Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time. time using a smaller amount of inputs than…
Comparative advantage is a key idea that trade will still occur even if a country has an absolute advantage in all products.
Doped pricing, also price skimming, is a product pricing strategy whereby a company charges the highest initial price that customers will pay and then lowers it over time.
A bear market is when a market experiences prolonged price declines. It typically describes a condition in which security prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment. Bear markets are often associated with declines in an overall market or index such as the S&P 500, but individual securities…
A business conglomerate is a corporation made up of several different, seemingly unrelated businesses. In a conglomerate, one company owns a controlling interest in several smaller companies that conduct separate businesses. The conglomerate’s first big boom occurred in the 1960s, and things escalated from there. Larger conglomerates diversify business risk by participating in several different…
Smart personal finance involves developing strategies that include budgeting , building an emergency fund , paying off debt , using credit cards wisely, saving for retirement, and more.
The Gini index or Gini coefficient is a statistical measure of the distribution of wealth developed by the Italian statistician Corrado Gini in 1912. It is frequently used to take a look at economic inequality, measuring the distribution of income or, less commonly, the distribution of wealth within a population. The coefficient ranges from 0…
Game theory is a theoretical framework for conceiving social situations between competing players. The key to game theory is that one player’s reward depends on the strategy implemented by the other player.
Deglobalization is the process of decreasing interdependence and integration between certain units around the world, typically nation-states. This term is widely used to describe periods in history when economic trade and investment between countries declines. It contrasts with globalization, in which units become increasingly integrated over time, and generally spans the time between periods of…
If you can walk into a supermarket and find South American bananas, Brazilian coffee, and a bottle of South African wine, you are experiencing the effects of international trade. International trade allows countries to expand their markets for both goods and services that may not otherwise have been available domestically. As a result of international…
