International Business Chapter 3 Latest Update 100% Pass

International Business Chapter 3 Latest Update 100% Pass Economic system Structure and processes that a country uses to allocate its resources and conduct its commercial activities Centrally planned economy Economic system in which a nation's land, factories, and other economic resources are owned by the government, which plans nearly all economic activity Mixed Economy Economic system in which land, factories, and other economic resources are rather equally split between private and government ownership Privatization Policy of selling government-owned economic resources to private operators Market Economy Economic system in which the majority of a nation's land, factories, and other economic resources are privately owned, either by individuals or businesses Supply Quantity of a good or service that producers are willing to provide at a specific selling price Demand Quantity of a good or service that buyers are willing to purchase at a specific selling price Purchasing Power Value of goods and services that can be purchased with one unit of a country's currency Purchasing Power Parity (PPP) Relative ability of two countries' currencies to buy the same "basket" of goods in those two countries Human Development Index (HDI) Measure of the extent to which a government equitably provide its people with a long and healthy life, an education, and a decent standard of living Developed country Country that is highly industrialized and highly efficient, and whose people enjoy a high quality of life Newly Industrialized Country (NIC) Country that has recently increased the portion of its national production and exports derived from industrial operations Emerging markets Newly industrialized countries plus those with the potential to become newly industrialized Developing Country Nation that has a poor infrastructure and extremely low personal incomes. Also called less-developed countries Technological Dualism Use of the latest technologists in some sectors of the economy coupled with the use of outdated technologies in other sectors Economic transition Process by which a nation changes its fundamental economic organization and creates new free-market institutions Democracy a system of government by the whole population or all the eligible members of a state, typically through elected representatives.