Key Concepts in Economics and Tourism
Economic Terms
Action
Parties which divide the capital of a corporation.
Operators
Person or institution making economic decisions for the country’s economic performance.
Hwy
Highway. Via with large capacity equipped with separate lanes for both directions and free of level crossings, allowing high-speed circulation not exceeding 120 km/h.
Highway
Faster, similar to the highway by the existence of separate lanes for both directions, lack of level crossings.
Balance of Trade
The difference between domestic trade and overseas trade.
Balance of Payments
Document which records a country’s economic transactions with the rest of the world during a period of time.
Balance of Services
Payments and receipts for services.
Cartel
Business association between large firms producing the same good or service to monopolize the market.
Wholesale
Commercial activity with concentrated production and distribution to retailers.
Internal Trade
Activity offering products and services within the borders of a country.
Commerce
Activity offering products and services to consumers.
“White Collars”
Highly skilled workers in the upper tertiary sector.
Trade Deficit
Negative balance between the value of exports and imports.
Currency
Coins concerning the unity of the country concerned.
Economy
Science that studies how best to use society’s scarce resources.
External Economies
Advantages of an environment that supports a company’s production.
Company
Operator of production of goods and services carrying out a transformative activity.
Exports
Sale of national products.
Factors of Production
Land, labor, capital. Resources needed to produce goods and services.
G-7
Group of Seven, comprising the heads of state or government of the seven greatest powers of the world (USA, Canada, Japan, Germany, France, Italy, and Britain). Its purpose is to exchange views on economic and political issues and to harmonize their economic policies.
Globalization
Progressive evolution towards a borderless world in which, based on the generalization of the global capitalist system, the globalization of socio-political relations, culture, and environmental issues takes place.
Hinterland
Influence, principally in a port area.
Hypermarket
Shopping center, located in large cities (cash and carry) with more than 2,500m2.
Holding
Financial company that holds stakes in various industrial, commercial, or financial controls and directs them by having a substantial part of its capital.
“Hub”
Central airport. Airports with national and international connections.
Import
Defined as the purchase of goods from a foreign country and also as the entry of foreign products by a seaport.
Tax
Payments that are made binding on the State.
Inflation
Excess rise of currency in connection with its coverage, leading to a general rise in prices.
Macroeconomics
Branch of economics that studies the economic development of a country.
Market
Institution or location conducting the exchange of factors of production.
Monopoly
Structure of an imperfectly competitive market where a company controls the market for a good or service (market power and price determinant).
OPEC
Organization of Petroleum Exporting Countries, a cartel that monopolizes the production and oil markets.
Oligopoly
Structure of an imperfectly competitive market where several large companies with market power and price control determine collusive (cartel) and non-rigged markets.
Unemployment
Persons between 16-64 years who have played or seek work activity and excess labor supply do not work.
Technology Park
Areas designed to house high-technology industries, located in areas of high environmental quality, infrastructure, and business services, so abundant around large industrial cities and dynamic axes.
Income
Money received by an operator.
Sector II
Productive sectors of a country characterized by the development of industrial activities that transform raw materials or unprocessed products into processed products.
Sector III
The set of activities designed to provide services to society.
Public Sector
State operators that make economic decisions for the development of a country. Covers basic needs of the population (welfare state).
Corporation
Type of business (legal) of a number of partners who contribute capital called action.
Upper Tertiary
The set of activities designed to generate, store, and disseminate information. Key sector to the achievement of a postindustrial society.
Tertiarization
The process by which Sector III of the economy (services) gains weight with respect to other sectors, both in workforce employed and contributions to GDP.
Tour Operator
Wholesale companies that integrate all phases of the tourist business (hotels, transportation, tastes, entertainment).
Transfer
Movement of money between different operators.
Trust
Business fusion or association between large companies to avoid competition.
Value Added
The increase in the value of a good or service at each stage of production for a period of time, attributable to the productive activity.
Tourism Terms
Ecotourism
Tourist mode which aims to study ecosystems. It is an alternative model of sun and beach tourism promotion and avoids imbalance.
Seasonality of Tourism
The fluctuation in the arrival of tourists that occurs over a year.
Excursionist
Tourist who stays in a city for less than 24 hours.
Farm Tourism
Tourist destinations offered by rural communities (agrotourism, ecotourism).
Tourism
Sector III activity that determines the temporary displacement of the population at certain times of the year (seasonal tourist).
Tourist Infrastructure
The set of facilities and equipment necessary for the development of tourist activity.
Tourist
A person who remains in a place for more than 24 hours.