involve money and very simple.
Disadvantage of bartering
No standard measure of value
Examples of online bartering arrangements
- Swap markets
- Online Auctions
- Numerous websites
In what BC does bartering started?
6000 BC
Why is salt so valuable at the time of bartering?
Because it is the salary of Roman soldiers.
In what country do metal coins first appeared?
China during 1000 BC
What objects which became some of the first coins?
Circle
Where was the first mint (industrial facility to manufactures coins) established?
Lydia (Western Turkey)
The process of making a coin by stamping metal
Minting
He was credited with installing the world’s first bimetallic monetary system of pure gold and pure silver coins, the Croeseid around 550 BC.
KING CROESUS OF LYDIA
Who issued the first paper currency in Canada and issued IOUs(promissory notes) that traded as a currency.
European colonial governments in North America
Accepted Medium of exchange in Quebec.
Beaver pelt
The currency of the Kingdom of France
Livre
It refers to currency such as coin and paper money. Valid and sufficient for the payment of debts.
Legal Tender
The increase in prices, reducing the purchasing power of money.
Inflation
Money rendered for a product or service through a portable electronic device, such as a cellphone, smartphone, or a tablet device.
Mobile Payments
The technology that allows contact less payments using close-promixity radio frequency identification.
Near field communication (NFC)
Mobile Payments or pay-by sound uses an advanced, ultra-low power, wireless transmission technology.
Sound wave based (SWB)
It makes use of a magnetic signal to process paymenusing a secure tokenization system.
Magnetic Secure Transmission (MST)
It works thrigh complex encryption and tokenization to process specific transactions.
Mobile/Digital wallets
The trademark of a type of matrix barcode readable by smartphones used in ecommerce to process payments.
Quick response (QR Codes)
Also called premium SMS payments, which means paying for products or services via a text messages.
Short message (or messaging) service (SMS)
Similar to SMS payments where you enter your phone number on a payment page or in an app and the payment will then be added to your phone or prepaid SIM Card.
Direct Carrier Billing (DCB)
used to be the most common facility on smartphones through a more limited-capacity WAP browser or app.
Wireless application protocol (WAP) payments
It is most commonly referring to a button/link sent in an email, text messaging app, or over social media to process a transacon for a specified merchant.
Payment links/pay by link
The umbrella term for the new generation of cutting-edge, fully digital banking services classified as a type of financial technology (fintech) solution.
Neobank
Any type of digital unit that is used as a medium of exchange or a form of digitally stored value generated by agreement within the community of virtual currency users.
Cryptocurrency, virtual/digital currency
The real currency, coins and paper money (bills) issued and printed by the Central Bank of a country.
Flat currency/fiat money or cash
Currencies work through blockchain technology.
Cryptocurrencies
A special kind of database, a “distributed ledger” or a “global ledger” built on a data structure known as blocks.
Blockchain
The process of protecting information by using codes for security.
Cryptography
What country that has already developed Central bank backed crypto?
China
The cryptocoin market is decentralized. True or false?
True
Cryptocurrency exchange websites are centralized. True or false?
True
