Glossary of Economics and Trade Spanish
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THE OECD-WTO BALANCED TRADE in SERVICES DATABASE (BPM6 Edition)
1 THE OECD-WTO BALANCED TRADE IN SERVICES DATABASE (BPM6 edition) Antonella Liberatore (OECD), Steen Wettstein (WTO)1 January 2021 Complete, consistent and balanced bilateral trade in services statistics are vital for the empirical analysis of international trade as well as for policy-making and trade negotiations. Unfortunately, such data are not readily available. This paper presents the work of OECD and WTO to build an updated version of the Balanced Trade in Services (BaTIS) dataset, a complete and consistent trade in services matrix to serve as input for the compilation of the TiVA Inter-Country Input-Output Tables and as a tool for the analysis of trade patterns in general. This second edition of BaTIS provides annual data for 2005-2019, covering 202 economies, broken down by the 12 main EBOPS 2010 service categories. This paper accompanies the dataset and describes its compilation methodology in detail, including the collection and cleaning of the reported data, the different methodologies used to estimate missing information, and the final balancing of the export and import flows. 1 This contribution reflects a description of a methodology and does not represent the position or opinions of OECD, WTO or their respective Members, nor the official position of any staff members. The definition of geographical territories in this report is merely statistical and does not imply an expression of opinion by the OECD or the WTO Secretariat concerning the status of any country or territory, the delimitation of its frontiers, its official name, nor the rights and obligations of any WTO member in respect of WTO agreements. -
Lecture 10 2-18 Outline and Slides 0.Pdf
Economics 2 Professor Christina Romer Spring 2016 Professor David Romer LECTURE 10 INTERNATIONAL TRADE AND TRADE POLICY February 18, 2016 I. OVERVIEW II. REVIEW OF COMPLETE SPECIALIZATION A. Example of the United States and China B. Terms of trade and world prices III. INCOMPLETE SPECIALIZATION A. Changing opportunity cost within each country B. Optimal level of specialization C. Consumption possibilities with trade IV. SUPPLY AND DEMAND ANALYSIS OF INTERNATIONAL TRADE A. Export good B. Import good V. WELFARE AND EMPLOYMENT EFFECTS OF TRADE A. Welfare analysis of trade 1. Export good 2. Import good B. Employment effects of trade VI. TRADE POLICY A. Some definitions B. Effects of a tariff C. Welfare analysis of a tariff D. Possible arguments for protection Economics 2 Christina Romer Spring 2016 David Romer LECTURE 10 International Trade and Trade Policy February 18, 2016 Announcements • Midterm 1 Logistics: • Tuesday, February 23rd, 3:30–5:00 • Sections 102, 104, 107, 108 (GSIs Pablo Muñoz and David Green) go to 245 Li Ka Shing Center (corner of Oxford and Berkeley Way). • Everyone else come to usual room (2050 VLSB). • You do not need a blue book; just a pen. • You also do not need a watch or phone. Announcements (continued) • Collecting the Exams: • If you finish before 4:45, you may quietly pack up and bring your exam to the front. • After 4:45, stay seated. • We will collect all of the exams by passing them to the nearest aisle. • Please don’t get up until all of the exams are collected. • Academic honesty: Behave with integrity. -
GLOSSARY of INTERNATIONAL TRADE TERMS 2016 Guide
CALIFORNIA FASHION ASSOCIATION 444 South Flower Street, 37th Floor · Los Angeles, CA 90071 ·ph. 213.688.6288 ·fax 213.688.6290 Email: [email protected] Website: www.californiafashionassociation.org GLOSSARY OF INTERNATIONAL TRADE TERMS 2016 Guide Sponsored By: Prepared by: CALIFORNIA FASHION ASSOCIATION 444 South Flower Street, 37th Floor, Los Angeles, CA 90071 Phone: 213-688-6288, Fax: 213-688-6290 [email protected] | www.californiafashionassociation.org 1 CALIFORNIA FASHION ASSOCIATION 444 South Flower Street, 37th Floor · Los Angeles, CA 90071 ·ph. 213.688.6288 ·fax 213.688.6290 Email: [email protected] Website: www.californiafashionassociation.org THE VOICE OF THE CALIFORNIA INDUSTRY The California Fashion Association is the forum organized to address the issues of concern to our industry. Manufacturers, contractors, suppliers, educational institutions, allied associations and all apparel-related businesses benefit. Fashion is the largest manufacturing sector in Southern California. Nearly 13,548 firms are involved in fashion-related businesses in Los Angeles and Orange County; it is a $49.3-billion industry. The apparel and textile industry of the region employs approximately 128,148 people, directly and indirectly in Los Angeles and surrounding counties. The California Fashion Association is the clearinghouse for information and representation. We are a collective voice focused on the industry's continued growth, prosperity and competitive advantage, directed toward the promotion of global recognition for the "Created in California" -
Arbitrage Pricing Theory∗
