GLOBAL FINANCE

» Economic growth is defined as the increase in the total produc-

tion output of an economy.

» ``Command'' economies are run by the government, which sets

prices, production levels, and wages. In laissez-faire economies,
the government does not interfere in market processes. In
the real world, all countries have some degree of government
participation in their economies.

» The IMF groups countries into three economic categories:

1 industrialized (includes the US, Western Europe, and Japan);
2 developing (the rest of the world);
3 transitional (the ex-Soviet Bloc countries).

» International business has greatly increased over the last 20

years. ``Globalization'' is the great business issue of the day but
no-one knows how far it will go or how long it will last.