ib unit 2 part 2

  1. Centrally planned
    an economy in which the government regulates the amount distribution and price of goods and services
  2. Currency devaluation
    the reduction by a government of the value of its currency relative to currencies of other nations
  3. Currency revaluation
    the adjusting of a country`s currency value upwards
  4. Democracy
    government for and by the people
  5. Economic imperialism
    the policy or act of extending the rule or authority of one country over other countries by dominating those countries`economic structures
  6. Economic system
    the factors of production and the rules and regulations involving production and consumption of goods and services
  7. Equilibrium
    the point at which a business can sell its product at a profit and where the consumers agree to pay the asking price
  8. Exchange controls
    political and economic measures used by a government to try to regulate the amount and value of its currency
  9. Expropriation
    to take control and ownership of land property assets or private enterprise whether domestic of foreign
  10. 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
  11. Foreign investment
    the purchase by non residents of business enterprises land shares and other assets with the potential for financial return
  12. General instability
    possibility of uncertanty of political or economic change
  13. Global economy
    the combined interdependent economies of all countries
  14. Global equity market
    an international stock market that electronically links stock exchanges in key cities of the world
  15. Market economy
    a system where individual companies and consumers make decisions about what how and for whom goods and services are produced
  16. mixed economy
    an economy that combines government involvement and private ownership of businesses has aspects of both market and centrally planned economic systems
  17. Operations risk
    possibility that host government policies and acts may impede business operations in another country
  18. Ownership risk
    risk of losing ownership of property business and assets when threatened by government takeover or by expropriation
  19. 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
  20. Privatize
    to sell publicly owned assets or enterprises to the private sector
  21. Repatriation of
    either retaining a portion of profit by a foreign host government or paying profit to the parent company
  22. think tank
    an organization institution or group that studies and researches specific topic and issues often of an economic and political nature
  23. Supply and demand
    the relationship between the demand for something and the supply or availability of it that usually affects prices and production
  24. Systems
    the capabilities of a machine or network
  25. Totalitarian
    government with centralized power that often uses the military to control the country
  26. Trade war
    situation in which governments act aggressively in international markets and trade negotiations to promote their own countries trading interests
  27. Transfer risk
    the possibility that government policy may adversely affect currency exchange rates
Card Set
ib unit 2 part 2