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                <h1 class="headers">- E -</h1>
</center>

  <a name="eadb">
  <table width=100%><tr><td width=20% valign=top><b>
EADB
</b><td width=80% valign=top>
<a href="#eadb2">East African Development Bank</a>
</table>

  <a name="eai">
  <table width=100%><tr><td width=20% valign=top><b>
EAI
</b><td width=80% valign=top>
<a href="#eai2">Enterprise for the Americas Initiative</a>
</table>

  <a name="eams">
  <table width=100%><tr><td width=20% valign=top><b>
EAMS
</b><td width=80% valign=top>
<a href="#eams2">Euro Area Member States</a>
</table>

  <a name="EarlyHarvest">
  <table width=100%><tr><td width=20% valign=top><b>
Early harvest
</b><td width=80% valign=top>
A term, in <a href="t.html#TradeNegotiation">trade negotiations</a>, for agreeing to accept the results of a portion of the negotiations before the rest of the negotiations are completed.
</table>

  <a name="earnings">
  <table width=100%><tr><td width=20% valign=top><b>
Earnings
</b><td width=80% valign=top>
The total amount earned, usually by a worker as wages, or by a firm as profits.
</table>

  <a name="EarthSummit">
  <table width=100%><tr><td width=20% valign=top><b>
Earth Summit
</b><td width=80% valign=top>
<a href="r.html#RioSummit">Rio Summit</a>.
</table>

  <a name="eas">
  <table width=100%><tr><td width=20% valign=top><b>
EAS
</b><td width=80% valign=top>
<a href="#eas2">East Asia Summit</a>.
</table>

  <a name="eadb2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.eadb.org/">
East African Development Bank</a>
</b><td width=80% valign=top>
"A leading Development finance institution with an overriding objective of promoting development in East Africa," EADB is a <a href="d.html#DevelopmentBank">development bank</a> for its five member countries:  Burundi, Kenya, Rwanda, Tanzania, and Uganda.
</table>

  <a name="eas2">
  <table width=100%><tr><td width=20% valign=top><b>
East Asia Summit
</b><td width=80% valign=top>
A meeting of the heads of state of a dozen or so countries to discuss both political and economic issues of common interest.  The first of these meetings was held in 2005 in Kuala Lumpur.  The sixth meeting is scheduled for mid-November 2011 in Indonesia and will include for the first time the United States and Russia.
</table>

  <a name="EasyMoney">
  <table width=100%><tr><td width=20% valign=top><b>
Easy money
</b><td width=80% valign=top>
A <a href="m.html#MonetaryPolicy">monetary policy</a> that is <a href="#expansionary">expansionary</a>, thus with low <a href="i.html#InterestRate">interest rates</a> for borrowing.  Contrasts with <a href="t.html#TightMoney">tight money</a>.
</table>

  <a name="EatonKortumModel">
  <table width=100%><tr><td width=20% valign=top><b>
Eaton-Kortum Model
</b><td width=80% valign=top>
A useful variant of the <a href="r.html#RicardianModel">Ricardian Trade Model</a> in which a continuum of producers or industries have randomly chosen differences in productivities.  Due to <a href="bib.html#EatonKortum2002">Eaton and Kortum (2002)</a>.
</table>

  <a name="ebrd">
  <table width=100%><tr><td width=20% valign=top><b>
EBRD
</b><td width=80% valign=top>
<a href="#ebrd2">European Bank for Reconstruction and Development</a>.
</table>

  <a name="ebitda">
  <table width=100%><tr><td width=20% valign=top><b>
EBITDA
</b><td width=80% valign=top>
<a href="#earnings">Earnings</a> before <a href="i.html#interest">interest</a>, taxes, <a href="d.html#depreciation">depreciation</a>, and <a href="a.html#amortization">amortization</a> of a firm.  Sometimes used as an optimistic indicator of potential profitability.
</table>

  <a name="ec">
  <table width=100%><tr><td width=20% valign=top><b>
EC
</b><td width=80% valign=top>
<a href="#ec2">European Communities</a>
</table>

  <a name="eca">
  <table width=100%><tr><td width=20% valign=top><b>
ECA
</b><td width=80% valign=top>
<a href="u.html#uneca2">(United Nations) Economic Commission for Africa</a>
</table>

  <a name="ecb">
  <table width=100%><tr><td width=20% valign=top><b>
ECB
</b><td width=80% valign=top>
<a href="#ecb2">European Central Bank</a>
</table>

  <a name="ece">
  <table width=100%><tr><td width=20% valign=top><b>
ECE
</b><td width=80% valign=top>
<a href="u.html#unece2">(United Nations) Economic Commission for Europe</a>
</table>

  <a name="ecf">
  <table width=100%><tr><td width=20% valign=top><b>
ECF
</b><td width=80% valign=top>
<a href="#ecf2">Extended Credit Facility</a>
</table>

  <a name="ecipe">
  <table width=100%><tr><td width=20% valign=top><b>
ECIPE
</b><td width=80% valign=top>
<a href="#ecipe2">European Center for International Political Economy</a>
</table>

  <a name="eclac">
  <table width=100%><tr><td width=20% valign=top><b>
ECLAC
</b><td width=80% valign=top>
<a href="#eclac2">Economic Commission for Latin America and the Caribbean</a>
</table>

  <a name="EcoDumping">
  <table width=100%><tr><td width=20% valign=top><b>
Eco-dumping
</b><td width=80% valign=top>
<a href="#EnvironmentalDumping">Environmental dumping</a>
</table>

  <a name="EcoLabel">
  <table width=100%><tr><td width=20% valign=top><b>
Eco-label
</b><td width=80% valign=top>
A label that certifies that a product and its production meet high environmental standards.  Such labeling is an alternative to the use of <a href="t.html#TradeBarrier">trade barriers</a> to enforce such standards (see <a href="#EnvironmentalProtectionArgument">environmental protection argument</a>).  Examples are <b><a href="g.html#GreenSeal">Green Seal</a></b> in the US and <b>Ecolabel</b> in the EU.
</table>

  <a name="Ecolabel">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://ec.europa.eu/environment/ecolabel/">
Ecolabel</a>
</b><td width=80% valign=top>
See <a href="#EcoLabel">eco-label</a>.
</table>

  <a name="EconometricModel">
  <table width=100%><tr><td width=20% valign=top><b>
Econometric model
</b><td width=80% valign=top>
A set of equations that have been estimated by <a href="#econometrics">econometric</a> methods and that are then used, together, to forecast the economy or to calculate effects of changes in the economy.  Thus, an <a href="#EconomicModel">economic model</a> whose equations are econometrically estimated.
</table>

  <a name="econometrics">
  <table width=100%><tr><td width=20% valign=top><b>
Econometrics
</b><td width=80% valign=top>
The application of statistical methods to the empirical estimation of economic relationships.  Econometric analysis is used extensively in international economics to estimate the causes and effects of international trade, exchange rates, and international capital movements.
</table>

  <a name="emu2"><a name="EconomicAndMonetaryUnion">
  <table width=100%><tr><td width=20% valign=top><b>
Economic and Monetary Union
</b><td width=80% valign=top>
The <a href="c.html#CurrencyArea">currency area</a> formed in 1999 as a result of the <a href="m.html#MaastrichtTreaty">Maastricht Treaty</a>.  Members of the EMU share the common currency, the <a href="e.html#euro">euro</a>.
</table>

  <a name="escap2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.unescap.org/">
Economic and Social Commission for Asia and the Pacific</a>
</b><td width=80% valign=top>
Regional development commission of the <a href="u.html#un2">United Nations</a> that deals with Asia and the Pacific.  It works in three main areas:  poverty reduction; managing globalization; and tackling emerging social issues.
</table>

  <a name="escwa2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.escwa.un.org/">
Economic and Social Commission for Western Asia</a>
</b><td width=80% valign=top>
Regional development commission of the <a href="u.html#un2">United Nations</a> that deals with Western Asia.  Its purpose, like the other <a href="lists/UNOrgs.html#RegionalCommissions">regional commissions</a>, is to promote cooperation and integration between the countries in the region. 
</table>

  <a name="eclac2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.eclac.org/default.asp?idioma=IN">
Economic Commission for Latin America and the Caribbean</a>
</b><td width=80% valign=top>
One of five regional commissions of the United Nations, contributing to the economic and social development of Latin America and the Caribbean. Headquartered in Santiago, Chile. Established in 1948.
</table>

  <a name="EconomicContraction">
  <table width=100%><tr><td width=20% valign=top><b>
Economic contraction
</b><td width=80% valign=top>
The downward phase of the <a href="b.html#BusinessCycle">business cycle</a>, in which <a href="g.html#gdp">GDP</a> is falling and <a href="u.html#unemployment">unemployment</a> is rising over time.
</table>

  <a name="EconomicCooperation">
  <table width=100%><tr><td width=20% valign=top><b>
Economic cooperation
</b><td width=80% valign=top>
This could mean many things, including any of the many ways that countries work together in the economic sphere to achieve mutual objectives.  Most commonly, it means reducing <a href="b.html#barrier">barriers</a> to <a href="t.html#trade">trade</a> and <a href="i.html#InternationalInvestment">international investment</a> and pursuing means to encourage economic growth.
</table>

  <a name="EconomicCost">
  <table width=100%><tr><td width=20% valign=top><b>
Economic cost
</b><td width=80% valign=top>
The monetary cost of an object or action, including reductions in wages, profits, and property values, but not including such nonmonetary costs as adverse consequences for health or safety, or negative effects on others.
</table>

  <a name="EconomicCrisis">
  <table width=100%><tr><td width=20% valign=top><b>
Economic crisis
</b><td width=80% valign=top>
Although there are many economic events that might be called crises, this term usually refers to a sudden drop in <a href="a.html#AggregateDemand">aggregate demand</a> that, if prolonged, leads to <a href="r.html#recession">recession</a>.
</table>

  <a name="EconomicDecision">
  <table width=100%><tr><td width=20% valign=top><b>
Economic decision
</b><td width=80% valign=top>
A decision about an economic issue, most commonly about how to allocate resources among multiple purposes.
</table>

  <a name="EconomicDevelopment">
  <table width=100%><tr><td width=20% valign=top><b>
Economic development
</b><td width=80% valign=top>
Sustained increase in the economic standard of living of a country's population, normally accomplished by increasing its stocks of <a href="p.html#PhysicalCapital">physical</a> and <a href="h.html#HumanCapital">human capital</a> and improving its <a href="t.html#technology">technology</a>.
</table>

  <a name="EconomicEfficiency">
  <table width=100%><tr><td width=20% valign=top><b>
Economic efficiency
</b><td width=80% valign=top>
The extent to which a given set of <a href="r.html#resource">resources</a> is being allocated across uses or activities in a manner that maximizes whatever value they are intended to produce, such as output, market value, or utility.  Contrasts with <a href="#EngineeringEfficiency">engineering efficiency</a>, which focuses within a single activity on the output it produces per unit input.
</table>

  <a name="EconomicExpansion">
  <table width=100%><tr><td width=20% valign=top><b>
Economic expansion
</b><td width=80% valign=top>
The upward phase of the <a href="b.html#BusinessCycle">business cycle</a>, in which <a href="g.html#gdp">GDP</a> is rising and <a href="u.html#unemployment">unemployment</a> may be falling over time.
</table>

  <a name="EconomicExposure">
  <table width=100%><tr><td width=20% valign=top><b>
Economic exposure
</b><td width=80% valign=top>
Same as <a href="#ExchangeRateExposure">exchange rate exposure</a>.
</table>

  <a name="EconomicFactor">
  <table width=100%><tr><td width=20% valign=top><b>
Economic factor
</b><td width=80% valign=top>
Any of the considerations that are relevant to a decision and that involve economic variables, such as prices and wages.
</table>

  <a name="EconomicFreedom">
  <table width=100%><tr><td width=20% valign=top><b>
Economic freedom
</b><td width=80% valign=top>
Freedom to engage in economic transactions, without government interference but with government support of the institutions necessary for that freedom, including <a href="r.html#RuleOfLaw">rule of law</a>, <a href="s.html#SoundMoney">sound money</a>, and <a href="o.html#OpenMarkets">open markets</a>.
</table>

  <a name="EconomicGeography">
  <table width=100%><tr><td width=20% valign=top><b>
Economic geography
</b><td width=80% valign=top>
See <a href="n.html#NewEconomicGeography">New Economic Geography</a>.
</table>

  <a name="EconomicGrowth">
  <table width=100%><tr><td width=20% valign=top><b>
Economic growth
</b><td width=80% valign=top>
The increase over time in the capacity of an economy to produce goods and services and (ideally) to improve the well-being of its citizens.
</table>

  <a name="EconomicIndicator">
  <table width=100%><tr><td width=20% valign=top><b>
Economic indicator
</b><td width=80% valign=top>
A variable that is measured and publicly reported and that is considered meaningful not only for itself but as a sign of how rapidly the larger economy is expanding or contracting.
</table>

  <a name="EconomicIntegration">
  <table width=100%><tr><td width=20% valign=top><b>
Economic integration
</b><td width=80% valign=top>
See <a href="i.html#integration"</a>integration</a>.
</table>

  <a name="EconomicInterdependence">
  <table width=100%><tr><td width=20% valign=top><b>
Economic interdependence
</b><td width=80% valign=top>
The extent to which economic performance (<a href="g.html#gdp">GDP</a>, <a href="i.html#inflation">inflation</a>, <a href="u.html#unemployment">unemployment</a>, etc.) in one country depends positively or negatively on performance in other countries.
</table>

  <a name="EconomicJustice">
  <table width=100%><tr><td width=20% valign=top><b>
Economic justice
</b><td width=80% valign=top>
<b>1.</b> Fairness and equity in economic affairs, presumably by having laws, governments, and institutions that treat people equally and avoid favoring particular individuals or groups.
<br>
<b>2.</b> As most often used, the term carries a connotation that economic justice can only be achieved by lessening the power and changing the practices of <a href="i.html#ifi2">international financial institutions</a>, <a href="t.html#tnc2">transnational corporations</a>, and rich-country governments. 
</table>

