Ancient Trade Routes and Regulations

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Questions and Answers

What do clients associate international success with?

Dependability, efficiency, and cohesiveness

Why is it beneficial to dispose of surplus products?

To reduce waste and potential losses

Why may there be demand for a product in other countries even if there is no demand in the domestic market?

Because domestic markets differ from international markets

What happens to the lifespan of goods when trading globally?

It gets extended Signup and view all the answers

What happens to the cost of importing items when a nation's currency is weak?

It increases Signup and view all the answers

What is an advantage of a weak currency rate for globally trading businesses?

The ability to export products at a lower cost Signup and view all the answers

Why do companies trading globally have an advantage when their nation's currency is weak?

They can tempt more overseas consumers Signup and view all the answers

What is a risk associated with a strong currency rate for domestic-only enterprises?

Economic downturn Signup and view all the answers

What was the Philippines' GDP growth rate in 2022?

7.6% Signup and view all the answers

What is the target GDP growth rate set by NEDA for 2024?

6% to 7% Signup and view all the answers

What is the focus of the trilateral meeting between the Philippines, United States, and Japan?

Economic cooperation Signup and view all the answers

Who views the Philippines' relationship with the USA and Japan as a positive thing for the economy?

Joey Salceda Signup and view all the answers

Why does Congressman Joey Salceda think the Philippines' realignment to the West and Japan will be beneficial?

To shield the Philippines from the ill-effects of a flagging Chinese economy Signup and view all the answers

What is the name of the organization that expects the Philippine economy to grow faster in 2024?

Asian Development Bank Signup and view all the answers

What is the rank of the Philippines' economic growth rate in 2022 compared to other Asian emerging markets?

One of the highest Signup and view all the answers

What is the policy adopted by President Ferdinand Marcos Jr. that Congressman Joey Salceda views as beneficial for the economy?

Realignment to the West and Japan Signup and view all the answers

What is the primary focus of the Asian Infrastructure Investment Bank?

Supporting countries striving to meet environmental and development goals Signup and view all the answers

What is a characteristic that distinguishes the AIIB from the World Bank?

AIIB is dominated by China, India, and other global South countries Signup and view all the answers

What is a result of global economic instability?

Negative impacts on countries, businesses, and individuals Signup and view all the answers

According to the Global Risks Report 2023, what is one of the top risks for 2023 with the greatest potential impact on a global scale?

Cost-of-living crisis Signup and view all the answers

What is a global economic institution's role?

To promote sustainable development and prosperity worldwide Signup and view all the answers

What is NOT a characteristic of the Asian Infrastructure Investment Bank?

Largely dominated by the United States and Europe Signup and view all the answers

What is a potential consequence of global economic instability?

Negative impacts on countries, businesses, and individuals Signup and view all the answers

What do international economic institutions collectively strive to promote?

Sustainable development and prosperity Signup and view all the answers

What is the primary reason for businesses to engage in international trade?

To have a larger potential consumer base Signup and view all the answers

What is a significant benefit of international trade for small firms?

The difference between stagnation and advancement Signup and view all the answers

What is a major advantage of international trade in terms of risk management?

It provides better risk management Signup and view all the answers

Why is it safer to trade worldwide than only domestically?

Because it provides better risk management Signup and view all the answers

What is a common practice in international trade that helps with cash flow?

Requesting payment in advance Signup and view all the answers

Why is requesting payment in advance more favorable for companies in international trade?

It reduces the risk of late invoices Signup and view all the answers

What is a benefit of global trade for companies in terms of reputation?

It enables companies to give a higher level of service Signup and view all the answers

Why do companies that trade globally frequently benefit from a good reputation?

Because they can give a higher level of service Signup and view all the answers

What is the significance of the Code of Hammurabi in the context of trade?

It provided early documentation of trade regulations and practices Signup and view all the answers

What was the main purpose of European explorers during the Age of Exploration?

To seek new trade routes to Asia Signup and view all the answers

What was the primary goal of mercantilism during the 16th to 18th centuries?

To accumulate wealth through favorable balances of trade Signup and view all the answers

What was the role of Zhang Qian in the Silk Road?

He was a Chinese diplomat and explorer who played a pivotal role in expanding and solidifying the Silk Road Signup and view all the answers

What was the main characteristic of the Industrial Revolution in the context of international trade?

It brought about revolutionary changes in international trade Signup and view all the answers

What was the significance of the Silk Road in facilitating international trade?

It facilitated trade between Asia, Europe, and Africa Signup and view all the answers

What was the role of colonialism in the pursuit of mercantilism?

It secured raw materials and established markets for finished goods Signup and view all the answers

What was the duration of the Age of Exploration?

15th to 17th centuries Signup and view all the answers

Study Notes

Ancient Trade Regulations and Practices

The Code of Hammurabi (1754 BCE) provides early documentation of trade regulations and practices.

The Silk Road

Emerged during the Han Dynasty in China
Extended over 6,000 miles, facilitating trade between Asia, Europe, and Africa
Promoted the exchange of valuable goods, such as silk, spices, precious metals, and cultural ideas
Figures like Zhang Qian played a pivotal role in expanding and solidifying this trade route

Age of Exploration

Witnessed significant expansions of international trade routes (15th to 17th centuries)
European explorers like Christopher Columbus, Vasco da Gama, and Ferdinand Magellan embarked on voyages, seeking new trade routes to Asia and discovering new lands
Led to the establishment of trade links and colonies, enabling the exchange of goods, resources, and cultural influences between continents

Mercantilism and Colonialism

Dominant economic doctrine (16th to 18th centuries)
European powers aimed to accumulate wealth through favorable balances of trade
Colonialism played a crucial role, as European nations established colonies worldwide to secure raw materials, establish markets for finished goods, and maintain a monopoly on trade

Industrial Revolution

Brought about revolutionary changes in international trade (18th to 19th centuries)
Global traders have a larger potential consumer base, which can mean the difference between stagnation and advancement for businesses

Benefits of International Trade

Mitigate potential market risks by not relying on a single market
Manage cash flow better through foreign markets by requesting payment in advance
Boost reputation through global trade, associating with dependability, efficiency, and cohesiveness
Dispose of surplus products by finding demand in other countries
Increase product life spans by selling in foreign markets where the product may not be obsolete
Balance foreign exchange risks by exporting products at a lower cost during weak currency rates

Philippine Economy

Grew at a pace of 7.6% in 2022, the fastest rate of economic growth recorded since 1976
Comparable to some of the world's fastest-growing large emerging markets in 2022
National Economic and Development Authority (NEDA) expects the Philippine economy to grow faster in 2024
Department of Foreign Affairs (DFA) recently held a trilateral meeting with the USA and Japan, focusing on economic cooperation

International Economic Institutions

Play vital roles in shaping global economic policies, fostering cooperation, and addressing economic challenges
Examples include the Asian Infrastructure Investment Bank, which lends money to fund infrastructure projects within the Asia-Pacific region

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