1. The United States, European Union, and Japan.
2. The United States, Germany, and Japan.
1. The six largest countries of the world: Canada, France, Germany, Japan, the United Kingdom, and the United States.
2. The six largest countries of the European Union, ministers from which sometimes meet to discuss issues of common concern. The countries are France, Germany, Italy, Poland, Spain, and the United Kingdom.
3. A group of countries that has met several times to resolve disagreements that prevent progress in the Doha Round. The group includes Australia, India, Japan, the United States, the European Union, and either Brazil or China (I've seen both mentioned).
|G-7||A group of seven major industrialized countries whose heads of state met annually from 1976 to 1997 in summit meetings to discuss economic and political issues. The seven are United States, Canada, Japan, Britain, France, Germany, and Italy (plus the EU).|
|G-8||The G-7 plus Russia, which met as a full economic and political summit from 1998 to 2008.|
|G-10||Group of Ten.|
|G-15||Group of Fifteen.|
Originally, an international forum of finance ministers and central bank governors from 19 countries and the EU, plus the IMF and World Bank. Created in 1999 by the finance ministers of the G-7, it meets annually to discuss financial and economic concerns among industrialized economies and emerging markets.
2. Beginning with the financial and economic crisis of 2008, the same G-20 countries have held summit meetings of their heads of state. This G-20 mix of industrialized and large emerging-market economies has now supplanted the G-7 and G-8 as the primary venue for addressing global economic problems.
3. A group of developing countries established Aug. 20, 2003 that joined together in the Cancún Ministerial of the WTO's Doha Round in order to negotiate collectively with the U.S. and E.U., especially seeking the elimination of developed-country agricultural subsidies. Membership in the group has fluctuated, but the name G-20 now seems to have stuck. The group has been led by Brazil, other important members including Argentina, China, India, and South Africa.
|G-24||A group of developing countries established in 1971 with the aim of taking positions on monetary and development finance issues.|
|G-77||A coalition of developing countries within the United Nations, established in 1964 at the end of the first session of UNCTAD, intended to articulate and promote the collective economic interests of its members and enhance their negotiating capacity. Originally with 77 members, it now (in 2013) has 131.|
|GAAP||Generally Accepted Accounting Principles|
|GAFTA||Greater Arab Free Trade Area|
|Gains from trade||The net benefits that countries experience as a result of lowering import tariffs and otherwise liberalizing trade.|
|Gains from trade theorem||The theoretical proposition that (in the absence of distortions) there will be gains from trade for any economy that moves from autarky to free trade, as well as for a small open economy and for the world as a whole if tariffs are reduced appropriately. Due to Samuelson (1939, 1962).|
|Game||A theoretical construct in game theory in which players select actions or strategies and the payoffs depend on the actions or strategies of all players.|
|Game theory||The modeling of strategic interactions among agents, used in economic models where the numbers of interacting agents (firms, governments, etc.) are small enough that each has a perceptible influence on the others.|
|GATS||General Agreement on Trade in Services|
|GATT||General Agreement on Tariffs and Trade|
|GATT Articles||The individual sections of the GATT agreement, conventionally identified by their Roman numerals. Most were originally drafted in 1947, but are still included in the WTO.|
|GATT Codes||Plurilateral agreements negotiated under GATT auspices in the Tokyo Round to limit certain nontariff barriers. Most of these were replaced by the single undertaking of the Uruguay Round and the WTO.|
|GATT discipline||The GATT disciplines are the obligations undertaken by signatories of the GATT and members of the WTO. Key GATT disciplines are nondiscrimination, national treatment, and transparency.|
|GATT ministerial||A ministerial meeting conducted under the GATT.|
|GATT Round||Trade Round|
|GATT-Speak||Variation on GATT-think.|
|GATT-Think||A somewhat derogatory term for the language of GATT negotiations, in which exports are good, imports are bad, and a reduction in a barrier to imports is a concession. Similar to mercantilism. Due to Krugman (1991b).|
|GBTT||Gross barter terms of trade|
|GCC||Gulf Cooperation Council|
|GDP||Gross domestic product.|
|GDP deflator||The deflator for GDP, thus the ratio of nominal GDP to real GDP (usually multiplied, as with a price index, by 100).|
|GDP function||Same as revenue function.|
|GDP per capita||GDP divided by population.|
|Geese||See Flying Geese.|
|General Agreement on Tariffs and Trade||A multilateral treaty entered into in 1948 by the intended members of the International Trade Organization, the purpose of which was to implement many of the rules and negotiated tariff reductions that would be overseen by the ITO. With the failure of the ITO to be approved, the GATT became the principal institution regulating trade policy until it was incorporated into the WTO in 1995.|