  <a name="EconomicModel">
  <table width=100%><tr><td width=20% valign=top><b>
Economic model
</b><td width=80% valign=top>
A collection of assumptions, often expressed as equations relating variables, from which inferences can be derived about economic behavior and performance.
</table>

  <a name="EconomicNationalism">
  <table width=100%><tr><td width=20% valign=top><b>
Economic nationalism
</b><td width=80% valign=top>
A preference for supporting a country's own firms, industries, and workers -- and, in the case of firms and other assets, keeping them owned within the country -- even at the expense of the economic gains that could be had from trade and international investment.
</table>

  <a name="epa2">
  <table width=100%><tr><td width=20% valign=top><b>
Economic partnership agreement
</b><td width=80% valign=top>
An agreement negotiated between the <a href="#eu2">European Union</a> and a developing country -- especially members of the <a href="a.html#ACPCountries">ACPCountries</a> -- for form <a href="f.html#fta2">free trade areas</a> and otherwise assist them in their development.
</table>

  <a name="EconomicProfit">
  <table width=100%><tr><td width=20% valign=top><b>
Economic profit
</b><td width=80% valign=top>
Revenue from an activity minus the <a href="o.html#OpportunityCost">opportunity cost</a> of the resources used in that activity.
</table>

  <a name="err2"><a name="EconomicRateOfReturn">
  <table width=100%><tr><td width=20% valign=top><b>
Economic rate of return
</b><td width=80% valign=top>
The net benefits to all members of society, as a percentage of cost, taking into account <a href="#externality">externalities</a> and other <a href="m.html#MarketImperfection">market imperfections</a>.
</table>

  <a name="EconomicRelations">
  <table width=100%><tr><td width=20% valign=top><b>
Economic relations
</b><td width=80% valign=top>
Economic activity that involves participants of two countries, most obviously trade but other forms as well.  Some pairs of countries that have essentially no political relations nonetheless have economic relations.
</table>

  <a name="EconomicRent">
  <table width=100%><tr><td width=20% valign=top><b>
Economic rent
</b><td width=80% valign=top>
See <a href="r.html#rent">rent</a>.
</table>

  <a name="EconomicSanction">
  <table width=100%><tr><td width=20% valign=top><b>
Economic sanction
</b><td width=80% valign=top>
The use of an economic policy as a <a href="s.html#sanction">sanction</a>.
</table>

  <a name="EconomicSlump">
  <table width=100%><tr><td width=20% valign=top><b>
Economic slump
</b><td width=80% valign=top>
<a href="r.html#recession">Recession</a> or a slowing of the rate of <a href="#EconomicGrowth">economic growth</a> that comes close to being a recession.
</table>

  <a name="EconomicStrategyInstitute">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.econstrat.org/">
Economic Strategy Institute</a>
</b><td width=80% valign=top>
Describes itself as a "private, non-profit, non-partisan public policy research organization dedicated to assuring that globalization works with market forces to achieve maximum benefits rather than distorting markets, and imposing costs."  It seems to be mainly an outlet for the views of one man, Clyde Prestowitz.
</table>

  <a name="EconomicStructure">
  <table width=100%><tr><td width=20% valign=top><b>
Economic structure
</b><td width=80% valign=top>
The major features of a country or region's economy, including what and how much it produces and trades, and how it spends its income.
</table>

  <a name="EconomicSummit">
  <table width=100%><tr><td width=20% valign=top><b>
Economic summit
</b><td width=80% valign=top>
A meeting, usually of government leaders, to discuss economic conditions and policies.  In the international context, these are most prominently the meetings of heads of state of the <a href="g.html#g20">G-20</a> or, previously, the <a href="g.html#g7">G-7</a> or <a href="g.html#g8">G-8</a>.
</table>

  <a name="EconomicUnion">
  <table width=100%><tr><td width=20% valign=top><b>
Economic union
</b><td width=80% valign=top>
A <a href="c.html#CommonMarket">common market</a> with the added feature that additional policies -- monetary, fiscal, welfare -- are also <a href="h.html#harmonization">harmonized</a> across the member countries.
</table>

  <a name="EconomicVariable">
  <table width=100%><tr><td width=20% valign=top><b>
Economic variable
</b><td width=80% valign=top>
Any economic magnitude the size of which may change and is subject to explanation by an <a href="#EconomicModel">economic model</a>.  Examples are endless, including <a href="c.html#ConsumptionFunction">consumption</a>, the price of a good, the <a href="#ExchangeRate">exchange rate</a>, the tax receipts of a government, the number of children per family, etc.
</table>

  <a name="EconomicVulnerability">
  <table width=100%><tr><td width=20% valign=top><b>
Economic vulnerability
</b><td width=80% valign=top>
The extent of a country's exposure to lost sales and especially lost supplies of needed products due to changes in foreign markets and foreign policies.  Vulnerability rises with increased <a href="o.html#openness">openness</a>, but depends (negatively) also on <a href="d.html#diversification">diversification</a> and on the political relations a country has with its <a href="t.html#TradingPartner">trading partners</a>.
</table>

  <a name="EconomicWelfare">
  <table width=100%><tr><td width=20% valign=top><b>
Economic welfare
</b><td width=80% valign=top>
See <a href="w.html#welfare">welfare</a>.
</table>

  <a name="EconomiesOfAgglomeration">
  <table width=100%><tr><td width=20% valign=top><b>
Economies of agglomeration
</b><td width=80% valign=top>
<a href="a.html#AgglomerationEconomy">Agglomeration economies</a>
</table>

  <a name="EconomiesOfScale">
  <table width=100%><tr><td width=20% valign=top><b>
Economies of scale
</b><td width=80% valign=top>
<a href="i.html#irts2">Increasing returns to scale</a>.
</table>

  <a name="EconomiesOfScope">
  <table width=100%><tr><td width=20% valign=top><b>
Economies of scope
</b><td width=80% valign=top>
The property that a firm's average cost falls as it produces a larger number of different products.
</table>

  <a name="TheEconomist">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.economist.com/"><i>
Economist, The</i></a>
</b><td width=80% valign=top>
A weekly newsmagazine (which calls itself a newspaper), published in the United Kingdom but distributed worldwide.  Since it was established in 1843, it has been a champion of <a href="f.html#FreeTrade">free trade</a>.
</table>

  <a name="ecsc">
  <table width=100%><tr><td width=20% valign=top><b>
ECSC
</b><td width=80% valign=top>
<a href="#ecsc2">European Coal and Steel Community</a>
</table>

  <a name="ecu">
  <table width=100%><tr><td width=20% valign=top><b>
ECU, ecu
</b><td width=80% valign=top>
<b>1. </b><a href="#ecu2">European Currency Unit</a>
<br>
<b>2. </b>The "ecu" was an alternative name for the <a href="#euro">euro</a>.  
<a href="sources.html#ecu">Source</a>
</table>

  <a name="EdgeworthBowleyBox">
  <table width=100%><tr><td width=20% valign=top><b>
Edgeworth-Bowley Box
</b><td width=80% valign=top>
A geometric device showing <a href="a.html#allocation">allocations</a> of 2 goods to 2 consumers in a rectangle with dimensions equal to the quantities of the goods.  <a href="p.html#preferences">Preferences</a> enter as <a href="i.html#IndifferenceCurve">indifference curves</a> relative to opposite corners of the box, tangencies defining <a href="#EfficientAllocation">efficient allocations</a> and the <a href="c.html#ContractCurve">contract curve</a>.  First drawn by <a href="bib.html#Pareto1906">Pareto (1906)</a>, based <a href="orig.html#EdgeworthBowleyBox">originally</a>, though only partially, on a diagram of <a href="bib.html#Edgeworth1881">Edgeworth (1881)</a>.  This and the <a href="#EdgeworthProductionBox">Edgeworth production box</a> are often called just the <b>Edgeworth Box</b>, even though Edgeworth never drew either.
</table>

  <a name="EdgeworthBox">
  <table width=100%><tr><td width=20% valign=top><b>
Edgeworth Box
</b><td width=80% valign=top>
See <a href="#EdgeworthBowleyBox">Edgeworth-Bowley Box</a> and <a href="#EdgeworthProductionBox">Edgeworth production box</a>.
</table>

  <a name="EdgeworthProductionBox">
  <table width=100%><tr><td width=20% valign=top><b>
Edgeworth Production Box
</b><td width=80% valign=top>
A variation of the consumption <a href="#EdgeworthBox">Edgeworth Box</a> that instead represents the <a href="a.html#allocation">allocations</a> of 2 factors to 2 industries for use in <a href="p.html#ProductionFunction">production functions</a>.  <a href="#EfficientAllocation">Efficient allocations</a> now appear as tangencies between <a href="i.html#isoquant">isoquants</a>, while the <a href="c.html#ContractCurve">contract curve</a> becomes the <a href="e.html#EfficiencyLocus">efficiency locus</a>.
</table>

  <a name="eea">
  <table width=100%><tr><td width=20% valign=top><b>
EEA
</b><td width=80% valign=top>
<a href="#eea2">European Economic Area</a>
</table>

  <a name="eec">
  <table width=100%><tr><td width=20% valign=top><b>
EEC
</b><td width=80% valign=top>
<a href="#eec2">European Economic Community</a>
</table>

  <a name="EffectOfTrade">
  <table width=100%><tr><td width=20% valign=top><b>
Effect of trade
</b><td width=80% valign=top>
This term normally refers, often only implicitly, to the effect of a change in some policy or other <a href="#ExogenousVariable">exogenous variable</a> that will increase the quantity of trade.  Since in trade models, trade itself is <a href="#EndogenousVariable">endogenous</a>, the effects associated with a change in trade depend on what caused it.
</table>

  <a name="EffectiveExchangeRate">
  <table width=100%><tr><td width=20% valign=top><b>
Effective exchange rate
</b><td width=80% valign=top>
An index of a currency's value relative to a group (or <a href="b.html#basket">basket</a>) of other currencies, where the currencies in the basket are given weights based on the amount of trade between the countries that use the currencies.  Also called a <a href="t.html#TradeWeightedExchangeRate">trade-weighted exchange rate</a>.
</table>

  <a name="EffectiveProtection">
  <table width=100%><tr><td width=20% valign=top><b>
Effective protection
</b><td width=80% valign=top>
The concept that the protection provided to an industry depends on the tariffs and other trade barriers on both its inputs and its outputs, since a tariff on inputs raises cost.  Measured by the <a href="#EffectiveRateOfProtection">effective rate of protection</a>.
</table>

  <a name="EffectiveProtectiveRate">
  <table width=100%><tr><td width=20% valign=top><b>
Effective protective rate
</b><td width=80% valign=top>
Same as <a href="#EffectiveRateOfProtection">effective rate of protection</a>.
</table>

  <a name="erp2"><a name="EffectiveRateOfProtection">
  <table width=100%><tr><td width=20% valign=top><b>
Effective rate of protection
</b><td width=80% valign=top>
A measure of the protection provided to an industry by the entire structure of <a href="t.html#tariff">tariffs</a>, taking into account the effects of tariffs on inputs as well as on outputs.  Letting <i>b<sub>ij</sub></i> be the share of input <i>i</i> in the value of output <i>j</i>, and <i>t<sub>i</sub></i> be the tariff on good <i>i</i>, the ERP of industry <i>j</i> is <i>ERP<sub>j</sub></i>&nbsp;=&nbsp;(<i>t<sub>j</sub></i>&minus;&Sigma;<i><sub>i</sub>b<sub>ij</sub>t<sub>i</sub></i>)/(1&minus;&Sigma;<i><sub>i</sub>b<sub>ij</sub></i>).
Due to <a href="bib.html#Corden1966">Corden (1966)</a>.
</table>

  <a name="EffectiveTariff">
  <table width=100%><tr><td width=20% valign=top><b>
Effective tariff
</b><td width=80% valign=top>
<a href="#erp2">Effective rate of protection</a>.
</table>

  <a name="Efficiency"><a name="efficiency">
  <table width=100%><tr><td width=20% valign=top><b>
Efficiency 
</b><td width=80% valign=top>
See <a href="#EconomicEfficiency">economic efficiency</a>.
</table>

  <a name="EfficiencyLocus">
  <table width=100%><tr><td width=20% valign=top><b>
Efficiency locus
</b><td width=80% valign=top>
The set of <a href="#EfficientAllocation">efficient allocations</a> in an <a href="#EdgeworthProductionBox">Edgeworth production box</a>.  It is usually a curve, similar to a <a href="c.html#ContractCurve">contract curve</a>, and in fact is sometimes called that.
</table>

  <a name="EfficiencyLoss">
  <table width=100%><tr><td width=20% valign=top><b>
Efficiency loss
</b><td width=80% valign=top>
In economics, efficiency loss usually refers to the reduction in <a href="#EconomicWelfare">economic welfare</a> due to a <a href="m.html#MarketImperfection">market imperfection</a> or <a href="d.html#distortion">distortion</a>.  The <a href="d.html#DeadweightLoss">deadweight loss</a> due to a <a href="t.html#tariff">tariff</a> is a good example of an efficiency loss.
</table>

  <a name="EfficiencyUnit">
  <table width=100%><tr><td width=20% valign=top><b>
Efficiency unit
</b><td width=80% valign=top>
A unit of a <a href="f.html#factor">factor</a>, usually of labor, with the same <a href="p.html#productivity">productivity</a> as some benchmark.  Thus, if country A has <i>L<sub>A</sub></i> units of labor that is only 1/4 as productive as labor in country B, then using B's labor as benchmark, A has only <i>L<sub>A</sub></i>/4 efficiency units of labor. The assumption of equal productivity can then be used.
</table>

