Microsoft Word Web glossary doc

 

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Climate Change: As a consequence of the cumulative emission of carbon dioxide (a by-product 
of fossil fuel use) and other chemicals over the past two centuries, the concentration of these 
gases in the global atmosphere is growing dramatically. These chemicals capture more solar 
energy within the atmosphere, and hence average global temperatures are rising – by about a full 
degree Celsius (on land) over the past half-century. The rise in global temperatures is causing 
many serious consequences, including changes in rainfall, rising sea levels, extreme weather and 
storms, and changes in plant and animal habitats. 
Commodity: Anything that is bought and sold for money is a commodity – including produced 
goods and services, inputs (such as capital or raw materials), and even labour. 
Comparative Advantage: A theory of international trade that originated with David Ricardo in 
the early 19
th
Century, and is maintained (in revised form) within neoclassical economics. The 
theory holds that a national economy will specialize through international trade in those products 
which it produces relatively most efficiently. Even if it produces those products less efficiently 
(in absolute terms) than its trading partner, it can still prosper through foreign trade. The theory 
depends on several strong assumptions – including an absence of international capital mobility, 
and a supply-constrained economy. 
Competition: Competition occurs between different companies trying to produce and sell the 
same good or service. Companies may compete with each other for markets and customers; for 
raw materials; for labour; and for capital. 
Conditionality: International financial institutions (like the World Bank and the International 
Monetary Fund) often attach strong conditions to emergency loans they make to developing 
countries experiencing economic and financial crises. These conditions require the borrowing 
countries to follow strict neoliberal policies, such as reducing government spending and deficits; 
unilaterally opening markets to foreign trade; and privatizing important public assets.