Week 7: Business of Alcohol

A system of fixed but adjustable exchange rates among European currencies, established in 1979.

A virtual currency used as a unit of account(benchmark) within the EMS.

Part of the EMS, establishing a mechanism allowing for fluctuations of exchange rates within a margin (2.25%) above and below a central rate

A 1989 report proposing the implementation of an Economic and Monetary Union (EMU) in three stages.

Coordination of economic and monetary policies, and the free movement of capital.

The Bank of England was established in 1694.

The Federal Reserve System was created in 1913 in response to a financial crisis and to centralize control of money and regulate banks.

The Federal Reserve aims to maximize employment, stabilize prices, and moderate long-term interest rates.

Following the 1929 to 1939 economic crisis, Canada created a central bank in 1935.

Canadian chartered banks take deposits and make loans to businesses and individuals.

The Currency Snake was a European plan to coordinate monetary matters, but it lacked urgency before issues arose with the international monetary system.

The Werner Report proposed to establish a common European currency in the 1970s.

Bretton Woods was an arrangement for fixed exchange rates between the US dollar and other western currencies.

In the 1907 NYC banking crisis, banks faced a lack of cash to cover customer deposits, forcing the government to intervene.

Originally, the Bank of England was created to raise money for the British Navy.

An African philosophy emphasizing interconnectedness and mutual support, prioritizing the well-being of the community.

A model of capitalism that blends entrepreneurship with social justice, focusing on community development and addressing systemic racial inequalities.

A prominent Black business leader who led North Carolina Mutual Life Insurance Company, prioritizing both profitability and community well-being.

Financial tools like credit cards that circumvent local regulations and allow for national expansion of services.

Rules enforced by individual states, often impacting the profitability of financial services, like credit card interest rates.

Citibank relocated its credit card operations to benefit from more favorable state regulations, influencing other states.

The era following World War II, characterized by significant changes in consumer finance and the rise of credit cards.

The goal of financial firms to expand their services nationwide, often by circumventing local regulations.

The Silk Road, established around 100-200 BCE, led to a high demand for silk in the Roman Empire, which spanned from Europe to Northern Africa and the Middle East. This demand fueled trade and cultural exchange.

Silk clothing was considered more comfortable than woolen clothing, making it a desirable commodity on the Silk Road.

By 300 AD, China held a monopoly on silk production, keeping weaving and harvesting techniques secret from outsiders.

The Silk Road is believed to have facilitated the spread of the Black Plague from Asia to Europe in the 14th century, killing millions of Europeans.

The Industrial Revolution began in England in the 1700s, fueled by technological advancements and the exploitation of resources from colonies.

Britain relied on its colonies in the Americas and Asia for resources like silk, tobacco, and cotton, while providing finished goods in return.

Before the Industrial Revolution, textiles were made by hand in homes, where materials were delivered and finished products collected.

Innovations like the spinning jenny, water frame, and steam engine improved thread quality and production speed during the Industrial Revolution.

A treaty signed in 1992 to establish the European Union, with a common monetary policy. It was a compromise between monetarist and economist views, setting the euro's launch in 1999 and convergence criteria for member states.

Economic requirements set by the Maastricht Treaty that member states had to meet before joining the eurozone. These criteria aimed to ensure stability and convergence among member economies.

A monetary arrangement where a central bank fixes the value of its currency against another currency or a basket of currencies. This means the central bank actively intervenes to maintain the fixed exchange rate.

A monetary arrangement where a country's central bank allows the exchange rate to float freely in the market, but it can intervene occasionally to control inflation or manage the currency's value.

A monetary arrangement where the exchange rate of a currency is determined solely by market forces. The central bank does not intervene and doesn't have a specific target for the exchange rate.

The group of European countries that have adopted the euro as their common currency. The eurozone began in 1999, and the euro coins circulated in 2002.

An economic and political agreement between two or more countries where they share a common currency and monetary policy. The eurozone is an example of a monetary union.

Fixed exchange rates are controlled by the central bank, while floating exchange rates are determined by market forces. Fixed exchange rates maintain a specific value, while floating exchange rates fluctuate freely.

In the 1860s, cotton cultivation and production involved millions worldwide, making it a major economic force, particularly for the United States, where it accounted for over 60% of export value.

Zara, a brand under Inditex, revolutionized fashion by adapting to customer preferences quickly and offering trendy styles at affordable prices. This was achieved through minimizing advertising and inventory, and using a vertically integrated production model.

Zara's success relies on a model that includes vertical integration, short design-to-shelf timelines, and a flexible supply chain. This allows them to react quickly to changing trends.

Inditex, the parent company of Zara, expanded internationally by 2005, leveraging its fast fashion model to become a major global player with thousands of stores.

India's fashion industry evolved in the 1980s, with a focus on promoting traditional Indian crafts and clothing like saris and salwar-kameez, creating a distinct national identity.

Indian entrepreneurs emphasized traditional Indian crafts like embroidery and unique fabric patterns to create a distinct fashion identity, rather than focusing solely on Western styles.

The Indian fashion industry used traditional crafts to create a distinct national identity, promoting Indian-style clothing over Western styles that were prevalent in export markets.

The Indian fashion industry adapted to local preferences and markets, promoting traditional Indian styles that resonated with the regional demographic.