  <a name="EfficientAllocation">
  <table width=100%><tr><td width=20% valign=top><b>
Efficient allocation
</b><td width=80% valign=top>
An <a href="a.html#allocation">allocation</a> that it is impossible unambiguously to improve upon, in the sense of producing more of one good without producing less of another.
</table>

  <a name="EfficientBreach">
  <table width=100%><tr><td width=20% valign=top><b>
Efficient breach
</b><td width=80% valign=top>
The violation of a rule or law when the benefit to the violator of doing so exceeds the harm that it does to others.  It is argued that a system of rules, such as the <a href="g.html#gatt">GATT</a> and <a href="w.html#wto">WTO</a>, should allow for efficient breach by, perhaps, allowing violation of its rules in return for <a href="c.html#compensation">compensation</a> of those who are harmed.
</table>

  <a name="EfficientCapitalMarket">
  <table width=100%><tr><td width=20% valign=top><b>
Efficient capital market
</b><td width=80% valign=top>
An asset market in which, at a minimum, current price changes are independent of past price changes, or, more strongly, price reflects all (publicly) available information.  Some believe foreign <a href="#ExchangeMarket">exchange markets</a> to be efficient, which in turn implies that future exchange rates cannot profitably be predicted.
</table>

  <a name="EfficientMarket">
  <table width=100%><tr><td width=20% valign=top><b>
Efficient market
</b><td width=80% valign=top>
<a href="#EfficientCapitalMarket">Efficient capital market</a>
</table>

  <a name="EfficientQuantity">
  <table width=100%><tr><td width=20% valign=top><b>
Efficient quantity
</b><td width=80% valign=top>
In a market with <a href="u.html#undistorted">undistorted</a> supply and demand, the quantity at which the <a href="s.html#SupplyPrice">supply price</a> equals the <a href="d.html#DemandPrice">demand price</a>.  That is efficient, because supply price is the marginal cost and demand price the marginal benefit of an additional unit.
</table>

  <a name="efsf">
  <table width=100%><tr><td width=20% valign=top><b>
EFSF
</b><td width=80% valign=top>
<a href="#efsf2">European Financial Stability Facility</a>
</table>

  <a name="efta">
  <table width=100%><tr><td width=20% valign=top><b>
EFTA
</b><td width=80% valign=top>
<a href="#efta2">European Free Trade Association</a>
</table>

  <a name="eib">
  <table width=100%><tr><td width=20% valign=top><b>
EIB
</b><td width=80% valign=top>
<a href="#eib2">European Investment Bank</a>
</table>

  <a name="elastic">
  <table width=100%><tr><td width=20% valign=top><b>
Elastic
</b><td width=80% valign=top>
Having an elasticity greater than one.  For a <a href="p.html#PriceElasticity">price elasticity</a> of <a href="d.html#DemandElasticity">demand</a>, this means that expenditure rises as price falls.  For an <a href="i.html#IncomeElasticity">income elasticity</a> it means that expenditure share rises with income, a <a href="s.html#SuperiorGood">superior good</a>.  Contrasts with <a href="i.html#inelastic">inelastic</a> and <a href="u.html#UnitElastic">unit elastic</a>.  Elastic demand for either exports or imports is sufficient to satisfy the <a href="m.html#MarshallLernerCondition">Marshall-Lerner condition</a>.
</table>

  <a name="ElasticOfferCurve">
  <table width=100%><tr><td width=20% valign=top><b>
Elastic offer curve
</b><td width=80% valign=top>
An <a href="o.html#OfferCurve">offer curve</a> along which import demand is always <a href="#elastic">elastic</a>.  It is therefore <i>not</i> <a href="b.html#BackwardBending">backward bending</a>.  Contrasts with <a href="i.html#InelasticOfferCurve">inelastic offer curve</a>.
</table>

  <a name="ElasticitiesApproach">
  <table width=100%><tr><td width=20% valign=top><b>
Elasticities approach
</b><td width=80% valign=top>
<b>1.</b> The method of analyzing the determination of the <a href="b.html#bot2">balance of trade</a>, especially due to a <a href="d.html#devaluation">devaluation</a>, that focuses on the <a href="p.html#PriceElasticity">price elasticities</a> of <a href="#export">exports</a> and <a href="i.html#import">imports</a>.  According to this approach, the effect depends critically on the <a href="m.html#MarshallLernerCondition">Marshall-Lerner Condition</a>.
<br>
<b>2.</b> The explanation of <a href="#ExchangeRate">exchange rates</a> using supply and demand curves.
</table>

  <a name="elasticity">
  <table width=100%><tr><td width=20% valign=top><b>
Elasticity
</b><td width=80% valign=top>
A measure of responsiveness of one economic variable to another -- usually the responsiveness of quantity to <a href="p.html#PriceElasticity">price</a> along a supply or demand curve -- comparing percentage changes (%&Delta;) or changes in logarithms (d&nbsp;ln).  The <b>arc elasticity</b> of <i>x</i> with respect to <i>y</i> is &epsilon;&nbsp;=&nbsp;%&Delta;<i>x</i>/%&Delta;<i>y</i>.  The <b>point elasticity</b> is &epsilon;&nbsp;=&nbsp;d&nbsp;ln<i>x</i>/d&nbsp;ln<i>y</i>&nbsp;=&nbsp(<i>y/x</i>)(d<i>x</i>/d<i>y</i>).
</table>

  <a name="ElasticityOfDemandForExports">
  <table width=100%><tr><td width=20% valign=top><b>
Elasticity of demand for exports
</b><td width=80% valign=top>
This is normally the <a href="p.html#PriceElasticity">price elasticity</a> of demand for exports of a country, either for a single industry or for the aggregate of all imports. Equals the rest of world's <a href="#ElasticityOfDemandForImports">elasticity of demand for imports</a>, which therefore also enters the <a href="m.html#MarshallLernerCondition">Marshall-Lerner condition</a>.
</table>

  <a name="ElasticityOfDemandForImports">
  <table width=100%><tr><td width=20% valign=top><b>
Elasticity of demand for imports
</b><td width=80% valign=top>
This is normally the <a href="p.html#PriceElasticity">price elasticity</a> of demand for imports of a country, either for a single industry or for the aggregate of all imports.  The latter plays a critical role in determining how the country's <a href="b.html#BalanceOfTrade">balance of trade</a> responds to the exchange rate.  See <a href="m.html#MarshallLernerCondition">Marshall-Lerner condition</a>.
</table>

  <a name="ElasticityOfSubstitution">
  <table width=100%><tr><td width=20% valign=top><b>
Elasticity of substitution
</b><td width=80% valign=top>
The elasticity of the ratio of two inputs to a production (or utility) function with respect to the ratio of their marginal products (or utilities).  With <a href="p.html#PerfectCompetition">competitive</a> demands, this is also the elasticity with respect to their price ratio.  For example, with factors <i>L,K</i> and factor prices <i>w,r</i>, the elasticity of substitution of a production function <i>F</i>(<i>K,L</i>) is &sigma;&nbsp;=&nbsp;(<i>wL/rK</i>)d(<i>K/L</i>)/d(<i>w/r</i>).
</table>

  <a name="ElasticityOfTransformation">
  <table width=100%><tr><td width=20% valign=top><b>
Elasticity of transformation
</b><td width=80% valign=top>
The <a href="#elasticity">elasticity</a> of an economy's output of one good with respect to its output of another (holding other outputs, if there are any, constant).
</table>

  <a name="ElasticityPessimism">
  <table width=100%><tr><td width=20% valign=top><b>
Elasticity pessimism
</b><td width=80% valign=top>
The view that <a href="#ElasticityOfDemandForImports">elasticities of demand for imports</a> are sufficiently small that the <a href="m.html#MarshallLernerCondition">Marshall-Lerner Condition</a> will be violated.  See <a href="bib.html#Machlup1950">Machlup (1950)</a>.
</table>

  <a name="ema">
  <table width=100%><tr><td width=20% valign=top><b>
EMA
</b><td width=80% valign=top>
<a href="#ema2">European Monetary Agreement</a>
</table>

  <a name="embargo">
  <table width=100%><tr><td width=20% valign=top><b>
Embargo
</b><td width=80% valign=top>
The prohibition of some category of trade.  May apply to exports and/or imports, of particular products or of all trade, vis a vis the world or a particular country or countries.
</table>

  <a name="EmergingEconomy">
  <table width=100%><tr><td width=20% valign=top><b>
Emerging economy
</b><td width=80% valign=top>
<b>1.</b> Originally this term was applied to countries that had recently ceased to be part of the Soviet Union and its satellites, and thus emerging from <a href="c.html#CentralPlanning">centrally planned</a> <a href="c.html#communism">communist</a> economies.  The term drew attention to their transition to becoming <a href="m.html#MarketEconomy">market economies</a>.
<br>
<b>2.</b> Rather quickly, perhaps acknowledging the importance of central planning and the failure of markets in many other countries, the term has expanded to encompass also <a href="d.html#DevelopingCountry">developing countries</a>, not necessarily ever communist, as they expanded the role of markets.
</table>

  <a name="EmergingMarket">
  <table width=100%><tr><td width=20% valign=top><b>
Emerging market
</b><td width=80% valign=top>
<b>1.</b> Term coined in the early 1980s by <a href="w.html#WorldBank">World Bank</a> economist Antoine van Agtmael to describe "economies with low-to-middle per capita income" (according to <i>Financial Times</i> Oct 20, 2006).
<br>
<b>2.</b> Same as <a href="#EmergingEconomy">emerging economy</a>.
<br>
<b>3.</b> The <a href="s.html#securities">securities</a> market of an <a href="#EmergingEconomy">emerging economy</a>.
</table>

  <a name="emi">
  <table width=100%><tr><td width=20% valign=top><b>
EMI
</b><td width=80% valign=top>
<a href="#emi2">European Monetary Institute
</table>

  <a name="emigration">
  <table width=100%><tr><td width=20% valign=top><b>
Emigration
</b><td width=80% valign=top>
The <a href="m.html#migration">migration</a> of people <i>out of</i> a country.
</table>

  <a name="EmpiricalFinding">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="lists/EmpiricalFindings.html">
Empirical finding</a>
</b><td width=80% valign=top>
Something that is observed from real-world observation or data, in contrast to something that is deduced from theory.
</table>

  <a name="employment">
  <table width=100%><tr><td width=20% valign=top><b>
Employment 
</b><td width=80% valign=top>
People working for pay or in a family-owned enterprise or farm.  Much more specific definitions are used for measuring employment by national statistical agencies such as the US Bureau of Labor Statistics.  Contrasts with <a href="u.html#unemployment">unemployment</a>.
</table>

  <a name="EmploymentArgument">
  <table width=100%><tr><td width=20% valign=top><b>
Employment argument for protection
</b><td width=80% valign=top>
The use of a <a href="t.html#tariff">tariff</a> or other trade restriction to promote employment, either in the economy at large or in a particular industry.  This is a <a href="s.html#SecondBestArgument">second best argument</a>, since other policies -- such as a <a href="f.html#FiscalPolicy">fiscal stimulus</a> or a production <a href="s.html#subsidy">subsidy</a> -- could achieve the same effect at lower economic cost.
</table>

  <a name="ems">
  <table width=100%><tr><td width=20% valign=top><b>
EMS
</b><td width=80% valign=top>
<a href="#ems2">European Monetary System</a>
</table>

  <a name="emu">
  <table width=100%><tr><td width=20% valign=top><b>
EMU
</b><td width=80% valign=top>
<a href="#emu2">Economic and Monetary Union</a>
</table>

  <a name="EnablingClause">
  <table width=100%><tr><td width=20% valign=top><b>
Enabling Clause
</b><td width=80% valign=top>
The decision of the <a href="g.html#gatt">GATT</a> in 1979 to give developing countries <a href="s.html#SpecialAndDifferentialTreatment">special and differential treatment</a>, thus permitting the <a href="g.html#gsp2">Generalized System of Preferences</a>, which would otherwise be a violation of the GATT's <a href="m.html#mfn2">most favored nation</a> principle.
</table>

  <a name="EndangeredSpeciesConvention">
  <table width=100%><tr><td width=20% valign=top><b>
Endangered Species Convention 
</b><td width=80% valign=top>
<a href="c.html#cites2">Convention on International Trade in Endangered Species of Wild Fauna and Flora</a>
</table>

  <a name="endogenous">
  <table width=100%><tr><td width=20% valign=top><b>
Endogenous 
</b><td width=80% valign=top>
<b>1. </b>Something that depends on other things, which should be taken into account in an analysis.
<br>
<b>2. </b><a href="#EndogenousVariable">Endogenous variable</a>
</table>

  <a name="EndogenousGrowth">
  <table width=100%><tr><td width=20% valign=top><b>
Endogenous growth
</b><td width=80% valign=top>
<a href="#EconomicGrowth">Economic growth</a> whose long-run rate depends on behavior and/or policy.
</table>

  <a name="EndogenousProtection">
  <table width=100%><tr><td width=20% valign=top><b>
Endogenous protection
</b><td width=80% valign=top>
<a href="p.html#protection">Protection</a> that is explained as the outcome of economic and/or political forces.  See <a href="p.html#PoliticalEconomyOfProtection">political economy of protection</a>.
</table>

  <a name="EndogenousVariable">
  <table width=100%><tr><td width=20% valign=top><b>
Endogenous variable
</b><td width=80% valign=top>
An economic variable that is determined within a model.  It is therefore <i>not</i> subject to direct manipulation by the modeler, since that would override the model.  In trade models, the quantity of trade itself is almost always endogenous.  Contrasts with <a href="#ExogenousVariable">exogenous variable</a>.
</table>

