1.
International trade
–
International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world, in most countries, such trade represents a significant share of gross domestic product. While international trade has existed throughout history, its economic, social, trading globally gives consumers and countries the opportunity to be exposed to new markets and products. Almost every kind of product can be found on the market, food, clothes, spare parts, oil, jewellery, wine, stocks, currencies. Services are also traded, tourism, banking, consulting and transportation, a product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports and exports are accounted for in a current account in the balance of payments. Industrialization, advanced technology, including transportation, globalization, multinational corporations, increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods, the main difference is that international trade is typically more costly than domestic trade. Another difference between domestic and international trade is that factors of such as capital and labor are typically more mobile within a country than across countries. Thus international trade is restricted to trade in goods and services. Trade in goods and services can serve as a substitute for trade in factors of production, instead of importing a factor of production, a country can import goods that make intensive use of that factor of production and thus embody it. An example is the import of goods by the United States from China. Instead of importing Chinese labor, the United States imports goods that were produced with Chinese labor, International trade is also a branch of economics, which, together with international finance, forms the larger branch called international economics. The history of international trade chronicles notable events that have affected the trade between various economies, there are several models which seek to explain the factors behind international trade, the welfare consequences of trade and the pattern of trade. </ref></ref>==Largest countries by total international trade== Source, International Trade Centre President George W. Bush observed World Trade Week on May 18,2001, mcKenzie, Lionel W. Specialization and Efficiency in World Production. A Ricardo-Sraffa Paradigm Comparing the Gains from Trade in Inputs and Finished Goods, the definitions and methodological concepts applied for the various statistical collections on international trade often differ in terms of definition and coverage. Metadata providing information on definitions and methods are published along with the data. Ptas. mcgill. ca Historical documents on international trade available on FRASER
International trade
International trade
–
Ancient
Silk Road trade routes across
Eurasia
International trade
–
The law of comparative advantage was first proposed by
David Ricardo.
International trade
–
Terminology
2.
Latin
–
Latin is a classical language belonging to the Italic branch of the Indo-European languages. The Latin alphabet is derived from the Etruscan and Greek alphabets, Latin was originally spoken in Latium, in the Italian Peninsula. Through the power of the Roman Republic, it became the dominant language, Vulgar Latin developed into the Romance languages, such as Italian, Portuguese, Spanish, French, and Romanian. Latin, Italian and French have contributed many words to the English language, Latin and Ancient Greek roots are used in theology, biology, and medicine. By the late Roman Republic, Old Latin had been standardised into Classical Latin, Vulgar Latin was the colloquial form spoken during the same time and attested in inscriptions and the works of comic playwrights like Plautus and Terence. Late Latin is the language from the 3rd century. Later, Early Modern Latin and Modern Latin evolved, Latin was used as the language of international communication, scholarship, and science until well into the 18th century, when it began to be supplanted by vernaculars. Ecclesiastical Latin remains the language of the Holy See and the Roman Rite of the Catholic Church. Today, many students, scholars and members of the Catholic clergy speak Latin fluently and it is taught in primary, secondary and postsecondary educational institutions around the world. The language has been passed down through various forms, some inscriptions have been published in an internationally agreed, monumental, multivolume series, the Corpus Inscriptionum Latinarum. Authors and publishers vary, but the format is about the same, volumes detailing inscriptions with a critical apparatus stating the provenance, the reading and interpretation of these inscriptions is the subject matter of the field of epigraphy. The works of several hundred ancient authors who wrote in Latin have survived in whole or in part and they are in part the subject matter of the field of classics. The Cat in the Hat, and a book of fairy tales, additional resources include phrasebooks and resources for rendering everyday phrases and concepts into Latin, such as Meissners Latin Phrasebook. The Latin influence in English has been significant at all stages of its insular development. From the 16th to the 18th centuries, English writers cobbled together huge numbers of new words from Latin and Greek words, dubbed inkhorn terms, as if they had spilled from a pot of ink. Many of these words were used once by the author and then forgotten, many of the most common polysyllabic English words are of Latin origin through the medium of Old French. Romance words make respectively 59%, 20% and 14% of English, German and those figures can rise dramatically when only non-compound and non-derived words are included. Accordingly, Romance words make roughly 35% of the vocabulary of Dutch, Roman engineering had the same effect on scientific terminology as a whole
Latin
–
Latin inscription, in the
Colosseum
Latin
–
Julius Caesar 's
Commentarii de Bello Gallico is one of the most famous classical Latin texts of the Golden Age of Latin. The unvarnished, journalistic style of this
patrician general has long been taught as a model of the urbane Latin officially spoken and written in the floruit of the
Roman republic.
Latin
–
A multi-volume Latin dictionary in the
University Library of Graz
Latin
–
Latin and Ancient Greek Language - Culture - Linguistics at
Duke University in 2014.
3.
Caduceus
–
The caduceus is the staff carried by Hermes Trismegistus in Greco-Egyptian mythology and Hermes in Greek mythology. The same staff was also borne by heralds in general, for example by Iris and it is a short staff entwined by two serpents, sometimes surmounted by wings. C. to 3000 B. C. As a symbolic object, it represents Hermes, and by extension trades, occupations, in later Antiquity, the caduceus provided the basis for the astrological symbol representing the planet Mercury. Thus, through its use in astrology and alchemy, it has come to denote the elemental metal of the same name and it is said the wand would wake the sleeping and send the awake to sleep. If applied to the dying, their death was gentle, if applied to the dead and this association is ancient, and consistent from the Classical period to modern times. The caduceus is also used as a symbol representing printing, again by extension of the attributes of Mercury, the term kerukeion denoted any heralds staff, not necessarily associated with Hermes in particular. In his study of the cult of Hermes, Lewis Richard Farnell assumed that the two snakes had simply developed out of ornaments of the crook used by heralds as their staff. This view has been rejected by later authors pointing to parallel iconography in the Ancient Near East and it has been argued that the staff or wand entwined by two snakes was itself representing a god in the pre-anthropomorphic era. Like the herm or priapus, it would thus be a predecessor of the anthropomorphic Hermes of the classical era, william Hayes Ward discovered that symbols similar to the classical caduceus sometimes appeared on Mesopotamian cylinder seals. He suggested the symbol originated some time between 3000 and 4000 BCE, and that it might have been the source of the Greek caduceus. From this perspective, the caduceus was originally representative of Hermes himself, in his form as the Underworld god Ningishzida. The caduceus is mentioned in passing by Walter Burkert as really the image of copulating snakes taken over from Ancient Near Eastern tradition, in Egyptian iconography, the Djed pillar is depicted as containing a snake in a frieze of the Dendera Temple complex. The caduceus also appears as a symbol of the coins of the Maurya Empire in India. Numismatic research suggest that this symbol was the symbol of the Buddhist king Ashoka, the Homeric hymn to Hermes relates how Hermes offered his lyre fashioned from a tortoise shell as compensation for the cattle he stole from his half brother Apollo. Apollo in return gave Hermes the caduceus as a gesture of friendship, the association with the serpent thus connects Hermes to Apollo, as later the serpent was associated with Asclepius, the son of Apollo. The association of Apollo with the serpent is a continuation of the older Indo-European dragon-slayer motif, one Greek myth of origin of the caduceus is part of the story of Tiresias, who found two snakes copulating and killed the female with his staff. Tiresias was immediately turned into a woman, and so remained until he was able to repeat the act with the male snake seven years later and this staff later came into the possession of the god Hermes, along with its transformative powers. Another myth suggests that Hermes saw two serpents entwined in mortal combat, separating them with his wand he brought about peace between them, and as a result the wand with two serpents came to be seen as a sign of peace
Caduceus
–
Hermes Ingenui carrying a winged kerykeion upright in his left hand, Roman copy reflecting an unknown Greek original of the 5th century BCE. (
Museo Pio-Clementino,
Rome).
Caduceus
–
Modern depiction of the caduceus as the symbol of commerce
Caduceus
–
Hermes hastens bearing his kerukeion, on an
Attic lekythos, ca 480–470 BC, attributed to the
Tithonos Painter
Caduceus
–
Iris with the caduceus in detail from an Attic red-figure pelike, middle of 5th century BC – Agrigento, Sicilia
4.
