Archives: Terms

Definition of Voluntary Export Restraint (VER) A Voluntary Export Restraint (VER) refers to a trade policy implemented by a country to limit the quantity of goods it exports to another country. Unlike other forms of trade barriers, a VER is voluntary and agreed upon by the exporting country, often due […]

Definition of Volume of Trade The volume of trade refers to the total quantity of goods and services exchanged between countries or within a country during a specific period of time. It is a measure of the extent of economic transactions in terms of the physical amount of goods and […]

Definition of Virtual Good A virtual good is a non-physical item or service that is purchased or obtained within a digital environment. Unlike physical goods, virtual goods exist only in the digital realm and can include items such as virtual currency, in-game items, digital downloads, and software licenses. Example One […]

Definition of Versioning Versioning refers to the practice of offering different versions or variants of a product or service to different customer segments or markets. This strategy allows businesses to target different customer needs, preferences, and price sensitivities, ultimately maximizing their market reach and profitability. Example One common example of […]

Definition of Velocity of Money The velocity of money refers to the rate at which money is exchanged or spent in an economy over a given period. It measures how quickly money moves through the economy and is an important determinant of economic activity. Generally, a higher velocity of money […]

Definition of Veblen Good A Veblen good is a luxury good for which an increase in price actually leads to an increase in demand. Unlike most goods where demand decreases as prices increase, Veblen goods defy the law of demand. Instead, their high price is seen as a status symbol […]

Definition of Variable Cost-Plus Pricing Variable cost-plus pricing is a pricing strategy where the selling price of a product or service is determined by adding a markup percentage to the variable costs associated with producing or delivering that product or service. Variable costs are costs that change in proportion to […]

Definition of Value Deflation Value deflation refers to a decrease in the worth or purchasing power of a currency or an asset. It occurs when the value of goods and services declines relative to the currency or asset. Value deflation can be measured through various economic indicators, such as inflation […]

Definition of Value Chain The value chain refers to the process by which a company adds value to its products or services from the initial production stage to the final customer delivery. It involves a series of activities, including sourcing raw materials, manufacturing, distribution, marketing, and customer support. Each step […]

Definition of Value Added Value added refers to the increase in value that a company or a production process brings to a product or service. Value added is calculated by subtracting the cost of materials or inputs from the total value of the output. It represents the additional worth that […]