a loss if it rises. Capital adequacy ratio The ratio of a bank's capital to its risk-weighted credit exposure ( liabilities ). Carry trade The practice of borrowing in the currency of a country where interest rates are low and lending the proceeds in the currency of a country where interest rates are higher, to profit from the difference. Non-production of some of the goods that a country consumes, as in definition 2 of specialization. Capital good A good, such as a machine, that, once in place, becomes part of the capital stock. Consumer movement Mode 2 of four modes of supply of traded services, this one entails the buyer moving (temporarily) to the foreign location of the seller, as in the case of tourism. Central Intelligence Agency Intelligence gathering (and espionage) agency of the United States government, publisher of the World Factbook. The currency factor can be nonzero either because of currency risk or because of expected appreciation or depreciation. The purposes are to treat imports equally with domestic goods that are subject to costly environmental regulation or tax, and also to motivate other countries to use such environmental policies. Core labor standard Several labor standards that are considered the most basic and fundamental.
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Copyright The legal right to the proceeds from and control over the use of a created product, such as a written work, audio, video, film, or software. The export of the same good by two countries to each other would be cross-hauling, if it occurs at the same time. The term is usually used for international groups, especially involving state-owned firms and/or governments. Currency crisis The crisis that occurs when particpants in an exchange market come to perceive that an attempt to maintain a pegged exchange rate is about to fail, causing speculation against the peg that hastens the failure and forces a devaluation. Copenhagen criteria The conditions that must be met for a country to gain entry to the European Union, as established by the Copenhagen European Council in 1993 and strengthened in Madrid in 1995. Due to Coase (1960). This function has elasticity of substitution between arguments equal to one. Normally useful only as the change in consumer surplus. Consular fees and formalities Charges and procedures required of importers.
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