Glossary
Absorption approach to the balance of trade A theory based on domestic spending for domestic goods (absorption) relative to domestic output.
Adjustable peg A system of fixed exchange rates, with periodic devaluations allowed when conditions warrant.
Adjusted present value The value today of future cash flows from operations plus related financial effects.
Adjustment mechanism The method by which the international economy reacts to remove a disequilibrium.
Airbill A bill of lading for goods shipped by air.
American depositary receipts (ADRs) Negotiable instruments certifying shares of a foreign stock held by a foreign custodian.
Arbitrage Buying in a market where the price is low and then selling in a market with a higher price.
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