International Trade Evolution and Theory
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Questions and Answers

What is NOT an advantage of QR codes?

  • Can be scanned from a screen
  • Requires internet connection to read (correct)
  • Can be read even if part of the code is damaged
  • Stores a large volume of data

    • Cryptocurrencies use bank transfers as their primary method of exchange.

    False

    What does DCB stand for?

    Direct Carrier Billing

    Cryptocurrencies rely on _______ to secure transactions and data.

    <p>cryptography</p> Signup and view all the answers

    Match the mobile payment methods with their descriptions:

    <p>SMS Payments = Paying via text message added to a mobile bill Direct Carrier Billing = Payments processed through mobile carriers Cryptocurrencies = Digital currencies using blockchain technology QR Codes = Scannable codes storing large volumes of data</p> Signup and view all the answers

    What technology is used in magnetic secure transmission (MST)?

    <p>Magnetic signals</p> Signup and view all the answers

    A mobile wallet can store physical cash.

    <p>False</p> Signup and view all the answers

    In what year did the US Congress approve the Coinage Act for the Philippines?

    <p>1903</p> Signup and view all the answers

    E-money is a digital representation of ______ currency stored in digital wallets.

    <p>fiat</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Cryptocurrency = Digital unit used as a medium of exchange Fiat currency = Real currency printed by central banks Mobile wallet = App for storing digital payment information QR code = Type of 2D barcode used for payments</p> Signup and view all the answers

    What does a mobile wallet commonly utilize in its payment process?

    <p>Complex encryption and tokenization</p> Signup and view all the answers

    Quick response (QR) codes are less secure than traditional payment methods.

    <p>False</p> Signup and view all the answers

    Who was the engraver and artist whose designs were used for coins in the Philippines?

    <p>Melecio Figueroa</p> Signup and view all the answers

    ______ refers to a secure method that generates time-limited token numbers for processing transactions.

    <p>Tokenization</p> Signup and view all the answers

    What is meant by 'digital gold' in the context of currencies?

    <p>A type of cryptocurrency</p> Signup and view all the answers

    What is the primary goal of the World Trade Organization (WTO)?

    <p>To ensure smooth and predictable trade flows</p> Signup and view all the answers

    Adam Smith and David Ricardo both supported protectionist trade policies.

    <p>False</p> Signup and view all the answers

    Name one function of the World Trade Organization (WTO).

    <p>Negotiating trade agreements</p> Signup and view all the answers

    The theory that a country's wealth is determined by its holdings of __________ is associated with classical economics.

    <p>gold and silver</p> Signup and view all the answers

    Match the following individuals with their contributions to trade theory:

    <p>Adam Smith = Wealth of Nations David Ricardo = Principles of Economics David Hume = Price-specie flow mechanism WTO = Forum for trade negotiations</p> Signup and view all the answers

    What is the predecessor of the World Trade Organization (WTO)?

    <p>General Agreement on Tariffs and Trade (GATT)</p> Signup and view all the answers

    What is a trade surplus?

    <p>The amount by which the value of a country's exports exceeds the cost of its imports</p> Signup and view all the answers

    The division of labor increases productivity and specialization by separating a work process into multiple tasks.

    <p>True</p> Signup and view all the answers

    The World Bank and the International Monetary Fund were both founded in 1944.

    <p>True</p> Signup and view all the answers

    Who was appointed as the Director General of the WTO on March 1, 2021?

    <p>Ngozi Okonjo-Iweala</p> Signup and view all the answers

    _______ advantage refers to a country's capability to produce a specific good at lower marginal cost compared to other countries.

    <p>Comparative</p> Signup and view all the answers

    Match the economic concepts with their definitions:

    <p>Absolute Advantage = Inherent ability to produce goods efficiently Marginal Cost = Cost incurred in producing an additional unit of a product Opportunity Cost = Value of the next best alternative that is foregone Industrial Capitalism = Phase where industries dominate production</p> Signup and view all the answers

    What is the role of informal consultations in the WTO?

    <p>To produce consensus on slates of chairpersons across different councils</p> Signup and view all the answers

    In a free trade system, individuals have fewer choices of goods due to limited imports.

    <p>False</p> Signup and view all the answers

    What is meant by opportunity cost?

    <p>Value of the next best alternative that is foregone</p> Signup and view all the answers

    The __________ Theory of International Trade explains the dynamics of trade relations between countries.

    <p>Standard</p> Signup and view all the answers

    What currency system did the Americans institute in the Philippines in 1898?

    <p>Gold standard</p> Signup and view all the answers

    The Philippine peso was pegged to the American dollar at a ratio of 1:2.

    <p>True</p> Signup and view all the answers

    Who issued the first coins and paper currency in the Philippine Republic of 1898?

    <p>Emilio Aguinaldo</p> Signup and view all the answers

    Near field communication (NFC) payments allow two devices to process contactless payments using _____ frequency identification.

