Global Economics Glossary

The ability of a country to produce a good using fewer resources than another country.

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

The post-World War II international monetary system (1944-1971) based on fixed exchange rates pegged to the U.S. dollar.

The component of the balance of payments recording transfers of capital assets and non-produced, non-financial assets between countries.

The ability of a country to produce a good at a lower opportunity cost than another country.

The balance of payments component that records trade in goods and services, net income, and net current transfers.

The negative impact on other economic sectors when a booming resource sector appreciates the currency and reduces competitiveness.

The price of one currency expressed in terms of another currency.

An investment involving lasting interest and control in a business enterprise in a foreign country.

A treaty between two or more countries to reduce or eliminate barriers to trade in goods and services.

The increasing integration of economies worldwide through trade, investment, technology, and migration.

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

A trade theory predicting that countries export goods that use their abundant factors of production intensively.

The justification for temporarily protecting new industries from foreign competition until they can compete independently.

An international organization that promotes monetary cooperation, financial stability, and provides emergency lending to member countries.

Central bank actions to manage the money supply and interest rates to achieve macroeconomic objectives.

A WTO principle requiring that any trade advantage granted to one member must be extended to all members.

Government policies that restrict international trade to protect domestic industries from foreign competition.

An exchange rate adjustment that equalizes the purchasing power of different currencies based on a common basket of goods.

A government-imposed limit on the quantity of a good that can be imported or exported.

Bonds or loans issued by a national government, typically denominated in either domestic or foreign currency.

An international reserve asset created by the IMF, valued based on a basket of major currencies.

A tax imposed by a government on imported goods to raise revenue or protect domestic producers.

The ratio of a country's average export price to its average import price.

The international body that sets and enforces rules governing international trade among its member nations.