Source : http://www.myfoxatlanta.com/dpp/news/local_news/Bartering-Sees-Comeback-with-Businesses-20110511-am-sd
Summary:
This article mainly discusses about how the traditional barter system is once again being seen on the market very frequently. Small businesses have put the barter system into great usage and is not only bearing through the economy but also earning many profits. Furthermore, an interview was scheduled with small business owner Joe Cox, questioning about his methods of taking advantage of the barter system. Joe stated:""I get all my landscaping done, painting at my shop, gutters, dental care, I get all my basic necessities - prescription glasses." Experts say the key to bartering is finding the right network for you.
Connections:
The barter system is one of the topics we have covered in this chapter. It is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium exchange (money). The reason why money was created later on in the economy was so that people will put a value to it, and use it as if it was worth something. But in the article, people have seemed to found that the barter system (traditional way) was a better way of doing business in the economy nowadays.
Reflection:
I feel like we should take into precaution that people are bringing back the old ways of exchanging goods or services with one another. This could be a very big factor for a decrease in the value of our Canadian dollar. People tend to use the barter system as an escape of paying for the taxes as well, because if you just exchange services without using money, then you don't have to pay for any taxes.
Sunday, May 15, 2011
Tuesday, May 3, 2011
Smart(phone) Money
1. How long do you think it's going to take to get to all virtual cards? How many years? (1 point)
Why? (1 point)
For our society to replace everything inside a physical wallet into a digital wallet definitely won’t be a short process however it shouldn’t be that much longer for the next generation to get used to and adapt to it. For instance, our parents’ generation prefers CDs and DVDs while our generation is perfectly fine with things in the digital format (such as songs stored in Mp3 players). As of putting this amount of time needed into numerical format, I believe it should take around aprroximately 10-18 years in order for everything to be replaced. I chose this number because that is probably the amount of time it would take for the next generation to grow up to an age where they are old enough to handle “virtual cards” and all the digital formats that people are inventing nowadays.
2. Who will not be on board with this new virtual wallet? (2 point)
I think the older generation probably won’t be on board with this virtual wallet because like mentioned above, they are the ones who preferred using CDs and DVDs, and they probably will also be the ones who would rather prefer the tactile experience of a currency holder over the convenience of a digital alternative. Just like printed books and newspapers, although we have online/digital books and newspapers, there are still those who prefer a daily purchase of newspaper.
3. What companies are going to be affected negatively by this? Name 3 (3 points)
The companies that are going to be affected negatively would be Mastercard companies, Interact, american express, etc. People will be using mastercards (credit cards), interact (debit cards) way less frequently than before because everything will be replaced with NFC (Near-field communications). As the demand for these cards go down, the companies would therefore make a lot less.
4. which industries are going to make money from this? Name 3 (3 points)
Cell phone carrier companies (telus), wireless internet companies(shaw), and any places that produces the virtual cards would be benefiting greatly from this change. Aside from all those, branded smartphone companies such as Blackberry, Apple, HTC, etc would be making big bucks from this operation. If everything goes as planned and the virtual cards idea receives wide acceptance, the usage of smartphones would increase tremendously creating a great demand for them.
Article: http://business.financialpost.com/2011/04/23/smart-phone-money/
Why? (1 point)
For our society to replace everything inside a physical wallet into a digital wallet definitely won’t be a short process however it shouldn’t be that much longer for the next generation to get used to and adapt to it. For instance, our parents’ generation prefers CDs and DVDs while our generation is perfectly fine with things in the digital format (such as songs stored in Mp3 players). As of putting this amount of time needed into numerical format, I believe it should take around aprroximately 10-18 years in order for everything to be replaced. I chose this number because that is probably the amount of time it would take for the next generation to grow up to an age where they are old enough to handle “virtual cards” and all the digital formats that people are inventing nowadays.
2. Who will not be on board with this new virtual wallet? (2 point)
I think the older generation probably won’t be on board with this virtual wallet because like mentioned above, they are the ones who preferred using CDs and DVDs, and they probably will also be the ones who would rather prefer the tactile experience of a currency holder over the convenience of a digital alternative. Just like printed books and newspapers, although we have online/digital books and newspapers, there are still those who prefer a daily purchase of newspaper.
3. What companies are going to be affected negatively by this? Name 3 (3 points)
The companies that are going to be affected negatively would be Mastercard companies, Interact, american express, etc. People will be using mastercards (credit cards), interact (debit cards) way less frequently than before because everything will be replaced with NFC (Near-field communications). As the demand for these cards go down, the companies would therefore make a lot less.
4. which industries are going to make money from this? Name 3 (3 points)
Cell phone carrier companies (telus), wireless internet companies(shaw), and any places that produces the virtual cards would be benefiting greatly from this change. Aside from all those, branded smartphone companies such as Blackberry, Apple, HTC, etc would be making big bucks from this operation. If everything goes as planned and the virtual cards idea receives wide acceptance, the usage of smartphones would increase tremendously creating a great demand for them.
Article: http://business.financialpost.com/2011/04/23/smart-phone-money/
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