| A | B |
|---|
| Equilibrium | a state in a market-based economy in which economic forces – such as supply and demand – are balanced |
| Disequilibrium | a situation where internal and/or external forces prevent market equilibrium from being reached or cause the market to fall out of balance. |
| Price Ceiling | the mandated maximum amount a seller is allowed to charge for a product or service. |
| Price Floor | sets the minimum price for which a product is allowed to sell |
| Price | the amount of money that has to be paid to acquire a given product |
| Boycott | an act of nonviolent, voluntary abstention from a product, person, organization, or country as an expression of protest. |
| Globalization | the widespread international movement of goods, capital, services, technology and information |
| Interdependence | exchanging goods and services with others to satisfy one's needs |
| Developed Countries (more developed countries -MDC) | state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations |
| Developing Countries (less developed countries - LDC) | countries that have not achieved a significant degree of industrialization relative to their populations, and have, in most cases, a medium to low standard of living |
| Multinational Corporations | a company that has business operations in at least one country other than its home country. |
| Outsourcing | is the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company's own employees and staff. |
| Absolute Advantage | is the ability of a party (an individual, or firm, or country) to produce a good or service more efficiently than its competitors. |
| Comparative Advantage | occurs when a country can produce a good or service at a lower opportunity cost than another country |
| Free Trade | is a largely theoretical policy under which governments impose absolutely no tariffs, taxes, or duties on imports, or quotas on exports. |
