Brexit
What is Brexit? Brexit is the abbreviation of “Britain Exit,” which refers to the decision of the United Kingdom to leave the European Union. Brexit involves the process of negotiating new trade deals, citizen registration rules, borders, etc. The process started on June 23, 2016, after the referendum passed by 51.9% to 48.1%. How Did...
Trade Wars
What is a Trade War? A trade war is an economic conflict between countries. This results in both countries imposing trade protectionist policies against one another in the form of trade barriers. These barriers can be imposed in a number of different ways, including but not limited to tariffs, import quotas, domestic subsidies, currency devaluation,...
Technological Progress
What is Technological Progress? Technological progress refers to the discovery of new and improved methods of producing goods. Changes in technology lead to an increase in productivity of labor, capital, and other factors of production. Technology refers to the process through which inputs are transformed into outputs. A technological change involves the invention of technologies and their release as open...
Growth Accounting Equation
What is the Growth Accounting Equation? The Growth Accounting Equation is a financial tool that measures economic growth – specifically, how changes in real Gross Domestic Product (GDP) in an economy are influenced by changes in available capital, labor, and technology. The Growth Accounting Equation facilitates analyzing economic growth at the minutest level. It enables...
Imports and Exports
What are Imports and Exports? Imports are the goods and services that are purchased from the rest of the world by a country’s residents, rather than buying domestically produced items. Imports lead to an outflow of funds from the country since import transactions involve payments to sellers residing in another country. Exports are goods and...
