What Is Creative Destruction

question 98

Essay

What is creative destruction?

---

Definitions:

Lowest-Cost Producer

A company that has a competitive advantage by producing goods or services at the lowest possible cost compared to competitors.

International Trade

International trade involves the exchange of goods and services across national borders, driven by the principles of supply and demand.

Balance of Payments Deficit

A situation where the total of the country's imports and its external payments exceeds the total of its exports and external receipts.

Net Inflow

The measurement of the total amount of money being transferred into a particular entity, sector, or system, minus the amount leaving it.