Marketing mix: The set of marketing tools that the firm uses to pursue its marketing objectives in the target market.
Risk aversion: Desire to avoid uncertainty.
Gold exchange standard: An exchange rate system used from 1925 to 1931 in which the United States and England were allowed to hold only gold reserves while other nations could hold gold,.S.
Balance on current account: A country's receipts minus payments for current account transactions.
Market portfolio: A portfolio of all assets weighted according to their market values.Contrasts with direct factor content.Hysteresis: The behavior of firms that fail to enter markets that appear attractive and, once invested, persist in operating at a loss.Factor share: The fraction of payments to value added in an industry that goes to a particular primary factor.Reinvoicing center: A company-owned financial subsidiary that purchases exported goods from company affiliates and resells (reinvoices) them to other affiliates or independent customers.If two currencies are both on a silver standard, then the exchange rate between them is approximately determined by their two prices in terms of silver.A multilateral treaty entered into in 1948 by the intended members of the International Trade Organization, the purpose of which was to implement many of the rules and negotiated tariff reductions that would be overseen by the ITO.Ex post analysis: Analysis of the effects of a policy, such as trade liberalization or formation of a PTA, based on information available after the policy has been implemented and its performance observed.Accession: The process of adding a country to an international agreement, such as the gatt (General Agreement on Tariffs and Trade WTO (World Trade Organization EU (European Communities or nafta (North American Free Trade Agreement).Marginal profit: The amount by which profit rises or falls when output increases by one unit; thus marginal revenue minus marginal cost.
For a traded homogeneous product, it follows that domestic and world price must be equal.
Financial capital: The value of financial assets, as opposed to real assets such as buildings and capital equipment.
A narrow definition includes the corporationâs debt and equity holders.
Exchange rate: The price at which one country's currency trades for another, typically on the exchange market.
It measures the sensitivity of a stock's returns to changes in returns on the market portfolio.It is a very tractable way of modeling transport costs since it impacts no other market.The unit isoquant is useful for relating the price of a good to the prices of factors employed in its production.Acid-test (quick) ratio: Current assets less inventories divided by current liabilities.Performance requirement: A requirement that an importer or exporter achieve some level of performance, in terms of exporting, domestic content, etc., in order to obtain an import or export license.IMF": The amount of money that each IMF member country is required to contribute to the institution, partly in their own currency and partly.S.It therefore is subject to direct manipulation by the modeler.Transfer price: Literally this only refers to the price charged on goods and services that are traded between subsidiaries of a multinational corporation.