Term
| what needs to increase for GDP to increase? |
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Definition
| higher labor productivity |
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Term
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Definition
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Term
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Definition
| unofficially owned resources, making it hard to buy sell and trade the good |
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Term
| what does government inefficiency do to an economy? |
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Definition
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Term
| 3 basic categories of international flows to developing countries |
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Definition
| bank loans, portfolio investment, foreign direct investment |
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Term
| what are the 2 asymmetric information related problems? |
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Definition
| adverse selection and moral hazard |
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Term
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Definition
| function is to finance capital investments in countries that have trouble attracting funds from private individuals and firms. |
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Term
| international monetary fund (IMF) |
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Definition
| is to stabilize international financial flows by extending loans to countries in financial crisis |
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Term
| name the main argument against the world bank and IMF |
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Definition
| that these banks lend to countries that can go get their own loans themselves |
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Term
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Definition
| right to own property and exchange goods |
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Term
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Definition
| bank that specializes in making small loans to entrepreneurs seeking to lift themselves up from poverty |
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Term
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Definition
| purchase of less than 10% of the shares of a company in another company |
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Term
| foreign direct investment |
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Definition
| buy of more than 10% of a company in another country |
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Term
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Definition
| a problem that comes when those who wish to obtain funds for the least worthy projects are among those who attempt to borrow or issue bonds or stocks |
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Term
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Definition
| potential for recipients of funds to engage in riskier behavior after getting financing |
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Term
| international financial crisis |
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Definition
| rapid withdrawal of foreign investments from a nation |
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