Colombian Exchange

In: Historical Events

Submitted By hsamantha101
Words 888
Pages 4
Samantha Harris
April 4, 2014

The Columbian Exchange Columbus’s Voyage played a pivotal role in History because it lead to the exchange of goods, people and ideas, between the Old World and the World, which has been termed the Columbian Exchange or the Great Exchange, devised by historian Alfred Crosby, of the University of Texas. Many new and different goods were exchanged between parts of the Earth and transformed Europe and American ways of life. Everyone today knows that Florida is famous for our oranges, and as a matter of fact it is our official state fruit and is a major part of Florida’s economy. However, did you know that before Columbus and the Columbian Exchange, oranges did not exist in the Americas? The orange plant is believed to be native to Asia. I believe that It’s Important to understand the Columbian Exchange, because understanding the Columbian Exchange helps us understand the forces that shape the world , as we know it today. This essay will specifically focus on the impact the Columbian Exchange had on Europe in regards to newly introduced plants. New plants impacted Europe in a very positive way by increasing Europe’s population tremendously and also creating economic stimulation which make this country a very powerful country. Newly introduced plants also had some negative impacts, not on Europe but on slaves. New plants associated with the Columbian Exchange had a huge impact on the population of Europe. The Old World received bountiful amounts of new plants that were discovered in the New World. Plants like potato, tomato, maize (corn), cassava and many more, created a surplus of food for Europe. Before the Columbian Exchange, carbohydrate based plants was scarce. Europeans relied on eating native plants and animals which subjected many people to deadly diseases from eating. Plants brought over from American to Europe also…...

Similar Documents

Exchange Rate Random Walk Model

...Forecasting the USD/COP Exchange Rate: A Random Walk with a Variable Drift Peter Rowland Banco de la República* Abstract This study develops three exchange rate models as well as a simple statistical model defined as a random walk with a variable drift. The exchange rate models all use the purchasing power parity hypothesis to account for the long-term relationships between prices and the exchange rate, together with error correction models to represent any shortterm dynamics. The models are estimated for the USD/COP rate of exchange, and their forecast performance is compared to that of a simple random walk as well as to that of the random walk with a variable drift term. Two of the models are shown to outperform the simple random walk on the 12 and 24-months forecasting horizon. However, all the models are outperformed by the random walk with a variable drift, where the drift term is estimated using a Kalman filter. The results suggest that fundamental models might only be a useful tool for forecasting of the exchange rate in the very long run. The opinions expressed here are those of the author and not necessarily of the Banco de la República, the Colombian Central Bank, nor of its Board of Directors. I express my thanks to Luis Eduardo Arango, Javier Gómez, and Luis Fernando Melo for helpful comments and suggestions. Any remaining errors are my own. * Contents 1 2 2.1 2.2 2.3 2.4 2.5 2.6 3 3.1 3.2 3.3 3.4 3.5 3.6 4 4.1 4.2 4.3 5 Introduction Exchange Rate......

Words: 13917 - Pages: 56

The Foreign Exchange Market & Exchange Rate

...and or sell goods. The foreign exchange market is a place where the transactions in foreign exchange are conducted. In practical world the external transaction requires the use of foreign purchasing power i.e. foreign currency. The foreign exchange market facilitates such transactions by performing number of functions. Definitions of Foreign Exchange Market According to Paul Einzig, "The foreign exchange market is the system in which the conversion of one national currency in to another takes place with transferring money from one country to another." According to Kindleberger, "It is place where foreign moneys are bought and sold." In simple words, the foreign exchange market is a market in which national currencies are bought and sold against one another. There are large numbers of foreign transactions such as buying goods abroad, visiting foreign country for any purpose. Corresponding nation in whose currency the transaction is to be fulfilled. The foreign exchange market provides the foreign currency against any national currency. However, it is to be understood that unlike other markets, this market is not restricted to any particular country or any geographic area. There are large numbers of dealers' instruments such as exchange bills, bank drafts, telegraphic transfers (TT), etc. There are certain other dealers such as brokers, acceptance houses as well as the central bank and treasury of the nation. Functions of Foreign Exchange Market a) Transfer......

