Archives: Terms

Definition of Inventory Bounce An inventory bounce refers to a temporary increase in economic activity resulting from businesses restocking their inventories. This phenomenon often occurs after a period of economic downturn or when companies have reduced their stock levels significantly in response to decreased demand. As the economy begins to […]

Definition of Intra-Industry Trade Intra-industry trade refers to the exchange of similar but differentiated products or services between countries that operate within the same industry. This form of trade contrasts with inter-industry trade, where countries trade completely different goods, such as one country trading machinery for another’s agricultural products. Intra-industry […]

Definition of Intertemporal Equilibrium Intertemporal equilibrium refers to a state in which market participants’ plans and decisions at different points in time are in harmony with each other. It reflects a balance over time in economic agents’ consumption, savings, and investment decisions, ensuring that the allocations of resources meet individuals’ […]

Definition of International Trade International trade refers to the exchange of goods, services, and capital between countries or territories. It allows countries to expand their markets for both goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. […]

International Futures (IFs) is a sophisticated modeling tool used for long-term forecasting and global policy analysis. This tool allows researchers, policymakers, and academics to explore and project the interconnectedness of demographics, economics, energy, food, environment, and other sociopolitical domains across various countries and regions over time. With its comprehensive database […]

Given the nature of your request, providing a comprehensive glossary post on international economics within a single response would be challenging due to its broad scope. However, I’ll provide an overview and some essential terms within the field. This should serve as a foundational piece that covers key aspects of […]

Definition of Intermediate Consumption Intermediate consumption refers to the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is registered as consumption of fixed capital. This includes raw materials, services, and other supplies that are transformed or fully used up […]

Definition of Interest Rate Parity Interest Rate Parity (IRP) is a fundamental principle in the foreign exchange markets that connects interest rates, spot exchange rates, and foreign exchange forward rates. IRP posits that the difference between the interest rates of two countries is equal to the difference between the forward […]

Definition of Interest Rate The interest rate is the percentage of the principal, or original loan amount, that a lender charges a borrower for the use of assets. It is also applied to the yield earned on deposited funds. Interest rates are fundamental to the dynamics of the financial markets […]

Definition of Interest Interest is the cost of using somebody else’s money. When borrowing funds, interest is the fee paid by the borrower to the lender for the privilege of using their money. For savers and investors, it is the amount earned on funds deposited or invested. Interest can be […]