A local currency is a most commonly used currency within a country. In economics, it is a currency that can be spent at participating organizations in a specific geographical location. This is usually the country’s currency. A regional currency is a type of local currency that covers a larg.....
A complementary currency is any currency that is not a national currency but is accepted in a country under certain conditions. It is a currency or medium of exchange that is not a national currency but is thought to supplement or complement national currencies. It is not intended to be the prima.....
In economics, time preference (also known as time discounting, delay discounting, temporal discounting, or long-term orientation) is the current relative value placed on receiving a good or some cash at an earlier date versus receiving it later. The discount function mathematically captures time .....
Regional integration refers to a variety of political and economic agreements that strengthen ties between sovereign nations. It can also have an impact on economic development or growth. The country with the highest economic rate will have more power and authority than the other members of the c.....
Regional integration is a multifaceted process in which sovereign nation-states establish common political, legal, economic, and social institutions to govern collectively. It is a process in which neighboring countries reach an agreement to improve cooperation by establishing common institutions.....
A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, in which trade barriers (tariffs and other restrictions) are reduced or eliminated among participating states. Trading blocs are typically groups of countries in specific regions that m.....
A defensive stock is one that can be counted on to produce steady returns even during a downturn in the economy or the stock market. Because they are less susceptible to the economic cycle of expansions and recessions, defensive stocks are also known as non-cyclical equities. There is a steady in.....
Trade facilitation has emerged as a critical factor in international trade efficiency and country economic development. It investigates how procedures and controls governing the movement of goods across national borders can be improved in order to reduce associated cost burdens and maximize effic.....
Transaction costs are the costs incurred when purchasing or selling a product or service. These are expenses incurred that do not benefit any of the transaction’s participants. They are sunk costs incurred as a result of economic trade in a market. The theory of transaction costs in economi.....
The Transfer Price is the price charged by related parties to each other. In layman’s terms, it is the cost at which various departments within a company transfer goods to one another. When different departments in a company operate as separate entities, transfer pricing comes into play. Tr.....
A bubble is a type of economic cycle marked by fast increases in market value, notably in the price of assets. An economic bubble, also known as a speculative bubble, a market bubble, a pricing bubble, a financial bubble, a speculative frenzy, or a balloon, is a scenario in which asset values app.....
A price ceiling is a price restriction, or limit, established by the government or a group on the amount that can be charged for a product, commodity, or service. The price established by the price ceiling must be lower than the natural equilibrium price for the measure to be effective. Governmen.....