International Economics Lecture Review

A comprehensive set of vocabulary flashcards based on the concepts covered in International Economics.

International Economics

A discipline that explores macroeconomic issues from an international perspective.

International Trade

The exchange of goods and services across international borders.

International Production

The ability to place production facilities in various countries.

International Finance

The aspect of economics dealing with monetary transactions between countries.

International Development

Focuses on how economies develop in various regions.

Marketplace

The environment in which economic exchanges take place, real or virtual.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices.

Supply

The total amount of a good or service available for purchase at various prices.

Law of Demand

As price increases, quantity demanded decreases, and vice versa.

Ceteris Paribus

An assumption that all other variables are held constant when considering the effect of one variable.

Primary determinants of demand

Factors that primarily influence demand, mainly price.

Secondary determinants of demand

Factors other than price that influence demand, such as income, fashion, and prices of related goods.

Movement along the curve

A change in quantity demanded or supplied resulting from a change in price.

Shift of the curve

A change in demand or supply resulting from changes in other determinants.

Speculative Goods

Goods that are anticipated to increase in value, where demand may increase as prices rise.

Bandwagon Goods

Products that become more desirable as more people purchase them.

Inferior Goods

Goods for which demand increases as consumer income decreases.

Giffen Goods

A type of inferior good for which demand increases when its price rises.

Law of Supply

As the price of a good increases, the quantity supplied also increases, and vice versa.

Equilibrium Point

The price at which quantity demanded equals quantity supplied.

Excess Supply

A situation where the quantity supplied exceeds the quantity demanded.

Excess Demand

A situation where the quantity demanded exceeds the quantity supplied.

National Income

The total monetary value of all economic activities in an economy over a specified period.

Gross National Product (GNP)

The value of all finished goods and services produced by a country's residents plus net income from abroad.

Gross Domestic Product (GDP)

The total value of goods and services produced within a country's borders in a specific time period.

Human Development Index (HDI)

A composite measure of human development that includes income, health, and education.

Fair Trade

A trading partnership based on dialogue, transparency, and respect that seeks greater equity in international trade.

Economic Growth

The increase in the national income or GDP of a country over time.

Recession

A significant decline in economic activity across the economy that lasts longer than a few months.

Transfer Pricing

The pricing of goods, services, and intangibles between related entities across borders, often used to minimize tax liabilities.

Black Economy

All economic activity that is illegal or unrecorded in official statistics.

Voluntary Export Restrictions (VERS)

Agreements between exporting and importing countries to limit the quantity of exports.

Tariffs

Taxes imposed on imported goods to raise their price and protect domestic industries.

Quotas

Limits on the amount of a good that can be imported or exported during a specific time period.

Embargoes

Government orders prohibiting trade with specific countries or the exchange of specific products.

Dumping

Selling goods in foreign markets at a price lower than their domestic market price.

Economic Integration

The process by which countries reduce or eliminate barriers to trade and movement of goods and services.

Free Trade Area

A region where a group of countries have agreed to reduce or eliminate trade barriers.

Customs Union

A type of trade bloc comprising a free trade area with a common external tariff.

Common Market

A customs union that allows for the free movement of goods, services, labor, and capital between member countries.

Economic and Monetary Union

An agreement among European Union countries to adopt a single currency and a common monetary policy.

Sustainable Development Goals (SDGs)

A set of 17 global goals established by the United Nations to address various social, economic, and environmental challenges.

Gini Coefficient

A statistical measure of income inequality within a population.

Export-Led Growth

An economic strategy aimed at increasing national output by promoting exports.

Technological Gap Theory

Explains international trade as the result of differences in technology between countries.

Merchandise Trade

Trade involving the exchange of physical goods rather than services.

International Trade Theories

Frameworks explaining how and why countries engage in trade.

Absolute Advantage

A notion that a country can produce a good more efficiently than another country.

Comparative Advantage

The principle that countries should specialize in producing goods for which they have the lowest opportunity cost.

Heckscher-Ohlin Model

A theory of international trade that emphasizes the factors of production (land, labor, capital) as determinants of trade.

Intra-Industry Trade

Trade where countries import and export similar kinds of products.

Autarky

An economic system where a country minimizes its trade with others and is economically self-sufficient.

Protectionism

Government policies that restrict international trade to protect local industries.

Economic Development

Sustainable increases in living standards, often measured in terms of income and education.

Investment

The action of putting money into financial schemes, shares, property, or a commercial venture to earn a return.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for a specific task.

MNC (Multinational Corporation)

A corporate organization that owns or controls production of goods or services in one or more countries.

Comparative Advantage Model

A model that predicts the specialization of countries in the production of goods at the lowest opportunity cost.

Backward Linkages

Economic linkages from a company that operate upstream in the supply chain.

Forward Linkages

Economic linkages to other industries or sectors that utilize a company's output.

Irish Economy

The economy of Ireland, heavily influenced by foreign direct investment and multinational corporations.

Fiscal Policy

Government policy regarding taxation and public spending.

Monetary Policy

Policy that manages the money supply and interest rates in an economy.

Open Economy

An economy that engages in international trade with minimal restrictions.

Closed Economy

An economic system that does not interact with other economies.

Vertical FDI

Investment in different stages of production processes in different countries.

Horizontal FDI

Investment in the same industry but in different countries.

Business Cycle

The fluctuations in economic activity that an economy experiences over time.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market.

Oligopoly

A market structure in which a small number of firms has the large majority of market share.

Externalities

The unintended side effects of economic activities on unrelated third parties.

Inflation Targeting

Monetary policy strategy used by central banks to keep inflation at a predetermined level.

Exchange Rate

The value of one currency for the purpose of conversion to another.

CET (Common External Tariff)

Tariffs imposed by a group of countries on imports from other countries outside the group.

Collective Bargaining

Negotiation of wages and other conditions of employment by an organized body of employees.

Bilateral Trade Agreements

Trade agreements between two countries to promote trade between them.

Multilateral Trade Agreements

Trade agreements involving more than two countries.

Regional Trade Agreements

Agreements among countries in a particular region to trade more freely with each other.

Free Trade Agreements (FTA)

Pact between two or more nations to reduce barriers to imports and exports.

Investment Treaty

An agreement between countries on the terms and conditions for private investment.

Privatization

The transfer of ownership of property or businesses from the government to private individuals.

Government Intervention

The involvement of the government in a market in order to affect its outcome.

Trade Balance

The difference between a country's imports and exports of goods and services.

Trade Deficit

An economic condition in which a country imports more than it exports.

Trade Surplus

An economic condition where a country exports more than it imports.

Net Exports

The value of a country's total exports minus the value of its total imports.

Openness Index

Measure of a country's openness to international trade.

Balance of Payments

A record of all economic transactions between residents of a country and the rest of the world.

Current Account

A component of a country's balance of payments that deals with the trade of goods and services.

Capital Account

A component of the balance of payments that records capital transactions.

Migration Policy

Regulations and laws governing the movement of people between countries.

Resource Allocation

Decision-making process for distributing resources among competing groups.

Capital Formation

The process of building up the capital stock of a country through investing.

Inflation

A general increase in prices and fall in the purchasing value of money.

Austerity Measures

Measures taken by governments to reduce public spending.

Social Welfare Programs

Government programs that provide assistance to individuals in need.

Economic Indicators

Statistics that provide data on the economic performance of a country.

GDP Growth Rate

The rate at which a country's Gross Domestic Product (GDP) increases over time.

Purchasing Power Parity (PPP)

An economic theory that allows the comparison of the purchasing power of various world currencies.