This action might not be possible to undo. Are you sure you want to continue?
AB Absolute Advantage(AB-AD) Accounting Translation Exposure ACP Acquisition of Assets Acquisition of Stock Acquisition Premium Active Fund Management Active Income Activity-Based-Cost (ABC) Ad valorem Tariff ADB Adjusted Present Value(APV)
Appellate Body An absolute advantage exists in condition of when a nation or other economic region of any country is able to produce a good or service more efficiently than a second (other) nation or its region. Changes in a organizations or corporation’s financial statements as a result of changes in currency values. African, Caribbean, and Pacific countries. In an acquisition of assets, one firm acquires the assets of another company. None of the liabilities supporting that asset are transferred to the purchaser. In an acquisition of stock, one firm buys an equity interest in another. In a merger or acquisition, the difference between the purchase price and the reacquisition value of the target firm or company. An investment approach that actively shifts funds either between asset classes (asset allocation) or between individual securities (security selection). In the U.S. tax code, income from an active business as opposed to passive investment income. An accounting method that allocates costs to specific products based on breakdowns of cost drivers. A tariff assessed as a percentage of the value of an import. Asia Development Bank, head quartered located in Manila, Philippines (ASIA). An APV is a valuation method that separately identifies the value of an unlevered project from the value of financing side effects. Advance Payment is a Trading method in which the buyer pays for the goods before they are sent out , method is used when buyer is of unknown credit worthiness. It is applicable in International or domestic trade. Adventure also define for marine adventure." It is a term of art in the marine insurance business. All insured cargo owners and every shipper on that vessel are part of the adventure. Advising Bank is usually in the country of the seller, whose primary function is to authenticate the letter of credit and advise it to the seller, Purchase and collection of Export Bills. Used to indicate that a shipper's agent or representative is not empowered to make definitive changes or adjustments without approval of the group or individual represented. The ABD is one of four major regional developmental banks currently operating in the global economy; it is headquartered in Abidjan, Cote d'Ivoire.
Glossary of Export Import Trade Terms Starting with-A
Advisory Capacity African Developmental Bank (ABD)
The costs incurred to ensure that agents act in the best interest of the principal. Someone who represents business in domestic and overseas market. In corporate governance terminology, Agent management is the agent of the principal stakeholders in a principal-agent relationship. The total demand of all potential buyers of a commodity or service. Includes all individuals and organizations that Aggregate Demand have the ability, willingness, and authority to purchase such products. A no-negotiable instrument of domestic and international air transport that functions as a bill of lading, all Air Waybill information described about domestic and international trade. The percentage cost of a financing alternative, including All-in Cost any bank fees or placement fees. In the U.S. tax code, these rules define how income and Allocation Rules of Income deductions are to be allocated between domestic-source and foreign-source income. The efficiency with which a market channels capital Allocation efficiency toward its most productive uses. A regional trade pact that includes Venezuela, Colombia, Andean Pact Ecuador, Peru, and Bolivia. A level stream of equal dollar payments that lasts for a Annuity fixed time. An example of an annuity is the coupon part of a bond with level annual payments. The term used to calculate the present value of the Annuity Factor stream of level payments for a fixed period. Laws that are enacted to prevent dumping-offering prices Anti-Dumping Laws in the overseas market that is lower than that at which a product is sold in its home domestic market. APEC Asia-Pacific Economic Cooperation An increase in a currency value relative to another Appreciation currency in a floating exchange rate system. The process of purchasing and selling foreign exchange, Arbitrage stocks, bonds and other commodities in several markets intending to make profit from the difference in price. An asset pricing model that assumes a linear relation between required return and systematic risk as measured Arbitrage Pricing Theory (APT) by one or more factors according to Rj = mj + b1jF1 + ... + bKjFK + ej. APEC forum designed to promote economic growth, Asia-Pacific Economic cooperation, and integration among member nations. The Cooperation (APEC) most prominent members are China, Japan, and Korea. One of four major regional development banks currently Asian Development Bank (ABD) operating in the global economy; it is headquartered in Manila, Philippines. The rate at which a market maker is willing to sell the Ask "offer" Rates quoted asset. The target weights given to various asset classes in an Asset Allocation Policy investment portfolio. Assets-in-Place Those assets in which the firm has already invested. Agency Costs
(Compare to growth options.) A loose or low economic and geopolitical affiliation that Association of South East Asian includes Singapore, Brunei, Malaysia, Thailand, the Nations (ASEAN) Philippines, Indonesia, and Vietnam. Future members are likely to include Myanmar (Burma), Laos, and Cambodia. An option with an exercise price that is equal to the At-the-Money Option current value of the underlying asset. ATC Agreement on Textiles and Clothing In models of international trade, a situation in which Autarky there is no cross-border trade. A guarantee of the buyer's credit provided by the guarantor, unless the buyer is of unquestioned financial Aval standing. The aval is an endorsement note as opposed to a guarantee agreement. Payment undertaking given by a bank in respect of a bill Avalisation of exchange drawn. The average project earnings after taxes and Average Accounting Return depreciation divided by the average book value of the (AAR) investment during its life. AEZs Refers to a scheme of Agricultural Export Zones. Advance