ARBITRAGE PRICING THEORY∗ Gur Huberman Zhenyu Wang† August 15, 2005 Abstract Focusing on asset returns governed by a factor structure, the APT is a one-period model, in which preclusion of arbitrage over static portfolios of these assets leads to a linear relation between the expected return and its covariance with the factors. The APT, however, does not preclude arbitrage over dynamic portfolios. Consequently, applying the model to evaluate managed portfolios contradicts the no-arbitrage spirit of the model. An empirical test of the APT entails a procedure to identify features of the underlying factor structure rather than merely a collection of mean-variance efficient factor portfolios that satisfies the linear relation. Keywords: arbitrage; asset pricing model; factor model. ∗S. N. Durlauf and L. E. Blume, The New Palgrave Dictionary of Economics, forthcoming, Palgrave Macmillan, reproduced with permission of Palgrave Macmillan. This article is taken from the authors’ original manuscript and has not been reviewed or edited. The definitive published version of this extract may be found in the complete The New Palgrave Dictionary of Economics in print and online, forthcoming. †Huberman is at Columbia University. Wang is at the Federal Reserve Bank of New York and the McCombs School of Business in the University of Texas at Austin. The views stated here are those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of New York or the Federal Reserve System. Introduction The Arbitrage Pricing Theory (APT) was developed primarily by Ross (1976a, 1976b). It is a one-period model in which every investor believes that the stochastic properties of returns of capital assets are consistent with a factor structure. -
Adam Smith 1723 – 1790 He Describes the General Harmony Of
Adam Smith 1723 – 1790 He describes the general harmony of human motives and activities under a beneficent Providence, and the general theme of “the invisible hand” promoting the harmony of interests. The invisible hand: There are two important features of Smith’s concept of the “invisible hand”. First, Smith was not advocating a social policy (that people should act in their own self interest), but rather was describing an observed economic reality (that people do act in their own interest). Second, Smith was not claiming that all self-interest has beneficial effects on the community. He did not argue that self-interest is always good; he merely argued against the view that self- interest is necessarily bad. It is worth noting that, upon his death, Smith left much of his personal wealth to churches and charities. On another level, though, the “invisible hand” refers to the ability of the market to correct for seemingly disastrous situations with no intervention on the part of government or other organizations (although Smith did not, himself, use the term with this meaning in mind). For example, Smith says, if a product shortage were to occur, that product’s price in the market would rise, creating incentive for its production and a reduction in its consumption, eventually curing the shortage. The increased competition among manufacturers and increased supply would also lower the price of the product to its production cost plus a small profit, the “natural price.” Smith believed that while human motives are often selfish and greedy, the competition in the free market would tend to benefit society as a whole anyway. -
1 Three Essential Questions of Production
Three Essential Questions of Production ~ Economic Understandings SS7E5a Name_______________________________________Date__________________________________ Class 1 2 3 4 Traditional Economies Command Economies Market Economies Mixed Economies What is In this type of In a command economy, the In a market economy, the Nearly all economies in produced? economic system, what central government decides wants of the consumers and the world today have is produced is based on what goods and services will the profit motive of the characteristics of both custom and the habit be produced, what wages will producers will decide what market and command of how such decisions be paid to workers, what will be produced. A.K.A. economic systems. were made in the past. jobs the workers do, as well Free-enterprise, Laisse- as the prices of goods. faire & capitalism. This means that most How is it The methods of In a command economy, no Labor (the workers) and countries have produced? production are one can start their own management (the characteristics of a primitive. Bartering, or business. bosses/owners) together free market/free a system of trading in The government determines will determine how goods enterprise as well as goods and services, how and where the goods will be produced in a market some government replaces currency in a produced would be sold. economy. planning and control. traditional economy. For whom is The primary group for In a command economy, the In a market economy, each it produced? whom goods and government determines how production resource is paid services are produced the goods and services are based on what is in a traditional economy distributed. -
Arbitrage and Price Revelation with Asymmetric Information And