Mercury (mythology)
–
Mercury is a major Roman god, being one of the Dii Consentes within the ancient Roman pantheon. He is the god of financial gain, commerce, eloquence, messages/communication, travelers, boundaries, luck, trickery and thieves. He was considered the son of Maia and Jupiter in Roman mythology, in his earliest forms, he appears to have been related to the Etruscan deity Turms, both gods share characteristics with the Greek god Hermes. He is often depicted holding the caduceus in his left hand, similar to his Greek equivalent he was awarded the caduceus by Apollo who handed him a magic wand, which later turned into the caduceus. Mercury did not appear among the di indigetes of early Roman religion. Rather, he subsumed the earlier Dei Lucrii as Roman religion was syncretized with Greek religion during the time of the Roman Republic, starting around the 4th century BC. He was often accompanied by a cockerel, herald of the new day, a ram or goat, symbolizing fertility, like Hermes, he was also a god of messages, eloquence and of trade, particularly of the grain trade. Mercury was also considered a god of abundance and commercial success, particularly in Gaul and he was also, like Hermes, the Romans psychopomp, leading newly deceased souls to the afterlife. Additionally, Ovid wrote that Mercury carried Morpheus dreams from the valley of Somnus to sleeping humans, archeological evidence from Pompeii suggests that Mercury was among the most popular of Roman gods. The god of commerce was depicted on two bronze coins of the Roman Republic, the Sextans and the Semuncia. This is probably because in the Roman syncretism, Mercury was equated with the Celtic god Lugus, Romans associated Mercury with the Germanic god Wotan, by interpretatio Romana, 1st-century Roman writer Tacitus identifies him as the chief god of the Germanic peoples. The Romans also made use of small statues of Mercury. Mercurius Arvernus, a syncretism of the Celtic Arvernus with Mercury, Mercurius Cimbrianus, a syncretism of Mercury with a god of the Cimbri sometimes thought to represent Odin. Mercurius Cissonius, a combination of Mercury with the Celtic god Cissonius, Mercurius Esibraeus, a syncretism of the Iberian deity Esibraeus with the Roman deity Mercury. Esibraeus is mentioned only in an inscription found at Medelim, Portugal, and is possibly the deity as Banda Isibraiegus. Mercurius Gebrinius, a syncretism of Mercury with the Celtic or Germanic Gebrinius, known from an inscription on an altar in Bonn, Mercurius Moccus, from a Celtic god, Moccus, who was equated with Mercury, known from evidence at Langres, France. The name Moccus implies that this deity was connected to boar-hunting, Mercurius Visucius, a syncretism of the Celtic god Visucius with the Roman god Mercury, attested in an inscription from Stuttgart, Germany. Visucius was worshiped primarily in the area of the empire in Gaul
Mercury (mythology)
–
Early Roman bronze statuette of Mercury, found near Huis, France (
British Museum)
Mercury (mythology)
–
Marcus Aurelius (
head covered) sacrificing at the Temple of Jupiter
Mercury (mythology)
–
Hendrik Goltzius: Mercury, with his symbols
Mercury (mythology)
–
Mercury portrait on a bronze
Semuncia (215–211 BC)
5.
Financial transaction
–
A financial transaction is an agreement, communication, or movement carried out between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals, the buyer and seller are separate entities or objects, often involving the exchange of items of value, such as information, goods, services, and money. It is still a transaction if the goods are exchanged at one time, and this is known as a two-part transaction, part one is giving the money, part two is receiving the goods. In ancient times non-financial transactions were conducted through systems of credit, in which goods. Credit has certain disadvantages, including the requirement that traders or their intermediaries trust one another, debts must eventually be settled either with goods or by payment of money, a substance of agreed value such as gold and silver. Systems of credit are evident throughout recorded history and from archeology, by contrast little evidence has been found of widespread use of pure barter, where traders meet face to face and transactions are completed in a single swap. In 1997,1.3 billion US dollars were exchanged per day on the exchange market. The world financial transactions have jumped from 1.1 quadrillion US dollars in 2002 to 2.2 quadrillion US dollars in 2008 and this is the most common type of financial transaction. An item or goods are exchanged for money and this transaction results in a decrease in the finances of the purchaser and an increase in the benefits of the sellers. The smaller delayed repayments usually add up to more than the first large amount, the difference in payments is called interest. Here, money is given for not any specific reason and this is a combined loan and purchase in which a lender gives a large amount of money to a borrower for the specific purpose of purchasing a very expensive item. As part of the transaction, the borrower usually agrees to give the item to the if the loan is not paid back on time. This guarantee of repayment is known as collateral, a bank is a business that is based almost entirely on financial transactions. In addition to acting as a lender for loans and mortgages, the lender is known as a customer and gives unspecified amounts of money to the bank for unspecified amounts of time. The bank agrees to repay any amount in the account at any time, in addition, the bank guarantees that the money will not be stolen while it is in the account and will reimburse the customer if it is. In return, the bank gets to use the money for financial transactions as long as they hold it. This is a combination of a purchase and a loan. The seller gives the buyer the good or item as normal, in this way, the buyer is paying with a loan from the credit card company, usually a bank
Financial transaction
–
Financial transaction involving
money and agricultural
goods at a
farmers' market
6.
Prehistoric
–
Prehistory means literally before history, from the Latin word for before, præ, and Greek ιστορία. Neighbouring civilisations were the first to follow, most other civilisations reached the end of prehistory during the Iron Age. The period when a culture is written about by others, but has not developed its own writing is known as the protohistory of the culture. By definition, there are no records from human prehistory. Clear techniques for dating were not well-developed until the 19th century and this article is concerned with human prehistory as defined here above. There are separate articles for the history of the Earth. However, for the race as a whole, prehistory ends when recorded history begins with the accounts of the ancient world around the 4th millennium BC. For example, in Egypt it is accepted that prehistory ended around 3200 BC, whereas in New Guinea the end of the prehistoric era is set much more recently. The three-age system is the periodization of prehistory into three consecutive time periods, named for their respective predominant tool-making technologies, Stone Age Bronze Age Iron Age. The notion of prehistory began to surface during the Enlightenment in the work of antiquarians who used the word primitive to describe societies that existed before written records, the first use of the word prehistory in English, however, occurred in the Foreign Quarterly Review in 1836. The main source for prehistory is archaeology, but some scholars are beginning to more use of evidence from the natural and social sciences. This view has been articulated by advocates of deep history, human population geneticists and historical linguists are also providing valuable insight for these questions. Human prehistory differs from history not only in terms of its chronology, restricted to material processes, remains and artifacts rather than written records, prehistory is anonymous. Because of this, reference terms that use, such as Neanderthal or Iron Age are modern labels with definitions sometimes subject to debate. Palaeolithic means Old Stone Age, and begins with the first use of stone tools, the Paleolithic is the earliest period of the Stone Age. The early part of the Palaeolithic is called the Lower Palaeolithic, evidence of control of fire by early humans during the Lower Palaeolithic Era is uncertain and has at best limited scholarly support. The most widely accepted claim is that H. erectus or H. ergaster made fires between 790,000 and 690,000 BP in a site at Bnot Yaakov Bridge, Israel. The use of fire enabled early humans to cook food, provide warmth, Early Homo sapiens originated some 200,000 years ago, ushering in the Middle Palaeolithic
Prehistoric
–
Massive stone pillars at
Göbekli Tepe, in southeast Turkey, erected for ritual use by early
Neolithic people 11,000 years ago.
Prehistoric
–
A prehistoric man and boy.
Prehistoric
–
Dugout canoe
Prehistoric
–
Entrance to the Ġgantija phase temple complex of
Hagar Qim,
Malta, 3900 BC.
7.
