2 terms were found starting with the letter j.

J-Curve

The theory that devaluation causes the trade balance to worsen before it improves, because prices of imports rise immediately while import and export volumes are slower to respond to the devaluation. This causes the trade balance to trace a path over time that looks like the letter J.

Joint Venture

An agreement between two or more companies to pool their resources in some endeavor. Responsibilities, expenses, and revenues are shared according to the terms of the joint venture.

20 terms were found starting with the letter i.

Imperfect Competition

Occurs when the actions of at least one buyer or seller have an effect on the market price. The opposite of imperfect competition is perfect competition.

Imperfect Information

Occurs when at least one buyer does not know the true benefits associated with the consumption of a good or service, or when at least one seller does not know the true costs associated with the production of a good or service. The opposite of imperfect information is perfect information.

Import License

A document required and issued by a government authorizing the importation of goods into that country.

Import Quota

A limit on the maximum quantity of a good that may be imported into a particular country.

Income Elasticity of Demand

The percentage change in the consumption of some good or service in response to a 1% increase in the consumer’s income.

Increasing Returns to Scale

A situation in which a 1% increase in all inputs into production leads to more than a 1% increase in output.

Increasing Returns to Size

A situation in which an increase in output leads to a decrease in the average total cost of production.

Induced Innovation

The development and adoption of technologies in response to changes in relative prices of factors of production. Refers specifically to the tendency to develop and adopt technologies that reduce the usage of factors that are becoming relatively more expensive and increase the usage of factors that are becoming relatively less expensive.

Inferior Good

A good whose income elasticity of demand is negative, so that an increase in income leads to a decrease in consumption of that good.

Infrastructure

The capital embodied in transportation (roads, railways, waterways, etc.), communications (telephones, radios, televisions, etc.), electricity, water supplies, sanitation, and financial institutions.

Input into Production

A resource (for example, capital, labor or land) used to produce a good or service. Same as factor of production.

In-Quota Tariff

For a country with a tariff rate quota (TRQ) system for a particular commodity, the tariff applied on imports within the quota. The tariff on imports over the quota is referred to as the over-quota tariff.

Integrated Pest Management (IPM)

A package of alternatives to conventional pest control methods, which often involve frequent and extensive use of pesticides. The package consists of one or more of the following: (1) growing a healthy, genetically varied crop (cultural control); (2) use of pest-resistant crop varieties (host plant resistance); (3) use of natural enemies to crop pests (biological control); and (4) occasional use of pesticides as a last resort (chemical control).

Inter-American Development Bank (IADB, IDB)

A regional development bank founded in 1959 to promote economic and social development in Latin America and the Caribbean through loans and technical assistance. Currently has 46 member countries.

Internalization Advantage

A firm’s interest in maintaining control of a product or production process as one of its own.

International Monetary Fund (IMF)

An international organization of 184 member countries, established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. The IMF has often provided short-term loans and financial crisis management to developing countries in recent years.

International Poverty Line

An income of less than $1 per person per day in 1985 purchasing power parity (PPP) adjusted U.S. dollars. Purchasing power parity adjusts official exchange rates for cost-of-living differences between the U.S. and the country in question. In today’s dollars, the international poverty line is about $1.50.

Intra-Industry Trade

A two-way exchange of goods between countries in which neither country seems to have a comparative cost advantage in the industry as a whole.

Investment

In the case of physical capital, expenditures on new machinery, equipment, or other capital goods. In the case of human capital, time, effort and money spent accumulating new knowledge, skills, abilities or capacities.

Invisible Hand

When households and firms acting in their own self-interest in competitive markets also tend to further the interests of society at large.

9 terms were found starting with the letter h.

Half-Share Coefficient

The share of national income received (or percentage of national consumption expenditures paid) by the bottom 50% of individuals or households in terms of income or expenditures.

Hard Currency

A currency of any one of the large industrialized countries that is widely traded in international currency markets such as the U.S. dollar, Japanese yen, and European Union euro.

Hectare

A unit of area equal to about 2.47 acres.

Hedonic Price Analysis

A technique that estimates the economic value that buyers of a good implicitly place on each of the attributes of that good. For example, attributes valued by house buyers would include the size of the house, the number of bedrooms and bathrooms, neighborhood features, proximity to natural resources, etc.

Hegemony

The predominance of one nation or state over others, often with the ability to affect trade patterns to their advantage.

High-Income Country

A country with a relatively high level of per capita income.

Horizontal Organization/Horizontal Integration

Combining similar marketing functions and decisions at the same market level into a single firm – for example, one food processor buys another.

Human Capital

The knowledge, skills, abilities and capacities possessed by people. Human capital can be accumulated in many ways, including education, on-the-job training, on-the-job experience, investments in health, outreach and extension programs, life experience, migration, and searching for information about goods, services, employment opportunities, etc.

Human Resources

In economics, another term for human capital, which is the knowledge, skills, abilities and capacities possessed by people.

13 terms were found starting with the letter g.

General Agreement on Tariffs and Trade (GATT)

A series of international agreements first begun in 1947 aimed at gradually liberalizing international trade in goods and services. Also refers to the organization set up in Geneva to implement and enforce these agreements. The eighth and most recent round of trade negotiations under the GATT lasted from 1986 to 1994 and was called the Uruguay Round.

General Equilibrium

A method of economic analysis that examines all the sectors and activities in an economy at the same time. Useful for studying economic interactions between various sectors.

Gini Coefficient

A measure of income inequality ranging from 0 (perfect equality) to 1 (perfect inequality). It is defined as the area between the Lorenz curve and the perfect equality line, divided by the total area underneath the perfect equality line.

Global Warming

A predicted warming of the atmosphere as a result of increases in atmospheric concentrations of carbon dioxide and other greenhouse gases.

Globalization

The increasing integration of world markets for goods, services, and capital. It has also been defined as a process by which nationality becomes increasingly irrelevant in global production and consumption.

Government Failure

When government intervention in an economy hinders instead of helps in achieving social or economic objectives.

Grameen Bank

A rural bank in Bangladesh that has attracted worldwide attention because of its innovative and highly successful group-based lending program for the rural poor, especially rural poor women.

Green Accounting

The incorporation of environmental benefits and costs into economic decision making. Often refers specifically to incorporating the depreciation of natural resources and the environment into estimates of net domestic product or net national product. Sometimes referred to as natural resource accounting or environmental accounting.

Greenhouse Effect

The retention of heat by the Earth’s atmosphere as a result of emissions of carbon dioxide and other greenhouse gases.

Greenhouse Gases

Gases in the Earth’s atmosphere that allow sunlight through but absorb and capture infrared radiation. Important greenhouse gases include carbon dioxide, methane, nitrous oxide, and chlorofluorocarbons (CFCs).

Gross Domestic Product (GDP)

The total final output of goods and services produced within a country’s territory by residents and nonresidents of that country.

Gross National Income (GNI)

The total income earned by the citizens of a country. Same as GNP. Equal to gross domestic product (GDP) plus income accruing to residents from outside of the country, minus income earned in the domestic economy by nonresidents.

Gross National Product (GNP)

The total income earned by the citizens of a country. Equal to gross domestic product (GDP) plus income accruing to residents from outside of the country, minus income earned in the domestic economy by nonresidents.