MFN   Most favored nation status. An agreement between two nations to levy tariffs on each other at rates as low as those levied on any other country. If one of these nations reduces tariffs on a third country, all of that nation's MFN partners also receive that lower tariff rate.
 
Monetary Approach to Exchange Rates   Seeks to explain exchange rates by focusing on demands and supplies for national moneys.
 
Monetary-Fiscal Policy Mix   A short-run solution to the aggregate demand policy dilemma; it exploits the opposite impacts of fiscal and monetary policies on the interest rate and, in consequence, on the balance of payments. Under fixed exchange rates and with imperfect capital mobility the policy mix suggested by the assignment rule will allow a country to achieve both internal and external balance in the short run.
 
Monetary Union   A collection of nations in which exchange rates are permanently fixed and a single monetary authority conducts a common monetary policy for the countries of the union.
 
Monopolistic Competition   A market structure with many firms selling a differentiated product, with low barriers to entry and exit in the industry. It is like monopoly in that the firm has some control over the price it charges since products are differentiated. Yet, since there are many sellers, it is like perfect competition in that the free entry and exit of other firms in the industry pushes each firm toward having zero net profit.
Montreal Protocol   A document first signed in 1987; over 160 nations are now signatories. It was designed to ban trade in (and later, production of) ozone-depleting chlorofluorocarbons.
Moral Hazard   A situation in which someone insured against risks will purposely engage in risky behavior, knowing that any costs incurred will be compensated by the insurer. A financial system which offers "rescue packages" may encourage borrowers and lenders to undertake low-quality or high-risk investments, thus increasing the likelihood of a crisis.
Multinational Firm   A firm that owns and controls enterprises in more than one country. The parent company is based in the home-country source for the FDI and has one or more foreign branches or subsidiaries. These firms are also referred to as multinational corporations (MNCs) and multinational enterprises (MNEs).
Nationally Optimal Tariff   A tariff set at the rate which maximizes the gains for a large country (at the expense of foreign countries). Technically, the optimal rate, as a fraction of the price paid to foreigners, equals the reciprocal of the elasticity of supply of a country's imports.
Nationally Optimal Tax on Fund Flows   As with an optimal tariff, a large country may be able to exert market power and turn the terms of trade in its favor. For example, if a lending country taxes the outflow of funds, it will raise the price that borrowers have to pay. The country's lenders earn a higher rate of return and the government collects the tax revenues. Although this may increase welfare in the lending country, it always reduces world welfare.
Net Foreign Investment   The part of national saving invested abroad instead of being channeled into domestic capital formation: (S = Id = If). It is also the difference between purchase of financial assets (lending) abroad and asset sales to foreigners (borrowing), that is, a country's accumulation of net claims on other countries
Neutral Factor   A factor which accounts for the same share of the value of output in all commodity lines.
News   Unexpected information about economic performance or political situations that can cause sudden, sometimes large, changes in the exchange rates.
NICs   Newly industrialized countries. Commonly identified as South Korea, Taiwan, Hong Kong and Singapore. (These are also referred to as the "four tigers.") Their rates of growth in 1990-97 were as high as 6.6 percent per year. Singapore, the richest in the group, had the highest GDP per capita in the world in 1997.
Nominal Bilateral Exchange Rates   The exchange rates we see quoted in foreign exchange markets.
Nominal Effective Exchange Rate   The weighted-average exchange rate value of a country's currency, where the weights reflect the importance of other countries in the home country's total international trade.
Nominal Protection Coefficient   The ration of the price received by domestic producers to the world price of the same product as the nation's border. If NPC>1, producers of the good are protected by the government. If NPC<1, producers of the good are effectively taxed.
Official International Reserves Transactions   The changes in domestic official reserve assets and in domestic official liquid liabilities to foreign officials. It is derived by drawing the line through the balance of payments accounts so as to divide private transactions from official "accommodative" transactions.
Official Intervention   Government attempts to influence market exchange rate by buying or selling foreign currency in exchange for the domestic currency.
Official Settlements Balance   Also called "official balance." Equals the sum of the current account balance plus the private capital account balance. An imbalance in the official balance must be paid for through official reserves transactions.
Oligopoly   A market structure with a few firms supplying most of the output. Firms know that their actions affect each other.
One-Way Speculative Gamble   A bet which entails minimal or zero risk of loss for the gambler. A persistent payments imbalance under the Bretton Woods system, for example, clearly signaled the likelihood of a devaluation in the case of a deficit or a revaluation in the case of a surplus. There was, therefore, little risk of losing money by moving funds away from the currency to be devalued and toward the one to be revalued. At worse, speculators had to should the transaction costs.
OPEC   Organization of Petroleum Exporting Countries. Established in 1960, this cartel had a membership of 13 producers by 1975. OPEC was successful in engineering enormous increases in the price of crude oil during 1973-74 and 1979-80. Because of supply conditions, it is unlikely that cartels in other primary products could achieve anything like OPEC's success
Open Economy Spending Multiplier   This takes into account the leakage from the spending stream caused by the marginal propensity to import. For a small economy, the open economy multiplier is smaller than the closed economy multiplier. For a large country, however, the open economy multiplier may be augmented by foreign-income repercussions.
Par Value   The value of the exchange rate that government officials try to target. Often the government will allow some flexibility of the actual exchange rate in "a band" around the par value.
Pegged Exchange Rate   Term used in place of "fixed exchange rate" because, in practice, no exchange rate stays fixed forever, but can be changed by government action. This is a common exchange rate regime in developing countries.
Perfect Capital Mobility   Under this scenario a practically unlimited amount of lending shifts between countries in response to the slightest change in one country's interest rate.
Persistent Dumping   Dumping that goes on indefinitely, as opposed to "cyclical dumping," which occurs only during periods of economic downturn, or predatory dumping. It is used by firms who can price discriminate between markets.
PPP Hypothesis   Purchasing power parity. The home and foreign prices of goods will be equalized, so that P = rs x Pf, overall, where rs is the exchange rate, and P and Pf are the domestic and foreign price level, respectively.
Predatory Dumping   This type of dumping occurs when the firm temporarily discriminates in favor of some foreign buyers with the intent of eliminating competitors and later raising the price after the competition is dead.
Price Discipline Union   The suggestion a fixed exchange rate system results in reduced inflation rates globally, largely because high-inflation countries become less competitive and run out of reserves needed to finance payments deficits. They ultimately must tighten domestic money supply to maintain the fixed exchange rate. Inflation falls as a result.
 