Words: 4258 - Pages: 18

Foreign Exchange

...Measuring Translation and Transaction Exposure PART I. ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE: Accounting and Economic Risk I. ALTERNATIVE MEASURES A. TYPES 1. Accounting Exposure: arises when reporting and consolidating financial statements require conversion from subsidiary to parent currency. 2. Economic Exposure: arises because exchange rate changes alter the value of future revenues and costs. Accounting Exposure B. Accounting Exposure = Transaction risk + Translation risk [pic] ALTERNATIVE MEASURES OF FOREIGN EXCHANGE EXPOSURE C. Economic Exposure = Transaction Exposure +Operating Exposure Operating Exposure arises because exchange rate changes alter the value of future revenues and costs. PART II. ALTERNATIVE CURRENCY TRANSLATION METHODS (ACCY) I. FOUR METHODS OF TRANSLATION A. Current/Noncurrent Method 1. Current accounts use current exchange rate for conversion. 2. Income statement accounts use average exchange rate for the period. B. Monetary/Nonmonetary Method 1. Monetary accounts use current rate 2. Pertains to - Cash - Accounts receivable - Accounts payable - Long term debt 3. Nonmonetary accounts - Use historical rates - Pertains to: Inventory, Fixed assets, Long term investments 4. Income statement accounts - Use average exchange rate for the period. C. Temporal Method 1. Similar to......

Words: 1995 - Pages: 8

The Kula Exchange

...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......

Words: 589 - Pages: 3

Exchange Rate

...Abstract INTRODUCTION When first looking at an exchange rates, and foreign exchange, there are a few questions which must be considered. What factors affect the demand and supply of Australian dollars in the foreign exchange markets? Distinguish between the possible causes and effects of currency depreciation and a currency appreciation on the Australian economy. What forces have come into play, if any, in the past few years that have affected the value of the Australian dollar? In addition to looking further into those questions, it is helpful to know what the word Exchange Rate means; it is defined as, “The rate at which one unit of domestic currency is exchanged for a given amount of foreign currency.”  A BRIEF HISTORY OF THE AUSTRALIAN DOLLAR Until 1971, the Australian dollar (AUD) was “pegged” to the British pound. This meant that the AUD rose or fell in line with the pound. In 1971, the AUD became pegged to the US dollar instead. These currencies were fixed currencies, which meant that the Australian currency would only change value when a major world currency also changed. This system lasted only until 1974 when the AUD became pegged to a trade-weighted selection of other currencies. This was still a fixed currency. In 1976 this selection of currencies became moveable. Small shifts were able to take place when needed. In 1983 the AUD became a floating currency. This means that the value of the dollar is determined by supply and demand. Initially, the......

Words: 3252 - Pages: 14

Impact of Columbian Exchange

..."Colombian Exchange." This is the exchange of the crops, animals and resources that went between the New and Old World. From the Americas came peppers, maize, potatoes, tomatoes, snap beans, lima, beans, and squash. Maize and potatoes became staple crops throughout Europe. So much so that the Irish potato crop failed, the result was famine. From Europe, to the Americas came wheat, rye, barley, oats and millet. The first two crops are used in bread, a mainstay today. The horse was a European import. When adopted by the Native Americans, the result was the Great Plains cultures. The Americans produced vast amounts of gold and silver. However the material was obtained, the amount imported to Europe made economies based on money possible. This allowed more trade. Having somewhere to go and new opportunities invigorated Europe. People could now seek their fortune or get a fresh start. Having a destination also increased technological development of deep ocean ships. There is a dark side to the exchange. When Europeans first came to the Americas they inadvertently introduced a number of diseases. These included forms of Tuberculosis, measles, cholera, typhus, and smallpox. Oh all the exchanges between the Native Americans and the Europeans, disease had the most impact. Native Americans had little immunity to any of these imported diseases. The migration route into the Americas had been through arctic regions. The cold acted as a "filter" preventing some......

