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General Agreement on Tariffs and Trade (F1)<br />A multilateral trade agreement signed in 1947. It covers all major trading countries with the exceptions of the Soviet republics and China. It was originally intended to be part of the International Trade Organization, a body intended to police international transactions, and, together with the INTERNATIONAL MONETARY FUND and the woRLD BANK, constituted a new international economic system. As the INTERNATIONAL TRADE ORGANIZATION was never established, the General Agreement on Tariffs and Trade remains as a treaty. Under Article 1, each contracting party to the agreement pledged to offer most favoured nation treatment to the others; Article 3 challenged trade discrimination by requiring contracting parties to charge only domestic taxation on imports from treaty partners; Articles 11 to 15 stated that quantitative restrictions on imports were permitted, after consultation, for balance of payments reasons. Trade has gradually been liberalized in a number of rounds of negotiations.<br /> Most disputes between members have been solved, with the exception of the problem of the subsidization of agricultural products. But it can be argued that the continued existence of voLUNTARY EXPORT RESTRAINTS and deals such as market sharing have retained PROTECTION in a modem guise.<br /><em>See also:</em> Dillon Round; Kennedy Round; Tokyo Round; Uruguay Round; World Trade Organization<br /><em>Reference</em><br />Hoekman, B.M. and Kostecki, M.M. (1995) The political economy of the world trading system: from GATT to WTO, Oxford and New York: Oxford University Press.<br /> Oxley, A. (1990) The Challenge of Free Trade, Hemet Hempstead: Harvester Wheatsheaf

dominant firm (Ll)<br />economy; cottage in-

<strong>Economic hardship</strong> – A period during which the borrower is working full time but is earning an amount that does not exceed the greater of the minimum wage or the poverty line for a family of two. Economic hardship also exists if a borrower' s monthly payments on federal student loans are equal to or greater than 20 percent of his/her monthly income.
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gang system economy (P4)<br />A slave ECONOMY practising the subdivision of labour. This was a principal characteristic of the sugar colonies of the Caribbean.
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<strong>MLN</strong> – Missouri Learners' Network, an organization that shares information, promotes educational opportunities provided by Missouri schools, and refers students to participating institutions for educational programs, courses, and learner services.
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<strong>School Certification Request (SCR) process</strong> – Optional process within CommonLine file specifications whereby a C record type is generated in application send files in response to a borrower-initiated application process. With the SCR process, the application send file is sent to the school for certification after the borrower has completed his/her part of the process, including passing any required credit check.
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Economic Community of the countries ofthe Great Lakes (FO)<br />An economic association of Zaire, Rwanda and Burundi set up in 1979 to establish trade agreements.
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hedge ratio (G1)<br />The ratio of the number of OPTION contracts to the position in the underlying instrument being hedged against.

decimalization (E5)<br />A change in the currency of a country so that the basic unit is divisible into ten parts. The French franc and US dollar have been divided into a hundred cents since the eighteenth century and the Australian dollar since 1966. In the UK in 1971 the pound, previously divisible into twenty shillings or 240 pence, was made equivalent to 100 new pence. It is feared that this type of currency change leads to consumers losing their PRICE PERCEPTION and unwittingly accepting price increases. However, the quotation of prices in old and new forms reduces this disguised inflation.
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free good (DO)<br />A good with a zero price. This is possible because its supply is either abundant or rationed. A free good is the opposite of an ECONOMIC GOOD.

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<strong>Extended repayment schedule</strong> – A repayment schedule option available to borrowers with outstanding principal and interest in FFEL Program loans totaling more than $30,000. An extended repayment schedule may provide for standard or graduated installments not to exceed a period of 25 years. Note: this option is only available to borrowers who meet the qualifications on or after October 7, 1998.

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<strong>Cohort Default Rate (CDR)</strong> – As defined within 34 CFR 668.181</strong> – 668.198 (subpart M), the percentage of Stafford Loan borrowers who default before the end of the fiscal year following the fiscal year in which they entered repayment on their loans. The U.S. Department of Education calculates this rate annually for each school participating in the federal student loan programs. The most recent period for which final CDRs have been published is 2004. Schools may also obtain their draft CDR for 2005.

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social cost of monopoly (D6)<br />The welfare losses resulting from the restriction of output and higher prices under monopolistic production. There is also the social cost that occurs through striving to attain a monopoly position.<br /><em>See also:</em> externality

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<strong>Recognized equivalent of a high school diploma</strong> – A recognized equivalent of a high school diploma may be a GED certificate, the academic transcript of a student who has successfully completed a 2-year program of study acceptable toward a bachelor' s degree, or has obtained other state certifications/requirements.

Herfindahi-Hirschman index (Ll)<br />A measure of market coNCENTRATION. In an industry with i firms, the index is calculated as follows:

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<strong>FP</strong> – Type of Dear Colleague Letter addressed to FFEL Program participants.

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<strong>SMART Grant</strong> – Science and Mathematics Access to Retain Talent, a new federal grant available as of July 1, 2006. Eligibility for this grant is based on science and math curriculum and academic performance as well as financial need. May also be referred to as the National SMART Grant Program.
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