  <a name="endowment">
  <table width=100%><tr><td width=20% valign=top><b>
Endowment
</b><td width=80% valign=top>
The amount of something that a person or country simply has, rather than their having somehow to acquire it.  In the <a href="h.html#HOModel">H-O Model</a> of trade theory, endowments refer to <a href="p.html#PrimaryFactor">primary factors</a> of production, ignoring the fact that some of them -- especially <a href="c.html#capital">capital</a> and <a href="s.html#skill">skill</a> -- are deliberately accumulated.
</table>

  <a name="enemy">
  <table width=100%><tr><td width=20% valign=top><b>
Enemy
</b><td width=80% valign=top>
See <a href="n.html#NaturalEnemy">natural enemy</a>.
</table>

  <a name="EngineOfGrowth">
  <table width=100%><tr><td width=20% valign=top><b>
Engine of growth
</b><td width=80% valign=top>
Term sometimes used to describe the role that <a href="#export">exports</a> may have played in economic development, both of some of the regions of recent settlement in the nineteenth century and of the more recent <a href="n.html#nic2">NICs</a>.  Due to <a href="bib.html#Robertson1938">Robertson (1938)</a>.
</table>

  <a name="EngineeringEfficiency">
  <table width=100%><tr><td width=20% valign=top><b>
Engineering efficiency
</b><td width=80% valign=top>
See <a href="#EconomicEfficiency">economic efficiency</a>.
</table>

  <a name="enterprise">
  <table width=100%><tr><td width=20% valign=top><b>
Enterprise
</b><td width=80% valign=top>
A <a href="f.html#firm">firm</a>.
</table>

  <a name="eai2"><a name="EnterpriseForTheAmericasInitiative">
  <table width=100%><tr><td width=20% valign=top><b>
Enterprise for the Americas Initiative
</b><td width=80% valign=top>
Begun in June 1990 under US President H. W. Bush, this intended to create a <a href="f.html#fta">FTA</a> covering most of the Western Hemisphere, and promote <a href="f.html#fdi">FDI</a> and <a href="d.html#DebtRelief">debt relief</a>.  The trade objective was succeeded by the planned <a href="f.html#ftaa">FTAA</a>.  The EAI now is a program for providing assistance to Latin America within <a href="u.html#usaid">USAID</a>.
</table>

  <a name="EnterpriseZone">
  <table width=100%><tr><td width=20% valign=top><b>
Enterprise zone
</b><td width=80% valign=top>
<b>1. </b>A location that is granted special treatment (such as lower or zero taxes) by government in order to encourage economic activity.
<br>
<b>2. </b>An <a href="#ExportProcessingZone">export processing zone</a>.
</table>

  <a name="EntrepotTrade">
  <table width=100%><tr><td width=20% valign=top><b>
Entrep&ocirc;t trade
</b><td width=80% valign=top>
The import and then export of a good without further processing, usually passing through an <b>entrep&ocirc;t</b> which is a storage facility from which goods are distributed.  See <a href="r.html#reexport">reexports</a>.
</table>

  <a name="Entrepreneur">
  <table width=100%><tr><td width=20% valign=top><b>
Entrepreneur
</b><td width=80% valign=top>
A person who starts a <a href="b.html#business">business</a>.
</table>

  <a name="Entrepreneurship">
  <table width=100%><tr><td width=20% valign=top><b>
Entrepreneurship
</b><td width=80% valign=top>
The talent, knowledge, and willingness to engage in new activities, especially those that may result in new kinds of <a href="f.html#firm">firms</a>.
</table>

  <a name="EntryBarrier">
  <table width=100%><tr><td width=20% valign=top><b>
Entry barrier
</b><td width=80% valign=top>
A natural or artificial impediment to a firm beginning to operate in an industry.  Entry barriers give a <a href="f.html#FirstMoverAdvantage">first mover advantage</a> to firms already in an industry, and these are often national firms in competition with potential foreign entrants.
</table>

  <a name="EntryWriter">
  <table width=100%><tr><td width=20% valign=top><b>
Entry writer
</b><td width=80% valign=top>
An employee of a <a href="c.html#CustomsBrokerage">customs brokerage</a> whose job is to prepare customs declarations, including finding the correct tariff treatment of an imported good by identifying its proper classification.
</table>

  <a name="envelope">
  <table width=100%><tr><td width=20% valign=top><b>
Envelope
</b><td width=80% valign=top>
The outermost points traced out by a moving curve.
</table>

  <a name="EnvironmentalDumping">
  <table width=100%><tr><td width=20% valign=top><b>
Environmental dumping
</b><td width=80% valign=top>
Export of a good from a country with weak or poorly enforced environmental regulations, reflecting the idea that the exporter's cost of production is below the true cost to society, providing an unfair advantage in international trade.  Also called <a href="#EcoDumping">eco-dumping</a>.
</table>

  <a name="EnvironmentalKuznetsCurve">
  <table width=100%><tr><td width=20% valign=top><b>
Environmental Kuznets Curve
</b><td width=80% valign=top>
An inverse U-shaped relationship hypothesized between per capita income and environmental degradation.  Named after the <a href="k.html#KuznetsCurve">Kuznets Curve</a> dealing with inequality.  Idea due to <a href="bib.html#GrossmanKrueger1993">Grossman and Krueger (1993)</a>.
</table>

  <a name="EnvironmentalProtectionArgument">
  <table width=100%><tr><td width=20% valign=top><b>
Environmental protection argument for a trade intervention
</b><td width=80% valign=top>
The view that trade should be restricted in order to help the environment.  Examples include embargos on imports made from endangered species, limits on imports produced by methods harmful to the atmosphere, and restrictions on investment into locations with lax environmental standards.  This is usually a <a href="s.html#SecondBestArgument">second-best argument</a>.
</table>

  <a name="EnvironmentalSubsidy">
  <table width=100%><tr><td width=20% valign=top><b>
Environmental subsidy
</b><td width=80% valign=top>
A <a href="s.html#subsidy">subsidy</a> intended for environmental purposes.  A subsidy for adapting existing facilities to new environmental laws or regulations is <a href="n.html#NonactionableSubsidy">non-actionable</a> under <a href="w.html#wto">WTO</a> rules.
</table>

  <a name="EnvironmentalTradePolicy">
  <table width=100%><tr><td width=20% valign=top><b>
Environmental trade policy
</b><td width=80% valign=top>
The use of <a href="t.html#TradePolicy">trade policies</a> for environmental purposes.
</table>

  <a name="eonia">
  <table width=100%><tr><td width=20% valign=top><b>
Eonia
</b><td width=80% valign=top>
Euro OverNight Index Average.  The interest rate that banks in the <a href="#EuroZone">euro zone</a> charge each other on 1-day loans.  Thus the 1-day <a href="#euribor">euribor</a> rate.
</table>

  <a name="epa">
  <table width=100%><tr><td width=20% valign=top><b>
EPA
</b><td width=80% valign=top>
<a href="#epa2">Economic partnership agreement</a>.
</table>

  <a name="epu">
  <table width=100%><tr><td width=20% valign=top><b>
EPU
</b><td width=80% valign=top>
<a href="#epu2">European Payments Union</a>.
</table>

  <a name="epz">
  <table width=100%><tr><td width=20% valign=top><b>
EPZ
</b><td width=80% valign=top>
<a href="#epz2">Export processing zone</a>.
</table>

  <a name="equalization">
  <table width=100%><tr><td width=20% valign=top><b>
Equalization
</b><td width=80% valign=top>
<b>1. </b>See <a href="f.html#fpe2">factor price equalization</a>.
<br>
<b>2. </b>See <a href="p.html#ProductPriceEqualization">product price equalization</a>.
</table>

  <a name="EquationOfExchange">
  <table width=100%><tr><td width=20% valign=top><b>
Equation of Exchange
</b><td width=80% valign=top>
<i>M</i>&times;<i>V</i> = <i>P</i>&times;<i>Q</i>, where <i>M</i> is the quantity of money in an economy, <i>V</i> is the <a href="v.html#VelocityOfMoney">velocity</a> of money, <i>P</i> is the price level, and <i>Q</i> is the real output of the economy.  The equation is true by definition because it implicitly defines velocity of money.  It is central to the <a href="q.html#QuantityTheory">quantity theory of money</a>.
</table>

  <a name="equilibrium">
  <table width=100%><tr><td width=20% valign=top><b>
Equilibrium
</b><td width=80% valign=top>
<b>1. </b>A state of balance between offsetting forces for change, so that no change occurs.
<br>
<b>2. </b>In <a href="c.html#competitive">competitive</a> markets, equality of quantity supplied and quantity demanded.
</table>

  <a name="EquilibriumExchangeRate">
  <table width=100%><tr><td width=20% valign=top><b>
Equilibrium exchange rate
</b><td width=80% valign=top>
This is ambiguous, since there is no single agreed upon model of the <a href="#ExchangeRate">exchange rate</a>:
<br>
<b>1. </b>The exchange rate at which supply and demand for a currency are equal.
<br>
<b>2. </b>The exchange rate at which there is <a href="b.html#BalanceOfPaymentsEquilibrium">balance of payments equilibrium</a>.
<br>
<b>3. </b>The exchange rate at which <a href="p.html#ppp2">purchasing power parity</a> holds, in some form.
<br>
<b>4. </b>The exchange rate at which the expected change in the exchange rate, in the near future, is zero.
<br>
<b>5. </b>The exchange rate at which the country's <a href="i.html#InternationalReserves">international reserves</a> are neither rising nor falling.
</table>

  <a name="EquilibriumLevel">
  <table width=100%><tr><td width=20% valign=top><b>
Equilibrium level
</b><td width=80% valign=top>
The value taken on by an economic variable in <a href="#equilibrium">equilibrium</a>, as opposed either to some other value, or to its rate of change.
</table>

  <a name="EquilibriumPosition">
  <table width=100%><tr><td width=20% valign=top><b>
Equilibrium position
</b><td width=80% valign=top>
Same as <a href="#EquilibriumLevel">equilibrium level</a>, though perhaps of several variables at once, perhaps as displayed in a graph.
</table>

  <a name="EquilibriumTermsOfTrade">
  <table width=100%><tr><td width=20% valign=top><b>
Equilibrium terms of trade
</b><td width=80% valign=top>
The <a href="t.html#TermsOfTrade">terms of trade</a> at which the country's excess supply of each good to the world market equals the world market's excess demand.  If the country is a <a href="s.html#soe2">small open economy</a>, whose excess supplies and demands are therefore negligible, then this is simply calculated from given world prices.
</table>

  <a name="equity">
  <table width=100%><tr><td width=20% valign=top><b>
Equity
</b><td width=80% valign=top>
Share in the ownership of a corporation; more commonly called a <a href="s.html#stock">stock</a>, as in the stock market.
</table>

  <a name="EquivalentQuota">
  <table width=100%><tr><td width=20% valign=top><b>
Equivalent quota
</b><td width=80% valign=top>
The <a href="q.html#quota">quota</a> that sets the same level of imports that is entering a country under a <a href="t.html#tariff">tariff</a>, or perhaps under some other <a href="n.html#ntb">NTB</a>.
</table>

  <a name="EquivalentTariff">
  <table width=100%><tr><td width=20% valign=top><b>
Equivalent tariff
</b><td width=80% valign=top>
<a href="t.html#TariffEquivalent">Tariff equivalent</a>.
</table>

  <a name="EquivalentVariation">
  <table width=100%><tr><td width=20% valign=top><b>
Equivalent variation
</b><td width=80% valign=top>
The amount of money that, paid to a person, group, or whole economy, would make them as well off as a specified change in the economy.  Provides a monetary measure of the <a href="w.html#welfare">welfare</a> effect of that change that is similar to, but not in general the same as, <a href="c.html#CompensatingVariation">compensating variation</a>.
</table>

  <a name="erm">
  <table width=100%><tr><td width=20% valign=top><b>
ERM
</b><td width=80% valign=top>
<a href="#erm2">Exchange Rate Mechanism</a>
</table>

  <a name="erp">
  <table width=100%><tr><td width=20% valign=top><b>
ERP
</b><td width=80% valign=top>
<a href="#erp2">Effective rate of protection</a>
</table>

  <a name="err">
  <table width=100%><tr><td width=20% valign=top><b>
ERR
</b><td width=80% valign=top>
<a href="#err2">Economic rate of return</a>
</table>

  <a name="#escalation">
  <table width=100%><tr><td width=20% valign=top><b>
Escalation
</b><td width=80% valign=top>
<b>1. </b>Regarding the structure of tariffs, see <a href="t.html#TariffEscalation">tariff escalation</a>.
<br>
<b>2. </b>In the context of a <a href="t.html#TradeWar">trade war</a>, escalation refers to the increase in tariffs that occurs as countries <a href="r.html#retalization">retaliate</a> again and again.
</table>

  <a name="escap">
  <table width=100%><tr><td width=20% valign=top><b>
ESCAP
</b><td width=80% valign=top>
<a href="#escap2">Economic and Social Commission for Asia and the Pacific</a>.
</table>

  <a name="EscapeClause">
  <table width=100%><tr><td width=20% valign=top><b>
Escape clause
</b><td width=80% valign=top>
<b>1. </b>The portion of a legal text that permits departure from its provisions in the event of specified adverse circumstances.
<br>
<b>2. </b>The U.S. statute (section 201, 1974 trade act) that permits imports to be restricted, for a limited time and on a nondiscriminatory basis, if they have caused injury to U.S. firms or workers.  The escape clause accords with the <a href="s.html#SafeguardsClause">Safeguards Clause</a> (Article XIX) of the <a href="g.html#gatt">GATT</a>.
</table>

  <a name="escwa">
  <table width=100%><tr><td width=20% valign=top><b>
ESCWA
</b><td width=80% valign=top>
<a href="#escwa2">Economic and Social Commission for Western Asia</a>.
</table>

