emerging market ecnomy Flashcards
1
Q
market economies
A
- -regions specialize in a crop and export it and import tother crops
- -govnt bureaucracies distributed staple crops like rice, wheat, millet
- -govnt closely watched militarily sensitive enterprises like the iron industry
2
Q
finance
A
- -trade grew so rapidly that they ran out of copper coins
- -chinese merchants started letters of credit AKA “flying cash”
3
Q
flying cash
A
allows merchants to deposit goods in one location and draw the equivalent in cash/merch elsewhere
4
Q
paper money
A
wealthy merchants pioneered paper money (printed notes from cash deposits that are redeemed in merchandise)
5
Q
con of paper money
A
in economic reverses and poor management, merchants cannot honor their notes and riots break out
6
Q
how did govnt respond to paper money riots
A
- -they took over printing paper money with serial numbers
- -nomad leaders start doing that too.
7
Q
con of govnt printing money
A
they printed currency representing more value than they had in cash reserves
8
Q
Huang Chao
A
a rebel general that massacred 120,00 foreigners when he came to guangzhou and subjected it to a reign of terror