    <p>radio</p> Signup and view all the answers

    Match the payment technologies with their descriptions:

    <p>NFC = Processes contactless payments using radio frequency identification SWB = Uses sound waves to transmit data Mobile payments = Rendered through a portable electronic device Gold standard = Linked a country's currency value to gold</p> Signup and view all the answers

    Which series of banknotes was replaced by the New Design Series in 1985?

    <p>ABL series</p> Signup and view all the answers

    Modern banking and currency systems were introduced to the Philippines by the Japanese.

    <p>False</p> Signup and view all the answers

    What types of currency were struck at the Malolos arsenal?

    <p>Two-centavo copper coins</p> Signup and view all the answers

    The revolutionary notes printed as Republika Filipina included denominations of one ______ and five pesos.

    <p>peso</p> Signup and view all the answers

    What signifies the gold standard in currency systems?

    <p>Currency is pegged to gold</p> Signup and view all the answers

    Study Notes

    Unit 1: The Evolution of International Trade

    • World Trade Organization (WTO) is the global organization that deals with trade rules between nations, facilitating smooth, predictable and free trade for producers, exporters and importers.
    • WTO's purpose is to open trade for the benefit of all.
    • WTO roles include operating a global trade rule system, acting as a forum for trade negotiations, settling trade disputes and supporting developing countries.
    • General Agreement on Tariffs and Trade (GATT) was a predecessor to WTO, established by 23 countries in 1947 after WWII for international economic cooperation.

    Standard Theory of International Trade

    • The theory traces back to Adam Smith's Wealth of Nations (1776) and David Ricardo's Principles of Economics (1951).
    • Countries' wealth is determined by gold and silver holdings (classical view).
    • Smith and Ricardo championed free trade.
    • Division of labor is a key element to improve productivity and efficiency.
    • Trade surplus is when a country exports more than it imports.
    • Industrial capitalism evolved during the second phase of this system, with factories dominating goods production.
    • Absolute advantage is a country's inherent ability to produce goods efficiently at a lower cost(time, materials, labor).
    • Comparative advantage focuses on lowering marginal cost/opportunity cost of specific goods relative to other nations.
    • Standard theory evolved into International Trade and Commercial Policy, a field dedicated to trade determinants, trade benefits/harm, and effective national trade policies.

    Lesson 1.2: Barter

    • Barter is direct exchange of goods/services; no money involved.
    • Bartering is simple but finding suitable exchange partners can be a difficulty.
    • Swap markets, online auctions, and websites facilitate modern bartering.
    • Bartering emerged as early humans formed groups and traded surpluses in the wake of rising population and food production.
    • Salt had immense value in ancient societies, serving as payment for soldiers' service.

    Lesson 1.3: Origin of Money

    • The first recognizable metal coins appeared in China around 1000 BC
    • Early tools like bronze celts and rings served a monetary role; round objects evolved into first coins.
    • Bronze or copper coins evolved eventually, eventually to paper currency in China around 700 BC.
    • Lydia's King Alyattes minted first official currency (non-standardized coins) around 600 BC; gold and silver coins appeared later.
    • Lydia became the first known country to have a bimetallic monetary system( gold and silver coins) that were used by other societies.
    • Precursors to money in early civilizations were cowries (seashells).

    Lesson 1.4: History of Philippine Currency

    • Bartering was a common form of trade in the Philippines before the Spaniards arrived.
    • Cowries served as an accepted form of currency in pre-colonial times.
    • Spanish rule introduced silver coins, with the Spanish coat of arms and a cross on one side.
    • The earliest coins circulating in the Philippines were silver coins minted in Mexico and Spain.
    • The Philippines adopted the gold standard and the US dollar system in 1903.
    • War notes were introduced during the Japanese Occupation.
    • The Philippine peso was pegged to the US dollar.

    Lesson 1.5 Mobile Payments and internet payments

    • Mobile payments use phones to make transactions.
    • Near-field communication (NFC) allows for payments with close proximity to payment terminals.
    • Sound-wave-based mobile payments make contactless payments through sound waves received by POS terminals.
    • Magnetic Secure Transmission (MST) simulates magnetic stripe data for payments.
    • Digital wallets store information and facilitate transactions.

    Lesson 1.6 Virtual Currency (Cryptocurrency)

    • Cryptocurrencies are digital values accepted for trade.
    • Fiat currency, like coins and paper money, is issued by the central bank.
    • E-money is a digital representation of fiat currency.
    • Cryptocurrencies use blockchain-based technologies.
    • Cryptocurrencies use the principle of cryptography for security.
    • Digitalization and popularity of coins drive values and usability.
    • China is among the countries that are developing central bank-backed crypto.

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    Related Documents

    International Trade Evolution - IB PDF

    Description

    This quiz covers key concepts related to the evolution of international trade, focusing on the World Trade Organization (WTO) and historical theories by Adam Smith and David Ricardo. Explore the roles of WTO, as well as the foundational principles of free trade and the division of labor. Test your understanding of trade rules and economic cooperation.

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