  <a name="establishment">
  <table width=100%><tr><td width=20% valign=top><b>
Establishment
</b><td width=80% valign=top>
In economic data, an establishment is a single physical location mainly engaged one productive activity.
</table>

  <a name="EthicalTrade">
  <table width=100%><tr><td width=20% valign=top><b>
Ethical trade
</b><td width=80% valign=top>
As used by the <a href="#eti2">Ethical Trading Initiative</a>, this term refers primarily to trade that conforms with high levels of <a href="l.html#LaborStandard">labor standards</a>, including the avoidance of <a href="c.html#ChildLabor">child labor</a>, <a href="f.html#ForcedLabor">forced labor</a>, <a href="s.html#Sweatshop">sweatshops</a>, adverse health and safety conditions, and violations of <a href="l.html#LaborRight">labor rights</a>.
</table>

  <a name="eti2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.ethicaltrade.org/">
Ethical Trading Initiative</a>
</b><td width=80% valign=top>
An alliance of <a href="m.html#mnc2">multinational companies</a>, <a href="n.html#ngo2">nongovernmental organizations</a>, and labor unions seeking to promote and identify <a href="#EthicalTrade">ethical trade</a>.
</table>

  <a name="eti">
  <table width=100%><tr><td width=20% valign=top><b>
ETI
</b><td width=80% valign=top>
<a href="#eti2">Ethical Trading Initiative</a>
</table>

  <a name="etsg">
  <table width=100%><tr><td width=20% valign=top><b>
ETSG
</b><td width=80% valign=top>
<a href="#etsg2">European Trade Study Group</a>
</table>

  <a name="eu">
  <table width=100%><tr><td width=20% valign=top><b>
EU
</b><td width=80% valign=top>
<a href="#eu2">European Union</a>
</table>

  <a name="eu15">
  <table width=100%><tr><td width=20% valign=top><b>
EU15
</b><td width=80% valign=top>
The 15 members of the <a href="#eu2">European Union</a> from 1995 through 2003, prior to its 2004 enlargement.
</table>

  <a name="EUEnlargement">
  <table width=100%><tr><td width=20% valign=top><b>
EU enlargement
</b><td width=80% valign=top>
The process of taking more member countries into the <a href="#eu">EU</a>.
</table>

  <a name="EulersTheorem">
  <table width=100%><tr><td width=20% valign=top><b>
Euler's Theorem
</b><td width=80% valign=top>
<b>1. </b>The property of a function <i>X</i>=<i>F</i>(<i>V</i>), if it is <a href="h.html#HomogeneousOfDegreeX">homogeneous of degree <i>N</i></a>, that &Sigma;<sub><i>i</i></sub><i>V</i><sub><i>i</i></sub><font face="symbol">&part;</font><i>F</i>/<font face="symbol">&part;</font><i>V</i><sub><i>i</i></sub>=<i>NX</i>.
<br>
<b>2. </b>The useful implication of this that, for a <a href="p.html#ProductionFunction">production function</a> <i>X</i>=<i>F</i>(<i>V</i>) with <a href="c.html#ConstantReturnsToScale">constant returns to scale</a>, the competitive payments to factors sum to the value of output: &Sigma;<sub><i>i</i></sub><i>w</i><sub><i>i</i></sub><i>V</i><sub><i>i</i></sub>=<i>pX</i>.
</table>

  <a name="Euratom">
  <table width=100%><tr><td width=20% valign=top><b>
Euratom
</b><td width=80% valign=top>
The European Atomic Energy Community, created in 1956 along with the <a href="#eec">EEC</a>.
</table>

  <a name="Euribor"><a name="euribor">
  <table width=100%><tr><td width=20% valign=top><b>
Euribor
</b><td width=80% valign=top>
Stands for the Euro Interbank Offered Rate, a euro-denominated interest rate charged by large banks among themselves on euro-denominated loans.  Analogous to <a href="l.html#libor">LIBOR</a> for the euro.
</table>

  <a name="euro">
  <table width=100%><tr><td width=20% valign=top><b>
Euro
</b><td width=80% valign=top>
The common currency of a subset of the countries of the <a href="#eu">EU</a>, adopted January 1, 1999, with paper notes and coins put into circulation January 1, 2002.
</table>

  <a name="eams2">
  <table width=100%><tr><td width=20% valign=top><b>
Euro Area Member States
</b><td width=80% valign=top>
Counties that have adopted the <a href="#euro">euro</a>; the <a href="#EuroZone">euro zone</a>.
</table>

  <a name="EuroMediterraneanPartnership">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.eeas.europa.eu/euromed/index_en.htm">
Euro-Mediterranean Partnership</a>
</b><td width=80% valign=top>
An declaration at a 1995 conference in Barcelona between the 15 members of the <a href="#eu2">European Union</a> and its 12 Mediterranean partners to enter a new phase in their relationship, promoting peace and stability, free trade, and cultural understanding.  Also called the <b>Barcelona Process</b>.
</table>

  <a name="EuroZone">
  <table width=100%><tr><td width=20% valign=top><b>
Euro Zone
</b><td width=80% valign=top>
The countries of the <a href="#emu">EMU</a>.  That is, the <a href="lists/EuroZoneMembers.html">group</a> of European countries, members of the <a href="#eu">EU</a>, that adopted the common currency, the <a href="#euro">euro</a>.  See <a href="b.html#BafflingPigs">baffling pigs</a>.
</table>

  <a name="eurobond">
  <table width=100%><tr><td width=20% valign=top><b>
Eurobond
</b><td width=80% valign=top>
A <a href="b.html#bond">bond</a> that is issued outside of the jurisdiction of any single country, denominated in a <a href="e.html#eurocurrency">eurocurrency</a>.
</table>

  <a name="eurocurrency">
  <table width=100%><tr><td width=20% valign=top><b>
Eurocurrency
</b><td width=80% valign=top>
See <a href="#eurodollar">Eurodollar</a>.
</table>

  <a name="eurodad">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.eurodad.org/" target="_top">
Eurodad</a>
</b><td width=80% valign=top>
A European network of <a href="n.html#ngo">NGOs</a> working to reduce poverty and empower the poor in developing countries through improved economic and financial policies.
</table>

  <a name="eurodollar">
  <table width=100%><tr><td width=20% valign=top><b>
Eurodollar
</b><td width=80% valign=top>
Originally referred to U.S. dollar-denominated deposits in commercial banks located in Europe.  Over time, the term came to include deposits in a commercial bank in <i>any</i> country denominated in <i>any</i> currency other than that of the country.  Now sometimes called <b>eurocurrencies</b>.
</table>

  <a name="Europe1992">
  <table width=100%><tr><td width=20% valign=top><b>
Europe 1992
</b><td width=80% valign=top>
An initiative, begun with the <a href="s.html#SingleEuropeanAct">Single European Act</a> in 1987 by the <a href="e.html#eu2">European Union</a>, to fully integrate the markets of the member countries by the end of 1992.  The process involved extensive harmonization of laws and regulations that would otherwise interfere with the cross-border movement of goods and services.
</table>

  <a name="EuropeAgreement">
  <table width=100%><tr><td width=20% valign=top><b>
Europe Agreement
</b><td width=80% valign=top>
An agreement between the <a href="#eu">EU</a> and each of ten Eastern European countries (starting with Hungary and Poland in 1994) creating <a href="f.html#fta2">free trade areas</a> and establishing additional forms of political and economic cooperation in preparation for these countries' eventual membership in the EU.
</table>

  <a name="ebrd2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.ebrd.com/pages/homepage.shtml">
European Bank for Reconstruction and Development</a>
</b><td width=80% valign=top>
An <a href="i.html#ifi2">international financial institution</a> that supports primarily private-sector projects in countries from Central Europe to Central Asia.
</table>

  <a name="ecipe2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://ecipe.org/">
European Center for International Political Economy</a>
</b><td width=80% valign=top>
A research think tank founded in 2006 and focused on "trade policy and other international economic policy issues of importance to Europe." 
</table>

  <a name="ecb2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.ecb.int/" target="_top">
European Central Bank</a>
</b><td width=80% valign=top>
The central bank of the Euro Zone -- the group of countries using the euro as their currency.
</table>

  <a name="ecsc2">
  <table width=100%><tr><td width=20% valign=top><b>
European Coal and Steel Community</a>
</b><td width=80% valign=top>
An economic agreement in 1951 among six countries of Western Europe --  Belgium, France, Germany, Italy, Luxembourg, and Netherlands -- that preceded formation of the <a href="#eec">EEC</a> and ultimately the <a href="#eu">EU</a>.
</table>

  <a name="EuropeanCommission">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://ec.europa.eu/atwork/index_en.htm">
European Commission</a>
</b><td width=80% valign=top>
The highest decision-making body of the <a href="#eu2">European Union</a>.  The Commission, which consists of one Commissioner from each member country, proposes legislation and "ensures that EU law is correctly applied by member countries."
</table>

  <a name="ec2">
  <table width=100%><tr><td width=20% valign=top><b>
European Communities
</b><td width=80% valign=top>
The name adopted in 1967 by the <a href="#eec2">European Economic Community</a> when it merged with the <a href="#ecsc2">ECSC</a> and <a href="#euratom">Euratom</a>.  This name and the acronym EC was used until 1992 when it was replaced by <a href="#eu2">European Union</a>.
</table>

  <a name="ecu2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://pacific.commerce.ubc.ca/xr/ECU.html" target="_top">
European Currency Unit</a>
</b><td width=80% valign=top>
A <a href="c.html#CompositeCurrency">composite currency</a> that is a basket of most of the currencies of countries in the <a href="#eu2">European Union</a>.  Conceived in 1979, it has been used as a <a href="u.html#UnitOfAccount">unit of account</a> of the <a href="#ems2">European Monetary System</a>.
</table>

  <a name="eea2">
  <table width=100%><tr><td width=20% valign=top><b>
European Economic Area
</b><td width=80% valign=top>
The group of countries comprised of the <a href="#eu">EU</a> together with <a href="#efta">EFTA</a>.  The two groups have agreed to deepen their <a href="i.html#integration">economic integration</a>.
</table>

  <a name="eec2">
  <table width=100%><tr><td width=20% valign=top><b>
European Economic Community</a>
</b><td width=80% valign=top>
A <c.html#CustomsUnion">customs union</a> formed in 1958 by the <a href="r.html#TreatyOfRome">Treaty of Rome</a> among six countries of Europe:  Belgium, France, Germany, Italy, Luxembourg, and Netherlands; predecessor to the <a href="#ec">EC</a> in 1967 and the <a href="#eu">EU</a> in 1992.
</table>

  <a name="efsf2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.efsf.europa.eu/about/index.htm" target="_top">
European Financial Stability Facility
</b><td width=80% valign=top>
A pool of funds created by the <a href="#eams2">Euro Area Member States</a> in 2010 to be used to rescue member countries in crisis by lending to them.
</table>

  <a name="efta2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.imf.org/external/np/sec/decdo/efta.htm" target="_top">
European Free Trade Association</a>
</b><td width=80% valign=top>
A <f.html#fta">free trade area</a> made up of countries in Europe that did not join the European Economic Community.  EFTA was established in 1960 among Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom.  As of 2011 it includes Iceland, Liechtenstein, Norway, and Switzerland.
</table>

  <a name="eib2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.eib.org/">
European Investment Bank</a>
</b><td width=80% valign=top>
The "long-term lending bank of the <a href="#eu2">European Union</a>."  It supports projects within the member states as well as in countries that are working to become members states of the EU.
</table>

  <a name="ema2">
  <table width=100%><tr><td width=20% valign=top><b>
European Monetary Agreement
</b><td width=80% valign=top>
An intergovernmental organization administered by the <a href="o.html#oecd">OECD</a> that facilitated settlement of balance of payments accounts among its member states from 1958 to 1972.  It replaced the <a href="#epu">EPU</a>, and its functions were taken over by the <a href="i.html#imf">IMF</a> in 1972.
</table>

  <a name="emi2">
  <table width=100%><tr><td width=20% valign=top><b>
European Monetary Institute
</b><td width=80% valign=top>
A temporary institution that existed from January 1994 to June 1998 during the years leading up to the <a href="#ecb2">European Central Bank</a> and the introduction of the <a href="#euro">euro</a>.  It's purpose was to facilitate cooperation and coordination among the central banks of the <a href="#eu">EU</a> and to pave the way for the shift to the euro.
</table>

  <a name="ems2"><a name="EuropeanMonetarySystem">
  <table width=100%><tr><td width=20% valign=top><b>
European Monetary System
</b><td width=80% valign=top>
A <a href="c.html#CurrencyUnion">currency union</a> formed by some of the members of the <a href="e.html#eec">EEC</a> in 1979 that continued, with changing membership, until replaced by the <a href="e.html#emu">EMU</a> and the <a href="e.html#euro">euro</a> in 1999.
</table>

  <a name="epu2">
  <table width=100%><tr><td width=20% valign=top><b>
European Payments Union
</b><td width=80% valign=top>
An international arrangement for settling payments among member countries in Europe during a period in which many of the countries' currencies were not <a href="c.html#ConvertibleCurrency">convertible</a>.  The EPU functioned from 1950 to 1958, after which it was replaced by the <a href="#ema">EMA</a>.
</table>

  <a name="EuropeanRecoveryProgram">
  <table width=100%><tr><td width=20% valign=top><b>
European Recovery Program
</b><td width=80% valign=top>
See <a href="m.html#MarshallPlan">Marshall Plan</a>.
</table>

  <a name="EuropeanSingleMarket">
  <table width=100%><tr><td width=20% valign=top><b>
European single market
</b><td width=80% valign=top>
See <a href="s.html#SingleMarket">single market</a>.
</table>

  <a name="etsg2">
  <a name="EuropeanTradeStudyGroup">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.etsg.org/" target="_top">
European Trade Study Group
</b><td width=80% valign=top>
A group that meets annually for conferences on the economics of international trade.
</table>