Words: 278 - Pages: 2

Colombian Exchange

...Discuss the process of the exchange, what was involved, and the impact on both the Americas and Europe. According to Nathan Nunn and Nancy Qian, “The Columbian Exchange refers to the exchange of diseases, ideas, food crops, and populations between the New World and the Old World following the voyage to the Americas by Christopher Columbus in 1492.” The Columbian Exchange: A History of Disease, Food, and Ideas. The first major impact that affected the new world was the diseases. Some of the diseases they came in contact with were smallpox, measles, whooping cough, typhus, and malaria. Since they were not immune to these diseases they were completely defenseless. There were very few diseases from the new world but the most notable was syphilis. The second major impact that affected the new and old world was the transfer of foods. Some of the most nutritional foods introduced were potatoes, sweet potatoes, maize, and manioc. Some other foods such as tomatoes, and chili peppers were not high in calories. Quinine, a significant impact, was a medicinal gift from the new world to the old world. Quinine was the first effective treatment for malaria. The introduction of new wildlife was a drastic change for the new world because they knew nothing of horses, cattle, sheep, or goats; those were all animals of the old world. Animals were also infected by all types of diseases. Religion affected both the new and old world. Roman Catholics were one of the first religious groups to...

Words: 365 - Pages: 2

Exchange Risk

...EXPOSURE OF FOREIGN EXCHANGE RISK Foreign Exchange Exposure is the sensitivity of the real domestic currency value of assets, liabilities, or operating incomes to unanticipated changes in exchange rates EXPOSURE OF FOREIGN EXCHANGE RISK Foreign Exchange Risk is measured by the variance of the domestic - currency value of assets, liabilities, or operating income that is attributable to unanticipated changes in exchange rates EXPOSURE OF FOREIGN EXCHANGE RISK • Three important Facts: - Changes in the nominal exchange rate are not offset by corresponding changes in prices at home and abroad: there is real exchange rate risk - Neither the forward rate is successful in forecasting the exchange rate nor are other fundamental variables - Given the various market imperfections in the real world, hedging exchange rate risk can lead to an increase in the value of the firm EXPOSURE OF FOREIGN EXCHANGE RISK • Three types of Exposure: - Translation or Accounting Exposure - Transaction or Contractual Exposure - Operating or Economic Exposure EXPOSURE OF FOREIGN EXCHANGE RISK • Three types of Exposure: Exchange Rate Shock 1. Translation or Accounting Exposure ∆ in FE rate ∆ in Accounting statements 3. Operating Exposure ∆ in FE rate 2. Transaction Exposure ∆ in FE rate ∆ in outstanding obligations ∆ in future cash flows EXPOSURE OF FOREIGN EXCHANGE RISK • Translation or Accounting Exposure: Is the sensitivity of......

Words: 3214 - Pages: 13

Colombian Exchange

...The Colombian Exchange The Columbian Exchange (also sometimes known as The Great Exchange) has been one of the most significant events in the history of world ecology, agriculture, and culture. The term is used to describe the enormous widespread exchange of plants, animals, foods, human populations (including slaves), communicable diseases, and ideas between the Eastern and Western hemispheres that occurred after 1492. Many new and different goods were exchanged between the two hemispheres of the Earth, and it began a new revolution in the Americas and in Europe. In 1492, Christopher Columbus' first voyage launched an era of large-scale contact between the Old and the New World that resulted in this ecological revolution: hence the name "Columbian" Exchange. The Columbian Exchange greatly affected almost every society on earth, bringing destructive diseases that depopulated many cultures, and also circulating a wide variety of new crops and livestock that, in the long term, increased rather than diminished the world human population. Maize and potatoes became very important crops in Eurasia by the 1700s. Peanuts and manioc flourished in tropical Southeast Asian and West African soils that otherwise would not produce large yields or support large populations. This exchange of plants and animals transformed European, American, African, and Asian ways of life. Foods that had never been seen before by people became staples of their diets, as new growing regions opened up for......

