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modern economy (NO, P4)<br />An ECONOMY which has reached an advanced stage of DEVELOPMENT with high per capita incomes, a full range of political and financial institutions, industries using the latest available technology and a large service sector. The shorthand measure of modernity, real GROSS NATIONAL PRODUCT per head, is misleading because countries with different ranges of economic activity have been put on a par, e_g. China with India, Haiti with Mali, France with Libya. Increasingly, the overall level of technological diffusion has been chosen as a better indicator.
hedging (G1)<br />Dealings in FUTURE MARKETS to cover spot positions to reduce the risk of price movements, especially in commodity and currency markets. Hedging permits producers to stabilize their incomes because selling futures protects a producer against a price fall.<br /><em>See also:</em> spot market
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