  <a name="eu2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://europa.eu/index_en.htm" target="_top">
European Union</a>
</b><td width=80% valign=top>
A group of European countries that have chosen to integrate many of their economic activities, including forming a customs union and harmonizing many of their rules and regulations.  Preceded by <a href="#eec">EEC</a> and <a href="#ec">EC</a>.  As of June, 2011, the EU had 27 <a href="lists/EUMembers.html">member countries</a>.
</table>

  <a name="eurostat">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://epp.eurostat.ec.europa.eu/">
Eurostat</a>
</b><td width=80% valign=top>
The statistical office of the <a href="#eu2">European Union</a>, which provides statistics on economic and other variables at the level of the EU member countries.
</table>

  <a name="eurozone">
  <table width=100%><tr><td width=20% valign=top><b>
Eurozone
</b><td width=80% valign=top>
<b>1. </b>The <a href="#EuroZone">Euro Zone</a>.
<br>
<b>2. </b>Pertaining to the <a href="#EuroZone">Euro Zone</a> or the <a href="#euro">euro</a>.
</table>

  <a name="EurozoneBonds">
  <table width=100%><tr><td width=20% valign=top><b>
Eurozone bonds
</b><td width=80% valign=top>
<a href="b.html#bond">Bonds</a> denominated in <a href="#euro">euros</a>.
</table>

  <a name="EvenCase">
  <table width=100%><tr><td width=20% valign=top><b>
Even case
</b><td width=80% valign=top>
In international trade models with multiple goods and <a href="f.html#factor">factors</a>, this is the special case of an equal number of goods and factors.  It is convenient for analysis, because the matrix of factor input requirements is square and therefore potentially <a href="i.html#invertible">invertible</a>.
</table>

  <a name="EverythingButArms">
  <table width=100%><tr><td width=20% valign=top><b>
Everything But Arms
</b><td width=80% valign=top>
The name given by the <a href="#eu">EU</a> to its decision in 2001 to eliminate <a href="q.html#quota">quotas</a> and <a href="t.html#tariff">tariffs</a> on all products except arms from the world's 48 poorest countries.
</table>

  <a name="ExAnte">
  <table width=100%><tr><td width=20% valign=top><b>
Ex ante
</b><td width=80% valign=top>
Before the fact; that is, before some event has taken place.
</table>

  <a name="ExAnteAnalysis">
  <table width=100%><tr><td width=20% valign=top><b>
Ex ante analysis
</b><td width=80% valign=top>
Analysis of the effects of a policy, such as trade liberalization or formation of a <a href="p.html#pta">PTA</a>, based only on information available before the policy is undertaken.  Also <a href="p.html#ProspectiveAnalysis">prospective analysis</a>.
</table>

  <a name="ExFactory">
  <table width=100%><tr><td width=20% valign=top><b>
Ex factory
</b><td width=80% valign=top>
Applied to a price, this means the price at the factory, and does not include any other charges, such as delivery or subsequent taxes.
</table>

  <a name="ExPost">
  <table width=100%><tr><td width=20% valign=top><b>
Ex post
</b><td width=80% valign=top>
After the fact; that is, after some event has taken place.
</table>

  <a name="ExPostAnalysis">
  <table width=100%><tr><td width=20% valign=top><b>
Ex post analysis
</b><td width=80% valign=top>
Analysis of the effects of a policy, such as trade liberalization or formation of a <a href="p.html#pta">PTA</a>, based on information available after the policy has been implemented and its performance observed.  Also <a href="r.html#RetrospectiveAnalysis">retrospective analysis</a>.
</table>

  <a name="ExWorks">
  <table width=100%><tr><td width=20% valign=top><b>
Ex works
</b><td width=80% valign=top>
<a href="#ExFactory">Ex factory</a>.
</table>

  <a name="ExPostTariff">
  <table width=100%><tr><td width=20% valign=top><b>
Ex post tariff
</b><td width=80% valign=top>
<a href="i.html#ImplicitTariff">Implicit tariff</a>.
</table>

  <a name="exception">
  <table width=100%><tr><td width=20% valign=top><b>
Exception
</b><td width=80% valign=top>
In a <a href="t.html#TradeAgreement">trade agreement</a>, there may be <b>exceptions</b> for <a href="s.html#sensitive">sensitive products</a>.
</table>

  <a name="ExcessDemand">
  <table width=100%><tr><td width=20% valign=top><b>
Excess demand
</b><td width=80% valign=top>
<a href="d.html#demand">Demand</a> minus <a href="s.html#supply">supply</a>.  Thus a country's demand for imports of a <a href="h.html#HomogeneousProduct">homogeneous good</a> is its excess demand for that good.
</table>

  <a name="ExcessProfit">
  <table width=100%><tr><td width=20% valign=top><b>
Excess profit
</b><td width=80% valign=top>
Profit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital.
</table>

  <a name="ExcessSupply">
  <table width=100%><tr><td width=20% valign=top><b>
Excess supply
</b><td width=80% valign=top>
<a href="s.html#supply">Supply</a> minus <a href="d.html#demand">demand</a>. Thus a country's supply of exports of a <a href="h.html#HomogeneousProduct">homogeneous good</a> is its excess supply of that good.
</table>

  <a name="exchange">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange 
</b><td width=80% valign=top>
<b>1.</b> To engage in <a href="t.html#trade">trade</a>, either within a country or internationally.
<br>
<b>2.</b> <a href="f.html#ForeignExchange">Foreign exchange</a>.
</table>

  <a name="ExchangeAppreciation">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange appreciation
</b><td width=80% valign=top>
See <a href="a.html#appreciation">appreciation</a>.
</table>

  <a name="ExchangeControl">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange control
</b><td width=80% valign=top>
<a href="r.html#RationForeignExchange">Rationing of foreign exchange</a>, typically used when the <a href="#ExchangeRate">exchange rate</a> is fixed and the central bank is unable or unwilling to enforce the rate by <a href="ExchangeMarketIntervention">exchange-market intervention</a>.
</table>

  <a name="ExchangeDepreciation">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange depreciation
</b><td width=80% valign=top>
See <a href="d.html#depreciation">depreciation</a>.
</table>

  <a name="ExchangeEconomy">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange economy
</b><td width=80% valign=top>
See <a href="p.html#PureExchangeEconomy">pure exchange economy</a>.
</table>

  <a name="ExchangeEqualizationFund">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange equalization fund
</b><td width=80%>
The unit within a government or central bank that manages a <a href="p.html#PeggedExchangeRate">pegged exchange rate</a>.  It manages <a href="r.html#reserves">reserves</a> of foreign currencies, which it uses to buy and sell domestic currency as needed to keep the exchange rate within specified bounds.
</table>

  <a name="ExchangeMarket">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange market
</b><td width=80%>
<b>1. </b>The market on which national currencies are exchanged for one another.
<br>
<b>2. </b>The actual exchange market, which exists primarily among large international banks.  Others who wish to exchange currencies do it through these banks.
<br>
<b>3. </b>The theoretical representation of the exchange market as either the interaction of supply and demand arising from exchange-market transactions or as an asset market equilibrium between currencies.
</table>

  <a name="ExchangeMarketIntervention">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange market intervention
</b><td width=80% valign=top>
Usually done by a country's <a href="c.html#CentralBank">central bank</a>, this is the purchase and sale of the country's currency on the <a href="#ExchangeMarket">exchange market</a> in order to influence or fully determine its price.  These transactions, unless they are <a href="s.html#sterilize">sterilized</a>, change the <a href="m.html#MonetaryBase">monetary base</a> of the country and thus its <a href="m.html#MoneySupply">money supply</a>.
</table>

  <a name="ExchangeRate">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate
</b><td width=80% valign=top>
The price at which one country's currency trades for another, typically on the <a href="#ExchangeMarket">exchange market</a>.
</table>

  <a name="ExchangeRateDetermination">
  <a name="erm2">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate determination
</b><td width=80% valign=top>
The process by which a country's <a href="#ExchangeRate">exchange rate</a> comes to be what it is.  With a <a href="f.html#FloatingExchangeRate">floating exchange rate</a>, this may be modeled in various ways, including the <a href="#ElasticitiesApproach">elasticities approach</a>, the <a href="m.html#MonetaryApproach">monetary approach</a>, the <a href="p.html#PortfolioApproach">portfolio approach</a>, and the <a href="a.html#AssetApproach">asset approach</a>.
</table>

  <a name="ExchangeRateExposure">
  <a name="erm2">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate exposure
</b><td width=80% valign=top>
The extent to which the stock-market value of a firm varies with changes in exchange rates.  Also called <a href="#EconomicExposure">economic exposure</a>.
</table>

  <a name="ExchangeRateMechanism">
  <a name="erm2">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange Rate Mechanism
</b><td width=80% valign=top>
A system that was operated by some <a href="c.html#CentralBank">central banks</a> within the <a href="#eu2">European Union</a>, which intervened in <a href="#ExchangeMarket">exchange markets</a> to limit the fluctuations of their currencies relative to one another, while letting all of them collectively <a href="f.html#FloatingExchangeRate">float</a>.
</table>

  <a name="ExchangeRateOvershooting">
  <a name="erm2">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate overshooting
</b><td width=80% valign=top>
The response of an <a href="#ExchangeRate">exchange rate</a> to a shock by first moving beyond where it will ultimately settle.  Thought to help explain exchange rate <a href="v.html#volatility">volatility</a>, this was first modeled by <a href="bib.html#Dornbusch1976">Dornbusch (1976)</a>.
</table>

  <a name="ExchangeRatePassthrough">
  <a name="erm2">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate pass-through
</b><td width=80% valign=top>
See <a href="p.html#PassThrough">pass-through</a>.
</table>

  <a name="ExchangeRateProtection">
  <a name="erm2">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate protection
</b><td width=80% valign=top>
The manipulation of the exchange rate so as to increase the domestic prices of, and demand for, domestically produced goods.  Since an <a href="u.html#UndervaluedCurrency">undervalued currency</a> stimulates demand for all domestically produced tradable goods, this form of protection, unlike <a href="t.html#TariffProtection">tariff protection</a>, can only be provided to the tradable sector as a whole, not to individual industries.
</table>

  <a name="ExchangeRateRegime">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="lists/ExchangeRegimes.html">
Exchange rate regime</a>
</b><td width=80% valign=top>
The rules under which a country's <a href="#ExchangeRate">exchange rate</a> is determined, especially the way the monetary or other government authorities do or do not <a href="i.html#intervention">intervene</a> in the <a href="#ExchangeMarket">exchange market</a>.  Regimes include <a href="f.html#FloatingExchangeRate">floating exchange rate</a>, <a href="p.html#PeggedExchangeRate">pegged exchange rate</a>, <a href="m.html#ManagedFloat">managed float</a>, <a href="c.html#CrawlingPeg">crawling peg</a>, <a href="c.html#CurrencyBoard">currency board</a>, and <a href="#ExchangeControl">exchange controls</a>.
</table>

  <a name="ExchangeRateRisk">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate risk
</b><td width=80% valign=top>
<a href="#ExchangeRisk">Exchange risk</a>
</table>

  <a name="ExchangeRateStability">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate stability
</b><td width=80% valign=top>
Lack of movement over time in the <a href="#ExchangeRate">exchange rate</a> of a country.
</table>

  <a name="ExchangeRateSystem">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate system
</b><td width=80% valign=top>
<a href="#ExchangeRateRegime">Exchange rate regime</a>
</table>

  <a name="ExchangeRateTarget">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rate target
</b><td width=80% valign=top>
See <a href="t.html#target">target</a>.
</table>

  <a name="ExchangeRationing">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange rationing
</b><td width=80% valign=top>
See <a href="#ExchangeControl">exchange control</a> or <a href="r.html#RationForeignExchange">ration foreign exchange</a>.
</table>

  <a name="ExchangeRegime">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange regime
</b><td width=80% valign=top>
See <a href="#ExchangeRateRegime">exchange rate regime</a>.
</table>

  <a name="ExchangeRisk">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange risk
</b><td width=80% valign=top>
<a href="u.html#uncertainty">Uncertainty</a> about the value of an asset, liability, or commitment due to uncertainty about the future value of an exchange rate.  Unless they <a href="c.html#cover">cover</a> themselves in the <a href="f.html#ForwardMarket">forward market</a>, traders with commitments to pay or receive foreign currency in the future bear exchange risk.  So do holders of assets and liabilities denominated in foreign currency.
</table>

  <a name="ExchangeStabilizationFund">
  <table width=100%><tr><td width=20% valign=top><b>
Exchange stabilization fund
</b><td width=80% valign=top>
A government institution sometimes used to handle <a href="e.html#ExchangeMarketIntervention">exchange market intervention</a>, charged with the explicit function of smoothing exchange rate fluctuations.
</table>

  <a name="ExciseSubsidy">
  <table width=100%><tr><td width=20% valign=top><b>
Excise subsidy
</b><td width=80% valign=top>
A <a href="s.html#subsidy">subsidy</a> paid on production or sale (consumption) of a particular good.
</table>

  <a name="ExciseTax">
  <table width=100%><tr><td width=20% valign=top><b>
Excise tax
</b><td width=80% valign=top>
A tax on production or sale (consumption) of a particular good.
</table>

  <a name="exercise">
  <table width=100%><tr><td width=20% valign=top><b>
Exercise
</b><td width=80% valign=top>
To execute the terms of a contract.  See <a href="o.html#option">option</a>.
</table>