Journal of Mathematical Economics 38 (2002) 393–410 Arbitrage and price revelation with asymmetric information and incomplete markets Bernard Cornet a,∗, Lionel De Boisdeffre a,b a CERMSEM, Université de Paris 1, 106–112 boulevard de l’Hˆopital, 75647 Paris Cedex 13, France b Cambridge University, Cambridge, UK Received 5 January 2002; received in revised form 7 September 2002; accepted 10 September 2002 Abstract This paper deals with the issue of arbitrage with differential information and incomplete financial markets, with a focus on information that no-arbitrage asset prices can reveal. Time and uncertainty are represented by two periods and a finite set S of states of nature, one of which will prevail at the second period. Agents may operate limited financial transfers across periods and states via finitely many nominal assets. Each agent i has a private information about which state will prevail at the second period; this information is represented by a subset Si of S. Agents receive no wrong information in the sense that the “true state” belongs to the “pooled information” set ∩iSi, hence assumed to be non-empty. Our analysis is two-fold. We first extend the classical symmetric information analysis to the asym- metric setting, via a concept of no-arbitrage price. Second, we study how such no-arbitrage prices convey information to agents in a decentralized way. The main difference between the symmetric and the asymmetric settings stems from the fact that a classical no-arbitrage asset price (common to every agent) always exists in the first case, but no longer in the asymmetric one, thus allowing arbitrage opportunities. -
Why Convertible Arbitrage Makes Sense in 2021
For UBS marketing purposes Convertible arbitrage as a hedge fund strategy should continue to work well in 2021. (Keystone) Investment strategies Why convertible arbitrage makes sense in 2021 19 January 2021, 8:52 pm CET, written by UBS Editorial Team The current market environment is conducive for convertible arbitrage hedge funds with elevated new issuance, attractive equity volatility levels and convertible valuations all likely to support performance in 2021. Investors should consider allocating to the strategy within a diversified hedge fund portfolio. The global coronavirus pandemic resulted in significant equity market drawdowns in March last year, followed by an almost unparalleled recovery over the next few months. On balance, 2020 was a good year for hedge funds focusing on convertible arbitrage strategies which returned 12.1% for the year, according to HFR data. We believe that all drivers remain in place for a solid performance in 2021. And while current market conditions resemble those after the great financial crisis, convertible arbitrage today is a far less crowded strategy with more moderate leverage levels. The market structure is also more balanced between hedge funds and long only funds, and has after a long period of outflows, recently witnessed renewed investor interest. So we believe there are a number of reasons why convertible arbitrage remains attractive for investors in 2021 based on the following assumptions: Convertible arbitrage traditionally performs well in recovery phases. Historically, convertible arbitrage funds have generated their best returns during periods of economic recovery and expansion. Improving risk sentiment, tightening credit spreads, and attractively priced new issues are key contributors to returns in such periods. -
The Stock Market and the Economy
BARRY BOSWORTH Brookings Institution The Stock Market and the Economy THE STOCKMARKET decline of 1973-74 marked the longest and steepest fall in corporate-stockprices since the depressionof the 1930s.The loss of stockholderwealth in marketprices amounted to $525 billion, or 43 per- cent.'The magnitudeof this declinein stockvalues, in conjunctionwith the subsequentcollapse of aggregatedemand in 1974-75, has sparkeda re- newed discussionof the role of the stock marketin businesscycles. The debate-as is so frequentlythe case-is not new to economics.Several sig- nificantcontributions recently made at both the conceptualand empirical levels seem, however,to justify a reexaminationof the issues. The disputeabout the import of changesin the stock marketrevolves around their causal role in economicfluctuation: Are they a source of variationin aggregatedemand? Does the causationrun solely in the op- posite direction?Or do the levels of economicactivity and of stock prices simplyrespond similarly to other,more basic, economic forces, with no di- rect causal link betweenthe two? This third interpretationis consistent with a view that the stock marketreflects investors' attempts to forecast economictrends. The fact that movementsin stock prices foretellmajor Note: I am gratefulto LeonardHerk for researchaid in writingthis article.Members of the Brookingspanel offeredvaluable comments and suggestionsin the preparationof the draft. David A. Wyss of the Federal Reserve Board staff provided the computer simulationsof the MPS model and answerednumerous questions. 1. Derived as the change between December 1972 and December 1974, as shown in Board of Governorsof the FederalReserve System, unpublisheddetail accounts, from the flow of funds (July 1975). 257 258 BrookingsPapers on EconomicActivity, 2:1975 cyclesin businessactivity is, thus, only evidencethat investors'forecasts are betterthan randomguesses. -
Vanguard Economic and Market Outlook 2021: Approaching the Dawn