|General Agreement on Trade in Services||The agreement, negotiated in the Uruguay Round, that brings international trade in services into the WTO. It provides for countries to provide national treatment to foreign service providers and for them to select and negotiate the service sectors to be covered under GATS.|
|General equilibrium||Equality of supply and demand in all markets of an economy simultaneously. The number of markets does not have to be large. The simplest Ricardian model has markets only for two goods and one factor, labor, but this is a general equilibrium model. Contrasts with partial equilibrium.|
|General tariff||The tariff on a product levied against imports from a country that is not granted most favored nation status and is not subject to a preferential arrangement. In the US, these are Column 2 tariffs.|
|Generalized System of Preferences||Tariff preferences for developing countries, by which developed countries let certain manufactured and semi-manufactured imports from developing countries enter at lower tariffs than the same products from developed countries.|
|Generally Accepted Accounting Principles||The accounting principles set by the Financial Accounting Standards Board and required for use by United States companies. Contrasts with International Financial Reporting Standards used in Europe and other countries.|
|Genetically modified organism||Plants or animals (or products thereof) whose genetic makeup has been determined or altered by genetic engineering. Trade in GMOs has been the source of disagreement and controversy between the US and the EU.|
1. The second ministerial meeting of the World Trade Organization, held in Geneva, Switzerland, May 18-20, 1998. It did not do much.
2. The WTO's seventh ministerial, also held in Geneva, November 30 - December 2, 2009. Held during the Global Financial Crisis and during a period when the Doha Round was stalled, the theme of the meeting was "The WTO, the Multilateral Trading System and the Current Global Economic Environment."
3. The WTO's eighth ministerial, also held in Geneva, December 15-17, 2011.
|Geneva Round||The first (1947) and fourth (1955-56) of the trade rounds conducted under the auspices of the GATT.|
|Geographical indication||A label identifying where a product is produced or grown, and implying characteristics or quality particular to that location. Use of such labels by producers from other countries, has increasingly been the subject of international dispute.|
|Geography||See New Economic Geography.|
|GEP||Global Economic Prospects.|
|Giffen good||A good that is so inferior and so heavily consumed at low incomes that the demand for it rises when its price rises. The reason is that the price increase lowers income sufficiently that the positive income effect (because it is inferior) outweighs the negative substitution effect.|
|Gilt||More formally a "gilt-edged security," it is a bond viewed as extremely safe, usually because it is the debt of a strong government. Traditionally it referred to gold-edged bonds issued by the Bank of England, or sometimes bonds of other Commonwealth countries.|
|Gini Coefficient||A measure of income inequality within a population, ranging from zero for complete equality, to one if one person has all the income. It is defined as the area between the Lorenz Curve and the diagonal, divided by the total area under the diagonal.|
|Global competitiveness||Competitiveness, applied internationally.|
|Global Competitiveness Index||An index of the competitiveness of the nations in the world, compiled each year by the World Economic Forum. It is a weighted average of many different components, measured in publicly available data as well as surveys.|
|Global Economic Prospects||An annual publication of the World Bank.|
|Global factory, the||An early term for fragmentation, due to Grunwald and Flamm (1985).|
|Global Financial Crisis||The collapse of credit and consequent global recession that occurred in 2008 as over-extended financial institutions, especially but not exclusively banks, found their assets devalued by defaulting debtors, especially owners of houses whose property values had fallen below their mortgage values due to the bursting of the housing bubble.|
|Global imbalance||The existence of large trade deficits and large trade surpluses in different parts of the world, perceived to be a situation that cannot be sustained and requiring rebalancing.|
|Global optimum||An allocation that is better, by some criterion, than all others possible; optimum optimorum.|
|Global production sharing||Trade in intermediate inputs; thus an aspect of fragmentation. Term used by Feenstra and Hanson (2003).|
|Global quota||An import quota that specifies the permitted quantity of imports from all sources combined. This may be without regard to country of origin, and thus available on a first-come-first-served basis, or it may be allocated to specific suppliers.|
