The organized way a nation provides for the needs and wants of its people.
All the things used in producing goods and services.
Factors of Production
Economic term for the four categories of resources: land, labor, capital, and entrepreneurship.
The physical development of a country, including its roads, ports, sanitation facilities, and utilities.
The process of starting and operating your own business ownership.
The difference between what consumers want and need and what the available resources are.
Traditions and rituals that answer basic questions of what, how, and for whom.
An economic system in which individuals and companies decide what will be produced, when, and how it will be distributed.
An economic system in which the government decides what, when, and how much will be produced and distributed.
The output per worker hour that is measured over a defined period of time, such as a week, month, or year.
The output of goods and services produced by labor and property located within a nation.
The total dollar value of goods and services produced by a nation.
Measurement of the change in price over a period of time of approximately 400 retail goods and services used by the average urban household.
Measurement of wholesale price levels in the economy.
Recurring changes in economic activity, such as the expansion and contraction of an economy.
A time when the economy is flourishing; also called prosperity.
A period of economic slowdown that lasts for two quarters, or six months.
A period of prolonged recession.
A period of renewed economic growth followed by a recession or depression.
The exchange of goods and services among nations.
Goods and services purchased from other countries.
Goods and services sold to other countries.
Balance of Trade
The difference in value between a nation’s exports and its imports.
Commercial exchange between nations that is conducted on free market principles, without tariffs, import quotas, or other restrictive regulations.
A tax on imports; also know as a duty.
A limit on either the quantity or monetary value of a product that may be imported.
A total ban on specific goods coming into and leaving a country.
A government’s establishment of economic policies that restrict imports to protect domestic industries.
A global coalition of more than 140 governments that makes rules governing international trade.
An international trade agreement among the U.S.A., Canada, and Mexico.
European trading bloc.
The process of letting another company (licensee) use a trademark, patent, special formula, company name, or some other intellectual property for a fee or royalty.
The process of hiring a foreign manufacturer to make products according to certain specifications.
A business enterprise that different companies set up together; often, the venture involves a domestic company and a foreign company.
Investments in factories, offices, and other facilities in another country that are used for a business’ operations.
Large corporations that have operations in multiple countries.
Mid-size or smaller companies that have operations in multiple countries.
The process of selling the same product and using the same promotion methods in all countries.
Changing an existing product and/or promotion to better suit the characteristics of a targeted country or region.
The process of creating a products or promotions for certain countries or regions.