Trade
–
Trade, or commerce, involves the transfer of goods or services from one person or entity to another, often in exchange for money. A network that allows trade is called a market, the original form of trade, barter, saw the direct exchange of goods and services for other goods and services. Barter is trading things without the use of money, later one side of the barter started to involve precious metals, which gained symbolic as well as practical importance. Modern traders generally negotiate through a medium of exchange, such as money, as a result, buying can be separated from selling, or earning. The invention of money greatly simplified and promoted trade, Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade. Trade exists due to the specialization and division of labor, in which most people concentrate on an aspect of production. As such, trade at prices between locations can benefit both locations. Trade originated with human communication in prehistoric times, trading was the main facility of prehistoric people, who bartered goods and services from each other before the innovation of modern-day currency. Peter Watson dates the history of commerce from circa 150,000 years ago. In the Mediterranean region the earliest contact between cultures were of members of the species Homo sapiens principally using the Danube river, at a time beginning 35–30,000 BCE, Trade is believed to have taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the stone age, Trade in obsidian is believed to have taken place in Guinea from 17,000 BCE. The earliest use of obsidian in the Near East dates to the Lower, Trade in the stone age was investigated by Robert Carr Bosanquet in excavations of 1901. Trade is believed to have first begun in south west Asia, obsidian was traded at distances of 900 kilometres within the Mediterranean region. Trade in the Mediterranean during the Neolithic of Europe was greatest in this material, networks were in existence at around 12,000 BCE Anatolia was the source primarily for trade with the Levant, Iran and Egypt according to Zarins study of 1990. Melos and Lipari sources produced among the most widespread trading in the Mediterranean region as known to archaeology, the Sari-i-Sang mine in the mountains of Afghanistan was the largest source for trade of Lapis Lazuli. The material was most largely traded during the Kassite period of Babylonia beginning 1595 BCE, ebla was a prominent trading centre during the third millennia, with a network reaching into Anatolia and north Mesopotamia. Materials used for creating jewelry were traded with Egypt since 3000 BCE, long-range trade routes first appeared in the 3rd millennium BCE, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, traveling across the Mediterranean Sea, for this purpose they established trade colonies the Greeks called emporia
Trade
–
A
San Juan de Dios Market in
Guadalajara, Jalisco.
Trade
–
A trader in Germany, 16th century
Trade
–
The Liberty to Trade as Buttressed by National Law (1909) by
George Howard Earle, Jr.
Trade
–
A map of the
Silk Road trade route between Europe and Asia.
8.
Barter
–
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is distinguishable from gift economies in many ways, one of them is that the exchange is immediate. It is usually bilateral, but may be multilateral and, in most developed countries, usually only exists parallel to monetary systems to a very limited extent. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, examples include the Owenite socialists, the Cincinnati Time store, and more recently Ithaca HOURS and the LETS system. Adam Smith, the father of economics, sought to demonstrate that markets pre-existed the state. He argued that money was not the creation of governments, markets emerged, in his view, out of the division of labour, by which individuals began to specialize in specific crafts and hence had to depend on others for subsistence goods. These goods were first exchanged by barter, specialization depended on trade, but was hindered by the double coincidence of wants which barter requires, i. e. for the exchange to occur, each participant must want what the other has. To complete this hypothetical history, craftsmen would stockpile one particular good, be it salt or metal and this is the origin of money according to Smith. Money, as a universally desired medium of exchange, allows each half of the transaction to be separated, Barter is characterized in Adam Smiths The Wealth of Nations by a disparaging vocabulary, higgling, haggling, swapping, dickering. It has also characterized as negative reciprocity, or selfish profiteering. Anthropologists have argued, in contrast, that something resembling barter does occur in stateless societies it is almost always between strangers. Barter occurred between strangers, not fellow villagers, and hence cannot be used to explain the origin of money without the state. Since most people engaged in trade knew each other, exchange was fostered through the extension of credit, everyday exchange relations in such societies are characterized by generalized reciprocity, or a non-calculative familial communism where each takes according to their needs, and gives as they have. Barter is an option to those who cannot afford to store their small supply of wealth in money, the limitations of barter are often explained in terms of its inefficiencies in facilitating exchange in comparison to money. It is said that barter is inefficient because, There needs to be a coincidence of wants For barter to occur between two parties, both parties need to have what the other wants. Difficulty in storing wealth If a society relies exclusively on perishable goods, however, some barter economies rely on durable goods like pigs or cattle for this purpose. Other anthropologists have questioned whether barter is typically between total strangers, a form of known as silent trade. Silent trade, also called silent barter, dumb barter, or depot trade, is a method by which traders who cannot speak each language can trade without talking
Barter
–
An 1874 newspaper illustration from
Harper's Weekly, showing a man engaging in barter: offering chickens in exchange for his yearly newspaper subscription.
Barter
–
Scandinavian and Russian traders bartering their wares.
Olaus Magnus, 1555
Barter
–
White traders bartering with the Indians c. 1820
Barter
–
A 19th-century example of barter: A sample labor for labor note for the
Cincinnati Time Store. Scanned from Equitable Commerce by
Josiah Warren (1846)
9.
History of international trade
–
The history of international trade chronicles notable events that have affected the trade between various countries. In the 21st century, China, the European Union and the United States are the three largest trading markets in the world, records from the 19th century BCE attest to the existence of an Assyrian merchant colony at Kanesh in Cappadocia. The domestication of camel allows Arabian nomads to control long distance trade in spices, the Egyptians trade in the Red sea, importing spices from the Land of Punt and from Arabia. Indian goods are brought in Arabian vessels to Aden, the ships of Tarshish, a Tyrian fleet equipped at Ezion Geber, make several trading voyages to the East bringing back gold, silver, ivory and precious stones. Tiglath-Pileser III attacks Gaza in order to trade along the Incense Route. The Greek Ptolemaic dynasty exploits trading opportunities with India prior to the Roman involvement, the cargo from the India and Egypt trade is shipped to Aden. With the establishment of Roman Egypt, the Romans initiate trade with India, the goods from the East African trade are landed at one of the three main Roman ports, Arsinoe, Berenice or Myos Hormos. Myos Hormos and Berencie appear to have been important ancient trading ports, gerrha controls the Incense trade routes across Arabia to the Mediterranean and exercises control over the trading of aromatics to Babylon in the 1st century BC. Additionally, it served as a port of entry for goods shipped from India to the East, due to its prominent position in the incense trade, Yemen attracts settlers from the fertile crescent. Pre-Islamic Meccans use the old Incense Route to benefit from the heavy Roman demand for luxury goods, in Java and Borneo, the introduction of Indian culture creates a demand for aromatics. These trading outposts later serve the Chinese and Arab markets, following the demise of the incense trade Yemen takes to the export of coffee via the Red Sea port of al-Mocha. The Abbasids use Alexandria, Damietta, Aden and Siraf as entry ports to India, at the eastern terminus of the Silk Road, the Tang Dynasty Chinese capital at Changan becomes a major metropolitan center for foreign trade, travel, and residence. This role would be assumed by Kaifeng and Hangzhou during the Song Dynasty, guangzhou was Chinas greatest international seaport during the Tang Dynasty, but its importance was eclipsed by the international seaport of Quanzhou during the Song Dynasty. Merchants arriving from India in the city of Aden pay tribute in form of musk, camphor, ambergris and sandalwood to Ibn Ziyad. Indian exports of spices find mention in the works of Ibn Khurdadhbeh, al-Ghafiqi, Ishak bin Imaran, the Hanseatic League secures trading privileges and market rights in England for goods from the Leagues trading cities in 1157. Due to the Turkish hold on the Levant during the half of the 15th century the traditional Spice Route shifts from the Persian Gulf to the Red Sea. In 1492 a Spanish expedition commanded by Christopher Columbus arrive in America, Portuguese diplomat Pero da Covilha undertakes a mission to explore the trade routes of the Near East and the adjoining regions of Asia and Africa. The exploration commenced from Santarém to Barcelona, Naples, Alexandria, Cairo, Portuguese explorer and adventurer Vasco da Gama is credited with establishing another sea route from Europe to India
History of international trade
History of international trade
–
The desert Cities in the Negev were linked to the
Mediterranean end of the ancient
Incense Route.
History of international trade
–
The economy of the
Kingdom of Qataban (light blue) was based on the cultivation and trade of spices and aromatics including frankincense and myrrh. These were exported to the Mediterranean, India and
Abyssinia where they were greatly prized by many cultures, using camels on routes through Arabia, and to India by sea.
History of international trade
–
Monopolistic activity by the company triggered the
Boston Tea Party.
10.
