- Industry: Education
- Number of terms: 31274
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A variable that is taken as given by an economic model. It therefore ''is'' subject to direct manipulation by the modeler. In most models, policy variables such as tariffs and par values of pegged exchange rates are exogenous. Contrasts with endogenous variable.
Industry:Economy
1. The mathematical expected value of a random variable. Equals the sum (or integral) of the values that are possible for it, each multiplied by its probability. 2. What people think a variable is going to be. In general, the expectation in this second sense may be more important than the first for determining behavior on a market, such as the exchange market.
Industry:Economy
A product whose value can be better known after having consumed it. Producers of experience goods may temporarily charge a price lower than marginal cost to induce buyers to try the product. Done with an export, this would be legally considered dumping.
Industry:Economy
1. A good that moves outward across a country's border for commercial purposes. 2. A product, which might be a service, that is provided to foreigners by a domestic producer. 3. To cause a good or service to be an export under definitions 1 and/or 2.
Industry:Economy
A loan to the buyer of an export, extended by the exporting firm when shipping the good prior to payment, or by a facility of the exporting country's government. In the latter case, by setting a low interest rate on such loans, a country can indirectly subsidize exports.
Industry:Economy
A program to guarantee payment to exporting firms who extend export credits.
Industry:Economy
A government program that makes it more attractive for a firm, industry, or country to export. Most simply, an export subsidy.
Industry:Economy
A firm that handles the process of exporting for other firms. It may do this for a commission or fee, or it may purchase the goods for subsequent sale.
Industry:Economy
A designated area in a country in which firms can import duty-free so long as the imports are used as inputs to production of exports.
Industry:Economy
A strategy for economic development that stresses expanding exports, often through policies to assist them such as export subsidies. The rationale is to exploit a country's comparative advantage, especially in the common circumstance where an over-valued currency would otherwise create bias against exports. Contrasts with import substitution.
Industry:Economy