1. A recession for the global economy, defined in terms of a decline in world real GDP.
2. The recession that resulted from the Global Financial Crisis of 2008 and spread to enough countries of the world that global real GDP declined.
|Global supply chain||A production process that is distributed over many countries, with production in one country providing inputs to production in another, which in turn provides inputs to a third, and so on. An extreme form of fragmentation.|
|Global System of Trade Preferences||An agreement among the G-77 developing countries to negotiate trade preferences among themselves. It went into force in 1989.|
|Global Trade Alert||An information service reporting government measures that affect international trade. It was begun with the global financial crisis of 2008 in an effort to track whether the crisis was causing an increase in protectionism.|
|Global Trade Analysis Project||A project based at Purdue University, providing a data base and CGE modeling tools for analysis of global trade.|
|Global Trade Information Services||A subscription service that describes itself as "the leading supplier of international merchandise trade data."|
1. The increasing world-wide integration of markets for goods, services and capital that began to attract special attention in the late 1990s.
2. Also used to encompass a variety of other changes that were perceived to occur at about the same time, such as an increased role for large corporations (MNCs) in the world economy and increased intervention into domestic policies and affairs by international institutions such as the IMF, WTO, and World Bank.
3. Among countries other than the United States, especially developing countries, the term sometimes refers to the domination of world economic affairs and commerce by the United States.
|GMO||Genetically modified organism.|
|GMS||Greater Mekong Subregion.|
|GNI||Gross national income.|
|Gnomes of Zurich||Term used by the British Labor government to refer to Swiss bankers and financiers who engaged in currency speculation that forced the devaluation of the British pound in 1964.|
|GNP||Gross national product.|
|Gold Exchange Standard||A monetary system that sought to restore features of the Gold Standard in the 1920s and again in the Bretton Woods System, while economizing on gold. Instead of money being backed directly by gold, central banks issued liabilities against foreign currency assets (mostly U.S. dollars under Bretton Woods) that were in turn backed by gold.|
|Gold Standard||A monetary system in which both the value of a unit of the currency and the quantity of it in circulation are specified in terms of gold. If two currencies are both on the gold standard, then the exchange rate between them is approximately determined by their two prices in terms of gold.|
|Gold tranche||See tranche.|
|Good||A product that can be produced, bought, and sold, and that has a physical identity. Sometimes said, inaccurately, to be anything that "can be dropped on your foot" or, also inaccurately, to be "visible." Contrasts with service. Trade in goods is much easier to measure than trade in services, and thus much more thoroughly documented and analyzed.|
1. An itemized accounting of the payments received by government (taxes and other fees) and the payments made by government (purchases and transfer payments).
