| capitalism | An economic system based on the private ownership of the means of production and distribution of goods, competition, and profit incentives.
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| exchange rates | The values of two currencies relative to each other—for example, how many yen equal a dollar or how many yuans equal a euro.
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| foreign direct investment (FDI) | Buying stock, real estate, and other assets in another country with the aim of gaining a controlling interest in foreign economic enterprises. Different from portfolio investment, which involves investment solely to gain capital appreciation through market fluctuations.
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| foreign portfolio investment (FPI) | Investment in the stocks and the public and private debt instruments (such as bonds) of another country below the level where the stock or bondholder can exercise control over the policies of the stock-issuing company or the bond-issuing debtor.
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| imperialism | A term synonymous with colonization, meaning domination by Northern Eurowhites over Southern nonwhites as a means to tap resources to further their own development.
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| manufactured goods | Items that required substantial processing or assembly to become usable. Distinct from primary products, such as agricultural and forestry products, that need little or no processing.
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| Merchandise trade | The import and export of tangible manufactured goods and raw materials.
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| monetary relations | The entire scope of international money issues, such as exchange rates, interest rates, loan policies, balance of payments, and regulating institutions (for example, the International Monetary Fund).
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| multinational corporations (MNCs) | Private enterprises that have production subsidiaries or branches in more than one country.
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| neocolonialism | The notion that EDCs continue to control and exploit LDCs through indirect means, such as economic dominance and co-opting the local elite.
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| newly industrializing countries (NICs) | Less developed countries whose economies and whose trade now include significant amounts of manufactured products. As a result, these countries have a per capita GDP significantly higher than the average per capita GDP for less developed countries.
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| primary products | Agricultural products and raw materials, such as minerals.
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| protectionism | Using tariffs or non tariff barriers such as quotas or subsidies to protect a domestic economic sector from competition from imported goods or services.
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| Services trade | Trade based on the purchase (import) from or sale (export) to another country of intangibles such as architectural fees; insurance premiums; royalties on movies, books, patents, and other intellectual properties; shipping services; advertising fees; and educational programs.
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| tariffs | A tax, usually based on a percentage of value, that importers must pay on items purchased abroad; also known as an import tax or import duty.
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| United Nations Conference on Trade and Development (UNCTAD) | A UN organization established in 1964 and currently consisting of all UN members plus the Holy See, Switzerland, and Tonga, which holds quadrennial meetings aimed at promoting international trade and economic development.
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