Currency
–
A currency in the most specific use of the word refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money in common use, under this definition, US dollars, British pounds, Australian dollars, and European euros are examples of currency. These various currencies are recognized stores of value and are traded between nations in exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance, other definitions of the term currency are discussed in their respective synonymous articles banknote, coin, and money. The latter definition, pertaining to the systems of nations, is the topic of this article. Currencies can be classified into two systems, fiat money and commodity money, depending on what guarantees the value. Some currencies are legal tender in certain jurisdictions, which means they cannot be refused as payment for debt. Others are simply traded for their economic value, digital currency has arisen with the popularity of computers and the Internet. Currency evolved from two basic innovations, both of which had occurred by 2000 BC, originally money was a form of receipt, representing grain stored in temple granaries in Sumer in ancient Mesopotamia, then Ancient Egypt. In this first stage of currency, metals were used as symbols to represent value stored in the form of commodities and this formed the basis of trade in the Fertile Crescent for over 1500 years. Trade could only reach as far as the credibility of that military and it is not known what was used as a currency for these exchanges, but it is thought that ox-hide shaped ingots of copper, produced in Cyprus, may have functioned as a currency. It is thought that the increase in piracy and raiding associated with the Bronze Age collapse, possibly produced by the Peoples of the Sea, brought the trading system of oxhide ingots to an end. In Africa, many forms of value store have been used, including beads, ingots, ivory, various forms of weapons, livestock, the manilla currency, the manilla rings of West Africa were one of the currencies used from the 15th century onwards to sell slaves. African currency is still notable for its variety, and in many various forms of barter still apply. These factors led to the metal itself being the store of value, first silver, now we have copper coins and other non-precious metals as coins. Metals were mined, weighed, and stamped into coins and this was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they created a new unit of account. Most major economies using coinage had several tiers of coins, using a mix of copper, silver, gold coins were used for large purchases, payment of the military and backing of state activities, they were more often used as measures of account than physical coins
Currency
–
Cowry shells being used as money by an Arab trader.
Currency
–
Song dynasty Jiaozi, the world's earliest paper money.
11.
Money
–
The main functions of money are distinguished as, a medium of exchange, a unit of account, a store of value, and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions can be considered as money, Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without use value as a physical commodity. It derives its value by being declared by a government to be legal tender, the money supply of a country consists of currency and, depending on the particular definition used, one or more types of bank money. Bank money, which consists only of records, forms by far the largest part of money in developed countries. The word money is believed to originate from a temple of Juno, in the ancient world Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located, the name Juno may derive from the Etruscan goddess Uni and Moneta either from the Latin word monere or the Greek word moneres. In the Western world, a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning in kind. The use of methods may date back to at least 100,000 years ago. Instead, non-monetary societies operated largely along the principles of gift economy, when barter did in fact occur, it was usually between either complete strangers or potential enemies. Many cultures around the world eventually developed the use of commodity money, the Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley. The first usage of the came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – often, according to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins. It is thought by scholars that these first stamped coins were minted around 650–600 BC. The system of commodity money eventually evolved into a system of representative money and this occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. Eventually, these became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty and these banknotes, known as jiaozi, evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money, and were used alongside coins, in the 13th century, paper money became known in Europe through the accounts of travelers, such as Marco Polo and William of Rubruck
Money
–
A 640 BC one-third
stater electrum coin from
Lydia
Money
–
A sample picture of a fictional ATM card. The largest part of the world's money exists only as accounting numbers which are transferred between financial computers. Various plastic cards and other devices give individual consumers the power to electronically transfer such money to and from their bank accounts, without the use of currency.
Money
–
Song Dynasty Jiaozi, the world's earliest paper money
Money
–
Printing paper money at a printing press in Perm
12.
Numismatist
–
Numismatics is the study or collection of currency, including coins, tokens, paper money, and related objects. Early money used by people is referred to as Odd and Curious, the Kyrgyz people used horses as the principal currency unit and gave small change in lambskins, the lambskins may be suitable for numismatic study, but the horse is not. Many objects have been used for centuries, such as shells, precious metals, cocoa beans, large stones. Today, most transactions take place by a form of payment with either inherent, standardized, Numismatic value may be used to refer to the value in excess of the monetary value conferred by law, which is known as the collector value. Economic and historical studies of use and development are an integral part of the numismatists study of moneys physical embodiment. First attested in English 1829, the word comes from the adjective numismatic. It was borrowed in 1792 from French numismatiques, itself a derivation from Late Latin numismatis, genitive of numisma, throughout its history, money itself has been made to be a scarce good, although it does not have to be. Many materials have been used to form money, from naturally scarce precious metals and cowry shells through cigarettes to entirely artificial money, called fiat money, many complementary currencies use time as a unit of measure, using mutual credit accounting that keeps the balance of money intact. Modern money is essentially a token – an abstraction, paper currency is perhaps the most common type of physical money today. However, goods such as gold or silver retain many of the properties of money, such as volatility. However, these goods are not controlled by one single authority, coin collecting may have existed in ancient times. Caesar Augustus gave coins of every device, including old pieces of the kings, petrarch, who wrote in a letter that he was often approached by vinediggers with old coins asking him to buy or to identify the ruler, is credited as the first Renaissance collector. Petrarch presented a collection of Roman coins to Emperor Charles IV in 1355, the first book on coins was De Asse et Partibus by Guillaume Budé. During the early Renaissance ancient coins were collected by European royalty and nobility, Numismatics is called the Hobby of Kings, due to its most esteemed founders. Professional societies organized in the 19th century, the Royal Numismatic Society was founded in 1836 and immediately began publishing the journal that became the Numismatic Chronicle. The American Numismatic Society was founded in 1858 and began publishing the American Journal of Numismatics in 1866, in 1931 the British Academy launched the Sylloge Nummorum Graecorum publishing collections of Ancient Greek coinage. The first volume of Sylloge of Coins of the British Isles was published in 1958, after World War II in Germany a project, Fundmünzen der Antike was launched, to register every coin found within Germany. This idea found successors in many countries, in the United States, the US mint established a coin Cabinet in 1838 when chief coiner Adam Eckfeldt donated his personal collection
Numismatist
–
Two 20 kr
gold coins from the
Scandinavian Monetary Union.
Numismatist
–
Numismatics
13.
Coin
–
A coin is a small, flat, round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in quantities at a mint in order to facilitate trade. They are most often issued by a government, Coins are usually metal or alloy, or sometimes made of synthetic materials. Coins made of metal are stored in large quantities as bullion coins. Other coins are used as money in transactions, circulating alongside banknotes. Usually the highest value coin in circulation is less than the lowest-value note. In the last hundred years, the value of circulation coins has occasionally been lower than the value of the metal they contain. Exceptions to the rule of face value being higher than content value also occur for some bullion coins made of copper, silver, or gold, while the Eagle, Maple Leaf, and Sovereign coins have nominal face values, the Krugerrand does not. The first coins were developed independently in Iron Age Anatolia and Archaic Greece, India, Coins spread rapidly in the 6th and 5th centuries BCE, throughout Greece and Persia, and further to the Balkans. Standardized Roman currency was used throughout the Roman Empire, important Roman gold and silver coins were continued into the Middle Ages. Fiat money first arose in medieval China, with the paper money. Early paper money was introduced in Europe in the later Middle Ages, the penny was minted as a silver coin until the 17th century. The first circulating United States coins were cents, produced in 1793, Coins were an evolution of currency systems of the Late Bronze Age, where standard-sized ingots, and tokens such as knife money, were used to store and transfer value. In the late Chinese Bronze Age, standardized cast tokens were made and these were replicas in bronze of earlier Chinese currency, cowrie shells, so they were named Bronze Shell. According to Aristotle and Pollux, the first issuer of coins was Hermodike of Kyme The earliest coins are associated with Iron Age Anatolia. Early electrum coins were not standardized in weight, and in their earliest stage may have been ritual objects, such as badges or medals, issued by priests. The first Lydian coins were made of electrum, a naturally occurring alloy of silver, most of the early Lydian coins include no writing, only an image of a symbolic animal. Anatolian Artemis was the Πὀτνια Θηρῶν, whose symbol was the stag, a small percentage of early Lydian/Greek coins have a legend
Coin
–
A
Swiss ten-cent coin from 1879, similar to the oldest coins still in official use today
Coin
–
An original Celtic
Biatec coin and its replica on a former Slovak 5-
koruna coin (1993-2008)
Coin
–
An
oxhide ingot from
Crete.
Late Bronze Age metal ingots were given standard shapes, such as the shape of an "ox-hide", suggesting that they represented standardized values.
Coin
–
1/3rd
stater from
Lydia, 6th century BCE
14.
