This listing is not comprehensive, but it addresses many of the most common unfamiliar terms in international economics and investments. The interpretations given here are very much my own.
(Arithmetical) Average rate of return: An asset’s return on investment averaged over multiple periods. If the S&P 500 returned 10% 3 years ago, 7% 2 years ago, and 1% last year, the average annual rate of return over the three years is (10 + 7 + 1 = 18) ÷ 3 = 6% per year. Strictly speaking, this is an arithmetic average: summing the returns and dividing the sum by the number of years. A superior approach that accounts for the effects of compounding is a geometric average, the compound annual growth rate (CAGR).
Balance of payments (see also trade ...
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