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Cards In This Set
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Convertible currency
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A currency that can be exchanged at market price for the currency of another country.
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Invisible hand
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A term coined by Adam Smith to describe the uncoordinated behavior of individuals and firms acting in their own selfish interest in the marketplace.
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Absolute gains
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An important element of economic liberalism, absolute gains is the idea that economic interactions create only winners, even if some gain more than others. Contrasts with relative gains.
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Sensitivity
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A state is sensitive to another state’s actions if those actions can temporarily hamper a state until it finds a replacement for the good or service from another location.
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Vulnerability
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A state is vulnerable to another state’s actions if it is unable to compensate effectively for losses caused by the other state’s actions.
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