Financial Instruments: Classification of Derivatives Essay examples

During the time period 600 C.E. to 1450 C.E., trade networks were relied upon to transfer goods, ideas, and services. Both the Trans-Saharan and Silk Road trade routes depended on animals, luxury goods, and economic growth. However, the trade routes differed in animals, types of luxury goods, and success of economic growth.

As time was progressing, the civilizations have been developing techniques to better their ways of life. All three civilizations were accustomed to trade because they were located near rivers. Although they had access to the water surrounding their civilization, not all the civilizations traded with one another. Each of the civilizations was farmers but they had different ways to go about farming their lands. The Mesopotamians invented the

Mesopotamians developed specialized crafts and supported private entrepreneurship. They also were involved in foreign and domestic trade.

1. Long-distance commerce acted as a motor of change in pre-modern world history by altering consumption and daily life. Essential food and useful tools such as salt were traded from the Sahara desert all the way to West Africa and salt was used as a food preserver. Some incenses essential to religious ceremonies were traded across the world because there was a huge demand for them. Trade diminished economic self-sufficiency by creating a reliance on traded goods and encouraged people to specialize and trade a particular skill. Trade motivated the creation of a state due to the wealth accumulated from controlling and taxing trade. Trade posed the problem of if the government or private

Mesopotamia and Egypt are known as the “place of the first civilization” followed by the Hebrews. These three societies traded extensively, but there was a difference in economic area. Mesopotamia was more productive of technological improvements, because their environment was more difficult to manage than the Nile valley. Trade contacts were more extensive, and the Mesopotamians gave attention to a merchant class and commercial law. Priests were part of the trades because they possessed surplus produce collected as rents from the farmers using temple land. Before merchants gained power as independent entrepreneurs; they used to serve the king and the temple priest.

1. The financial choices we make impact our economy. Think of a recent item you purchased. What factors influenced your decision in making this purchase? Did this purchase impact your local economy? Explain why or why not.

In Mesopotamia, people had no money so they traded barley, pottery, fish, and other foods and inventions they made. They needed a way to keep up with what they traded, so Sumerians created the first form of writing over 5000 years ago which they called Cuneiform. They used Cuneiform for business dealings such as trading barley, keeping records, and new ideas changed between different generations.

Long before there were trains, ships and airplanes to transport goods from one place to another, there was the Silk Road. Beginning in the sixth century, this route was formed and thus began the first major trade system. Although the term “Silk Road” would lead one that it was on road, this term actually refers to a number of different routes that covered a vast amount of land and were traveled by many different people. Along with silk, large varieties of goods were traded and traveled along this route both going to and from China. Material goods were not the only thing that passed along this path, but many religions were brought into China via the Silk Road. These topics will be discussed in detail in this paper.

In 1950, V Gordon Childe drew up a list of traits of to what he considered to be the common characteristics of early civilizations. According to Fagan & Scarre, a recent archaeologist Charles Redman divided Childe’s list into primary and secondary characteristics. The primary characteristics included cities and states, together with full-time specialization of labor, concentration of surplus, and a class-structured society. For the secondary, the characteristics included symptoms or by-products of these major economic and organizational changes: monumental public works, long-distance trade, standardized monumental artworks, writing, and the sciences (arithmetic, geometry, and astronomy)(Scarre and Fagan 2003). One of the most common characteristics involve was a large, dense population living in a city. This essay well state and describe two early cities in Mesopotamia and explore the layouts and characteristics of these two cities. Also, whether each city is unique or share common characteristics with each other. The two cities are Maskan-shapir and Ur.

Assets are to be recorded and valued based of the type of asset there are.

The following terms are provided with definition to increase the reader’s understanding of this study.

Solution – A solution is the end product of when a solvent and a solute are mixed.

The definition of "derivatives" is also very wide, and includes options and warrants, whoever they are issued by, as well as rights and interests in respect of listed securities (or other derivatives).

In ancient history, trading was a major factor in the lives of many. It helped to renew the business of trading in some places. Another name for the trading system was the barter system. In ancient history there were many commodities that were useful in the trading system. Salt, gold, and people all had a role in the trading industry.

The term "product" refers to tangible, physical products as well as services. A product is everything one receives in an exchange,