Barter (economics)
–
Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is distinguishable from gift economies in many ways, one of them is that the exchange is immediate. It is usually bilateral, but may be multilateral and, in most developed countries, usually only exists parallel to monetary systems to a very limited extent. Barter, as a replacement for money as the method of exchange, is used in times of monetary crisis, examples include the Owenite socialists, the Cincinnati Time store, and more recently Ithaca HOURS and the LETS system. Adam Smith, the father of economics, sought to demonstrate that markets pre-existed the state. He argued that money was not the creation of governments, markets emerged, in his view, out of the division of labour, by which individuals began to specialize in specific crafts and hence had to depend on others for subsistence goods. These goods were first exchanged by barter, specialization depended on trade, but was hindered by the double coincidence of wants which barter requires, i. e. for the exchange to occur, each participant must want what the other has. To complete this hypothetical history, craftsmen would stockpile one particular good, be it salt or metal and this is the origin of money according to Smith. Money, as a universally desired medium of exchange, allows each half of the transaction to be separated, Barter is characterized in Adam Smiths The Wealth of Nations by a disparaging vocabulary, higgling, haggling, swapping, dickering. It has also characterized as negative reciprocity, or selfish profiteering. Anthropologists have argued, in contrast, that something resembling barter does occur in stateless societies it is almost always between strangers. Barter occurred between strangers, not fellow villagers, and hence cannot be used to explain the origin of money without the state. Since most people engaged in trade knew each other, exchange was fostered through the extension of credit, everyday exchange relations in such societies are characterized by generalized reciprocity, or a non-calculative familial communism where each takes according to their needs, and gives as they have. Barter is an option to those who cannot afford to store their small supply of wealth in money, the limitations of barter are often explained in terms of its inefficiencies in facilitating exchange in comparison to money. It is said that barter is inefficient because, There needs to be a coincidence of wants For barter to occur between two parties, both parties need to have what the other wants. Difficulty in storing wealth If a society relies exclusively on perishable goods, however, some barter economies rely on durable goods like pigs or cattle for this purpose. Other anthropologists have questioned whether barter is typically between total strangers, a form of known as silent trade. Silent trade, also called silent barter, dumb barter, or depot trade, is a method by which traders who cannot speak each language can trade without talking
Barter (economics)
–
An 1874 newspaper illustration from
Harper's Weekly, showing a man engaging in barter: offering chickens in exchange for his yearly newspaper subscription.
Barter (economics)
–
Scandinavian and Russian traders bartering their wares.
Olaus Magnus, 1555
Barter (economics)
–
White traders bartering with the Indians c. 1820
Barter (economics)
–
A 19th-century example of barter: A sample labor for labor note for the
Cincinnati Time Store. Scanned from Equitable Commerce by
Josiah Warren (1846)
15.
Double coincidence of wants
–
The problem is caused by the improbability of the wants, needs, or events that cause or motivate a transaction occurring at the same time and the same place. One example is the bar musician who is paid with liquor or food, items which his landlord will not accept as rent payment, when the musician would rather have a months shelter. If, instead, the landlord were to throw a party and desire music for it, hiring the musician to play it by offering the months rent in exchange. In-kind transactions have several limitations, most notably timing constraints, if you wish to trade fruit for wheat, you can only do this when the fruit and wheat are both available at the same time and place. That may be a brief time, or it may be never. With a medium of exchange you can sell your fruit when it is ripe and take the medium of exchange, then use that to buy wheat when it is harvested, without the need for a coincidence of wants. Besides barter, other kinds of transactions also suffer from the coincidence of wants problem in the absence of a medium of exchange. All of these require an improbable coincidence of wants and events. William Stanley Jevons and Ross M. Starr use the double coincidence of wants for the same concept. W. S. Jevons, Money and the Mechanism of Exchange, Chapter 1, carl Menger, On the Origin of Money Nobuhiro Kiyotaki and Randall Wright, On money as a medium of exchange, Journal of Political Economy 97, pp. 927–54
Double coincidence of wants
–
World GDP (PPP) per capita by country (2014)
16.
Capital (economics)
–
In economics, capital goods, real capital, or capital assets are already-produced, durable goods or any non-financial asset that is used in production of goods or services. Adam Smith defines capital as That part of a stock which he expects to afford him revenue. The term stock is derived from the Old English word for stump or tree trunk and it has been used to refer to all the moveable property of a farm since at least 1510. In Middle Ages France contracted leases and loans bearing interest specified payment, how a capital good is maintained or returned to its pre-production state varies with the type of capital involved. In most cases capital is replaced after a period as newer forms of capital make continued use of current capital non profitable. It is also possible that advances make a form of capital practical again. Capital is distinct from land in that capital can be increased by human labor, at any given moment in time, total physical capital may be referred to as the capital stock. Capital is an input in the production function, homes and personal autos are not usually defined as capital but as durable goods because they are not used in a production of saleable goods and services. In Marxist political economy, capital is used to buy something only in order to sell it again to realize a financial profit. In more contemporary schools of economics, this form of capital is referred to as financial capital and is distinguished from capital goods. Classical and neoclassical economics regard capital as one of the factors of production, all other inputs to production are called intangibles in classical economics. This includes organization, entrepreneurship, knowledge, goodwill, or management and this is what makes it a factor of production, The good is not used up immediately in the process of production unlike raw materials or intermediate goods. The good can be produced or increased and these distinctions of convenience have carried over to contemporary economic theory. There was the clarification that capital is a stock. As such, its value can be estimated at a point in time, by contrast, investment, as production to be added to the capital stock, is described as taking place over time, thus a flow. Since at least the 1960s economists have increasingly focused on forms of capital. These terms lead to questions and controversies discussed in those articles. It is in the form of assets, traded in financial markets
Capital (economics)
–
Is Capital Income? (1921) by
George Howard Earle, Jr.
17.
Corporation
–
A corporation is a company or group of people authorized to act as a single entity and recognized as such in law. Early incorporated entities were established by charter, most jurisdictions now allow the creation of new corporations through registration. Corporations chartered in regions where they are distinguished by whether they are allowed to be for profit or not are referred to as for profit and not-for-profit corporations, there is some overlap between stock/non-stock and for profit/not-for-profit in that not-for-profit corporations are always non-stock as well. A for profit corporation is almost always a stock corporation, registered corporations have legal personality and are owned by shareholders whose liability is limited to their investment. Shareholders do not typically actively manage a corporation, shareholders instead elect or appoint a board of directors to control the corporation in a fiduciary capacity, in American English, the word corporation is most often used to describe large business corporations. In British English and in the Commonwealth countries, the company is more widely used to describe the same sort of entity while the word corporation encompasses all incorporated entities. In American English, the company can include entities such as partnerships that would not be referred to as companies in British English as they are not a separate legal entity. Despite not being human beings, corporations, as far as the law is concerned, are legal persons. Corporations can exercise human rights against real individuals and the state, Corporations can be dissolved either by statutory operation, order of court, or voluntary action on the part of shareholders. Corporations can even be convicted of offenses, such as fraud. However, corporations are not considered living entities in the way humans are. While not a corporation, this new type of entity became very attractive as an alternative for corporations not needing to issue stock, in Germany, the organization was referred to as Gesellschaft mit beschränkter Haftung or GmbH. In the last quarter of the 20th Century this new form of organization became available in the United States and other countries. Since the GmbH and LLC forms of organization are technically not corporations they will not be discussed in this article, the word corporation derives from corpus, the Latin word for body, or a body of people. By the time of Justinian, Roman law recognized a range of corporate entities under the names universitas and these included the state itself, municipalities, and such private associations as sponsors of a religious cult, burial clubs, political groups, and guilds of craftsmen or traders. Such bodies commonly had the right to own property and make contracts, to receive gifts and legacies, to sue and be sued, private associations were granted designated privileges and liberties by the emperor. Entities which carried on business and were the subjects of rights were found in ancient Rome. In medieval Europe, churches became incorporated, as did local governments, such as the Pope, the point was that the incorporation would survive longer than the lives of any particular member, existing in perpetuity
Corporation
–
McDonald's Corporation is one of the most recognizable corporations in the world.
Corporation
Corporation
–
1/8 share of the
Stora Kopparberg mine, dated June 16, 1288.
Corporation
–
A
bond issued by the
Dutch East India Company, dating from 1623, for the amount of 2,400 florins
18.
