...An Argument for Regulation of the Reciprocal Trade (Barter) Exchange Industry Daniel Evans, Ormita Commerce Network It is well known that trust is the corner-stone of the financial services industry. Keynote speech by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, The Asian Banker Summit 2012 “Trust as a Pillar of the Industry”, Bangkok, 26 April 2012. Introduction Trust is a critically important ingredient in the recipe for well-functioning markets and a successful and vibrant economy. Unfortunately, due to market scandals, incompetence and fraud, trust in our neighbours is something that is in shorter supply today than any other time in history. As Alan Greenspan once remarked: "[O]ur market system depends critically on trust—trust in the word of our colleagues and trust in the word of those with whom we do business."1 Despite outward appearances, public confidence in the integrity of the reciprocal trade exchange industry is alarmingly low. While numerous factors have contributed to this problem, one of the most potent is the widespread failure of reciprocal exchange networks of all sizes over the past 30 years. These failures include the spectacular collapses of large commercial exchange networks such as Bartercard (in USA, Canada, India, China, Hong Kong, Singapore, Turkey, South Africa, Jordan 2 3 ), BarterTrust/Tradaq (USA, UK, Canada) 4 , BarterNet/Intagio (Canada, Mexico, USA & Europe) and Bigvine (Australia, Canada, USA)5; through to the dramatic...
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...Brianna Wells October 15, 2013 Professor Green Mon. /Wed. 3:00-4:15 pm Exchange is the idea that an item is given in order to receive something in return. The society in which we live in is commercial, we base our exchanges on money and materialistic items for our benefit; whether it is for survival or based upon our simple wants such as things that are usually given as gifts. Other societies, like the Kula tribe of the Trobriand Archipelago Islands, believe in the idea of gift giving not for trade or a system of bartering, but for the natural well-being of their society. They use it as a way to regulate their society. The Kula tribe of the Archipelagoes Islands participates in a system known as the “Kula Ring” in which typically the men of this and surrounding societies meet with one another in the ceremonial trade of armshells and necklaces. Although the trade is within the surrounding islands, there are some islands which are exempt and others that are known for their slow exchange causing other islands to dislike trading with them. Although these items are considered “gifts” they are never kept permanently; they are usually traded amongst one another over and over again, but there are exceptions. Few of the members of the Kula Exchange have permanent gifts which are family heirlooms, these men are the seen as more influential within the society. In fact, this trade is also a way to distinguish class within the tribes of these islands; the men with the most pieces...
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...How much does happiness cost “Barter” by Sara Teasdale is about what we take for granted in our lives. We don’t realize the full beauty that Mother Nature has to offer. Teasdale is referring to the people, the reader, in her use of “you” in the poem. Her general tone of “Barter,” is one of hopefulness and peace. She talks about how beautiful the “blue waves’ are crashing on the cliff and the ‘soaring fire’ on how it moves in the night. All these things are beautiful in their own way. We just overlook the simple things in life. Teasdale poem is one that yields layers of meaning in each time one reads it. It depicts different parts each time you emphasize certain parts, and get different meanings each time. Teasdale is saying in “Barter,” you should give all your worthless possessions for the beauty or loveliness for nature. “For one white singing hour of peace / Count many a year of strife well lost.’ Means spending one hour in the beauty of nature can take away one year of anger and pain. Teasdale uses poetic devices to give deeper meaning to her words. Her rhyme scheme is ABCBDD AEFEGG HIJIKK. It is considered to be an end rhyme. “Life has liveliness to sell” has three poetic devices in one single line. The line is repeated at the beginning of the second stanza which is called a repetition, and it also contains a euphony and alliteration. A simile is used in the line, “Music like a curve of gold.” She uses personification of the fire in the line ‘…Soaring fire that sways...
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...third parties. As a result of North Face’s limited production capacity, the company faced quality control issues over the next several years making it difficult to maintain its image as the leading producer of high-quality outdoor apparel. The company went public in 1996 and was accused of violating the revenue recognition principle when preparing its financial statements. Management had inflated revenue in order to meet expectations. Basically, North Face was incorrectly recognizing revenue barter transactions. North Face’s CFO, Crawford, was a CPA and knew that if he kept these transactions under the materiality threshold, then the auditors would not look into the matter. Additionally, North Face arranged two large sales to inflate the company’s revenue; however, the two transactions were actually consignments rather than sales. North Face’s auditors, Deloitte & Touche, knew that they should reverse the barter transaction, but then changed their minds because it was immaterial. As a result, the advisory partner for the North Face audit engagement, Richard Fiedelman, had allowed North Face to improperly recognize profit. The SEC sanctioned Fieldelman for failing to exercise due professional care while reviewing the financial statements. Additionally, the SEC suspended Crawford for five years prohibiting him from serving as an officer or director of a public...
