We have previously discussed about the economy and their explanations as well as benefits in life, here is the economic system from time to time. Economic existed since humans created, supplying and distributing goods or services. Most of the time the economic activities based on agricultural products. Unit shekels for example, originated from the unit used to measure the weight of barley. This unit is then used to measure the weight of precious metals such as gold, silver, and copper. The transaction process was underway simple, usually occur between two or more people related directly social. The barter system is still widely used.
Along with the development of society, economic systems are used more and more complex. Sumerian society, for example, developed a large-scale economy based on commodity money. Elsewhere, the Babylonians and the surrounding city-states developed a system of debts, legal contracts, and laws relating to business practices and personal property. Babylonians developed a system which is already advanced and modern systems approach used today.
Just as in ancient times, the Middle Ages economic activity is still spinning on trade in agriculture and basic goods, as well as occurring in a closed social group. However, several developments take place, including the emergence of groups that provide capital to individuals or other groups, especially for the field of shipping and the development of the territory. In this century, the money is used is the coin metal, particularly in Europe, and its surroundings. The type of metal used affect the value of the money, the most popular is copper, silver, and gold. However, the currency used at that time are very diverse, and everything is different both in terms of shape, size, weight, rust and mold. But along with the increasing number of financial transactions, and the development of commerce, slowly began to occur uniformity in this metal coins, and allows the inter-regional trade. Continue reading
The barter system is an ancient method that is used to exchange goods and services. This system was used for centuries before the invention of money. But with the invention of money, does not mean the barter system and then become extinct. Barter is currently still in use, and with the help of the internet, it involves global interaction. During ancient times, the barter system is a local phenomenon that involves people in the same location. Advantages of barter is that this transaction does not involve money. You can get the item you want to exchange it with items you no longer want.
Barter System History
Barter is one of the earliest forms of trade. The system facilitates the exchange of goods and services when people have yet to find the money. Barter history can be traced back to the year 6000 BC. It is believed that the barter system was introduced by the tribes of Mesopotamia. This system was later adopted by the Phoenicians who exchange their goods to people in other cities located across the ocean. A better system of barter developed in Babylon. Various items have been used as barter standards such as human skulls. Another popular item used for exchange is salt. In the past, salt was considered as valuables. Even the Roman soldiers’ salaries are paid in salt.
The main drawback of barter is the lack of standard criteria for determining the value of goods and services that are prone to lead to disputes and clashes. These difficulties can be overcome with the invention of money, despite the barter system is alive in many forms. The Europeans began to explore the oceans during the Middle Ages and then exchange the goods they carry such as fur and crafts with perfume and silk. At first, the people of colonial America did not have enough money to do business so that the use of barter as an aid.
The barter system is also color the history of the early years of the University of Oxford and Harvard University. At that time, students pay tuition to groceries, firewood, or livestock. Barter back popular during the Great Depression of the 1930s due to the scarcity of money. Barter system has been used worldwide for centuries. The invention of money does not necessarily turn off the system. The current financial crisis, for example, many people again glanced barter because of fluctuations in the value of currency is uncertain.
Thus information about Barter Trade History of Different Period, may increase your knowledge. Thank you.
You know the credit card? Credit is a method of selling goods or services without the buyer must have cash on hand. While the credit card is an automatic way of offering credit to consumers. Modern credit card equipped with an identification number that accelerates shopping transactions.
Without the identification number, the seller must record the identity, billing address, and payment terms of every consumer. According to the Encyclopedia Britannica, “the use of credit cards from the United States during the 1920s, when individual companies, such as oil companies and hotel chains, began issuing credit cards to their customers.” However, the origin of the credit card can be traced to tahun1890 in Europe , The initial credit card directly involving buyers and sellers who offer credit facilities. Around 1938, several companies started to accept credit cards issued by other companies. Currently, the credit card can be used for transactions of various kinds of goods and services from almost incalculable service providers.
Credit Card form
Credit cards are not always made of plastic. There is also a credit token coins are made of metal, a metal plate, celluloid, fiber, and paper. Continue reading
Foreign currency or foreign exchange or currency refers to currency or foreign exchange is made or issued by other countries that can be received at home. Foreign currencies are not legal tender in the country, but can be used to finance the international economic and financial transactions. Foreign currency will have true meaning if the currency can be traded without restriction. Thus the foreign currency can be used widely and freely in many countries.
Name Typical Foreign Exchange.
In addition to the official naming defined by ISO Code, foreign currency had a special name that is popular among foreign exchange market participants. As shown in Table 2. The British currency, the pound sterling commonly called Cable, while the Australian dollar so-called Aussie.
Foreign Currency pair.
Writing against the two currencies transacted become a partner is a convention to ensure uniformity between the players in the foreign exchange market. The first written currency called the major currencies or the Base Currency and the currency is written behind so-called currency opponent or Counter Currency. Currency pairs are grouped into Major, Cross and Minor. At this discussion only use as Mayor and Cross. Continue reading
One factor that affects the value of a country’s currency is the difference in interest rates between countries. The increase in interest rates in a country may encourage the transfer of funds or financial instruments of currency with a low interest rate to a currency with a higher interest rate. The foreign exchange market participants attempted to use interest rates to gain an advantage.
