Business Glossary

20 Business economy terms

This glossary is made to learn, pronounce and understand words about economy in the goal to be more informed about this specific work field. Basically, by learning, pronouncing and understanding the words down below you will be better with economy related communications.

Arbitrage
noun
The practice of taking advantage of price discrepancies in different markets to make a profit with little to no risk by purchasing and selling something.
Example: Investors were promised up to 7% interest per week, and that their funds would be used for bitcoin arbitrage.
fr: arbitrage
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Asset
noun
Something that can be used to create economic value. An asset can be tangible, such as a building or machinery or intangible, such as a patent or a brand name.
Example: Taiwan Semiconductor Manufacturing and Nvidia make up a greater portion of the ETF’s net assets.
fr: actif
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Backwardation
noun
A term used in the commodity market for when the price for delivering a product today (the spot price) is higher than for delivery in future.
Example: The oil markets would be in backwardation because of the weather issues.
fr: déport
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Barter
noun
The direct swap of goods and services for other goods and services, without the use of money.
Example: The explorers used blankets and other supplies for barter to get food from the native people.
fr: troc
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Bear market
noun
Investor who expects the price of an asset or assets in general to fall.
Example: For anyone unnerved by volatility, remind yourself periodically that even bear markets have not stopped the long-term increases in stocks over time.
fr: marché à la baisse
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Bull market
noun
Investor who expects the price of an asset or assets in general to rise.
Example: Cooperman, a long-time value investor, also grew worried about high valuations in the current bull market.
fr: marché à la hausse
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Cartel
noun
Agreement where a group of producers collaborate to fix the price, or restrict the supply, of a good or service.
Example: A cartel of oil-producing nations controls production and influences prices.
fr: syndicat industriel
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Commodity
noun
A raw material, such as oil or copper, that is usually traded in bulk.
Example: Oil is a commodity in high demand.
fr: produit
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Conglomerate
noun
A large company that has diversified across a range of countries and business areas, normally through making acquisitions.
Example: One of the latest and most beloved mega retailers to host a Deals Day of its own is Target, the hip big-box shop of its conglomerate neighbors.
fr: conglomérat
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Contango
noun
A term used in the commodity market for when the price for delivering a product today (the spot price) is lower than for delivery in future.
Example: If contango arrangements are made on a falling market, each contango gives rise to a taxable profit arrived at by comparing the sale price with a lower purchase price.
fr: report
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Depreciation
noun
In the foreign exchange markets, this means a decline in the value of a currency.
Example: As on previous occasions, the great depreciation in the value of the currency has led to a repudiation of part of its nominal value.
fr: dépréciation
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Disinflation
noun
A situation where prices across the economy are rising, but more slowly than before.
Example: The consumer price index reinforced the trend of disinflation and brought a degree of relief to markets still reeling after last week’s meltdown.
fr: désinflation
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Dumping
noun
It is when a country or company exports a product at a lower price than its domestic sale price.
Example: If two countries do not have a trade agreement in place, then there is no specific ban on trade dumping between them.
fr: vente à prix artificiellement bas
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Equilibrium
noun
It is the balance between the supply and demand for a good at a market-clearing price.
Example: Supply and demand were in equilibrium.
fr: équilibre
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Indexation
noun
A system of economic control in which certain variables (such as wages and interest) are tied to a cost-of-living index so that both rise or fall at the same rate and the detrimental effect of inflation is theoretically eliminated.
Example: After all, alternatives are supposed to help diversify a portfolio and offer some downside protection from indexation.
fr: indexation
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Leverage
noun
Investing, or speculating, with borrowed money or by putting down only a small part of the purchase price.
Example: The union's size gave it leverage in the labor contract negotiations.
fr: effet de levier
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Liquidity
noun
The quality of something to be easily turned into cash.
Example: Lower liquidity is already hurting high-yield bonds and emerging-markets credit.
fr: liquidité
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Manufacturing
noun
The process of making physical products from raw materials through the use of labour and machinery.
Example: Car construction and general shop work of steam railways was the leading manufacturing industry in 1905.
fr: production
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Margin
noun
It is the difference between the revenues from selling a product and the costs of producing it.
Example: The gross margin of a fast food restaurant should be higher than 70% for them to be profitable.
fr: marge
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Protectionism
noun
A policy that attempts to promote companies based in the home country and discriminate against those from abroad.
Example: There is a real risk that, without coordination, green hydrogen protectionist policies and islands of regulation will emerge around the world, creating barriers that make production difficult to scale.
fr: protectionnisme
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