Vanguard economic and market outlook for 2021: Approaching the dawn Vanguard Research December 2020 ■ While the global economy continues to recover as we head into 2021, the battle between the virus and humanity’s efforts to stanch it continues. Our outlook for the global economy hinges critically on health outcomes. The recovery’s path is likely to prove uneven and varied across industries and countries, even with an effective vaccine in sight. ■ In China, we see the robust recovery extending in 2021 with growth of 9%. Elsewhere, we expect growth of 5% in the U.S. and 5% in the euro area, with those economies making meaningful progress toward full employment levels in 2021. In emerging markets, we expect a more uneven and challenging recovery, with growth of 6%. ■ When we peek beyond the long shadow of COVID-19, we see the pandemic irreversibly accelerating trends such as work automation and digitization of economies. However, other more profound setbacks brought about by the lockdowns and recession will ultimately prove temporary. Assuming a reasonable path for health outcomes, the scarring effect of permanent job losses is likely to be limited. ■ Our fair-value stock projections continue to reveal a global equity market that is neither grossly overvalued nor likely to produce outsized returns going forward. This suggests, however, that there may be opportunities to invest broadly around the world and across the value spectrum. Given a lower-for-longer rate outlook, we find it hard to see a material uptick in fixed income returns in the foreseeable future. Lead authors Vanguard Investment Strategy Group Vanguard Global Economics and Capital Markets Outlook Team Joseph Davis, Ph.D., Global Chief Economist Joseph Davis, Ph.D. -
Non-Tariff Measures Overview Glossary of Related Terms
Non-Tariff Measures Overview Glossary of Related Terms Note: With thanks to the following for definitions provided here: Deardorff's Glossary of International Economics, the 1 United Nations Conference on Trade and Development (UNCTAD), the Organization for Economic Co-operation and Development (OECD), the United Nations Educational, Scientific and Cultural Organization (UNESCO) and the World Trade Organization (WTO). Terms Definition Absolute Advantage (AA) The ability to produce a good at lower cost, in terms of real resources, than another country. In a Ricardian model, cost is in terms of labor only. Absolute advantage is neither necessary nor sufficient for a country to export a good. Ad Valorem Equivalent The ad valorem tariff that would be equivalent, in terms of its effects on trade, Terms price, or some other measure, to a nontariff barrier. Ad Valorem Tariff (A Tariff defined as a percentage of the value of an imported good. Percentage of Price) Adjustment Assistance Government program to assist workers and/or firms whose industry has declined, either due to import competition (trade adjustment assistance) or from other causes. Such programs usually have two (conflicting) goals: to lessen hardship for those affected, and to help them change their behavior -- what, how, or where they produce. AGOA U.S. legislation enacted May 2000 providing tariff preferences to African countries that qualify, including trade facilitation and technical assistance to producers. As of January 2016, 40 countries were listed as eligible. Several countries have had their eligibility removed and some later reinstated over the years. Anti-Dumping Measures A complaint by a domestic producer that imports are being dumped, leading to an anti-dumping duty if both dumping and injury are found in the resulting investigation. -
Hedge Fund Returns: a Study of Convertible Arbitrage
Hedge Fund Returns: A Study of Convertible Arbitrage by Chris Yurek An honors thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Science Undergraduate College Leonard N. Stern School of Business New York University May 2005 Professor Marti G. Subrahmanyam Professor Lasse Pedersen Faculty Adviser Thesis Advisor Table of Contents I Introductions…………………………………………………………….3 Related Research………………………………………………………………4 Convertible Arbitrage Returns……………………………………………....4 II. Background: Hedge Funds………………………………………….5 Backfill Bias…………………………………………………………………….7 End-of-Life Reporting Bias…………………………………………………..8 Survivorship Bias……………………………………………………………...9 Smoothing………………………………………………………………………9 III Background: Convertible Arbitrage……………………………….9 Past Performance……………………………………………………………...9 Strategy Overview……………………………………………………………10 IV Implementing a Convertible Arbitrage Strategy……………….12 Creating the Hedge…………………………………………………………..12 Implementation with No Trading Rule……………………………………13 Implementation with a Trading Rule……………………………………...14 Creating a Realistic Trade………………………………….……………....15 Constructing a Portfolio…………………………………………………….16 Data……………………………………………………………………………..16 Bond and Stock Data………………………………………………………………..16 Hedge Fund Databases……………………………………………………………..17 V Convertible Arbitrage: Risk and Return…………………….…...17 Effectiveness of the Hedge………………………………………………...17 Success of the Trading Rule……………………………………………….20 Portfolio Risk and Return…………………………………………………..22 Hedge Fund Database Returns……………………………………………23 VI