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...realize just how much money controls our lives? Here’s some questions: Why do people rob others? Why has prostitution been a job since the beginning of time? Why do most companies focus on quantity over quality? Why are many people unable to get an advanced education, or some even a basic education? While there is more than one answer for each, the overall general reason is money. To begin with, I will take us back to nearly the beginning of human time. While it’s impossible to know for sure, it is widely thought that the barter system has been around for as long has humans have. Say I had a cow, but I needed more farming equipment. I would go around offering my cow to others that had the tools I was looking for. However I had to be lucky to find someone who thought a single cow was worth the tools I was asking for, so many times negotiations were made. This could be anything from adding on a couple chickens or pigs, to helping someone hunt a mammoth. The barter system, while effective for the time, was slow and eventually became difficult not to get ripped off. That’s when currency came into the world. A random object like a shell, cocoa beans, or even rocks were given a predetermined value that was accepted throughout a community or society. Eventually they moved to making a specific object like coins. Then banks started making paper money, which could be used to trade in with the specified amount of gold and silver. Thus brings us to currency as we know it today. Let me pose...
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...Reciprocity Being an open minded individual, when I look at someone from another culture I try to judge them with the realization that their values and actions are screened by a different filter than my own. I realize that some things they do may seem odd to me, yet are perfectly normal for their own culture. Just because an action may seem out of place or even offensive to me does not necessarily mean that was the intention of the person performing the action. Not looking at others through this lens would put me at a disadvantage, for those that could take culture into account would be better managers of cross-cultural groups in both social and work environments. That being said, I need to do a better job of identifying culturally influenced actions as they occur. In the heat of the moment if I am offended or made uncomfortable, I must analyze the situation first, and act after consideration of the situation and cultures at play as opposed to acting off of impulse. There are also still a few cultural norms that I find genuinely intriguing, and would love to widen the scope of my acceptance to include those as well so that I could behave more normally when cultural conflicts arise. One cultural norm that I find intriguing is reciprocity, and how in come cultures simply giving a gift to someone has strings attached. Reciprocity comes in many forms in North America. There is generalized reciprocity, which is a truly altruistic gift to another person with no expectation of...
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...The gift is primarily about the relationships being transacted, about the people involved in these transactions rather than the ceremonial giving and receiving of things (Carrier 1995: 19). Write an essay evaluating the role of alienable and inalienable goods in underscoring the importance of exchange transactions. In order for us to take an in depth look at the idea of gift giving and the relationships involved in such a ceremonial transaction we must first look at the people that are involved in the transaction. Not only must we look that the people but we must also focus on the affiliation between people and the actual object itself. Carrier himself states in his essay; “Gifts and Commodities” that “Clearly there is much more in our relationship to objects than sheer utility” (Carrier, 1995. 1), and thus proving to us that there we have a much more intimate relationship with material objects than we first imagined. This bond is deep enough that we even need material objects to define who we are sometimes, for example if a punk rocker claims to be a punk rocker he must dress according to the social image of a punk rocker and from there we can assume that person’s identity and personality as a punk rocker. Carrier says himself that “The corollary is that objects signify status identity and so constitute a claim to status-group membership on the part of those who have them” (Carrier, 1995. 2). Another major concept that is involved with both the relationship between humans and...
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...The bartering system represents the trading inside P.O.W camps and their living conditions in this brutal environment. The bartering system is a trading system based on free market concept,free market is the exchange of the tangible commodities or intangible services between two people or a group of people with the result of positive profit for both sides . In Italy P.O.W camps, prisoners began its first bartering by using two different products with different value. They used a bartering system to exchange the products that they had with the products that they want. According to Radford “Sikhs, who had at first exchanged tinned beef for practically any other foodstuff, began to insist on jam and margarine. It was realized that a tin of jam...
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...In Reciprocity on Skid Row by Christopher Hauch. The author describes the life of a person who lives on skid row, and the system of reciprocity that they have. The Ju’/hoansi have a comparable system but it also has some major differences. Both groups have inconsistent house which makes having a surplus in the first place difficult. In the case of the Ju’/hoansi this is due to their nomadic nature, having to move around foraging and hunting. Whereas the people who live on skid row have difficulty maintaining a permanent residence due to the extreme cost.. Both groups had a similar mentality when it came to gaining a large item of importance. For the skid row group it was a large sum of money, for the Ju’/hoansi it was a successful kill on...
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...Cases on Recognition Measurement The Barter Case "Will that be cash?" Ben Sawyer had started handcrafting replicas of antique furniture as a retirement hobby, but at the urging of friends he later opened a small shop to sell his products. It proved an immediate success, first with the "summer people" and then with dealers, several of whom encouraged Ben to supplement his line of small tables and bookcases with larger pieces. Ben decided to give it a try. After closing the shop for the winter, he worked in the basement of his home designing an impressive mahogany sideboard and building two of them by the shop's spring reopening. Materials costs (for wood) amounted to $700 for each; Ben's labor, priced at the going wage rate was $500 for each. No overhead costs were incurred. Although familiar with the market for casual "antique" furnishings, Ben was uncertain about an appropriate price for his sideboards. From a review of catalogues offering pieces mass-produced from cheaper woods, he concluded that a figure of $3,000 to $4,000 was about right for handcrafted mahogany. Accordingly, he priced each sideboard at $3,000 ("and I'm ready to haggle if somebody's ready to buy," he told Mrs. Sawyer). Within one week, Ben sold both sideboards with no haggling. He sold the first one on reopening day to Will Bascomb, a dealer he knew well. "Beautiful work, Ben," said Will. "I want it, but I'm going to be short of cash for a while. How about $1,000 down and the balance in quarterly...
