Category: Economics

Caribbean Economies

Caribbean Economies Caribbean economies are characterized by their market size, resources and nature of dependency. Caribbean economies are faced with the following economic problems: high inflation rates, high unemployment rates, debt, devaluating exchange rates, social problems like crime and violence and low rates of growth Read more →...

Definition of Terms and Concepts

Definition of Terms and Concepts Below are definitions of terms and concepts associated with this section: Debt burden– is the amount of money that has to be paid in terms of interest on accumulated debt. Structural adjustments– are the changes governments must make on receiving developmental aid, to their political and economic practices. For example,…...

Preferential Tariff and Trade Liberalization

Preferential Tariff and Trade Liberalization A preferential tariff is a reduction or elimination of custom duty levied on imported goods from countries with which it has a free trade agreement. Preferential tariffs benefit importer countries by making imported goods more affordable to the population. They are also beneficial to the exporter country as the trade…...

E-Commerce

E-Commerce E-commerce refers to the buying and selling of goods through electronic medium such as the internet or other computer networks and has become increasingly popular with the widespread use of technology. Advantages of E-commerce – Convenience: the transactions are done on one’s own time, as it does not require one’s physical presence at a…...

Terms used in International Trade

Terms used in International Trade Below are definitions of some terms and concepts used in international trade: Balance of trade– is the difference in value of a country’s exports and its imports. Current account– is the sum of the balance of trade (value of exports minus imports), cross border interest and dividends payments, and gifts…...

Comparative Advantage

Comparative Advantage The rationale for countries carrying out international trade is the concept of comparative advantage. A country has a comparative advantage in producing a good or service if the opportunity cost of producing that good or service is lower than producing any other good or service in that country, compared to other countries.  Both…...

Terms of Trade

Terms of Trade A country’s terms of trade represents the relationship between the price it pays for imported goods and the price it receives for its exported goods. If the prices received for exports exceeds what it pays for imports, a country’s terms of trade is said to be favourable as it means fewer exports…...

Exchange Rates

Exchange Rates Exchange rate is the price at which one currency can be exchanged for another. There are several factors that influence the level of an exchange rate, which include: – Inflation: the currency of a country with low inflation rates would appreciate, due to extra demand for their products because of cheaper prices and…...

Terms used in Economic Policies and Goals

Terms used in Economic Policies and Goals The following are the definitions of terms used in regards to economic policies and goals. National budget: This is the total amount of money forecasted to be spent by the government to cover all of its expenses over a particular period (usually a year). National income: This is…...