Political and Econ System

armistice

An agreement between two (or more) countries at war to stop fighting.

benefit

An advantage; a competitive edge.

command economy

An economy in which all or most production capacity is owned and planned by the government.

democracy

A form of government in which citizens choose and change the government through elections.

economic development

The pursuit of improved economic and social well-being by a country.

economic growth

A rise in a country's GDP, reflecting increased production and consumption.

economic indicator

A statistic about the economy that provides information about its attributes.

embargo

A total ban on the supply of specific goods to or from a specific country.

exchange rate

The value of one currency expressed in terms of another.

fair trade

Trade that pays fair prices to producers in developing countries.

free trade

International trade without restrictions like tariffs or regulations.

gross domestic product (GDP)

The total value of all goods and services produced in a country in one year.

human development index (HDI)

A measurement of the economic and social well-being of people in a country.

infrastructure

The energy, transportation, and communication systems of a country.

intellectual property

The legal right to exclusive ownership of an idea, invention, or other intangible asset.

International Monetary Fund (IMF)

An international financial institution maintaining order in the global monetary system.

isolationism

A foreign-policy approach avoiding involvement with the outside world.

market economy

An economy in which production is privately owned and prices are determined by supply and demand.

piracy

Using somebody else's intellectual property without permission.

political economy

The combination of a country's political, economic, and legal systems.

property rights

Legal protection for an owner's rights to a resource or asset.

purchasing power parity (PPP)

The value of a currency based on its purchasing power.

quota

A limit on the quantity of a particular good that can be imported or exported.

repatriation

The return of profits in a foreign country back to the home country.

reward

Something of value given in recognition for service or merit.

risk

The probability of exposure to danger, injury, or loss.

standard of living

The quality and quantity of goods and services that people receive.

subsidy

A payment or assistance given by the government to help an industry or company.

tariff

A tax on a good moved from one country to another.

totalitarianism

A form of government where the state controls most aspects of life.

viable

Capable of working successfully; feasible.