International Economics

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6 domain-specific abstractions whose origin domain is International Economics.

• Effective exchange rate index — An index of a currency’s value against a weighted basket of trading-partner or competitor currencies relative to a base period.
• Home bias in trade puzzle — The empirical finding that otherwise comparable regions trade far more within national borders than across them, leaving a large border effect after distance, size and standard gravity-model determinants are controlled.
• Immiserizing growth — A trade-theoretic case in which output growth worsens a large exporting country’s terms of trade enough to reduce national welfare.
• Lerner symmetry theorem — The trade-theory result that an ad valorem import tariff has equivalent real effects to an equal export tax under specified general-equilibrium assumptions.
• New trade theory — A family of international-trade models explaining intra-industry trade and specialization through increasing returns, product differentiation, imperfect competition and market size.
• Trade-weighted effective exchange rate index — An index combining a currency’s bilateral exchange rates using trading-partner weights to summarize its multilateral external value.