Service (economics)
–
In economics, a service is a transaction in which no physical goods is transferred from the seller to the buyer. The benefits of such a service are held to be demonstrated by the willingness to make the exchange. Public services are those that society as a whole pays for, using resources, skill, ingenuity, and experience, service providers benefit service consumers. Services can be described in terms of their key characteristics, sometimes called the Five Is of Services and they are not manufactured, transported or stocked. Services cannot be stored for a future use and they are produced and consumed simultaneously. Services are perishable in two regards, Service-relevant resources, processes and systems are assigned for delivery during a specific period in time. If the service consumer does not request and consume the service during this period, from the perspective of the service provider, this is a lost business opportunity if no other use for those resources is available. Examples, A hairdresser serves another client, an empty seat on an airplane cannot be filled after departure. When the service has been rendered to the consumer, this particular service irreversibly vanishes. Example, a passenger has been transported to the destination and the flight is over, the service provider must deliver the service at the time of service consumption. The service is not manifested in an object that is independent of the provider. The service consumer is also inseparable from service delivery, examples, The service consumer must sit in the hairdressers chair, or in the airplane seat. Correspondingly, the hairdresser or the pilot must be in the shop or plane, respectively, many services are regarded as heterogeneous and are typically modified for each service consumer or each service context. Another and more common term for this is heterogeneity, both service provider and service consumer participate in the service provision. Mass generation and delivery of services must be mastered for a provider to expand. This can be seen as a problem of service quality, both inputs and outputs to the processes involved providing services are highly variable, as are the relationships between these processes, making it difficult to maintain consistent service quality. Many services involve variable human activity, rather than a precisely determined process, the human factor is often the key success factor in service provision. Demand can vary by season, time of day, business cycle, consistency is necessary to create enduring business relationships
Service (economics)
–
A
bellhop is an example of a service occupation.
19.
Market (economics)
–
A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers and it can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enable the distribution and allocation of resources in a society, Markets allow any trade-able item to be evaluated and priced. A market emerges more or less spontaneously or may be constructed deliberately by human interaction in order to enable the exchange of rights of services, Markets can also be worldwide, for example the global diamond trade. National economies can be classified, for example as developed markets or developing markets, in mainstream economics, the concept of a market is any structure that allows buyers and sellers to exchange any type of goods, services and information. The exchange of goods or services, with or without money, is a transaction, a major topic of debate is how much a given market can be considered to be a free market, that is free from government intervention. However it is not always clear how the allocation of resources can be improved since there is always the possibility of government failure, a market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers and it can be said that a market is the process by which the prices of goods and services are established. Markets facilitate trade and enables the distribution and allocation of resources in a society, Markets allow any trade-able item to be evaluated and priced. A market sometimes emerges more or less spontaneously but is often constructed deliberately by human interaction in order to enable the exchange of rights of services. Markets of varying types can spontaneously arise whenever a party has interest in a good or service that other party can provide. Hence there can be a market for cigarettes in correctional facilities, another for chewing gum in a playground, and yet another for contracts for the future delivery of a commodity. Markets vary in form, scale, location, and types of participants, as well as the types of goods and services traded, nevertheless, violence and they apply the market dynamics to facilitate information aggregation. However, market prices may be distorted by a seller or sellers with monopoly power, such price distortions can have an adverse effect on market participants welfare and reduce the efficiency of market outcomes. Also, the level of organization and negotiating power of buyers and sellers markedly affects the functioning of the market. Markets are a system, and systems have structure, the structure of a well-functioning market is defined by the theory of perfect competition. Market failures are often associated with time-inconsistent preferences, information asymmetries, non-perfectly competitive markets, principal–agent problems, externalities, among the major negative externalities which can occur as a side effect of production and market exchange, are air pollution and environmental degradation. There exists a popular thought, especially among economists, that markets would have a structure of a perfect competition
Market (economics)
–
Financial markets
Market (economics)
–
Corn Exchange, in London circa 1809.
Market (economics)
–
A market in
Râmnicu Vâlcea by Amedeo Preziosi.
Market (economics)
–
Cabbage market by Václav Malý.
20.
Production cost
–
Cost of goods sold refers to the carrying value of goods sold during a particular period. Costs are associated with particular goods using one of several formulas, including identification, first-in first-out. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition, costs of goods made by the business include material, labor, and allocated overhead. The costs of goods not yet sold are deferred as costs of inventory until the inventory is sold or written down in value. Many businesses sell goods that they have bought or produced, when the goods are bought or produced, the costs associated with such goods are capitalized as part of inventory of goods. These costs are treated as an expense in the period the business income from sale of the goods. Determining costs requires keeping records of goods or materials purchased and any discounts on such purchase, in addition, if the goods are modified, the business must determine the costs incurred in modifying the goods. Such modification costs include labor, supplies or additional material, supervision, quality control, Principles for determining costs may be easily stated, but application in practice is often difficult due to a variety of considerations in the allocation of costs. Cost of goods sold may also reflect adjustments, among the potential adjustments are decline in value of the goods, obsolescence, damage, etc. When multiple goods are bought or made, it may be necessary to identify which costs relate to particular goods sold. This may be using an identification convention, such as specific identification of the goods, first-in-first-out. Alternative systems may be used in countries, such as last-in-first-out, gross profit method, retail method. Cost of goods sold may be the same or different for accounting and tax purposes, certain expenses are included in COGS. Expenses that are included in COGS cannot be deducted again as a business expense, depreciation Inventories have a significant effect on profits. A business that makes or buys goods to sell must keep track of inventories of goods under all accounting, Fred buys auto parts and resells them. In 2008, Fred buys $100 worth of parts and he sells parts for $80 that he bought for $30, and has $70 worth of parts left. In 2009, he sells the remainder of the parts for $180, if he keeps track of inventory, his profit in 2008 is $50, and his profit in 2009 is $110, or $160 in total. If he deducted all the costs in 2008, he would have a loss of $20 in 2008, the total is the same, but the timing is much different
Production cost
–
A
supply and demand diagram illustrating taxes' effect on prices.
21.
Tariff
–
A tariff is a tax on imports or exports. In other languages and very occasionally in English, tariff or its equivalent may also be used to any list of prices. A customs duty or due is the tax levied on the import or export of goods in international trade. In economic sense, a duty is also a kind of consumption tax, a duty levied on goods being imported is referred to as an import duty. Similarly, a duty levied on exports is called an export duty, a tariff, which is actually a list of commodities along with the leviable rate of customs duty, is popularly referred to as a customs duty. This is no longer the case, Customs duty is calculated on the determination of the assessable value in case of those items for which the duty is levied ad valorem. This is often the transaction value unless a customs officer determines assessable value in accordance with the Harmonized System, However, for certain items like petroleum and alcohol, customs duty is realized at a specific rate applied to the volume of the import or export consignments. For the purpose of assessment of duty, products are given an identification code that has come to be known as the Harmonized System code. This code was developed by the World Customs Organization based in Brussels, a Harmonized System code may be from four to ten digits. For example,17.03 is the HS code for molasses from the extraction or refining of sugar, However, within 17.03, the number 17.03.90 stands for Molasses. Introduction of Harmonized System code in 1990s has largely replaced the Standard International Trade Classification, in drawing up the national tariff, the revenue departments often specifies the rate of customs duty with reference to the HS code of the product. A Customs authority in each country is responsible for collecting taxes on the import into or export of goods out of the country, Evasion of customs duties takes place mainly in two ways. In one, the trader under-declares the value so that the value is lower than actual. In a similar vein, a trader can evade customs duty by understatement of quantity or volume of the product of trade, a trader may also evade duty by misrepresenting traded goods, categorizing goods as items which attract lower customs duties. The Evasion of customs duty may take place with or without the collaboration of customs officials, Evasion of customs duty does not necessarily constitute smuggling. Many countries allow a traveler to bring goods into the country duty-free and these goods may be bought at ports and airports or sometimes within one country without attracting the usual government taxes and then brought into another country duty-free. Some countries impose allowances which limit the number or value of items that one person can bring into the country. These restrictions often apply to tobacco, wine, spirits, cosmetics, gifts, often foreign diplomats and UN officials are entitled to duty-free goods
Tariff
Tariff
–
See also
Protective Tariffs for the policies of using tariffs, and
tariff (disambiguation) for other uses.
Tariff
–
Terminology
22.
