Globalization of Economics

Gross Domestic Product (GDP)

The total monetary or market value of all the finished goods and services produced within a country’s border in a specific time period.

Trade Surplus

A situation when the total value of goods and services that domestic producers sell to foreign countries exceeds the total value of foreign goods and services bought by domestic consumers.

Trade Deficit

When the total value of foreign goods and services bought by domestic consumers is greater than the total value sold by domestic producers to foreign countries.

Nominal GDP

GDP evaluated at current market prices, in either local currency or in U.S. dollars.

GDP Purchasing Power Parity (PPP)

GDP measured in 'international dollars' using PPP which adjusts for differences in local prices and costs of living.

Real GDP

An inflation-adjusted measure of a country's economic output.

GDP Growth Rate

Compares one year (or quarter) of a country’s GDP to the previous year (or quarter) to measure how fast an economy is growing.

Gross National Product (GNP)

A measurement of the overall production of persons or corporations native to a country, including those based abroad.

Gross National Income (GNI)

The sum of all income earned by citizens or nationals of a country.

Revenue

All cash inflows of the national government treasury collected to support government expenditures.

Tax

A compulsory contribution mandated by law and exacted by the government for a public purpose.

Non-tax Revenues

All other collections of the government in exchange for services rendered, assets conveyed, penalties imposed, etc.

Tax System

A system that should be revenue-productive, simple to administer, equitable, and progressive.

Comprehensive Tax Reform Program (CTRP)

A comprehensive measure to overhaul the tax system to bring in badly needed revenues for the government.

Privatization Program

A government initiative launched in 1987 to sell non-performing assets of government financial institutions.

Net Borrowings

Gross borrowing less debt amortization.

Liabilities under Public Debt

All claims against the government payable in goods and services, usually in cash, to foreign governments or individuals.

Debt Service

The sum of debt amortization and interest payments on borrowings of the national government.

National Debt of the Philippines

The total debt, or unpaid borrowed funds, carried by the national government of the Philippines.

Autarky

An economic system of self-sufficiency and limited trade.

Comparative Advantage

Occurs when one country can produce a good or service at a lower opportunity cost than another.

Keynesian Economics (Keynesianism)

An economic theory developed in response to the Great Depression emphasizing government intervention through spending.

Business Cycle

Economy-wide fluctuations in production, trade, and general economic activity.

Expansion (Business Cycle)

Characterized by increasing employment, economic growth, and upward pressure on prices.

Peak (Business Cycle)

The highest point of the economy where it produces at maximum output with full employment.

Contraction (Business Cycle)

An economic slowdown following a peak, marked by declining employment.

Trough (Business Cycle)

The lowest point of the cycle, marking the transition to the next phase of expansion.

Keynesian Theory

Founded by John Maynard Keynes, emphasizing government intervention to stabilize economies during downturns.