CARBON TAX
An environmental tax which is imposed on products that cause greenhouse pollution due to the use of carbon-based materials.
TARIFF
The additional tax imposed on imported goods and services to make them costlier in order to favor indigenous production of goods and services.
TOBIN TAX
A global tax levied on high-value capital transfers between countries which is generally used to support the developing economies and to write off the debts of third-world countries.
SEZ – Special Economic Zone
A specially earmarked zone or area within a country in which separate business and trade laws apply in contrast to the rest of the country. SEZs are set up to create employment opportunities and to increase trade and investment into a country.
DIVESTMENT
The process of selling off subsidiary business interests or investments to obtain more liquidity or to reduce bad debts in a business.
FOREX – FOREIGN EXCHANGE
The global market of currencies where currency conversion from one to another takes place virtually around-the-clock.
FTA – Free Trade Agreement
When two or more countries enter into an agreement to reduce non-trade barriers, eliminate trade tariffs and promote ease of trade between the countries, it is called an FTA.
FIIs – FOREIGN INSTITUTIONAL INVESTORS
Foreign business entities which are allowed to invest their money into the Indian share markets. When FIIs invest in the stocks of a country, it is seen as a major source of liquidity for the stock markets and as an indicator of the future prospects of an economy.
FDI – FOREIGN DIRECT INVESTMENT
When direct investment comes into a country from a business entity due to a new company formation, a merger, or an acquisition, etc. This indicates the positive future business environment of the country and the overall sentiment of overseas investors with regards to a particular economy.
SUBSIDY
A parliamentary grant to the country’s sovereign for fulfilling state needs. Subsidies help in expenditure rationalization and cutting down prices of high-demand goods.
Laissez-faire
It means non-intervention of a government in the economic affairs of a country. In this system, transactions between private parties (businesses or individuals) are free from government intervention such as economic regulation, tax on privileges, tariffs, and subsidies, etc.
