GLOSSARY Macroeconomic indicators of output Gross domestic product (GDP) total value of production of all new goods and services — in an economy over a fixed period of time and is most often measured per year Exchange rate (FX) ratio between the values of two currencies and is determined on — the international exchange market Purchasing power parity (PPP) measures the equality of values for goods in two — countries and can be used to construct a PPP exchange rate, which is calculated as a compliment to FX rates and provides a better perspective on real spending the — purchasing power of one unit of currency rather than its nominal value in an economy. — Rate of exports to imports ratio between goods traded out of a country to goods traded — into a country of exports over time cumulative nominal worth, adjusted for inflation, of a — country’s exports over a stated span of time Current Account— a record of a country’s balance of payments in terms of trade and foreign investment capital CHAPTER ONE THE EMERGED ORDER Over the next few decades, the growth generated by the developing countries, particularly the BRIC’s (Brazil, Russia, India, and China) could become a much larger force in the world economy than it is now—and much larger than many investors currently expect. Goldman Sachs, with the BRICs: the Path to 2050” “Dreaming —
GLOSSARY Macroeconomic indicators of output Gross domestic product (GDP) — total value of production of all new goods and services in an economy over a fixed period of time and is most often measured per year Exchange rate (FX) — ratio between the values of two currencies and is determined on the international exchange market Purchasing power parity (PPP) — measures the equality of values for goods in two countries and can be used to construct a PPP exchange rate, which is calculated as a compliment to FX rates and provides a better perspective on real spending — the purchasing power of one unit of currency rather than its nominal value — in an economy. Rate of exports to imports — ratio between goods traded out of a country to goods traded into a country of exports over time — cumulative nominal worth, adjusted for inflation, of a country’s exports over a stated span of time Current Account— a record of a country’s balance of payments in terms of trade and foreign investment capital CHAPTER ONE THE EMERGED ORDER Over the next few decades, the growth generated by the developing countries, particularly the BRIC’s (Brazil, Russia, India, and China) could become a much larger force in the world economy than it is now—and much larger than many investors currently expect. — Goldman Sachs, “Dreaming with the BRICs: the Path to 2050”
Mkrttchian_Final2015.docx