Free trade
–
Free trade is a policy followed by some international markets in which countries governments do not restrict imports from, or exports to, other countries. Free trade is exemplified by the European Economic Area and the Mercosur, most nations are today members of the World Trade Organization multilateral trade agreements. However, most governments still impose some protectionist policies that are intended to support local employment, governments may also restrict free trade to limit exports of natural resources. Other barriers that may hinder trade include import quotas, taxes, two simple ways to understand the proposed benefits of free trade are through David Ricardos theory of comparative advantage and by analyzing the impact of a tariff or import quota. An economic analysis using the law of supply and demand and the effects of a tax can be used to show the theoretical benefits. Underdeveloped nations today, Chang believes, are players in a much more competitive system. If the chief justification for a tariff is to stimulate infant industries and this theory, known as import substitution industrialization, is largely considered ineffective for currently developing nations. The chart at the right analyzes the effect of the imposition of a tariff on some imaginary good. Prior to the tariff, the price of the good in the market is Pworld. The tariff increases the price to Ptariff. The higher price causes domestic production to increase from QS1 to QS2 and this has three main effects on societal welfare. Consumers are made worse off because the consumer surplus becomes smaller, producers are better off because the producer surplus is made larger. The government also has additional tax revenue, however, the loss to consumers is greater than the gains by producers and the government. The magnitude of this loss is shown by the two pink triangles. Removing the tariff and having free trade would be a net gain for society, an almost identical analysis of this tariff from the perspective of a net producing country yields parallel results. From that countrys perspective, the tariff leaves producers worse off and consumers better off, under similar analysis, export tariffs, import quotas, and export quotas all yield nearly identical results. Free trade creates winners and losers, but theory and empirical evidence show that the size of the winnings from free trade are larger than the losses, applying free trade to the high cost producer can lead to trade diversion and a net economic loss. This is why many economists place such high importance on negotiations for global tariff reductions, the literature analysing the economics of free trade is extremely rich with extensive work having been done on the theoretical and empirical effects
Free trade
Free trade
–
David Ricardo
Free trade
–
Britain waged two
Opium Wars to force China to legalize the
opium trade and to open all of China to British merchants.
Free trade
–
George W. Bush and
Hu Jintao of China meet while attending an
APEC summit in Santiago de Chile, 2004
23.
Third World
–
The term Third World arose during the Cold War to define countries that remained non-aligned with either NATO, or the Communist Bloc. This terminology provided a way of categorizing the nations of the Earth into three groups based on political and economic divisions. The Third World was normally seen to many countries with colonial pasts in Africa, Latin America. It was also taken as synonymous with countries in the Non-Aligned Movement. Due to the history of evolving meanings and contexts, there is no clear or agreed-upon definition of the Third World. Some countries in the Communist Bloc, such as Cuba, were regarded as Third World. Historically, some European countries were non-aligned and a few of these were and are very prosperous, including Ireland, Austria, Sweden, Finland, and Switzerland. However, this usage and the concept itself has become outdated in recent years as the term represents the current political or economic state of the world. Sauvy wrote, This third world ignored, exploited, despised like the third estate also wants to be something and he conveyed the concept of political non-alignment with either the capitalist or communist bloc. The Three Worlds Theory developed by Mao Zedong is different from the Western theory of the Three Worlds or Third World, Third Worldism is a political movement that argues for the unity of third-world nations against first-world influence and the principle of non-interference in other countries domestic affairs. The notion has been criticized as providing a fig leaf for human-rights violations, most Third World countries are former colonies. Having gained independence, many of countries, especially smaller ones, were faced with the challenges of nation-. Due to this background, many of these nations were developing in economic terms for most of the 20th century. This term, used today, generally denotes countries that have not developed to the levels as OECD countries. In the 1980s, economist Peter Bauer offered a definition for the term Third World. He claimed that the attachment of Third World status to a country was not based on any stable economic or political criteria. An argument could also be made for how parts of the U. S. are more like the Third World, the only characteristic that Bauer found common in all Third World countries was that their governments demand and receive Western aid, the giving of which he strongly opposed. Thus, the aggregate term Third World was challenged as misleading even during the Cold War period, during the Cold War, unaligned countries of the Third World were seen as potential allies by both the First and Second World
Third World
–
An abandoned
Mogadishu street in 1993
Third World
–
First World: United States, United Kingdom and their allies.
24.
Globalization
–
Globalization or globalisation is the action or procedure of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Advances in transportation and in telecommunications infrastructure have been factors in globalization, generating further interdependence of economic. Large-scale globalization began in the 1820s, in the late 19th century and early 20th century, the connectivity of the worlds economies and cultures grew very quickly. The term globalization is recent, only establishing its current meaning in the 1970s, further, environmental challenges such as global warming, cross-boundary water and air pollution, and overfishing of the ocean are linked with globalization. Globalizing processes affect and are affected by business and work organization, economics, socio-cultural resources, academic literature commonly subdivides globalization into three major areas, economic globalization, cultural globalization, and political globalization. The term globalization is derived from the word globalize, which refers to the emergence of a network of economic systems. One of the earliest known usages of the term as a noun was in a 1930 publication entitled Towards New Education, a related term, corporate giants, was coined by Charles Taze Russell in 1897 to refer to the largely national trusts and other large enterprises of the time. By the 1960s, both began to be used as synonyms by economists and other social scientists. Economist Theodore Levitt is widely credited with coining the term in an article entitled Globalization of Markets, However, the term globalization was in use well before this and had been used by other scholars as early as 1981. Levitt can be credited with popularizing the term and bringing it into the mainstream audience in the later half of the 1980s. Due to the complexity of the concept, research projects, articles, sociologists Martin Albrow and Elizabeth King define globalization as all those processes by which the people of the world are incorporated into a single world society. Globalization can be located on a continuum with the local, national and regional, without reference to such expansive spatial connections, there can be no clear or coherent formulation of this term. A satisfactory definition of globalization must capture each of these elements, extensity, intensity, velocity and it pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world. The ideological dimension, according to Steger, is filled with a range of norms, claims, beliefs and they have also argued that four different forms of globalization can be distinguished that complement and cut across the solely empirical dimensions. According to James, the oldest dominant form of globalization is embodied globalization, a second form is agency-extended globalization, the circulation of agents of different institutions, organizations, and polities, including imperial agents. Object-extended globalization, a form, is the movement of commodities. He calls the transmission of ideas, images, knowledge, and information across world-space disembodied globalization and he asserted that the pace of globalization was quickening and that its impact on business organization and practice would continue to grow. Economist Takis Fotopoulos defined economic globalization as the opening and deregulation of commodity, capital and he used political globalization to refer to the emergence of a transnational elite and a phasing out of the nation-state
Globalization
–
Extent of the
Silk Road and
Spice trade routes owned by the
Ottoman Empire in 1453 spurring exploration
Globalization
–
Globalization
Globalization
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Airline personnel from the "
Jet set " age, circa 1960.
Globalization
–
Portuguese
carrack in
Nagasaki, 17th-century Japanese
Nanban art
25.
Accounting
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Accounting or accountancy is the measurement, processing and communication of financial information about economic entities such as businesses and corporations. The modern field was established by the Italian mathematician Luca Pacioli in 1494, practitioners of accounting are known as accountants. The terms accounting and financial reporting are often used as synonyms, Accounting can be divided into several fields including financial accounting, management accounting, external auditing, and tax accounting. Accounting information systems are designed to support accounting functions and related activities, Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. Financial statements are audited by accounting firms, and are prepared in accordance with generally accepted accounting principles. GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board in the United States, as of 2012, all major economies have plans to converge towards or adopt the International Financial Reporting Standards. The history of accounting is thousands of old and can be traced to ancient civilizations. By the time of the Emperor Augustus, the Roman government had access to detailed financial information, double-entry bookkeeping developed in medieval Europe, and accounting split into financial accounting and management accounting with the development of joint-stock companies. The first work on a double-entry bookkeeping system was published in Italy, both the words accounting and accountancy were in use in Great Britain by the mid-1800s, and are derived from the words accompting and accountantship used in the 18th century. In Middle English the verb to account had the form accounten, which was derived from the Old French word aconter, which is in turn related to the Vulgar Latin word computare, meaning to reckon. The base of computare is putare, which meant to prune, to purify, to correct an account, hence, to count or calculate. The word accountant is derived from the French word compter, which is derived from the Italian. Accountancy refers to the occupation or profession of an accountant, particularly in British English, Accounting has several subfields or subject areas, including financial accounting, management accounting, auditing, taxation and accounting information systems. Financial accounting focuses on the reporting of a financial information to external users of the information, such as investors. It calculates and records business transactions and prepares financial statements for the users in accordance with generally accepted accounting principles. GAAP, in turn, arises from the agreement between accounting theory and practice, and change over time to meet the needs of decision-makers. This branch of accounting is also studied as part of the exams for qualifying as an actuary. It is interesting to note that two professionals, accountants and actuaries, have created a culture of being archrivals
Accounting
–
Accounting
Accounting
–
Portrait of Luca Pacioli, painted by
Jacopo de' Barbari, 1495, (
Museo di Capodimonte).