The interest rate is the cost to be paid by loan on loans received and is a reward for the lender on the funds. The interest rates are likely to affect an individual’s decision on the option to spend more or save money in the form of savings in the bank.
The interest rate has a very close relationship with the rate of inflation. It can be said that the difference in interest rates that occurred among some countries due to differences in inflation rates. When the inflation rate rises, the interest rate tends to be higher that the real interest rate obtained permanent customers.
The government will strive to anticipate the growth of inflation by issuing a policy to raise the level of bank interest. Raising the policy interest rate is intended to suppress the growth of inflation and to strengthen the exchange rate of the domestic currency. Continue reading
This article discusses the influence on the balance of payments and foreign exchange rates of a country. Here’s his review: The balance of payments or the balance of payments is a summary prepared systematically for all the economic transactions of a country with other countries for a certain period, usually within one year. The balance of payments is based on dual recording system (double-entry bookkeeping). Every transaction is recorded as a credit offset by transactions that are recorded as a debit or vice versa.
Transactions that generate foreign exchange or foreign currencies are recorded as loans and given a positive sign. Instead of transactions that issued foreign currency are recorded as a debit and given a negative sign. By using dual recording system, then the amount of the credit and debit will be equal to zero. Despite the fact that the balance of payments may not be equal to zero.
The trade balance and balance of payments is often a factor that could push the increase or decrease a country’s currency exchange rate. Increases or surplus of the trade balance and balance of payments will be interpreted as an early indication of the likelihood of a currency appreciation. Otherwise decline or deficit balance of trade and balance of payments will be interpreted as an indication initially occurred depreciation of the currency of a country. With the balance of payments can be known when a country experiences a surplus or a deficit. Continue reading
I’m sure you’ve heard about inflation, but if you’ve quite understood what it inflation? Inflation is an economic circumstances that indicate a trend rise in the general price level (price level). It said the general price level for goods and services on the market has the number and types are very diverse, most of the prices of such goods is increasing and cause inflation. While pure inflation is inflation that occurred before the intervention of the government, either in the form of fiscal policy and monetary policy. As is the rate of inflation is the increase or decrease in inflation from period to period or from year to year.
Understanding Economic Growth A State
Economic growth refers to the development of economic activities of a country that led to the goods and services produced within the community grow and increase the prosperity of the community in the long term. The economic growth is one of the indicators used to assess the success of development.
In the actual economic activity, economic growth suggests economic growth is physically happening in a country, such as increasing the number and the production of industrial goods, infrastructure development, increase the number of public facilities such as schools, hospitals, roads, development of manufactured goods, and so on. Continue reading
Does that GDP? One of the parameters used to measure national income of a country is the Gross Domestic Product (GDP) or gross domestic product (GDP). GDP can be defined as the value of final goods and services produced by various production units in the territory of a country within a year.
GDP does not take into consideration the national companies or citizens that produce goods or services of that country. GDP is calculated based on the value of goods and services produced by the citizens who live in the country, both native and foreign nationals.
GDP can be calculated by using the prevailing price or base price constant. Nominal GDP measures the value of final goods and services at prices prevailing in the market during the year. Real GDP measures the value of final goods and services using fixed prices. Continue reading
Do you remember the days before Facebook presence in cyberspace? We are still struggling with cell phones and instant messaging service, MSN Messenger. Now everything has changed and become easier. Facebook appeared as a pioneer in the arena of social media. To reap success, Facebook must pass through a long struggle. Facebook was founded in 2004 by four young men in their twenties. Mark Zuckerburg, Eduardo Saverin, Dustin Moskovitz, and Chris Hughes struggled to develop Facebook to reach success it is today. Facebook bagged the title as the largest social networking site in the world, with more than 2000 employees and 845 million users.
Mark Zuckerburg is an important figure behind the success of Facebook. The young man who was born on May 14, 1984 The love of computers and programming since I was little. According to rediff.com, Mark started to create software while attending high school. On October 28, 2003, Mark, and three classmates to build a site that was originally called FaceMash. This is the forerunner to the birth of a largest social networking site.
Mark wrote the software for the site FaceMash, when he underwent his second year at university. It turns out the main reason for making sense of humor inspired Mark. Of course, this site was originally intended only for college students. Site users can compare the two pictures of students from side to side. Then they can choose which is best and which are not. However, many students are complaining because their photos are used without permission. Mark apologized for the incident and are aware of the great potential in the social network. Continue reading
After learning about the history of the IMF and the World Bank, the following will discuss the differences between the two. The World Bank and the IMF are two very important special agencies of the United Nations. To understand the roles, functions and responsibilities of these autonomous bodies, a glimpse of the history of the World Bank and the IMF ought to be known. In 1944, during World War II raged, delegates from 44 allied nations gathered in Bretton Woods, Washington, United States to discuss the Bretton Woods agreement which gave birth to the World Bank and IMF.
This agreement laid down rules for commercial and financial relations between member countries of the world. The IMF and the World Bank then established and then composed and ratified by most countries in the world. All member states agreed to tie their currencies to the US dollar and delegate the role to the IMF to oversee the payment imbalance problem in member countries.
In 1971, the US unilaterally suspend the convertibility of the dollar to gold, so as to bring the end of the Bretton Woods agreement. Since then, the USD became the only currency of reference for the world and is used as a source of reserve currency for all countries in the world without any reference to gold reserves. Continue reading