2. The net inflow (surplus) or outflow (deficit) of these payments.
|Government debt||The amount that a country's government has borrowed as a result of budget deficits, usually by issuing government bonds or, in developing countries, from international financial institutions. Often called the national debt.|
|Government procurement||Purchase of goods and services by government and by state-owned enterprises. Transparency in government procurement is one of the Singapore Issues.|
|Government Procurement Agreement||A plurilateral agreement in the WTO binding participants to principles of openness, transparency, and nondiscrimination on categories of government procurement that they have offered to be covered.|
|Government procurement practice||The methods by which units of government and state-owned enterprises determine from whom to purchase goods and services. When these methods include a preference for domestic firms, they constitute an NTB. Subject of a Tokyo Round Code, and later a WTO plurilateral agreement.|
|Government regulation||Includes all of the government-imposed restrictions on, and requirements of, people, firms, and organizations in a country, including on foreign people and firms that travel or engage in business there. Regulation of the latter, especially, can constitute nontariff barriers to trade in goods and services.|
|GPA||Government Procurement Agreement|
|GPI||Gross progress indicator|
|Graduation||Termination of a country's eligibility for GSP tariff preferences on the grounds that it has progressed sufficiently, in terms of per capita income or another measure, that it is no longer in need of special and differential treatment.|
|Grandfather clause||A provision in an agreement, including the GATT but not the WTO, that allows signatories to keep certain of their previously existing laws that otherwise would violate the agreement.|
|Granularity||The presence within an industry of large firms. Gabaix (2011) shows that random idiosyncratic shocks hitting such firms, unlike those hitting very small firms, can cause aggregate fluctuations, including in exports and the trade balance.|
|Gravity equation||An estimated equation of the gravity model.|
|Gravity model||A model of the flows of bilateral trade based on analogy with the law of gravity in physics: Tij = AYiYj /Dij , where Tij is exports from country i to country j, Yi,Yj are their national incomes, Dij is the distance between them, and A is a constant. Other constants as exponents and other variables are often included. Due independently to Tinbergen (1962) and Pöyhönen (1963).|
|Gray area measure||Grey area measure|
|Gray market||Refers to goods that are sold for a price lower than, or through a distributor different from, that intended by the manufacturer. Most commonly, goods that are intended by their manufacturer for one national market that are bought there, exported, and sold in another national market. See parallel imports.|
|Grease payment||Same as facilitating payment.|
|Great Depression||The depression that began in 1929 and lasted well into the 1930s, in the United States, Europe, and other industrialized parts of the world.|
|Great Moderation||The period between the late 1980s, when inflation abated, and about 2007, when the Global Financial Crisis hit. During this period, rates of inflation remained low in most of the world, economic growth was steady and in many cases unprecedented, and most countries avoided prolonged recessions.|
|Greater Arab Free Trade Area||A pact by members of the Arab League aimed at establishing a free trade area.|
|Greater Mekong Subregion||The six countries sharing the Mekong river: Cambodia, Lao People's Democratic Republic, Myanmar, Thailand, Vietnam, and parts of the People's Republic of China (Yunnan Province and Guangxi Zhuang Autonomous Region).|
|Green box||Category of subsidies permitted under the WTO Agriculture Agreement; includes those not directed at particular products, direct income support for farmers unrelated to production or prices, subsidies for environmental protection and regional development. See box.|
|Green exchange rate||An exchange rate used within the EU's Common Agricultural Policy to convert subsidy and support payments into local currencies, avoiding the variability of the rate set in the exchange market.|
|Green field investment||FDI that involves construction of a new plant, rather than the purchase of an existing plant or firm. Contrasts with brown field investment.|
|Green room group||A group of GATT/WTO member countries or their delegates -- including the larger members and selected smaller and less developed ones -- that have met together during negotiations (originally in a green room at WTO Geneva headquarters) to agree among themselves, before taking decisions to the full membership for the required consensus.|
|Green Seal||See eco-label.|
|Green tariff||carbon tariff|
|Gresham's Law||The proposition that "bad money drives out good." It means that if two moneys have equal value in exchange, perhaps by fiat, but different values for other purposes (as when melted down), then the more valuable money will disappear from circulation, perhaps by leaving the country. Named after Sir Thomas Gresham (1519-1579).|
