The Beginner's Guide To The World Economy

Cover......Page 1
Contents......Page 10
Introduction......Page 14
World Map, Map of Europe......Page 17
Maps - Purchasing Power, Population......Page 18
1. What is the World Economy?......Page 22
2. How is Wealth Determined Around the World?......Page 23
3. What is Macroeconomics?......Page 25
4. How Does International Trade Function?......Page 27
5. What are Trade Supluses and Deficits?......Page 29
6. How does Foreign Ownership Affect a Country\'s Economy?......Page 31
7. What is Money?......Page 32
8. What are the World\'s Major Currencies?......Page 35
9. What are Freely Floating Currencies?......Page 37
10. What are Exchange Rates?......Page 39
11. What is GNP?......Page 41
12. What is Inflation?......Page 43
13. How can the World\'s Economies be Compared?......Page 45
14. What is Money Supply?......Page 46
15. What is a Central Bank?......Page 48
16. How do Central Banks Regulate an Economy?......Page 51
17. How are Interest Rates used to Control an Economy?......Page 54
18. What is Free Trade?......Page 55
19. What are Quotas, Tariffs, and Subsidies?......Page 57
20. How do Budget Deficits Affect Trade Deficits?......Page 59
21. Why are Companies Referred to as LTD., INC., GMBH, or S.A.?......Page 61
22. What is Equity?......Page 63
23. What is a Balance Sheet?......Page 64
24. What is a Profit and Loss Statement?......Page 66
25. What is Net Worth?......Page 68
26. How are Companies Compared Internationally?......Page 70
27. What is a Leveraged Buyout?......Page 71
28. How do Companies in the Global EUceonomy Transcend National Boundaries?......Page 73
29. How are International Investments Compared?......Page 76
30. What are the Risks of International Investing?......Page 77
31. What is a Stock Index?......Page 80
32. How do Investors Buy Foreign Shares?......Page 81
33. What is an Equity Fund?......Page 83
34. What is Bankruptcy?......Page 85
35. What is a Capital Market?......Page 86
36. What is a Bond?......Page 88
37. How are Bonds Traded?......Page 90
38. What are Eurocurrencies and Eurobonds?......Page 92
39. How are ratings used to Evaluate Investments?......Page 94
40. How is Gold Used as an International Investment?......Page 95
41. What are Derivatives?......Page 97
42. What is an Option?......Page 99
43. What are Puts and Calls?......Page 102
44. What is a Currency Option?......Page 103
45. What is a Warrant?......Page 105
46. Who Invests in the Global Marketplace?......Page 107
47. What is Hot Money?......Page 109
48. How do Investors and Businesses use Information Technology to Access The Global Economy?......Page 113
49. What are the Forces Behind European Economic Unity?......Page 116
50. What is the European Union?......Page 118
51. How do Communist Countries Participate in the World Economy?......Page 120
52. How did the Socialist Countries of the Soviet Bloc Make The Transition to Capitalism?......Page 123
53. What is the Pacific Rim Economy?......Page 125
54. What is Japan INC.?......Page 127
55. What is NAFTA?......Page 129
56. What are Free-Trade Megazones?......Page 131
57. What is the Third World?......Page 135
58. What are the Roots of Third World Poverty?......Page 137
59. What are the Origins of the Third World\'s Debt?......Page 138
60. What in Hyperinflation?......Page 140
61. What are Economic Austerity Plans?......Page 142
62. What can be done to Promote Third World Development?......Page 144
63. How is Global Economic Cooperation Encouraged?......Page 146
64. What is the World Trade Organization?......Page 147
65. What are Regional Development Banks?......Page 149
66. What are the INF and the World Bank?......Page 151
67. How is Corruption Part of the World Economy?......Page 153
68. What is Money Laundering?......Page 154
69. How does a Swiss Bank Account Work?......Page 156
70. What is a Tax Haven?......Page 158
71. How do International Criminals Escape Prosecution?......Page 159
72. What are Black Markets?......Page 161
73. How is Slavery Part of the World Economy?......Page 162
74. How is the Environment Affected by the World Economy?......Page 165
75. What are Pollution Rights?......Page 167
76. What is a Debt-for-Nature Swap?......Page 169
77. How can Economic Sanctions and Incentives be used to Protect the Environment?......Page 171
Glossary......Page 174