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Questions and Answers
Which explorer is NOT mentioned as part of the Age of Exploration?
Which explorer is NOT mentioned as part of the Age of Exploration?
The British East India Company was established in the 15th century.
The British East India Company was established in the 15th century.
False
The General Agreement on Tariffs and Trade (GATT) was established in ______.
The General Agreement on Tariffs and Trade (GATT) was established in ______.
1947
What was a significant outcome of the Industrial Revolution for international trade?
What was a significant outcome of the Industrial Revolution for international trade?
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Match the following eras with their significant contributions to trade:
Match the following eras with their significant contributions to trade:
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During the late 20th century, the rise of the internet changed how businesses conduct ______ transactions.
During the late 20th century, the rise of the internet changed how businesses conduct ______ transactions.
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What economic doctrine became dominant during the 16th to 18th centuries?
What economic doctrine became dominant during the 16th to 18th centuries?
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What was the role of Zhang Qian in the development of trade routes?
What was the role of Zhang Qian in the development of trade routes?
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What is one of the main psychological benefits of bartering?
What is one of the main psychological benefits of bartering?
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What can be a consequence of countries engaging in bartering?
What can be a consequence of countries engaging in bartering?
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Bartering is a system that uses money to trade goods and services.
Bartering is a system that uses money to trade goods and services.
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Bartering allows individuals to trade items they own but are not using for items that they need, while keeping their cash for ______ expenses.
Bartering allows individuals to trade items they own but are not using for items that they need, while keeping their cash for ______ expenses.
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Match the type of barter with its description:
Match the type of barter with its description:
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What significant event increased the popularity of online barter exchanges for small businesses?
What significant event increased the popularity of online barter exchanges for small businesses?
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Bartering helps eliminate risks associated with foreign exchange in international trade.
Bartering helps eliminate risks associated with foreign exchange in international trade.
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What role does the internet play in modern bartering practices?
What role does the internet play in modern bartering practices?
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What do Argentines use to cope with high inflation and low wages?
What do Argentines use to cope with high inflation and low wages?
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Bartering is illegal in most countries worldwide.
Bartering is illegal in most countries worldwide.
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What should an individual identify first when planning to barter?
What should an individual identify first when planning to barter?
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A barter exchange requires the satisfaction of _____ parties.
A barter exchange requires the satisfaction of _____ parties.
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Which of the following is NOT a limitation of bartering?
Which of the following is NOT a limitation of bartering?
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Bartering can still be a viable option for modern exchanges.
Bartering can still be a viable option for modern exchanges.
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Match the following barter elements with their descriptions:
Match the following barter elements with their descriptions:
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Legal issues can arise in bartering if exchanges are not declared to local _____ authorities.
Legal issues can arise in bartering if exchanges are not declared to local _____ authorities.
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Which regulatory body issued Circular No. 944 that recognized cryptocurrency in the Philippines?
Which regulatory body issued Circular No. 944 that recognized cryptocurrency in the Philippines?
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Cryptocurrency can be converted into real-world fiat currency only within closed virtual ecosystems.
Cryptocurrency can be converted into real-world fiat currency only within closed virtual ecosystems.
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Name one advantage of using open virtual currencies.
Name one advantage of using open virtual currencies.
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The two biggest cryptocurrencies by market capitalization are _____ and ______.
The two biggest cryptocurrencies by market capitalization are _____ and ______.
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Match the following terms with their descriptions:
Match the following terms with their descriptions:
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Who primarily uses cryptocurrency on exchanges?
Who primarily uses cryptocurrency on exchanges?
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Virtual currencies are only used for financial transactions.
Virtual currencies are only used for financial transactions.
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What is the role of the Internal Revenue Service (IRS) regarding virtual currencies?
What is the role of the Internal Revenue Service (IRS) regarding virtual currencies?
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What feature does the coin known as the Mexican Pillar Dollar represent?
What feature does the coin known as the Mexican Pillar Dollar represent?
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The Philippine peso was pegged to the American dollar at a ratio of 1:1 during the American period.
The Philippine peso was pegged to the American dollar at a ratio of 1:1 during the American period.
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What nickname was given to the war notes issued during the Japanese Occupation?
What nickname was given to the war notes issued during the Japanese Occupation?
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The establishment of the Central Bank of the Philippines occurred in _____.
The establishment of the Central Bank of the Philippines occurred in _____.
