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What is a White Paper?

When government or an organization faces a particular problem, a white paper is written to discuss the issue and propose a specific course of action. A white paper is usually in the form of a report and has many contributors to its contents.

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What Is PPP or Purchasing Power Parity?

When dealing with different currencies it is important to be able to determine the relative value of each of them. Purchasing power parity (PPP) is a method for determining this comparative value. The theory behind PPP has been around since sixteenth century. It is based on the idea that if markets are effective, there will be the same price for items even if they are in different geographical locations – this is called the law of one price. Where differences do occur in price it can be due to barriers in trade and taxes. In reality there can be a huge difference between the prices of goods in different countries. These prices will also be impacted by things like level of supply and demand. Read the rest of this entry »

What is Modernization Theory?

Modernization theory focuses on how societies modernize. It is based on historical research and aims to describe how a society becomes modern. Supporters of this theory have used these ideas to provide a template for how countries that are considered ‘underdeveloped’ should develop. This is a theory that causes a lot of debate and is not accepted universally.

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What is the Difference Between Capitalism and Socialism?

Capitalism and socialism are too very different ways of managing an economy. These two conflicting approaches have been used by different countries around the world and both sides continue to have strong support. There have also been countries like the UK that have attempted to mix the two economic philosophies. The main difference between capitalism and socialism is in regards to how resources in a country should be owned and controlled.

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What is Free Trade?

Free trade is an issue of great importance for those in business and consumers around the world. It refers to the right to sell goods and services around the world without any hindrance. With free trade the only thing determining the price of things will be supply and demand factors. As well as goods and services, free trade can also refer to the ability of labor to move freely around the world. The issue of free trade is a highly contentious one, and both sides of the debate can provide persuasive arguments for their position.

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What is Poverty?

Most of us probably think that we have a good idea of what the word ‘poverty’ means. If we really think about it though we may find that our understanding isn’t as clear as we might have first thought. What actually defines people as living in poverty? Is it not having enough to eat? Do we mean people that can’t afford health insurance? Is somebody who doesn’t have their own motorized transport to be considered poor? What about people who have plenty to eat but don’t own their own home? Is lack of opportunity a form of poverty? The more we try to define poverty the harder it can be to decide what it actually refers to.

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What is a Tariff?

The word ‘Tariff’ is Arabic in origin and it basically means ‘that fees need to be paid’. When we use the word ‘tariff’ in economics we are referring to a tax that is placed on imported goods, but it can apply to exported goods as well. There are a number of good reasons why a tariff might be placed on goods, but there are economists who argue against the use of this type of tax – they see it as interfering in the free market.

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What is the Glass Ceiling?

Many of us will have heard the words “glass ceiling” used as a metaphor to describe how people are unable to pass beyond a certain point. In economic terms this glass ceiling refers to the situation where a person is unable to climb any higher in their profession because of their race, gender, sexual preference, religion, or other factor. It is a contentious issue, but there is little doubt that such blocks to advancement do exist in at least some organizations. During the last few decades there has been a lot of effort to make the playing field a bit fairer, but people will disagree about how much this happened – all though few would doubt that there have been improvements.

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