International Business Chapter 4 -Economic Systems - terms

Economic system -- structure and processes that a country uses to allocate its resources and conduct its commercial activities.
Centrally planned economy -- economic system in which a nation's land, factories, and other economic resources are entered by the government, which plans nearly all economic activity.
mixed economy -- economic system in which land, factories, and other economic resources are rather equally split between private and government ownership.
Privatization -- policy of selling government-owned economic resources to private companies and individuals
market economy -- economic system in which the mind awarding of a nation's lien, factories, and other economic resources are privately owned, either by individuals or businesses.
Supply -- quantity of a good or service that producers are willing to provide at a specific selling price.
Demand -- quantity of a good or service that buyers are willing to purchase at a specific price
economic development -- measure for gauging the economic well-being of one nation's people as compared with that of another nation's people
purchasing power -- value of goods and services that can be purchased with one unit of the country's currency.
Purchasing power parity (PPP) -- relative ability of two countries. Currencies to buy the same "basket" of goods and those two countries.
Human development Index (HDI) -- measure of the extent to which a people's needs are satisfied in the degree to which these needs are dressed equally across the nation's entire population.
Developed country -- country that is highly industrialized, highly efficient, and whose people enjoy a high quality of life.
Newly industrialized country (NIC) -- country that has recently increased. The portion of its national production and exports derived from industrial operations.
Emerging markets -- newly industrialized countries, plus, the news with the potential to become newly industrialized.
Developing country -- nation that has a poor infant structure and extremely low personal incomes.
Technological dualism -- use of the latest technologies in some sectors of the economy coupled with the use of outdated technologies in other sectors
economic transition -- process by which a nation changes its fundamental economic organization and create new free-market institutions