- Industry: Education
- Number of terms: 31274
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A production function in which no substitution between inputs is possible: ''F''(''V'') = min<sub>i</sub>(''V<sub>i</sub>''/''a<sub>i</sub>''), where ''V'' is a vector of inputs ''V<sub>i</sub>'', and ''a<sub>i</sub>'' are the constant per unit input requirements. Isoquants are L-shaped.
Industry:Economy
A common means of payment in international trade, this is a written commitment by a bank to make payment to an exporter on behalf of an importer, under specified conditions.
Industry:Economy
An amount that is owed, in contrast to an asset. A liability may result from borrowing, from obligation to pay for a product or service received, etc.
Industry:Economy
1. The process of making policies less constraining of economic activity. 2. Reduction of tariffs and/or removal of nontariff barriers.
Industry:Economy
1. The requirement that importers and/or exporters get government approval prior to importing or exporting. Licensing may be automatic, or it may be discretionary, based on a quota, a performance requirement, or some other criterion. 2. Granting of permission, in return for a licensing fee, to use a technology. When done by firms in one country to firms in another, it is a form of technology transfer. See compulsory licensing.
Industry:Economy
A reduction in tariffs in which the size of the reduction is linearly related to the initial size of the tariff: %''t'' = ''a'' + ''bt'', where %''t'' is the percent reduction in the tariff, ''t'' is the initial tariff, and ''a'',''b'' are constants. The simplest linear cut reduces all tariffs by the same percentage. Contrasts with the Swiss Formula.
Industry:Economy
A linear relationship between a dependent variable and one or more independent variables plus a stochastic disturbance: ''Y<sub>i</sub>=b''<sub>0</sub>+''b''<sub>1</sub>''X''<sub>1''i</sub>+. . . +b<sub>n</sub>X<sub>ni</sub>+u<sub>i</sub>. ''
Industry:Economy
A requirement that, in order to get an import license, the importer must buy a certain amount of the same product from local producers.
Industry:Economy
A financial crisis that occurs due to lack of liquidity. In international finance, it usually means that a government or central bank runs short of international reserves needed to peg its exchange rate and/or to service its foreign loans.
Industry:Economy