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...One feature I noticed, was the Barter System. As you can see from the picture, there are people doing some time of business. Also, you notice that there is exchanging of items for other items, or trading. You see different types of people, bringing goods from other places to come trade as you can see. This part of the painting signifies change during time, because it promoted urbanization and also helped boost the economy which helped increase the population and the activity. Another feature I noticed, was a guild. A guild is when many people, or merchants, travel places looking for some sort of trade. These people would gather together only if they had common interest for there manual beliefs. I think that this part of the painting represents...
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...MINI CASE #1 Issue Identified How to account for the expected loss resulted from redemption of the debt obligations in the period that it announces its intent to call the debt for redemption? ASC References ASC 470-50-40-2 states that “ a difference between the reacquisition price of debt and the net carrying amount of the extinguished debt shall be recognized currently in income of the period of extinguishment as losses or gains and identified as a separate item.Gains and losses shall not be amortized to future periods. “ ASC 405-20-40 states that “a debtor shall derecognize a liability if and only if it has been extinguished. A liability has been extinguished if either of the following conditions is met: The debtor pays the creditor and is relieved of its obligation for the liability. Paying the creditor includes the following: Delivery of cash Delivery of other financial assets Delivery of goods or services Reacquisition by the debtor of its outstanding debt securities whether the securities are cancelled or held as so-called treasury bonds. The debtor is legally released from being the primary obligor under the liability, either judicially or by the creditor. ASC 470-50-55-9 specifies that “the following situations do not result in an extinguishment and would not result in gain or loss recognition under either paragraph 405-20-40-1 or this Subtopic: An announcement of intent by the debtor to call a debt instrument at the first call date In-substance defeasance ...
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...Countertrade is an umbrella term used to describe many different types of transactions each in “which the seller provides a buyer with goods or services and promises in return to purchase goods or services from the buyer”. It may or may not involve the use of currency, as in barter. By far the largest indirect method of exporting is countertrade. Competitive intensity means more and more investment in marketing. In this situation the organization may expand operations by operating in markets where competition is less intense but currency based exchange is not possible. Also, countries may wish to trade in spite of the degree of competition, but currency again is a problem. Countertrade can also be used to stimulate home industries or where raw materials are in short supply. It can, also, give a basis for reciprocal trade. Countertrade can take many forms. These are: • Barter- is the direct exchange of one good for another. It requires a double coincidence of wants. Barter trade can take a number of formats. Simple barter is the least complex and oldest form of bilateral, non – monetarised trade. Often it is called "straight", "classical" or "pure" barter. • A clearinghouse arrangement- is a form of barter in which the traders agree to buy a certain amount of goods from each other. They set up accounts with each other that are debited and credited as needed. At the maturity of the arrangement, the parties settle up in cash or merchandise. • Switch trading - Practice...
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...amounts or other valuation account, if any, while the former is not. 310-10-35 Credit losses for loans and trade receivables, which may be for all or part of a particular loan or trade receivable, shall be deducted from the allowance. The related loan or trade receivable balance shall be charged off in the period in which the loans or trade receivables are deemed uncollectible. Recoveries of loans and trade receivables previously charged off shall be recorded when received. B. FASB: 845-10-05 In a barter transaction involving barter credits, an entity enters into a transaction to exchange a nonmonetary asset (for example, inventory) for barter credits. Those transactions may occur directly between principals to the transaction or include a third party whose business is to facilitate those types of exchanges (for example, a barter entity). The barter credits can be used to purchase goods or services, such as advertising time, from either the barter entity or members of its barter exchange...
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...Problem Sheet | The Economics of Money, Banking & Financial Markets | 2014 | Ch 3 Sheet 3 | Instructor: Hala A. Fares | Tutor: Sarah Mostafa | MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt. 1) _______ A) credit B) money C) wealth D) income 2) Money is 2) _______ A) a flow of earnings per unit of time. B) anything that is generally accepted in payment for goods and services or in the repayment of debt. C) always based on a precious metal like gold or silver. D) the total collection of pieces of property that are a store of value. 3) Currency includes 3) _______ A) paper money, coins, checks, and savings deposits. B) paper money and coins. C) paper money and checks. D) paper money, coins, and checks. 4) The total collection of pieces of property that serve to store value is a person's 4) _______ A) wealth. B) money. C) credit. D) income. 5) A person's house is part of her 5) _______ A) money. B) income. C) wealth. D) liabilities. 6) ________ is used to make purchases while ________ is the total collection of pieces of property that serve to store value. 6) _______ A) Money; wealth B) Income; money C) Money; income D) Wealth; income 7) ________ is a flow of earnings per unit of time. 7) _______ A) Money B) Income C) Wealth D) Currency 8) An individual's annual salary is her 8) _______...
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