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Which series of notes began circulation in the Philippines in the late 1970s?
Which series of notes began circulation in the Philippines in the late 1970s?
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The Flora and Fauna Coin Series was first issued in the year 1985.
The Flora and Fauna Coin Series was first issued in the year 1985.
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Who printed the first currencies for the Philippines after the establishment of the Central Bank?
Who printed the first currencies for the Philippines after the establishment of the Central Bank?
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Match the key terms with their descriptions:
Match the key terms with their descriptions:
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Study Notes
Historical Trade Networks
- A vast trade network extending over 6,000 miles facilitated commerce between Asia, Europe, and Africa.
- Zhang Qian, a prominent Chinese diplomat and explorer, helped expand and establish these trade routes.
Age of Exploration
- Spanned from the 15th to 17th centuries, leading to the discovery of new trade routes and lands.
- Key explorers included Christopher Columbus, Vasco da Gama, and Ferdinand Magellan, who sought pathways to Asia.
Mercantilism and Colonialism
- Dominant economic doctrine from the 16th to 18th centuries emphasizing national trade policies.
- European colonies were established globally to secure raw materials and create markets for finished goods.
- The British East India Company, formed in 1600, became vital in international trade, especially in Asia.
Industrial Revolution
- The period from the 18th to 19th centuries brought significant technological advancements that transformed trade practices.
Post-World War II Trade Agreements
- The General Agreement on Tariffs and Trade (GATT) initiated in 1947 aimed to reduce trade barriers and promote global economic growth.
- GATT transitioned into the World Trade Organization (WTO) in 1995 for managing trade agreements and dispute resolutions.
Digital Era and E-commerce
- The late 20th and early 21st centuries saw a revolution in cross-border transactions due to e-commerce and internet advancements.
- Global supply chains became highly interconnected, facilitating efficient production and distribution of goods.
Barter System
- Bartering is the exchange of goods or services directly without monetary involvement.
- Individuals can trade unused items for necessary goods, preserving cash for essential expenses.
- Strengthens personal relationships and builds professional networks.
Bartering Mechanism
- Individuals evaluate and assign value to their goods, creating a basis for resource allocation.
- Companies may barter to obtain goods without cash, eliminating foreign exchange risks.
- Countries may barter to manage trade deficits when struggling with debt, exchanging goods for essential resources.
Economic Downturns and Bartering
- Small businesses increasingly utilized barter exchanges after the 2008 financial crisis to maintain revenue streams.
- Bartering gained traction in the UK during COVID-19 lockdowns, with significant increases in exchange fairs in Argentina due to economic pressures.
Successful Bartering Tips
- Identify available resources and needs before finding a barter partner.
- Clearly define values to ensure mutual satisfaction.
- Draft agreements in writing to formalize the exchange.
Limitations of Bartering
- Larger businesses typically do not engage in barter.
- There may be caps on barter transactions, requiring partial cash payments.
- Legal concerns arise if barter transactions are not reported for taxation.
Legality and Modern Bartering
- Bartering is legal in many countries, provided exchanges are correctly declared for tax purposes.
- Contemporary forms like time banking and cooperatives show that cashless exchange systems remain relevant.
Origin of Money
- Money and currency are distinct concepts; money is intangible, while currency is its physical representation.
- Coins, such as the Mexican Pillar Dollar, symbolize global trade and heritage.
History of Philippine Currency
- During the American period (1900–1941), a gold standard-based monetary system was established.
- Japanese occupation (1942–1945) led to the use of "Mickey Mouse" money, causing severe inflation.
- The Central Bank of the Philippines was founded in 1949, initiating the "Filipinization" of currency and significant monetary reforms.
Virtual Currency
- The IRS defines it as a digital value representation not tied to real currency.
- Cryptocurrencies serve as investment tools and can also provide access to financial services in underserved regions.
Types of Virtual Currencies
- Closed virtual currencies operate in a controlled ecosystem with no cash conversion options, common in gaming.
- Open virtual currencies, such as stablecoins and cryptocurrencies, allow for conversion across different platforms and currencies.
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Description
Test your knowledge on the evolution of international trade from the Age of Exploration to the pivotal figures like Zhang Qian. This quiz covers important trade routes that connected Asia, Europe, and Africa, and the impact of explorers in expanding these networks. Understand how these historical developments shaped global trade today.
