IB300: Study Guide Terms

Nationalization

The process of converting privately owned property into a publicly owned government asset.

Privatization

The transfer of government-owned assets or services to the private sector.

Ad Valorem Duty

An import tax calculated as a specific percentage of the invoice value of the goods.

Specific Duty

A fixed sum of money charged for each physical unit of an imported good.

Compound Duty

A trade barrier that combines both specific and ad valorem duties on a single import.

Variable Levy

An import duty set to guarantee that the price of imports matches the domestic price.

Dumping

Selling products in a foreign market for less than the cost of production or the home-market price.

Subsidies

Financial contributions provided by a government to domestic firms to confer a competitive advantage.

Quotas

Numerical limits placed on the specific amount of a good that can be imported during a period.

Democracy Index

A measurement of the state of democracy based on political freedoms, civil liberties, and exercise of power.

Civil Law

A legal system based on a systematic collection of laws (codification) derived from ancient Roman law.

Common Law

A legal system that relies on previous court decisions and precedents for legal guidance.

Religious Law

A legal system based on divine inspiration or religious documents, such as Islamic or Jewish law.

Rule of Law

A system where rules are clear, respected, and fairly enforced for individuals and the government.

Extraterritoriality

A country's attempt to apply its national laws to nonresidents and activities occurring beyond its borders.

Arbitration

An out-of-court dispute resolution process where an impartial third party makes a binding decision.

Litigation

A formal legal proceeding conducted in a court of law to determine and enforce legal rights.

Public International Law

Legal rules governing the relationships and disputes specifically between sovereign governments.

Private International Law

Legal rules governing relationships between individuals and companies that cross international borders.

Patent

A government grant giving an inventor exclusive rights to manufacture, use, and sell an invention.

Trademark

A design, shape, or sound used by manufacturers to designate and differentiate their products.

Trade Name

The name used by a business to designate itself and its products, such as Yum! Brands.

Copyright

Exclusive legal rights for creators to publish and dispose of original works like software or art.

Trade Secret

Confidential business information, such as formulas or processes, that provides a competitive edge.

WIPO and TRIPS

International frameworks and organizations that oversee and standardize intellectual property protection.

Gross Domestic Product

The total monetary value of all goods and services produced within a nation's borders.

Gross National Income

Total income generated by a nation's residents, including domestic production and income from abroad.

Developed Economies

High-income industrialized nations with high living standards and advanced infrastructure.

Developing Economies

Lower-income nations characterized by less technically developed infrastructure and lower living standards.

Emerging Market Economies

Developing economies with per-capita incomes typically in the low to middle range.

Purchasing Power Parity

An adjustment to exchange rates so that currencies have equivalent purchasing power for a basket of goods.

Underground Economy

Unreported or under-reported economic activities not measured by official national statistics.

Gini Index

A measure of income distribution equality, ranging from $0$ (perfect equality) to $1$ (perfect inequality).

Floating Exchange Rate

A system where currency values are determined by market forces of supply and demand.

Currency Exchange Controls

Government restrictions on the buying or selling of foreign currencies to manage reserves.

Convertible Currency

A currency that can be easily exchanged for other currencies without government restrictions.

Nonconvertible Currency

A currency with strict government limitations on exchange, often fixed at an artificially high rate.