Licence is granted for import of inputs without payment of customs duties. It is issued in accordance Advance Licence with the Policy and procedures in force and subject to fulfillment of time-bound export obligation. Such licences can be issu Any agreement to purchase goods under specified terms. Acceptance An agreement to purchase goods at a stated price and under stated terms. Ad Valorem According to value A loan made on the security of the documents covering Advance Against Documents the shipment. A bank, operating in the exporter's country, that handles LETTERS OF CREDIT for a foreign bank by notifying the Advising Bank exporter that the credit has been opened in his or her favor. A term indicating that shipper's agent or representative is not empowered to make definitive decisions or Advisory Capacity adjustments without approval of the group or individual represented. A BILL OF LADING that covers both domestic and Air Waybill international flights transporting goods to a specified destination. A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or Alongside barge within reach of the transport ship's tackle so that they can be loaded aboard the ship. A change in the boundaries of an activated zone or Alteration subzone. A corporation applying for the right to establish, operate Applicant and maintain a foreign-trade zone. The process of buying FOREIGN EXCHANGE, stocks, bonds Arbitrage and other commodities in one market and immediately
Asian Dollars Attributive Basis
selling them in another market at higher prices. U.S. dollars deposited in Asia and the Pacific Basin. Method of accounting for merchandise where direct identification of the goods with the shipment as admitted to the zone has been lost. Building a more basic version of an existing product for a lesser-developed market. The BOP is the annual financial record of Foreign Payments and Foreign Receivables. Or The BOP is the International Money Fund’s accounting system that tracks the flow of goods, services, and capital in and out of each country. The difference between a country’s total imports and exports. A statement showing a firm's accounting value on a particular date. It reflects the equation, Assets = Liabilities + Stockholders' equity. An international organization which promotes international monetary and financial cooperation among nations. A system of corporate governance in which the supervisory board is dominated by bankers and other corporate insiders. A payment instrument used to make international payments. A time draft drawn on and accepted by a commercial bank. The simple difference between two nominal interest rates. A lease provision allowing the lessee, to purchase the equipment for a price predetermined at lease inception, which is substantially lower than the expected fair market value at the date the option can be exercised. Trade in which goods or merchandise is exchanged directly for others import or export without use of money. Accept the project if IRR is greater than the discount rate; reject the project if IRR is less than the discount rate. Equal to 1/100 of one percent. The risk of unexpected change in the relationship between futures and spot prices. A floating-for-floating interest rate swap that pairs two floating rate instruments at different maturities (such as six-month LIBOR versus thirty-day U.S. T-bills). Bonds that can be redeemed by the holder. The convention in most West European countries is to issue bonds in registered form. A systematic procedure of comparing a company’s practices against the best practice and modifying actual
Glossary of Export Import International Trade Terms Starting with-B
Balance of Payments (BOP)
Balance of Trade (BOT) Balance Sheet Bank for International Settlements (BIS) Bank-based Corporate Governance System Banker's Draft Banker’s Acceptance Basis Bargain Purchase Option
Barter Basic IRR Basis Point Basis Risk Basis Swap Bearer Bonds Benchmarking
A measure of an asset’s sensitivity to changes in the market portfolio (in the CAPM) or to a factor (in the APT).k (sj/sk). The difference between the interest rate at which the bank borrows money and lends money. An international conference held in 1944 at Britton Woods. and established the International Monetary Fund and the World Bank. A document that establishes the terms and conditions of a contract between a shipper and a shipping company under which freight is to be moved between specified points for a specified charge. BTP means Biotechnology Park as notified by Director General of Foreign Trade on the recommendation of the Department of Biotechnology A warehouse authorized by CUSTOMS authorities for storage of goods on which payment of DUTIES is deferred until the goods are removed. articles or properties. A bond that coves a group of people. .a warehouse authorized for storage of good on which payment of duty is deferred until the goods are removed from the warehouse. where k represents a market factor (such as returns to the market portfolio in the C The rate at which a market maker is willing to buy the quoted asset. A party who receives a legal benefit Domestic or foreign Dealings. . New Hampshire. A bond quotation convention based on a 365-day year and semiannual coupons. A long-term contract in which the supplier promises to re-supply the buyers as needed at agreed-upon prices over the contracting time. The method whereby a bill of lading is made into a freely negotiable document of title. Cash flows generated by a foreign project that cannot be immediately repatriated to the parent firm because of capital flow restrictions imposed by the host government. The world Bank and IMF(International Monetary funds ) come into the existence. Analysis of the level of sales at which a project would make zero profit. (Contrast with effective annual yield. An agreement made in 1944 year the end of World War II to promote exchange rate stability and facilitate the international flow of currencies. The beta of an asset j is computed as bj = rj. The B/L is Negotiable or Non-Negotiable forms.) A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.Beneficiary Beta Bid rate Bid-offer Spread Bill of Lading (B/L) Blank Endorsement Blanket Bond Blanket Contracts Blocked Funds Bond Equivalent Yield Bonded Warehouse Bonded Warehouse Break-Even Point Analysis Britton Woods Agreement Britton Woods Conference BTP Bonded Warehouse knowledge to achieve superior performance.
