ECON vocab idek what ch

bro its midnight i'm so done

capitalism

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"