The Language of 'Economy'

What is the Economy?

Economy is basically the flow of goods and services in a country, the more prosperous an economy is the more prosperous the country and the people are. The countries with the strongest economies have the lowest rates of poverty and the best living standards, this is clearly manifest in the statistics and else.

GDP

GDP stands for gross domestic product or produce, this is the measurement which calculates the total amounts of goods and services produced and offered within a country, this measurement initially is the gold standard for telling how prosperous a country is, the highest GDP in the world is that of Americas with about 20 trillion dollars, closely following it is China with about 15 trillion US dollars. America harbors talent from all over the world and attracts talent with it’s policies and incentives. America is a capitalistic society, which means the corporations and elites can capitalize on their earnings with the least government regulations. Sometimes they even get away with their taxes. On the other-hand China is a social-communist society and most of the talent is at home, China has a population of 1.4 billion plus people!, that's nearly 3.5 times the population of the US.

GDP per capita

This is the general calculation of GDP dispersed over each individual, so in general sense the total GDP of a country divided by the number of citizens. Although this calculation does not describe the accurate amount of wealth dispersed between the number of citizens and in capitalistic economies these numbers are highly volatile and inaccurate.

Wealth Inequality or wealth dispersion

This basically statistic shows how the wealth is distributed amongst the citizens of a country, it shows the percentage of wealth in the hands of the percentage of people. In Capitalistic societies a few people hoard the majority of a nations wealth because of the laws which are in effect.

Export

The total amounts of goods and services sent to other countries, exporting means to send goods from one country, the home country to the importing country. The more a country exports it means there is active and mass production at home, which in turn harms supply of resources available, a country needs to maintain and keep it’s natural resource supply balanced. On the contrary production of things which are recyclable and reusable are beneficial to the economy because more export of it, will lead to higher production and labor in the economy. Less unemployment.

Import

To buy products from other countries, many of the American imports are from China because of the cheap labor costs in China, many of the products which cannot be found in the US are bought from other countries from around the world. The more a country imports the more demand for certain products and technologies arise leading to a competitive market at home. Although Importing is not always bad it leads to increased reliance on imports. To balance it, Trade barriers such as Quotas and Tariffs are applied to keep the markets at home in the dominant position.

Trade deficit

If a country imports more than it exports, it leads to a trade deficit and unemployment at home. Exports increase the labor and production of a country although circulation of goods within a border are a bonus, a surplus of imports can damage the labor at home. The more the talent at home is being utilized the larger it’s reputation becomes at a global scale acting as an engine for entrepreneurs and others. Trade balance is vital in the Economy.

What are Stocks?

A corporation is usually consisted of many members, From the CEO’s to the workers. Each person in a corporation has a share. A share is the percentage of the company it owns. The larger the share of a person or the more shares he has, the more he owns the company and the more influential in decision making to dictate the future of a company. When corporations and companies want to enlist their stocks and make them public that is termed as an IPO; initial public offering. The general public can buy shares when IPOs are established. The more affluent people usually buy large shares and take advantage in the future of a company.