Essential Economic and Political Terminology Defined

Key Economic and Political Terminology

Core Economic Concepts

Market

The area where sellers and buyers act as trading partners.

Capital

The money and infrastructure needed to start a business or enterprise.

Yield

Production divided by the land surface area.

Productivity

The relationship between labor input and time spent.

Overproduction

Occurs when market demand is less than production, generating stored surpluses, often referred to as "stock."

GDP (Gross Domestic Product)

The total monetary value of goods and services produced within a country in a specific period.

Major Organizations and Acronyms

• CNT: Confederación Nacional del Trabajo (Confederation of Work).
• UCD: Unión de Centro Democrático (Union of Democratic Centers).
• ECSC: European Coal and Steel Community (Comunidad Europea del Carbón y del Acero).
• Mercosur: An agreement between Argentina, Brazil, Paraguay, and Uruguay for the free circulation of goods, services, and factors of production among them.
• TLC (Free Trade Agreement): A regional trade agreement designed to expand the market among participating countries.
• UNESCO: United Nations Educational, Scientific and Cultural Organization. This organization gives priority to elementary education adapted to current needs.

European Union Policies and Institutions

PAC:

Política Agrícola Común (Common Agricultural Policy)

PPC:

Política Pesquera Común (Common Fisheries Policy)

PIC:

Política Industrial Comunitaria (Community Industrial Policy)

PSC:

Política Social Comunitaria (Community Social Policy)

ECB:

Banco Central Europeo (European Central Bank)

ERDF:

Fondo Europeo de Desarrollo Regional (European Regional Development Fund)

Cohesion Funds:

Aid designed to promote the economic development of regions facing underemployment or a low standard of living.

Political and Social Terminology

Constitution

The supreme law that all citizens must obey without exception.

Universal Suffrage

A voting system that grants the right to vote to all adult citizens regardless of sex.

Chambers

A body belonging to a political system responsible for regulation (e.g., legislative chambers).

Human Rights

A set of inalienable freedoms, powers, and rights conferred on any person from birth.

Diaspora

The separation of ethnic or religious groups displaced from their place of origin.

Apartheid

A system of racial segregation.

Supranational Entities

Ideologies that are opposed to nationalism.

Mortmain Properties

Possessions that cannot be bought or sold.

Disentailment

The process of placing mortmain properties, which are not used for productive purposes, onto the market.

Spanish Economic Context and Challenges

Trade Balance Analysis

The Trade Balance is the difference between a country's imports and exports over a specific period. Spain typically runs a deficit because the value of its exports is lower than that of its imports.

Spain's Main Foreign Trade Partners (Exports)

1. France, Germany, Portugal, and Italy.
2. Latin American countries, the USA, Japan, and OPEC countries.

Major Issues in Spanish Industry

• Regional imbalances.
• Low availability of capital.
• Low proportion of Research and Development (R&D) investment.
• Shortages and poor quality of raw materials and energy sources.
• Heavy reliance on fossil fuel imports.

Regional Economic Performance

The following regions have a GDP above the European average:

• Madrid
• Navarra
• Catalonia
• The Basque Country