Global
globalInternational business concepts, global economic principles, and worldwide financial terminology applicable across all markets.
20 terms
Gross Domestic Product
(GDP)The total monetary value of all finished goods and services produced within a country's borders in a specific time period.
Inflation
The rate at which the general level of prices for goods and services is rising, eroding purchasing power.
Monetary Policy
The process by which a central bank controls the money supply and interest rates to achieve macroeconomic objectives.
Fiscal Policy
Government policy regarding taxation and spending to influence economic conditions.
Recession
A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in GDP, income, employment, and production.
Supply and Demand
The fundamental economic model describing the relationship between the availability of a product and the desire for it.
Elasticity
A measure of how much the quantity demanded or supplied of a good responds to changes in price or other factors.
Market Capitalization
(Market Cap)The total market value of a company's outstanding shares of stock, calculated by multiplying share price by total shares.
Bull Market
A market condition where prices are rising or expected to rise, characterized by optimism and investor confidence.
Bear Market
A market condition where prices are falling or expected to fall, typically defined as a 20% or more decline from recent highs.
Diversification
An investment strategy that spreads investments across various assets to reduce risk.
Compound Interest
Interest calculated on both the initial principal and the accumulated interest from previous periods.
Liquidity
The ease with which an asset can be converted into cash without significantly affecting its price.
Tariff
A tax imposed on imported goods and services, designed to protect domestic industries or generate revenue.
Free Trade Agreement
(FTA)A pact between countries to reduce or eliminate barriers to trade such as tariffs and quotas.