It can be classified as (1) cash flow from Cash Flow operations. The case where funds are limited to a fixed dollar Capital Rationing amount and must be allocated among the competing projects. including long-term government Capital Markets and corporate bonds. and (3) cash flow from changes in net working capital. suppliers of Cartel a product. Capital Asset Pricing Model An asset pricing model that relates the required return on (CAPM) an asset to its systematic risk. a negative Capital Gain capital gain is a capital loss. An individual or entity that transports persons or goods Carrier for compensation under the contract of carriage. long-term debt. or an organization of. The process of increasing the amount of capital goods Capital Formation also called capital stock .in a country. money deposited by the Cash Cover applicant with the issuing bank. . (2) cash flow from changes in fixed assets. The Capital Structure composition of a corporation's securities used to finance its investment activities. In a letter of credit transaction. Also called financial structure. The line between the risk-free asset and the market Capital Market Line portfolio that represents the mean-variance efficient set of investment opportunities in the CAPM. The mix of the various debt and equity capital maintained by a firm. The positive change in the value of an asset. A measure of change in cross-border ownership of longCapital Account term financial assets. Payment for goods where a commission house or other Cash Against Documents (CAD) intermediary transfers title documents to the buyer upon payment in cash. Markets for financial assets and liabilities with maturity greater than one year. including financial securities and real estate. and common stock. economic development is proportionate to and Capitalism dependent upon the accumulation and reinvestment of profits. An agreement among. and An economic system that is based on private ownership. the relative proportions of short-term debt. preferred stock. Cash generated by the firm and paid to creditors and shareholders. Capital Budgeting Planning and managing expenditures for long-lived assets. The proportion of debt and equity and the particular Capital (Financial) Structure forms of debt and equity chosen to finance the assets of the firm. Glossary of Export Import Foreign Trade Terms Starting with-C Clean Air Act (USA) The right to buy the underlying currency at a specified Call Option price and on a specified date.Booking CAA An arrangement with a steamship company for the acceptance and carriage of freight.
CHIPS (Clearing House Financial network through which banks in the United Interbank Payments System) States conduct their financial transactions. as evidence of the country of manufacture of the goods. . The settlement of a transaction. controls the allocation of resources. during the 20th century. An economy in which the government. as evidence of Inspection quality or conformity to specifications. A mutual fund in which the amount of funds under Closed-End Fund management is fixed and ownership in the funds is bought and sold in the market like a depository receipt. This type of payment is usually Cash in Advance (CIA) only made for very small shipments or when goods are made in order. certifying the country of origin of specified goods. is acceptable. Certificate of Documents that may be asked for by the importer and/or Analysis/certificate of the authorities of the importing country. and has been manufactured or constructed according to specifications. An economy based on government ownership and/or control of society's resources. Difference between net working capital from one period Change in Net Working Capital to another. Collection in which only the financial document is sent Clean Collection through the banks. Command Economy the dominant form of command economy was communism. The line relating the expected return on a security to Characteristic Line different returns on the market. Codex Alimentarius Commission (a world food standards Codex body) In a collection. The completion of customs entry requirements that Clearance results in the release of goods to the importer. A receipt for goods issued by a carrier that indicates that Clean Bill of Lading the goods were received in apparently good order and without damage. A document required by certain foreign countries for Certificate of Product Origin tariff purpose.Payment for goods in which the price is paid in full before the shipment is made. often involving exchange Clearing of payments and/or documentation. Term used in leasing. A statement that is usually notarised in which the Certificate of Manufacture producer of goods certifies that the goods have been produced and are now available to the buyer. Convention on the International Trade in Endangered CITES Species Civil Society Organizations Non-governmental and non-profit groups that work to (CSOs) improve society and the human condition. A document whereby the lessee acknowledges that the equipment to be leased has been Certificate of Acceptance delivered. Documents that may be asked for by the authorities of Certificate of Origin the importing country. rather than freeCentrally Planned Economy market activity. the document in which the seller instructs Collection Order the banks as to how the collection is to be conducted.
