Studied by 7 peoplecapitalism
economic system by which the means of production are privately owned, supply and demand determine prices, and businesses are free to pursue profits with limited governmental control
cartel
a group of producers or sellers who agree to limit the production or sale of a product to control prices
transparency
the need to make business dealings more visible to everyone, especially government regulators
nonrenewable resources
resources that cannot be replenished once they are used
world bank
an international corporation that makes loan and provides financial assistance and advice to developing countries
Organization of Petroleum Exporting Countries (OPEC)
very influential in setting the price for crude oil
collateral
property or other security used to guarantee repayment of a loan
privatization
the conversion of government-owned factories and property to private ownership
external debt
money borrowed from foreign banks and governments
capital flight
the legal or illegal export of a nation's currency and foreign exchange
embargo
a restriction on the export or import of a commodity in trade
ASEAN
ten nation group that works to promote regional peace and stability in Southeast Asia
default
not repaying borrowed money
developing countries
countries whose average per capita GNP is a fraction of that in more industrialized countries
socialism
economic system in which government owns and runs some of the basic productive resources ostensibly for the best interest of society
International Monetary Fund
international agency that offers advice to all nations on monetary and fiscal policies
subsistence
the state in which a population produces only enough to support itself
glut
term referring to the substantial oversupply of a product
communism
political and economic philosophy in which the government ("the state") collectively owns and operates all factors of production
zero population growth
the condition in which the average number of births and deaths in a country balance
European Union (EU)
the single largest unified market in the world consisting of member nations cooperating in economic activities
Black Market
a market in which entrepreneurs and merchants sell goods illegally
pollution permits
federal permits sold to allow public utilities to release pollutants into the air
Free Trade Area (FTA)
an agreement in which two or more countries reduce trade barriers and tariffs among themselves
General Agreement on Tariffs and Trade (GATT)
signed by 23 countries in 1947 that extended tariff concessions and worked to do away with import quotas
North American Free Trade Agreement (NAFTA)
agreement attempting to liberalize free trade between the US, Mexico, & Canada
imports
the goods and services that one country buys from other countries
World Trade Organization (WTO)
an international agency that administers trade agreements, settles trade disputes between countries, organizes trade negotiations, and provides technical assistance and training for developing countries
freetrader
one who favors little, if any, trade barriers against foreign producers
Most Favored Nation Clause
a provision allowing a country to receive the same tariff reduction that the US negotiates with a third party
comparative advantage
a country's ability to produce a given product more efficiently than another country
foreign exchange rate
the price of one country's currency in terms of another country's currency
quota
a limit placed on the quantities of a product that can be imported
balance of payments
the difference between the money a country pays out to, and receives from, other nations when it engages in international trade
protective tariff
a tariff high enough to protect less-efficient domestic industries
absolute advantage
country's ability to produce more of a given product than can another country
protectionist
one who favors trade barriers such as tariffs and quotas to aid domestic producers
revenue tariff
a tariff high enough without prohibiting imports
dumping
selling products abroad at less than it costs to produce them at home
tariff
a tax placed on imports to increase their price in the domestic market
infant
term referring to a new or emerging industry that might need production protection
Karl Marx
economic historian who published "The Communist Manifesto" and "Das Kapital"
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