Price-taking Countries   "Small" countries that cannot affect the outside world price of the goods and services they trade. In these countries, the import supply curve is infinitely elastic.
Producer Surplus   The difference between what a producer is paid for a certain amount of a good and the lowest price she requires in order to supply that amount. It is the area above the supply curve and below the price level.
Product cycle hypothesis   Predicts that as the technology of a product becomes more standardized and static, labor costs become amore important basis for comparative advantage compared to development.
Production Effect   The cost of shifting to more expensive home production in the import-competing sector, which is protected by the tariff on foreign goods.
Prohibitive Tariff   A tariff which is set so high that it makes all imports unprofitable.
Quantity Theory of Money   Theorizes that in any country the money supply is equated with the demand for money, which is directly proportional to the value of nominal gross domestic product (or M = kPY). Here money serves mainly as a medium of exchange.
 
Real Exchange Rate (RER)   A way of measuring the price of foreign goods not just in currency-adjusted terms but also in price-level adjusted terms. The real exchange rate is calculated as the nominal exchange rate multiplied by the ratio of the home country price level to the foreign country price level multiplied by 100. If purchasing power parity holds between two countries, their real exchange rate will be 100. If purchasing power parity holds between two countries, their real exchange rate will be 100. When the real exchange rate is above 100, the foreign currency is undervalued.
 
Reserve Assets   Assets held by a nation's monetary authorities as a kind of "war chest" to enable them to intervene in the foreign exchange market if and when they decide to do so. Reserve assets include foreign key currencies, gold, official reserves at the IMF, and holdings of Special Drawing Rights (SDRs).
 
Revaluation (devaluation)   An official increase (decrease) in the par value of a currency under a fixed exchange rate system.
Rules of the Game   Also known as "classical medicine." Under fixed exchange rates or under the gold standard the "rules of the game" require the monetary authorities to refrain from sterilizing payments imbalances. Instead, they should actively make their domestic lending change in the same direction as the payments imbalance, so as to speed up the elimination of payments imbalances, even at the short-run cost of sacrificing the goal of internal balance.
Rybczynski Theorem   In a two-good world with constant product prices, the growth of one factor of production results in a decrease in the output of the good that does not use this factor intensively.
Second-best World   A world that contains market distortion.
Short Position   A net liability position (e.g., owing a foreign currency).
Small/Large Country Assumption   A small country has no impact on international prices; a large country can have an impact on prices.
Sovereign   Someone or something that has legal independence. This usually refers to national governments because (as in the case of debts they owe) they cannot be forced to repay, be sued, or have their domestic assets seized.
Special Drawing Rights   (SDRs) Fiduciary reserve assets created by the IMF beginning in 1970 as a supplement to existing reserve assets. The value of one SDR is determined by the weighted average of a basket of the currencies of the five countries with the largest share of world exports of goods and services - the U.S. dollar, the Japanese yen, the British pound, and the Euro (representing France and Germany).