  <a name="exhaustion">
  <table width=100%><tr><td width=20% valign=top><b>
Exhaustion
</b><td width=80% valign=top>
<b>1.</b>  In <a href="i.html#IntellectualProperty">intellectual property</a> regimes, the transaction at which rights terminate.  Under <b>national exhaustion</b>, rights end with first sale in a country, preventing <a href="p.html#ParallelImport">parallel imports</a>.  Under <b>international exhaustion</b>, rights end with first sale anywhere, permitting parallel imports.
<br>
<b>2.</b>  <a href="p.html#ProductExhaustion">Product exhaustion</a>
</table>

  <a name="EximBank">
  <table width=100%><tr><td width=20% valign=top><b>
Exim Bank
</b><td width=80% valign=top>
<a href="#EximBank2">Export-Import Bank of the United States</a>
</table>

  <a name="exogenous">
  <table width=100%><tr><td width=20% valign=top><b>
Exogenous 
</b><td width=80% valign=top>
Coming from outside, usually in the context of an economic model, in which it means only that it is not explained within the model.
</table>

  <a name="ExogenousGrowth">
  <table width=100%><tr><td width=20% valign=top><b>
Exogenous growth
</b><td width=80% valign=top>
<a href="#EconomicGrowth">Economic growth</a> that occurs without being the result of deliberate policy or behavior.  The term arises because <a href="n.html#NeoclassicalGrowthModel">neoclassical growth models</a> converge to a <a href="s.html#SteadyState">steady state</a> in which <a href="p.html#PerCapitaIncome">per capita income</a> is constant over time.  Growth, then, requires <a href="#ExogenousVariable">exogenous</a> <a href="t.html#TechnicalProgress">technical progress</a>.
</table>

  <a name="ExogenousVariable">
  <table width=100%><tr><td width=20% valign=top><b>
Exogenous variable
</b><td width=80% valign=top>
A variable that is taken as given by an economic model.  It therefore <i>is</i> subject to direct manipulation by the modeler.  In most models, policy variables such as <a href="t.html#tariff">tariffs</a> and <a href="p.html#ParValue">par values</a> of <a href="p.html#PeggedExchangeRate">pegged exchange rates</a> are exogenous.  Contrasts with <a href="#EndogenousVariable">endogenous variable</a>.
</table>

  <a name="ExonFlorioAct">
  <table width=100%><tr><td width=20% valign=top><b>
Exon Florio Act
</b><td width=80% valign=top>
A law enacted in the United States in 1988 empowering the president to stop a foreign acquisition of a US company (or a merger) if it threatens national security.
</table>

  <a name="ExorbitantPrivilege">
  <table width=100%><tr><td width=20% valign=top><b>
Exorbitant privilege
</b><td width=80% valign=top>
Term of Valery Giscard d'Estaing in the 1960s for the US position in the international monetary system, the <a href="b.html#BrettonWoods">Bretton Woods System</a> of currencies pegged to the US dollar.  The US benefited then, and still does, as the issuer of the currency most countries hold as <a href="i.html#InternationalReserves">international reserves</a>.
</table>

  <a name="expansion">
  <table width=100%><tr><td width=20% valign=top><b>
Expansion
</b><td width=80% valign=top>
<a href="#EconomicExpansion">Economic expansion</a>
</table>

  <a name="expansionary">
  <table width=100%><tr><td width=20% valign=top><b>
Expansionary
</b><td width=80% valign=top>
Tending to cause aggregate output (<a href="g.html#gdp">GDP</a>) and/or the price level to rise.  Term is typically applied to <a href="m.html#MonetaryPolicy">monetary policy</a> (an increase in the money supply or a decrease in interest rates) and to <a href="f.html#FiscalPolicy">fiscal policy</a> (an increase in government spending or a tax cut), but may also apply to other macroeconomic shocks.  Contrasts <a href="c.html#contractionary">contractionary</a>.
</table>

  <a name="expectation">
  <table width=100%><tr><td width=20% valign=top><b>
Expectation
</b><td width=80% valign=top>
The expectation of a variable is the same as its <a href="#ExpectedValue">expected value</a>, and is also used with both meanings.
</table>

  <a name="ExpectedValue">
  <table width=100%><tr><td width=20% valign=top><b>
Expected value
</b><td width=80% valign=top>
<b>1. </b>The mathematical expected value of a <a href="r.html#RandomVariable">random variable</a>.  Equals the sum (or integral) of the values that are possible for it, each multiplied by its probability.
<br>
<b>2. </b>What people think a variable is going to be.  In general, the expectation in this second sense may be more important than the first for determining behavior on a market, such as the <a href="e.html#ExchangeMarket">exchange market</a>.
</table>

  <a name="ExpenditureFunction">
  <table width=100%><tr><td width=20% valign=top><b>
Expenditure function
</b><td width=80% valign=top>
A function representing the minimum expenditure needed, at a given price vector <i>P</i>, to achieve a given utility <i>U</i> from a vector of goods consumed <i>X</i>:  <i>E</i>(<i>P</i>,<i>U</i>) = min<sub><i>X</i></sub>{<i>PX</i>&nbsp;|&nbsp;<i>U</i>(<i>X</i>)&#8805;<i>U</i>}.  Useful for conveniently representing quantities demanded by its partial derivatives.
</table>

  <a name="ExpenditureShare">
  <table width=100%><tr><td width=20% valign=top><b>
Expenditure share
</b><td width=80% valign=top>
The fraction of expenditure (usually consumer expenditure) that is spent on a particular good or purpose.  With <a href="c.html#Cobb-DouglasFunction">Cobb-Douglas</a> preferences, expenditure shares are constant, independent of prices and income.
</table>

  <a name="ExperienceGood">
  <table width=100%><tr><td width=20% valign=top><b>
Experience good
</b><td width=80% valign=top>
A product whose value can be better known after having consumed it.  Producers of experience goods may temporarily charge a price lower than marginal cost to induce buyers to try the product.  Done with an export, this would be legally considered <a href="d.html#dumping">dumping</a>.
</table>

  <a name="exploit"><a name="exploitation">
  <table width=100%><tr><td width=20% valign=top><b>
Exploit
</b><td width=80% valign=top>
To take advantage of someone or something for one's own benefit.  Economists often use the term with a neutral or positive connotation, advocating that one should fully exploit one's resources for example.  Others see the term as quite negative, viewing <b>exploitation</b> as being done at the expense of others, which in some cases (e.g., <a href="m.html#monopsony">monopsony</a>) it is.
</table>

  <a name="export">
  <table width=100%><tr><td width=20% valign=top><b>
Export
</b><td width=80% valign=top>
<b>1. </b>A good that moves outward across a country's border for commercial purposes.
<br>
<b>2. </b>A product, which might be a service, that is provided to foreigners by a domestic producer.
<br>
<b>3. </b>To cause a good or service to be an export under definitions 1 and/or 2.
</table>

  <a name="ExportBias">
  <table width=100%><tr><td width=20% valign=top><b>
Export bias
</b><td width=80% valign=top>
Any <a href="b.html#bias">bias</a> in favor of exporting.  Most often applied to growth that is based disproportionately on accumulation of the <a href="f.html#factor">factor</a> used <a href="i.html#intensive">intensively</a> in the export industry and/or <a href="t.html#TechnologicalProgress">technological progress</a> favoring that industry.
</table>

  <a name="ExportCartel">
  <table width=100%><tr><td width=20% valign=top><b>
Export cartel
</b><td width=80% valign=top>
A <a href="c.html#cartel">cartel</a> of exporting countries or firms.
</table>

  <a name="ExportControl">
  <table width=100%><tr><td width=20% valign=top><b>
Export control
</b><td width=80% valign=top>
Regulation or restriction of the export of certain goods, sometimes in order to limit access to the <a href="s.html#sensitive">sensitive technologies</a> they embody, sometimes to alleviate domestic shortages.
</table>

  <a name="ExportCredit">
  <table width=100%><tr><td width=20% valign=top><b>
Export credit
</b><td width=80% valign=top>
A loan to the buyer of an export, extended by the exporting firm when shipping the good prior to payment, or by a facility of the exporting country's government.  In the latter case, by setting a low interest rate on such loans, a country can indirectly <a href="s.html#subsidy">subsidize</a> exports.
</table>

  <a name="ExportCreditsArrangement">
  <table width=100%><tr><td width=20% valign=top><b>
Export Credits Arrangement
</b><td width=80% valign=top>
<a href="a.html#ArrangementOnExportCredits">Arrangement on Export Credits</a>
</table>

  <a name="ExportCreditInsurance">
  <table width=100%><tr><td width=20% valign=top><b>
Export credit insurance
</b><td width=80% valign=top>
A program to guarantee payment to exporting firms who extend <a href="#ExportCredit">export credits</a>.
</table>

  <a name="ExportDuty">
  <table width=100%><tr><td width=20% valign=top><b>
Export duty 
</b><td width=80% valign=top>
<a href="#ExportTax">Export tax</a>
</table>

  <a name="ExportEnhancementProgram">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.google.com/url?sa=t&source=web&cd=2&ved=0CCYQFjAB&url=http%3A%2F%2Fwww.fas.usda.gov%2Finfo%2Ffactsheets%2FEEP.pdf&rct=j&q=Export%20enhancement%20program&ei=VeslTob_K5ODsALdwbTXCw&usg=AFQjCNGXe2-59m0rgSBDNsW3QOpt0A32vQ&sig2=UjdM0FYb59k-vj1EAdLkiA&cad=rja">
Export Enhancement Program</a>
</b><td width=80% valign=top>
A program of the US Department of Agriculture to provide <a href="#ExportSubsidy">export subsidies</a> for particular products, intended to "meet the competition from subsidizing countries," especially the <a href="#eu2">European Union</a>. 
</table>

  <a name="ExportElasticity">
  <table width=100%><tr><td width=20% valign=top><b>
Export elasticity 
</b><td width=80% valign=top>
This could be any of several <a href="#elasticity">elasticities</a>, including that of demand for, or supply of, a country's <a href="#export">exports</a>, either total or for particular products, with respect to particular prices or income.
</table>

  <a name="ExportElasticityOfSubstitution">
  <table width=100%><tr><td width=20% valign=top><b>
Export elasticity of substitution
</b><td width=80% valign=top>
This is the <a href="#ElasticityOfSubstitution">elasticity of substitution</a> in demand for a country's <a href="#export">exports</a> of a product relative to the exports of another country of that product, both to a particular importing country, with respect to the relative price of the two exporting countries' exports.
</table>

  <a name="ExportFacilitation">
  <table width=100%><tr><td width=20% valign=top><b>
Export facilitation 
</b><td width=80% valign=top>
Anything intended to make it easier to export, but usually refers to government services or programs with this objective.
</table>

  <a name="ExportFactoring">
  <table width=100%><tr><td width=20% valign=top><b>
Export factoring 
</b><td width=80% valign=top>
The sale by an exporter of an accounts receivable (the foreign importer's commitment to pay), at a discount, to another entity -- the <b>export factor</b> -- for immediate payment.  Similar to <a href="f.html#forfaiting">forfaiting</a>.
</table>

  <a name="ExportGuaranty">
  <table width=100%><tr><td width=20% valign=top><b>
Export guaranty 
</b><td width=80% valign=top>
The promise by an exporter's government to a private lender that it will repay the loan if the buyer of the export does not.
</table>

  <a name="EximBank2">
  <table width=100%><tr><td width=20% valign=top><b>
  <a href="http://www.exim.gov/">
Export-Import Bank of the United States</a>
</b><td width=80% valign=top>
The official export credit agency of the United States government, the <b>Exim Bank</b> assists the financing of US exports, both goods and services.  It says it does not compete with private-sector financing, but "fills gaps," assuming credit and country risks that the private sector does not accept.
</table>

  <a name="ExportImportCompany">
  <table width=100%><tr><td width=20% valign=top><b>
Export-import company
</b><td width=80% valign=top>
A firm whose business consists mainly of international trade:  buying goods in one country and selling them in another, thus both exporting and importing.  Same as <a href="i.html#ImportExportCompany">import-export company</a>.
</table>

  <a name="ExportIncentive">
  <table width=100%><tr><td width=20% valign=top><b>
Export incentive 
</b><td width=80% valign=top>
A government program that makes it more attractive for a firm, industry, or country to export.  Most simply, an <a href="#ExportSubsidy">export subsidy</a>.
</table>

  <a name="ExportInstability">
  <table width=100%><tr><td width=20% valign=top><b>
Export instability 
</b><td width=80% valign=top>
Frequent and large fluctuations, over time, in the quantity and/or value of a country's exports, either individually or in aggregate.
</table>

  <a name="ExportInsurance">
  <table width=100%><tr><td width=20% valign=top><b>
Export insurance 
</b><td width=80% valign=top>
<a href="i.html#insurance">Insurance</a> available to those who <a href="#export">export</a> to cover risks such as damage to the product in transit, nonpayment, and political risks.
</table>

 <a name="ExportIntensity">
  <table width=100%><tr><td width=20% valign=top><b>
Export intensity 
</b><td width=80% valign=top>
The fraction of the output of a firm, or sometimes an industry within a country, that is <a href="#export">exported</a>.
</table>

  <a name="ExportLedGrowth">
  <table width=100%><tr><td width=20% valign=top><b>
Export-led growth
</b><td width=80% valign=top>
Growth of an economy over time that is thought to be caused by expansion of the country's exports.  See <a href="#ExportPromotion">export promotion</a>, <a href="#EngineOfGrowth">engine of growth</a>.
</table>

  <a name="ExportLicensing">
  <table width=100%><tr><td width=20% valign=top><b>
Export licensing
</b><td width=80% valign=top>
See <a href="l.html#licensing">licensing.
</table>

  <a name="ExportLimitation">
  <table width=100%><tr><td width=20% valign=top><b>
Export limitation
</b><td width=80% valign=top>
Any policy that restricts exports.
</table>

  <a name="ExportManagementCompany">
  <table width=100%><tr><td width=20% valign=top><b>
Export management company
</b><td width=80% valign=top>
A firm that handles the process of exporting for other firms.  It may do this for a commission or fee, or it may purchase the goods for subsequent sale.
</table>