26.
Advertising
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Advertising is an audio or visual form of marketing communication that employs an openly sponsored, nonpersonal message to promote or sell a product, service or idea. Sponsors of advertising are often businesses who wish to promote their products or services, Advertising is differentiated from public relations in that an advertiser usually pays for and has control over the message. It is differentiated from personal selling in that the message is nonpersonal, the actual presentation of the message in a medium is referred to as an advertisement or ad. Commercial ads often seek to generate increased consumption of their products or services through branding, on the other hand, ads that intend to elicit an immediate sale are known as direct response advertising. Non-commercial advertisers who spend money to advertise items other than a product or service include political parties, interest groups, religious organizations. Non-profit organizations may use free modes of persuasion, such as a service announcement. Advertising may also be used to reassure employees or shareholders that a company is viable or successful, in 2015, the world spent an estimate of US$592.43 billion on advertising. Its projected distribution for 2017 is 40. 4% on TV,33. 3% on digital, internationally, the largest advertising conglomerates are Interpublic, Omnicom, Publicis, and WPP. In Latin, ad vertere means to turn toward, egyptians used papyrus to make sales messages and wall posters. Commercial messages and political campaign displays have been found in the ruins of Pompeii, lost and found advertising on papyrus was common in ancient Greece and ancient Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient advertising form, which is present to this day in many parts of Asia, Africa, the tradition of wall painting can be traced back to Indian rock art paintings that date back to 4000 BC. In ancient China, the earliest advertising known was oral, as recorded in the Classic of Poetry of bamboo flutes played to sell candy, advertisement usually takes in the form of calligraphic signboards and inked papers. Fruits and vegetables were sold in the city square from the backs of carts and wagons, the first compilation of such advertisements was gathered in Les Crieries de Paris, a thirteenth-century poem by Guillaume de la Villeneuve. In the 18th century advertisements started to appear in newspapers in England. However, false advertising and so-called quack advertisements became a problem, thomas J. Barratt from London has been called the father of modern advertising. Working for the Pears Soap company, Barratt created an advertising campaign for the company products. One of his slogans, Good morning, have you used Pears soap. was famous in its day and into the 20th century. Barratt introduced many of the ideas that lie behind successful advertising
Advertising
–
A
Coca-Cola advertisement from the 1890s
Advertising
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Bronze plate for printing an advertisement for the Liu family needle shop at
Jinan,
Song dynasty China. It is considered the world's earliest identified printed advertising medium.
Advertising
–
Edo period LEL flyer from 1806 for a traditional medicine called Kinseitan
Advertising
–
A 1900 advertisement for Pears soap
27.
Business
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A business is an organizational entity involved in the provision of goods and services to consumers. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social, a business owned by multiple private individuals may form as an incorporated company or jointly organise as a partnership. Countries have different laws that may ascribe different rights to the business entities. The word business can refer to an organization or to an entire market sector or to the sum of all economic activity. Compound forms such as agribusiness represent subsets of the broader meaning. Businesses aim to maximize sales to have their income exceed their expenditures, resulting in a profit, the owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, partnership, A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business, the three most prevalent types of for-profit partnerships are, general partnerships, limited partnerships, and limited liability partnerships. Corporation, The owners of a corporation have limited liability and the business has a legal personality from its owners. Corporations can be either government-owned or privately owned and they can organize either for profit or as nonprofit organizations. A privately owned, for-profit corporation is owned by its shareholders, a privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange. Cooperative, Often referred to as a co-op, a cooperative is a limited-liability business that can organize as for-profit or not-for-profit, a cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives, cooperatives are fundamental to the ideology of economic democracy. In contrast, unincorporated businesses or persons working on their own are not as protected. Franchises, A franchise is a system in which entrepreneurs purchase the rights to open, franchising in the United States is widespread and is a major economic powerhouse. One out of retail businesses in the United States are franchised and 8 million people are employed in a franchised business. Real estate businesses sell, invest, construct and develop properties – including land, residential homes, retailers, wholesalers, and distributors act as middlemen and get goods produced by manufacturers to the intended consumers, they make their profits by marking up their prices. Most stores and catalog companies are distributors or retailers, transportation businesses such as railways, airlines, shipping companies that deliver goods and individuals to their destinations for a fee
Business
–
Offices in the
Los Angeles Downtown Financial District
Business
28.
Capitalism
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Capitalism is an economic system based on private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system, economists, political economists, and historians have adopted different perspectives in their analyses of capitalism and have recognized various forms of it in practice. These include laissez-faire or free market capitalism, welfare capitalism, different forms of capitalism feature varying degrees of free markets, public ownership, obstacles to free competition, and state-sanctioned social policies. Most existing capitalist economies are mixed economies, which elements of free markets with state intervention. Capitalism has existed under many forms of government, in different times, places. Following the decline of mercantilism, mixed capitalist systems became dominant in the Western world, Capitalism has been criticized for prioritizing profit over social good, natural resources, and the environment, and that is a cause of inequality and economic instabilities. Supporters believe that it provides better products through competition, and creates strong economic growth, the term capitalist, meaning an owner of capital, appears earlier than the term capitalism. It dates back to the mid-17th century, capitalist is derived from capital, which evolved from capitale, a late Latin word based on caput, meaning head – also the origin of chattel and cattle in the sense of movable property. Capitale emerged in the 12th to 13th centuries in the sense of referring to funds, stock of merchandise, sum of money, by 1283 it was used in the sense of the capital assets of a trading firm. It was frequently interchanged with a number of other words – wealth, money, funds, goods, assets, property, the Hollandische Mercurius uses capitalists in 1633 and 1654 to refer to owners of capital. In French, Étienne Clavier referred to capitalistes in 1788, six years before its first recorded English usage by Arthur Young in his work Travels in France, David Ricardo, in his Principles of Political Economy and Taxation, referred to the capitalist many times. Samuel Taylor Coleridge, an English poet, used capitalist in his work Table Talk, Pierre-Joseph Proudhon used the term capitalist in his first work, What is Property. To refer to the owners of capital, benjamin Disraeli used the term capitalist in his 1845 work Sybil. The initial usage of the term capitalism in its modern sense has been attributed to Louis Blanc in 1850, Karl Marx and Friedrich Engels referred to the capitalistic system. And to the capitalist mode of production in Das Kapital, the use of the word capitalism in reference to an economic system appears twice in Volume I of Das Kapital, p.124, and in Theories of Surplus Value, tome II, p.493. Marx did not extensively use the form capitalism but instead those of capitalist, and capitalist mode of production, also according to the OED, Carl Adolph Douai, a German-American socialist and abolitionist, used the phrase private capitalism in 1863. Capital has existed incipiently on a scale for centuries, in the form of merchant, renting and lending activities. Simple commodity exchange, and consequently simple commodity production, which are the basis for the growth of capital from trade, have a very long history
Capitalism
–
Many analysts assert that
autocratic China is one of the main examples of
state capitalism in the 21st century.
Capitalism
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A painting of a French seaport from 1638 at the height of
mercantilism.
Capitalism
–
Robert Clive after the
Battle of Plassey. The battle began
East India Company rule in India.
Capitalism
–
A
Watt steam engine. The
steam engine fuelled primarily by
coal propelled the
Industrial Revolution in
Great Britain.
29.
Commercial law
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It is often considered to be a branch of civil law and deals with issues of both private law and public law. It can also be understood to regulate corporate contracts, hiring practices, many countries have adopted civil codes that contain comprehensive statements of their commercial law. In the United States, commercial law is the province of both the United States Congress, under its power to regulate commerce, and the states. Various regulatory schemes control how commerce is conducted, particularly vis-a-vis employees, privacy laws, safety laws, and food and drug laws are some examples. Outline of commercial law Consulate of the Sea Hundreds of Answers to Basic Business Law Questions Topical listing of US commercial law from Cornells Legal Information Institute
Commercial law
Chisholm, Hugh, ed. (1911). "Commerce". Encyclopædia Britannica. 6 (11th ed.). Cambridge University Press. p. 766.
Chisholm, Hugh, ed. (1911). "
