Transcript Glossary of Economic Terms

Free Market System
An Economic system in which the basic
questions of what, for whom and how to
produce are decided by buyers and
sellers
Supply and Demand
Capital
The money that contributes to
production
Import Tariffs
A tax placed on imports
Trade Deficit
An excess of imports over exports
Trading Bloc
An arrangement to promote trade among
member countries by reducing tariffs,
regulations and other obstacles to the free
movement of goods and services.
Examples: NAFTA, EEU
World Trade Organization
(WTO) 1995
Functions:
• Promote free trade
• Forum for trade negotiations
• Handling trade disputes
• Monitoring national trade policies
• Technical assistance and training for
developing countries
World Bank - 1945
The World Bank is a lending institution
Its aim is to integrate countries into the
wider world economy
Loans money only to poor nations
Infrastructure projects (Dams, highways,
etc.)
International Monetary Fund
(IMF) -- 1944
The IMF is an international
organization of 183 member
countries, established to
promote international monetary
cooperation, exchange stability
Provides loans to countries
experiencing balance-ofpayments problems.
Gets its money from member
nations who pay based on the
economic size of the nation
Gross Domestic Product
(GDP)
The total value of all the goods and
services produced in a country in one
year.