chapter 2 Flashcards
(22 cards)
G7/8
quasi-organization made up of the worlds major developed countries (our current economic system)
comparative advantage
ability to make goods at lower cost or possess resources or unique services
foreign direct services (FDS)
person or organization makes an investment in another country
market composition principles
law of supply and demand
allowance for private ownership
government involvement
open economic system
follows principles of economic freedom
controlled economic system
government largely controls economy
mixed economic system
contains both open and controlled
capital asset investments
investments made today in order to expand overall economic capacity
credit
dollars borrowed
expenditures
purchases made for your day to day activities
gross domestic product (GDP)
total market value of the goods/services a country/nation produces over a given amount of time
recession
period of time that marks a contraction in economic activity (use GDP movements)
inflation
rise in the level of prices within an economy over a given period of time
purchasing power parity
measure that take into account the relative cost of living and inflation rates of countries and adjusting the total value of economic activity
parity
to be equal or equivalent to
hostile takeover
an attempt to take over a company whose managers/owners are unwilling
PESTEL analysis
political, economic, social, environmental, and legal trend that can/will impact market
protectionism
result of economic policies set out to protect/restrict markets
purely competitive markets
have many similar products in market and lack a dominant leader - not very hard to enter these markets
monopolistic markets
number of different suppliers but definition between has set in
oligopoly based markets
have a small number of suppliers that control a big portion of the market - have distinguished themselves
monopoly based market
served by single supplier
