an economy in which the government regulates the amount distribution and price of goods and services
Currency devaluation
the reduction by a government of the value of its currency relative to currencies of other nations
Currency revaluation
the adjusting of a country`s currency value upwards
Democracy
government for and by the people
Economic imperialism
the policy or act of extending the rule or authority of one country over other countries by dominating those countries`economic structures
Economic system
the factors of production and the rules and regulations involving production and consumption of goods and services
Equilibrium
the point at which a business can sell its product at a profit and where the consumers agree to pay the asking price
Exchange controls
political and economic measures used by a government to try to regulate the amount and value of its currency
Expropriation
to take control and ownership of land property assets or private enterprise whether domestic of foreign
Floating rate
a rate of currency exchange that is not fixed and tends to fluctuate over time through buying and selling on the currency exchange market
Foreign investment
the purchase by non residents of business enterprises land shares and other assets with the potential for financial return
General instability
risk
possibility of uncertanty of political or economic change
Global economy
the combined interdependent economies of all countries
Global equity market
an international stock market that electronically links stock exchanges in key cities of the world
Market economy
a system where individual companies and consumers make decisions about what how and for whom goods and services are produced
mixed economy
an economy that combines government involvement and private ownership of businesses has aspects of both market and centrally planned economic systems
Operations risk
possibility that host government policies and acts may impede business operations in another country
Ownership risk
risk of losing ownership of property business and assets when threatened by government takeover or by expropriation
Political risk
risk of negative political change or instability assessed by looking at the host country's current of future political system and examining how changes to its stability might cause a loss to investments
Privatize
to sell publicly owned assets or enterprises to the private sector
Repatriation of
earnings
either retaining a portion of profit by a foreign host government or paying profit to the parent company
think tank
an organization institution or group that studies and researches specific topic and issues often of an economic and political nature
Supply and demand
the relationship between the demand for something and the supply or availability of it that usually affects prices and production
Systems
the capabilities of a machine or network
Totalitarian
government with centralized power that often uses the military to control the country
Trade war
situation in which governments act aggressively in international markets and trade negotiations to promote their own countries trading interests
Transfer risk
the possibility that government policy may adversely affect currency exchange rates