Vocabulary
The practice of buying or selling goods and services in multiple countries in the world.
What are global markets?
China's ability to produce goods quicker and cheaper than others.
What is China's comparative advantage?
When people in a labor force are employed less than their economic needs.
What is underemployment?
The act of saving money rather than spending it on goods and services to be enjoyed immediately.
What is investing?
The assets needed by a company to provide goods or services.
What is financial capital?
Zones that the government gives special economic policies and flexible governmental measures to.
What are special economic zones?
The price of an item or service where the supply and demand reach an equilibrium.
The net gain or loss of an investment over a specified period of time.
What are rates of return?
A plan to rapidly transform China from an agrarian economy into a socialist society through rapid industrialization and collectivization.
What is the Great Leap Forward?
Market-oriented public enterprises under the purview of local governments.
What are township and village enterprises?
An economy in which the market is controlled by the government.
What is a command economy?
An ownership position in a publicly-traded corporation, e.g. stocks.
What are securities?
A practice in China where local managers were held responsible for the profits and losses of an enterprise.
What is the Household Responsibility System?
The act of reducing the influence of the state within the economy, letting the prices of goods be set by the free market.
What are free market reforms?
Government regulations establishing maximum and minimum prices for goods that are being sold in the market.
What are price controls?
Capital flows from a private company in one country to another country.
What is private foreign investment?
The lessening of government regulations and restrictions in an economy in exchange for greater participation by private companies.
What is the liberalization of an economy?
Raising the price paid by the state for crops, sub-contracting land to individual households, allowing the price of grain to rise, etc.
What are efficiency reforms?
Institutions which, if established at the appropriate time, will improve the efficiency of an economy.
What are market supporting institutions?
A decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased.
What are diminishing returns?