|Grexit||The exit of Greece from the Eurozone, presumably by adopting its own currency. Word was coined by Buiter and Rahbari (2012).|
|Grey area measure||A policy or practice whose conformity with existing rules is unclear, such as a VER under the GATT prior to the WTO.|
|Gross||Before deduction. Contrasts with net. Just what is deducted to get from gross to net depends on the context.|
|Gross barter terms of trade||The ratio of the quantity of a country's imports, Qm, to the quantity of its exports, Qx, and thus the quantity that it recieves in exchange for the quantity that it sells: GBTT = Qm/Qx. If trade is balanced, so that PxQx=PmQm, then GBTT=NBTT. Given this name by Taussig (1927).|
|Gross capital formation||Same as gross domestic investment.|
|Gross domestic investment||The additions to the capital stock located within the country, without any deductions for depreciation of capital that had been previously produced.|
|Gross domestic product||The total value of new goods and services produced in a given year within the borders of a country, regardless of by whom. It is "gross" in the sense that it does not, in contrast to NDP, deduct depreciation of previously produced capital.|
|Gross exports||Exports, as opposed to net exports.|
|Gross fixed capital formation||The value of a firm's acquisitions, less disposals, of fixed assets (plant, equipment, etc.) during a time period. Differs from gross capital formation by not including change in inventories.|
|Gross international reserves||International reserves, without any deduction for the fact that some of them may have been borrowed. Contrasts with net international reserves.|
|Gross investment||The value of investment before deducting depreciation. For a country, it usually refers to gross domestic investment.|
|Gross national expenditure||Total expenditures by a country's people, firms, and government. Differs from gross national product by including imports and excluding exports.|
|Gross national income||
1. National income plus capital consumption allowance.
2. Same as gross national product.
|Gross national product||The total value of new goods and services produced in a given year by a country's domestically owned factors of production, regardless of where. It is "gross" in the sense that, in contrast to NNP, it does not deduct depreciation of previously produced capital.|
|Gross output||The total output of a firm, industry, or economy without deducting intermediate inputs. For a firm or industry, this is larger than its value added which is net of its own intermediate inputs. For an economy, gross output is greater than net output, which deducts the amount of the good itself used as an intermediate input.|
|Gross progress indicator||An alternative to gross domestic product that is intended to take account of costs that are not internalized by economic agents, such as crime and pollution.|
|Gross substitutes||Two goods are gross substitutes if a rise in the price of one causes an increase in demand for the other.|
|Group of Fifteen||The Summit Level Group of Developing Countries, or Group of Fifteen, is a group of developing countries, now numbering 17, formed in 1989 to meet regularly and issue "pronouncements reflecting their common standpoint on the major developments in the world economy and international economic relations."|
|Group of Seven (or Eight)||G-7 (or G-8)|
|Group of Seventy-Seven||G-77.|
|Group of Ten||A group of ten countries, members of the IMF, that together with Switzerland agreed to make resources available outside their IMF quotas. Since 1963 the governors of the G10 central banks have met on the occasion of the bimonthly BIS meetings.|
|Growth||See economic growth.|
|Growth accounting||Decomposition of the sources of economic growth into the contributions from increases in capital, labor, and other factors. What remains, called the Solow residual, is usually attributed to technology.|
|Growth model||A model of an economy in which quantities of factors can expand over time. The model on which most others are based is the Solow Model.|
|Growth regression||The attempt to ascertain the causes of economic growth by regression of country growth rates on country characteristics. The main pitfall is that many characteristics may themselves have been altered by growth, making causation ambiguous.|
|Grubel-Lloyd index||The measure of the intra-industry trade suggested by Grubel and Lloyd (1975). For an industry i with exports Xi and imports Mi the index is I = [(Xi+Mi) − |Xi− Mi|]100/(Xi+Mi). This is the fraction of total trade in the industry, Xi+Mi, that is accounted for by IIT (times 100).|
|GSP||Generalized System of Preferences|
|GSP social clause||See social clause.|
|GSTP||Global System of Trade Preferences|
|GTAP||Global Trade Analysis Project|
|GTIS||Global Trade Information Services|
|Guest worker||A foreign worker who is permitted to enter a country temporarily in order to take a job for which there is shortage of domestic labor.|
|Gulf Cooperation Council||An agreement among six countries of the Persian Gulf region in 1981 with the aim of coordinating and integrating their economic policies.|