Specificity Rule   This guideline states that it is more efficient to use those policy tools that are closest to the sources of the distortions separating private and social benefits or costs
Specific Tariff   A tariff stipulated as a money amount per physical unit of import.
Speculation   Deliberately assuming a net asset (long) position or net liability (short) position in an asset, such as a foreign currency, in the hope of profiting from price changes.
Spending Multiplier   The ratio of a change in national income to the change in autonomous spending that caused the income change. It is greater than one because an initial increase in autonomous spending (independent of income) generates many successive changes in induced spending (dependent on income).
Spot Exchange Rate   The (past, current, or future) rate applicable to foreign exchange transactions requiring contemporaneous delivery.
Staples   Goods that take a declining share of expenditures as income increase. For staples income elasticity is less than one.
Sterilization   Using monetary policy to offset the impact of official intervention on the domestic money supply.
Stolper-Samuelson Theorem   Under certain assumptions, moving from no trade to free trade unambiguously raises the returns to the factor used intensively in the rising-price industry and lowers the returns to the factor used intensively in the falling-price industry, regardless of which goods the owners of the factors prefer to consume
Strategic Trade Policy   A government campaign to develop export advantage and cut imports in targeted sectors; to gain world market shares in global oligopoly industries
Sudden-Damage Effect   Refers to public sympathy for groups whose incomes fall due to import competition, either suddenly or during a general depression.
Sustainable Use   To permit and manage some commercial exploitation of previously endangered species as a means of deterring ultimate extinction in the wake of a very successful rebound in elephant populations as a result of international bans on ivory trade. Also refers to restrictions placed on the use of any limited national resources to avoid depleting it entirely.
Switch-over Goods   Goods that countries convert from importable to exportables by offering generous subsidies to domestic producers.
Tariff Escalation   Refers to the tendency of tariffs and other import barriers to be higher on finished goods sold to consumers than on intermediate manufactured goods sold to industry (inputs).
Tequila Effect   When investors recall loans from all developing countries rather than only from the particular country facing the debt crises.
Terms of Trade   The ratio of the price of a country's exports to the price of its imports.
Trade Account (merchandise account)   Records the value of goods sold and purchased abroad by residents of the home country. The value of goods exported (credits) minus the value of goods imported (debits) is the merchandise trade balance.
Trade Blocs   Forms of economic integration whereby members remove explicit trade barriers among themselves, but keep national barriers to the flow of labor and capital and their fiscal and monetary autonomy. Trade blocs are exemplified mainly by free-trade areas and custom unions.
Trade Concession   In international trade negotiations it is customary to define cuts in one's own import barriers *(thereby letting in more inputs) as trade concessions, for which the liberalizing country ought to be compensated with reciprocal cuts abroad.
Trade Creation   The increase in trade volume caused by union with a lower cost (more efficient) supplier within the trade bloc.
Trade Diversion   The volume of trade shifted from a lower-cost (more efficient) supplier outside the trade bloc to a higher-cost (less efficient) supplier within the union.
Tragedy of the Commons   The over-use of a natural resource as a result of unclear property rights. If ownership of a resource is not established, everyone has an incentive to take as much of it as possible, quickly depleting the resource. A typical example is the decline in the fish population resulting from over-fishing of the ocean.
Transition Economies   Countries of the former Soviet Union (FSU) and its satellites that are moving from central planning to market orientation. Beginning in 1989 these countries have started to "liberalize" in the form of market-determined prices, private ownership of resources and business, and openness to international competition and trade.
Uncovered Interest Parity   When the expected rate of appreciation of a currency equals the percentage point amount by which its interest rate is lower than the other country's interest rate
Uncovered International Investment   When the exchange rate at which anticipated foreign investment returns will be redeemed is not determined until the trade occurs at the future spot rate. The agent is exposed to exchange rate risk when "uncovered."
UNCTAD   The United Nations Conference on Trade and Development. Since 1964, a permanent forum for the discussion of developing countries' concerns about international trade and investments
Unsterilized Intervention   Under a fixed managed
Vehicle Currency   A currency used to accomplish an indirect trade between two other currencies. The U.S. dollar is often used as a vehicle currency.
VERS   Voluntary export restraints. Nontariff barriers to trade, equivalent to quotas. Exporting countries are coerced by the importing country into allocating a limited quota of exports. VERs are not legislated and cane be imposed with or without formal international negotiations.
World Trade Organization   An international organization of most of the world's countries which oversee governmental policies regarding international trade. The chief purposes are to liberalize trade, promote the MFN principle, and limit unfair export policies.
Sources: http://highered.mcgraw-hill.com/sites/0072487488/student_view0/glossary.html








                    翻译资料
Sentence Translation 20’
1.    一个具有宏伟发展计划的发展中国家，为了有效地实施其发展计划，可能需要大量进口资本货物、技术、原材料和消费品及其他产品。
2.    由于大多数国家都在积极的促进进出口而且跨国公司在惊人的速度增长，国际市场大多以大规模的竞争为特点。