- Industry: Education
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1. Producing more than you need of some things, and less of others, hence "specializing" in the first. In international trade, this is just the opposite of self-sufficiency. 2. Doing less than everything, as when a country produces fewer different goods than it consumes. In a 2x2 trade model, this means a country produces just one good. With many goods and countries, it means a country has some goods that it does not (and cannot competitively) produce. Also may be called complete specialization.
Industry:Economy
A factor of production that is unable to move into or out of an industry. The term is used to describe factors that would not be of any use in other industries and also -- more loosely -- factors that could be used elsewhere but do not, in the short run, have the time or resources needed to move. See specific factors model. The term seems to come from Haberler (1937).
Industry:Economy
A model in which some or all factors are specific factors. The most common version is the Ricardo-Viner Model, with one specific factor (often capital or land) in each industry plus another factor (often labor) that is mobile between them. But an extreme form of the model, the Cairnes-Haberler Model, has all factors specific.
Industry:Economy
A major mechanism of the Dutch disease, whereby the increased income from a surge in exports is spent in part on nontradables, causing nontradable industry to expand at the expense of tradables, especially manufacturing.
Industry:Economy
A positive externality. The term is often used to refer to the transmission of an advanced technology from a foreign-owned firm (thus FDI) to domestic firms.
Industry:Economy
A market for exchange (of currencies, in the case of the exchange market) in the present (as opposed to a forward or futures market in which the exchange takes place in the future).
Industry:Economy
1. The difference between the price one must pay to buy something, such as a currency, and the price one receives for selling it. 2. The difference between the interest rate on a bond and the risk free rate; thus the risk premium on the bond. 3. The interest rate spread, i. E. , the difference between the interest rate on a bond issued by one borrower and that on a bond issued by another, safer, borrower. Spreads between Greek bonds, for example, and those of Germany have been seen as an indicator to the likelihood of Greek default.
Industry:Economy
1. Of an equilibrium, that the dynamic adjustment away from equilibrium converges to the equilibrium. 2. Of an economic variable, not subject to large or erratic fluctuations.
Industry:Economy
A game theoretic equilibrium in which one player acts as a leader and another as a follower, the leader setting strategy taking account of the follower's optimal response. Contrasts with Nash equilibrium in which both players take the other's strategy as given.
Industry:Economy
