Monday, March 12, 2012

Fun Definitions For All

Terms

GDP- gross domestic production. Amount of profit made by products being exported. 14.59 is US and 5.93 China, in trillions.

Import- Products bought from outside of the country and taken in. US 227 billion, 122.7 billion

Export- Products shipped out of a country to buyers. US 178 billion, 149.9 billion

Tariff- a tax placed on a good being traded so the economy of the importing country remains the same.

Trade Surplus- extra good left over after a country has exported goods.

Trade Deficit- when a country does not meet the demand of another country who would like to import their products.

Treasury Bond- marketable fixed interest US govt. debt security with a maturity of more than 10 years.

Foreign Direct Investment (FDI)- investment made in a company in a foreign country. CHINA 143 billion.

Budget Deficit- spending more money than you have. US 15.5 trillion, 1.9 trillion

Foreign Currency Reserve- deposits and bonds held by central banks and monetary authorities. US 148.5 billion, China 3181 billion

Currency Exchange- exchange rate of different currency from one system to another. Money can lose value or gain value based on country you are in so money is exchanged to make it easier.

Subsidy (subsidies)- government buys a product so it can be selled at a constant price.

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