Words: 491 - Pages: 2


...Universidad del Cauca. ____ 2001. “Tras las huellas de los renacientes: Por el laberinto de la etnicidad e identidad de los grupos negros o ‘afrocolombianos’ del Pacífico sur”. En: Mauricio Pardo (ed.), Acción colectiva, estado y etnicidad en el Pacífico colombiano. pp. 15-40. Bogotá: Icanh-Colciencias. Almario, Oscar y Ricardo Castillo. 1996. “Territorio, poblamiento y sociedades negras en el Pacífico Sur colombiano”. En: Eduardo Restrepo y Jorge Ignacio del Valle (eds.), Renacientes del guandal. pp. 57-120. Bogotá: Universidad Nacional-Biopacífico. Altieri, Miguel. [1987] 1995. Agroecology: The Science of Sustainable Agriculture. Boulder: Westview Press. Álvarez, Manuela. 2002. “Altered States: Culture and Politics in the Colombian Pacific”. Tesis de maestría, Departamento de Antropología, Universidad de Massachusetts, Amherst. Álvarez, Sonia. 1998. “Latin American Feminisms ‘Go Global’: Trends in the 1990s and Challenges for the New Millennium” En: Sonia Álvarez, Evelina Dagnino y Arturo Escobar (eds.), Cultures of Politics/Politics of 354 Arturo Escobar Cultures. Revisioning Latin American Social Movements. pp. 293-3245. Boulder: Westview Press. Álvarez, Sonia, Evelina Dagnino y Arturo Escobar (eds.). 2001. Política cultural / cultura política: una nueva mirada sobre los movimientos sociales latinoamericanos. Bogotá: Taurus-Icanh.   Amin, Samir. 2003. For struggles, global and national. Interview. Frontline 20(2): 1-10. ____ 1976.......

Words: 192989 - Pages: 772

The Exchange Rate

...The exchange rate An exchange rate is the rate at which one currency is exchanged on another one. This rate differs from country to country and depends on many economical variables, the main of which are the general balance and disbalance of economy, monetary and fiscal policy, the state of the budget, international policy, the condition and development of the country’s economy compared to the world situation and dominating countries, purchasing power of the currency, and other internal and external factors. The history of world exchange rate systems shows us that the world community (in its majority) has in fact shifted from the system of fixed exchange rates to floating exchange rate system. Currently there exist different combinations of floating and fixed exchange rate systems, together with specific economical instruments, created for exchange rate regulating. Since the development of production and a number of divisions of labor there existed such a phenomenon as commodity money. There was no other monetary system until 17th century when there appeared coins having an intrinsic value, not linked with commodity. Usually the value of the coin was associated with the content of gold in the coin. The exchange rate between different coins and different currencies depended on the content of gold in the coin as well, and equaled to the relative content of gold in the coins. In 17th century banks started issuing own banknotes which had the same purchasing power as...

Words: 2755 - Pages: 12

Exchange Rates

...6 Factors That Influence Exchange Rates: Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants of a country's relative level of economic health. Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world. For this reason, exchange rates are among the most watched, analyzed and governmentally manipulated economic measures. But exchange rates matter on a smaller scale as well: they impact the real return of an investor's portfolio. Here we look at some of the major forces behind exchange rate movements. Overview Before we look at these forces, we should sketch out how exchange rate movements affect a nation's trading relationships with other nations. A higher currency makes a country's exports more expensive and imports cheaper in foreign markets; a lower currency makes a country's exports cheaper and its imports more expensive in foreign markets. A higher exchange rate can be expected to lower the country's balance of trade, while a lower exchange rate would increase it. Determinants of Exchange Rates Numerous factors determine exchange rates, and all are related to the trading relationship between two countries. Remember, exchange rates are relative, and are expressed as a comparison of the currencies of two countries. The following are some of the principal determinants of the exchange rate between two countries. Note that these factors......