  <a name="ExportMultiplier">
  <table width=100%><tr><td width=20% valign=top><b>
Export multiplier
</b><td width=80% valign=top>
The <a href="m.html#multiplier">multiplier</a> for a change in exports; that is, the increase in <a href="g.html#gdp">GDP</a> caused by a one-unit increase in exports.
</table>

  <a name="ExportParityPrice">
  <table width=100%><tr><td width=20% valign=top><b>
Export parity price
</b><td width=80% valign=top>
The price that a producer gets or can expect to get for its product if exported, equal to the <a href="f.html#fob">f.o.b.</a> price minus the costs of getting the product from the farm or factory to the border.  This and the <a href="i.html#ImportParityPrice">import parity price</a> together define a range of the possible equilibrium prices for an equivalent domestically produced good.
</table>

  <a name="ExportPenetration">
  <table width=100%><tr><td width=20% valign=top><b>
Export penetration
</b><td width=80% valign=top>
The ability of <a href="d.html#domestic">domestic</a> producers to penetrate foreign markets, as measured by the ratio of exports to output of a domestic firm or industry.
</table>

  <a name="ExportPerformanceRequirement">
  <table width=100%><tr><td width=20% valign=top><b>
Export performance requirement
</b><td width=80% valign=top>
<a href="#ExportRequirement">Export requirement</a>.
</table>

  <a name="ExportPessimism">
  <table width=100%><tr><td width=20% valign=top><b>
Export pessimism
</b><td width=80% valign=top>
The view that efforts to expand exports by <a href="l.html#DevelopingCountry">developing countries</a> will lead to a decline in their <a href="t.html#TermsOfTrade">terms of trade</a> because of an inability (due to weak demand) or unwillingness (expressed via <a href="p.html#protection">protection</a>) of <a href="d.html#DevelopedCountry">developed countries</a> to absorb these exports.
</table>

  <a name="ExportPlatform">
  <table width=100%><tr><td width=20% valign=top><b>
Export platform
</b><td width=80% valign=top>
The use of a country or region as a place to produce for export to another country.  Used especially when a <a href="p.html#pta2">preferential trade arrangement</a> provides easier access to the destination country.
</table>

  <a name="ExportPlatformFDI">
  <table width=100%><tr><td width=20% valign=top><b>
Export platform FDI
</b><td width=80% valign=top>
<a href="f.html#fdi2">Foreign direct investment</a> from a source country into a host country for the purpose of exporting to a third country.
</table>

  <a name="ExportPriceIndex">
  <table width=100%><tr><td width=20% valign=top><b>
Export price index
</b><td width=80% valign=top>
<a href="p.html#PriceIndex">Price index</a> of the goods that a country <a href="#export">exports</a>.
</table>

  <a name="ExportProcessingZone"><a name="epz2">
  <table width=100%><tr><td width=20% valign=top><b>
Export processing zone
</b><td width=80% valign=top>
A designated area in a country in which production for <a href="#export">export</a> is encouraged, usually by special tax treatment and by permitting firms to import <a href="d.html#DutyFree">duty-free</a> so long as the imports are used as inputs to production of export.  Thus a <a href="f.html#FreeTradeZone">free trade zone</a> with additional inducements for export.
</table>

  <a name="ExportPromotion">
  <table width=100%><tr><td width=20% valign=top><b>
Export promotion
</b><td width=80% valign=top>
A strategy for <a href="#EconomicDevelopment">economic development</a> that stresses expanding exports, often through policies to assist them such as <a href="#ExportSubsidy">export subsidies</a>.  The rationale is to exploit a country's <a href="c.html#ComparativeAdvantage">comparative advantage</a>, especially in the common circumstance where an <a href="o.html#OvervaluedCurrency">over-valued currency</a> would otherwise create bias against exports.  Contrasts with <a href="i.html#ImportSubstitution">import substitution</a>.
</table>

  <a name="ExportQuantityIndex">
  <table width=100%><tr><td width=20% valign=top><b>
Export quantity index
</b><td width=80% valign=top>
<a href="q.html#QuantityIndex">Quantity index</a> of the goods that a country <a href="#export">exports</a>.
</table>

  <a name="ExportQuota">
  <table width=100%><tr><td width=20% valign=top><b>
Export quota
</b><td width=80% valign=top>
A quantitative restriction on exports, often the means of implementing a <a href="v.html#ver">VER</a>.
</table>

  <a name="ExportQuotaAgreement">
  <table width=100%><tr><td width=20% valign=top><b>
Export quota agreement
</b><td width=80% valign=top>
An agreement among a group of exporters of a product to limit output and divide the market, each promising not to exceed its quota.  Used by a <a href="c.html#cartel">cartel</a> to stabilize and raise price and thus the incomes of the participants.
</table>

  <a name="ExportRequirement">
  <table width=100%><tr><td width=20% valign=top><b>
Export requirement
</b><td width=80% valign=top>
A requirement by the government of the host country of <a href="f.html#fdi">FDI</a> that the investor export a certain amount or percentage of its output.
</table>

  <a name="ExportRestraint">
  <table width=100%><tr><td width=20% valign=top><b>
Export restraint
</b><td width=80% valign=top>
<a href="v.html#ver2">Voluntary export restraint</a>
</table>

  <a name="ExportSimilarityIndex">
  <table width=100%><tr><td width=20% valign=top><b>
Export similarity index
</b><td width=80% valign=top>
See <a href="f.html#FingerKreininIndex">Finger-Kreinin index </a>.
</table>

  <a name="ExportSubsidy">
  <table width=100%><tr><td width=20% valign=top><b>
Export subsidy
</b><td width=80% valign=top>
<b>1. </b>A subsidy to exports; that is, a payment to exporters of a good per unit of the good exported.
<br>
<b>2. </b>Sometimes applied to any payments to producers that lead to an increase in exports.
</table>

  <a name="ExportSubstitution">
  <table width=100%><tr><td width=20% valign=top><b>
Export substitution
</b><td width=80% valign=top>
<b>1. </b><a href="#ExportPromotion">Export promotion</a>; thus the substitution of production for export in place of production for the domestic market.  Contrasts with <a href="i.html#ImportSubstitution">import substitution</a>.
<br>
<b>2. </b>Export of more processed forms of a good instead of only exporting the raw material.
</table>

  <a name="ExportTariff">
  <table width=100%><tr><td width=20% valign=top><b>
Export tariff
</b><td width=80% valign=top>
A tax on exports, more commonly called an <a href="#ExportTax">export tax</a>.
</table>

  <a name="ExportTax">
  <table width=100%><tr><td width=20% valign=top><b>
Export tax
</b><td width=80% valign=top>
A tax on exports.
</table>

  <a name="ExportTradingCompany">
  <table width=100%><tr><td width=20% valign=top><b>
Export trading company
</b><td width=80% valign=top>
<a href="#ExportManagementCompany">Export management company</table>
</table>

  <a name="ExportedProtection">
  <table width=100%><tr><td width=20% valign=top><b>
Exported protection 
</b><td width=80% valign=top>
The protective effect that <a href="r.html#roo2">rules of origin</a> have on the partner country's input producers when applied to a country's imports within a <a href="f.html#fta2">free trade area</a>.  Term was first in 1993 working paper version of <a href="bib.html#Krueger2001">Krueger (2001)</a>.
</table>

  <a name="exports">
  <table width=100%><tr><td width=20% valign=top><b>
Exports
</b><td width=80% valign=top>
The quantity or value of all that is <a href="#export">exported</a> out of a country.
</table>

  <a name="exposure">
  <table width=100%><tr><td width=20% valign=top><b>
Exposure
</b><td width=80% valign=top>
See <a href="#ExchangeRateExposure">exchange rate exposure</a>.
</table>

  <a name="expropriate">
  <table width=100%><tr><td width=20% valign=top><b>
Expropriate
</b><td width=80% valign=top>
To transfer ownership of private property, against the will of its owner, to government.  The possibility of <b>expropriation</b> is one of the risks of <a href="f.html#fdi2">foreign direct investment</a>.
</table>

  <a name="ExtendedCreditFacility"><a name="ecf2">
  <table width=100%><tr><td width=20% valign=top><b>
Extended Credit Facility
</b><td width=80% valign=top>
A program of the <a href="i.html#imf2">International Monetary Fund</a> to provide financial assistance to <a href="l.html#lic2">low income countries</a> with protracted <a href="b.html#bop2">balance of payments</a> problems.  It replaced the <a href="p.html#prgf">PRGF</a> in 2009 in response to the <a href="g.html#GlobalFinancialCrisis">global financial crisis</a>.
</table>

  <a name="ExtensiveMargin">
  <table width=100%><tr><td width=20% valign=top><b>
Extensive margin
</b><td width=80% valign=top>
Refers to varying the amount of trade (or other activity) of a firm, industry, or country by varying the number of products that it trades, as opposed to the <a href="i.html#IntensiveMargin">intensive margin</a> at which it would vary the quantity of trade of a given number of products.
</table>

  <a name="ExternalBalance">
  <table width=100%><tr><td width=20% valign=top><b>
External balance
</b><td width=80% valign=top>
<b>1. </b><a href="b.html#BalanceOfPaymentsEquilibrium">Balance of payments equilibrium</a>.
<br>
<b>2. </b>Any <a href="t.html#target">target</a> value for the <a href="b.html#BalanceOnCurrentAccount">balance on current account</a>, <a href="b.html#BalanceOnCapitalAccount">balance on capital account</a>, or <a href="b.html#BalanceOfPayments">balance of payments</a>.  Contrasts with <a href="i.html#InternalBalance">internal balance</a>.
</table>

  <a name="ExternalBenefit">
  <table width=100%><tr><td width=20% valign=top><b>
External benefit
</b><td width=80% valign=top>
A positive (i.e., beneficial) <a href="#externality">externality</a>.
</table>

  <a name="ExternalCost">
  <table width=100%><tr><td width=20% valign=top><b>
External cost
</b><td width=80% valign=top>
A negative (i.e., harmful) <a href="#externality">externality</a>.
</table>

  <a name="ExternalDebt">
  <table width=100%><tr><td width=20% valign=top><b>
External debt
</b><td width=80% valign=top>
The amount that a country owes to foreigners, including the debts of both the country's government and its private sector.
</table>

  <a name="ExternalDeficit">
  <table width=100%><tr><td width=20% valign=top><b>
External deficit
</b><td width=80% valign=top>
<a href="t.html#TradeDeficit">Trade deficit</a> or <a href="c.html#CurrentAccountDeficit">current account deficit</a>.
</table>

  <a name="ExternalDiseconomy">
  <table width=100%><tr><td width=20% valign=top><b>
External diseconomy
</b><td width=80% valign=top>
<a href="n.html#NegativeExternality">Negative externality</a>.
</table>

  <a name="ExternalEconomiesOfScale">
  <table width=100%><tr><td width=20% valign=top><b>
External economies of scale
</b><td width=80% valign=top>
A form of <a href="i.html#irts2">increasing returns to scale</a> in which productivity and thus costs of individual firms depend on the output of their entire industry, rather than just their own.  Unlike more conventional (internal) scale economies, these are consistent with <a href="p.html#PerfectCompetition">perfect competition</a>.
</table>

  <a name="ExternalEconomy">
  <table width=100%><tr><td width=20% valign=top><b>
External economy
</b><td width=80% valign=top>
<a href="p.html#PositiveExternality">Positive externality</a>.
</table>

  <a name="ExternalEquilibrium">
  <table width=100%><tr><td width=20% valign=top><b>
External equilibrium
</b><td width=80% valign=top>
<a href="#ExternalBalance">External balance</a>, in contrast to <a href="i.html#InternalEquilibrium">internal equilibrium</a> or <a href="i.html#InternalBalance">internal balance</a>.
</table>

  <a name="ExternalIncreasingReturnsToScale">
  <table width=100%><tr><td width=20% valign=top><b>
External increasing returns to scale
</b><td width=80% valign=top>
<a href="#ExternalEconomiesOfScale">External economies of scale</a>.
</table>

  <a name="ExternalPosition">
  <table width=100%><tr><td width=20% valign=top><b>
External position
</b><td width=80% valign=top>
The <a href="b.html#BalanceOfTrade">balance of trade</a> or the <a href="b.html#BalanceOnCurrentAccount">balance on current account</a>.
</table>

  <a name="ExternalReturnsToScale">
  <table width=100%><tr><td width=20% valign=top><b>
External returns to scale
</b><td width=80% valign=top>
<a href="#ExternalEconomiesOfScale">External economies of scale</a>.
</table>

  <a name="ExternalSaving">
  <table width=100%><tr><td width=20% valign=top><b>
External saving
</b><td width=80% valign=top>
<a href="c.html#CapitalInflow">Capital inflow</a>
</table>

  <a name="ExternalShock">
  <table width=100%><tr><td width=20% valign=top><b>
External shock
</b><td width=80% valign=top>
A <a href="s.html#shock">shock</a> that originates from outside of an economic system, especially a country.
</table>

  <a name="ExternalitiesArgument">
  <table width=100%><tr><td width=20% valign=top><b>
Externalities argument for protection
</b><td width=80% valign=top>
The (<a href="s.html#SecondBestArgument">second best</a>) argument that an industry should be <a href="p.html#protection">protected</a> because it generates <a href="p.html#PositiveExternality">positive externalities</a> for other industries or consumers.
</table>

  <a name="externality">
  <table width=100%><tr><td width=20% valign=top><b>
Externality
</b><td width=80% valign=top>
An effect of one economic agent's actions on another, such that one agent's decisions make another better or worse off by changing their utility or cost.  Beneficial effects are <a href="p.html#PositiveExternality">positive externalities</a>; harmful ones are <a href="n.html#NegativeExternality">negative externalities</a>.
</table>



</ul>
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