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  KEY TERMS
 

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Hard currency
A currency that is accepted world wide, and accepted readily for international transactions.

Harrod-Domar model
A model that suggests that the growth rate of an economy depends on savings and capital output ratio

Heckscher-Ohlin model
This model states that the comparative advantage of an economy is determined by the relative endowments of the Factors of Production.

Hedging
An investment strategy, where stocks are bought or sold in anticipation of future losses.

Hedonic pricing model
A model which is used to identify the factors influencing the price of a good, and to what extent a factor affects the price

Hierarchy of needs
Introduced by Abraham Maslow, this model states that an individual will be motivated to satisfy their needs which are graduating in nature.

Hoarding
When goods are purchased and accumulated over and above what is required as a necessity as a precaution or expectation against rising prices.

Holding company
A company which holds the majority of stake so as to exercise complete control over another company's management

Horizontal merger
The consolidation of two or more companies under one name, which are operating in the same industry and catering to similar markets

Hotelling's paradox
A law that states that competitor's maintain less differences between their products so as to substitute each others'.

Human Development Index
A report prepared by United Nations, showing the progress in a nation with respect to human development on the aspects of longevity, knowledge and decent standard of living of citizens.




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