English for Specific Purposes 4 - Economic Vocabulary

Comprehensive vocabulary flashcards based on English for Economics notes, covering FDI, geopolitical mechanisms, ODA, Vietnam's economic integration, and professional journalistic metaphors.

foreign direct investment (FDI)

Investment made by a firm or individual in one country into business interests located in another country, categorized into inflows, outflows, and stocks.

FDI stocks

The total accumulated value of foreign direct investment in a country at a specific point in time, distinct from annual flows.

greenfield investment

A type of FDI where a company builds its operations in a foreign country from the ground up, such as building a new factory or facility.

brownfield investment

A form of foreign investment involving the purchase or lease of existing production facilities, often through mergers and acquisitions (M&A).

takeover bid

A corporate action in which an acquiring company makes an offer to buy the target company, which can be accepted or rejected.

hostile takeover

An acquisition of a target company by an acquirer that is accomplished by going directly to the company's shareholders or fighting to replace the management because the board is unwilling to agree to a merger.

Committee on Foreign Investment (CFIUS)

An interagency committee in the United States that reviews the national security implications of foreign investments in U.S. companies or operations.

reshoring

The process of returning the production and manufacturing of goods back to the company's original country.

nearshoring

The practice of transferring a business operation to a nearby country, such as a U.S. firm moving operations to Mexico, rather than a more distant one.

friend-shoring

A strategy where a country sources raw materials and manufactured goods from countries that share its values and are considered allies.

China+1 strategy

A business strategy to avoid investing only in China and diversify businesses into other countries, often to mitigate supply chain risks.

move up the value chain

An economic transition from simple, low-value production to more complex, high-value activities like research and development (R&D) or advanced electronics.

tax holiday

A government incentive that offers a temporary reduction or elimination of taxes for businesses, often used to attract FDI.

corporate income tax (CIT)

A tax levied on the profits of a corporation; for example, Vietnam's standard rate is $20\%$.

spillover effects

Postive or negative consequences of an economic activity that affects those who are not directly involved, such as local firms gaining knowledge from foreign investors.

crowding-out effect

A situation where increased involvement of foreign firms or government spending limits or replaces investment by the domestic private sector.

geo-economics

The study of the use of economic instruments to promote and defend national interests and produce beneficial geopolitical results.

de-risking

A strategy used by states to reduce economic reliance or dependency on a specific country to minimize potential vulnerabilities, without fully decoupling.

slowbalisation

A term used to describe the slowing down of the pace of global economic integration and trade.

sovereign debt

The amount of money that a country's government has borrowed, often through bonds, to finance its expenses.

balance of payments

A statement that summarizes an economy’s transactions with the rest of the world, including exports, imports, and financial transfers.

de-dollarisation

The process where countries seek to reduce their reliance on the U.S. dollar as a reserve currency or medium of exchange in international trade.

minimum global corporate tax

A landmark OECD/G7 agreement setting a minimum corporate tax rate of $15\%$ to prevent tax competition and profit shifting.

Official Development Assistance (ODA)

Government aid designed to promote the economic development and welfare of developing countries, provided by official agencies.

0.7% target

A UN-endorsed goal for developed nations to provide $0.7\%$ of their Gross National Income (GNI) as foreign aid to developing countries.

concessional loan

Also known as a soft loan, it is a loan granted on terms substantially more generous than market loans, featuring lower interest rates and longer grace periods.

socialist-oriented market economy

The official economic model of Vietnam, combining a market economy with the guidance and regulation of the socialist state.

middle-income trap

A situation where a country's growth plateaus and eventually stagnates after reaching middle-income levels, making it difficult to transition to high-income status.

red tape

An idiom referring to excessive bureaucracy or adherence to rules and formalities that prevents or delays action or decision-making.

the elephant in the room

A metaphorical expression for an obvious problem or difficult situation that people do not want to talk about or acknowledge.

kick the can down the road

An idiom meaning to delay a decision or avoid dealing with a difficult problem in the hope that it will be handled by others in the future.

the lion's share

An idiom meaning the largest or most significant portion of something.

punch above one's weight

An idiom used to describe a person, company, or country that has more influence or power than would be expected based on its size or resources.