Words: 1096 - Pages: 5

Foreign Exchange

...Tutorial GD30903 International Financial Economics Topic: Foreign Exchange Market 1. Utah Bank’s bid price for Canadian dollars is $.7938 and its ask price is $.81. What is the bid/ask percentage spread? 2. If the direct exchange rate of the euro is $1.25, what is the euro’s indirect exchange rate? That is, what is the value of a dollar in euros? 3. Assume Poland’s currency (the zloty) is worth $.17 and the Japanese yen is worth $.008. What is the cross rate of the zloty with respect to yen? That is, how many yen equal a zloty? 4. You just came back from Canada, where the Canadian dollar was worth $.70. You still have C$200 from your trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $.60. Next week, you will be going to Mexico and will need pesos. The airport foreign exchange desk will sell you pesos for $.10 per peso. You met a tourist at the airport who is from Mexico and is on his way to Canada. He is willing to buy your C$200 for 1,300 pesos. Should you accept the offer or cash the Canadian dollars in at the airport? Explain. 5. Today you notice the following exchange rate quotations: *$1 is equal to 3.00 Argentine pesos *1 Argentine peso = 0.50 Canadian dollars * You need to purchase 100,000 Canadian dollars with U.S. dollars. How many U.S. dollars will you need for your purchase? ...

Words: 259 - Pages: 2

Ion Exchange

... ion exchange Process in which ions of one substance are replaced by similarly charged ions of another substance. In water softening, for example, the hardness causing calcium and magnesium ions are replaced by non- hardness causing hydrogen and sodium ions by passing the hard water over an ion-exchange resin. also a good example is H+ and Na+ Ion exchange (IX) processes are reversible chemical reactions for removing dissolved ions from solution and replacing them with other similarly charged ions. In water treatment, it is primarily used for softening where calcium and magnesium ions are removed from water; however, it is being used more frequently for the removal of other dissolved ionic species. In a cation exchange process, positively charged ions on the surface of the IX resin are exchanged with positively charged ions available on the resin surface - typically sodium. Water softening is the most widely used cation exchange process. Similarly, in anion exchange negatively charged ions are exchanged with negatively charged ions on the resin surface - typically chloride. Contaminants such as nitrate, fluoride, sulfate, and arsenic, as well as others, can all be removed by anion exchange. The exchange medium consists of a solid phase of naturally occurring materials (zeolites) or a synthetic resin having a mobile ion attached to an immobile functional acid or base group. Both anion and cation resins are produced from the same basic organic polymers but they differ in the......

Words: 274 - Pages: 2

Exchange Rate

...-21 (revised) OFFICE OF INDUSTRIES WORKING PAPER U.S. INTERNATIONAL TRADE COMMISSION How Do Exchange Rates Affect Import Prices? Recent Economic Literature and Data Analysis Cathy L. Jabara Office of Industries U.S. International Trade Commission Revised, October 2009 Cathy Jabara is a Senior Economist with the Office of Industries of the U.S. International Trade Commission. Office of Industries working papers are the result of the ongoing professional research of USITC Staff and are solely meant to represent the opinions and professional research of individual authors. These papers are not meant to represent in any way the views of the U.S. International Trade Commission or any of its individual Commissioners. Working papers are circulated to promote the active exchange of ideas between USITC Staff and recognized experts outside the USITC, and to promote professional development of Office staff by encouraging outside professional critique of staff research. This paper is a revised version of Working Paper No. 21 dated May 2009. The paper has been updated to include 4 lags in the exchange rate estimation, instead of 3, and a new equation for Latin America is included. JEL codes: F10, F12 Key words: Exchange rates, pass-through, U.S. imports Address correspondence to: Office of Industries U.S. International Trade Commission Washington, DC 20436 How Do Exchange Rates Affect Import Prices? Recent Economic Literature and Data Analysis Cathy L. Jabara U.S.......

Words: 6701 - Pages: 27

The Love Guru | Dua Lipa | Album, které Vás šokovalo