Value of a sum after investing it over one or more periods. A swap in which the (often notional) principal amount on at least one side of the swap is a commodity such as oil or gold. Process of reinvesting each interest payment to earn more interest. Also called future value. insurance document. Compounding is based on the idea that interest itself becomes principal and therefore also earns interest in subsequent periods.g. and value of shipment. A comparative advantage exists when a nation or economic region is able to produce a product at a lower opportunity cost compared to another nation or region. certificate of inspection etc. A document required by some foreign countries. Insurance that covers the risk of non-payment for delivered goods. handles the business of a foreign bank. Interest that is earned both on the initial principal and on interest earned on the initial principal in previous periods. Documents presented under a letter of credit that comply with all its terms and conditions. The interest earned in one period becomes in effect part of the principal in a following period. commercial invoice.Commercial Document Commodity Price Risk Commodity Swap Common Carrier Comparative Advantage Compliant Documents Compound Interest Compound Value Compounding Confirming Bank Consignee Consignment Consolidated Income Consolidation Corporate Governance Correspondent Bank Country Risk Coupon Swap Credit Risk Insurance Consular Statement General term for documents describing various aspects of a transaction. in its own country. An organization that transports persons or goods for a fee. certificate of origin. while the consignor retains title to the goods until the consignee sells them. describing a shipment of goods and showing information such as the consignor. e. Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the consignee sells the merchandise of the account of the consignor. The way in which major stakeholders exert control over the modern corporation. The banks are only obliged to pay the beneficiary if documents are totally compliant. The sum of income across all of the multinational corporation’s domestic and foreign subsidiaries. A form of corporate reorganization in which two firms pool their assets and liabilities to form a new company. Bank that adds its payment undertaking to a letter of credit. A fixed-for-floating interest rate swap. transport document. The political and financial risks of conducting business in a particular foreign country. such as the price of oil. . A bank that. The risk of unexpected changes in a commodity price. Party to whom goods are to be delivered. consignee.
and perpetual succession. it is used by the country's officials Contingency insurance protects the exporter in any situation in which exporter responsibility relied on the Contingency Insurance buyer to insure. tax code. A ranking of countries by level of corruption that is Corruption Perceptions Index researched and published by Transparency International (CPI) (TI). the debt and equity securities issued by a firm derive their value from the total value of the firm. every instant. but sustained a loss because of inadequate coverage from that source.Certified by a consular official of the foreign country. Amount that each additional product. A firm allowing another firm to manufacture a preContract Manufacturing specified product. such as a jet engine. ensuring liquidity in individual shares. Primary advantages of a corporation include limited liability. Form of business organization that is created as a distinct "legal person" composed of one or more actual individuals Corporation or legal entities.T). the world's leading non-governmental organization . Claim whose value is directly dependent on.Variable cost) X (1 . the value of its underlying assets. contributes to after-tax profit of the whole Contribution Margin project: (Sales price . In the U. A trading system in which buy and sell orders are Continuous Quotation System matched with market makers as the orders arrive. beliefs. For Contingent Claim example. Such a schedule results in progressive taxation. where T is the corporate tax rate. It will cover situations in which the FOB endorsement. rather Continuous Compounding than at fixed intervals. relationships between Corporate Culture individuals and functions that guide the decisions of a company to achieve its objectives. Interest compounded continuously. The set of values. The responsibilities that corporations (including MNCs) Corporate Social Responsibility have to workers and their families. ease of ownership. Bonds sold with a conversion feature that allows the holder to convert the bond into common stock on or prior Convertible Bonds to a conversion date and at a pre specified conversion price. A measure of the co variability of two assets that is Correlation scaled for the standard deviations of the assets (rAB = sAB / sAsB such that -1 < rAB < +1). and to the natural environment. or is contingent on. to investors. a foreign corporation owned more Controlled Foreign Corporation than 50 percent either in terms of market value or voting (CFC) power. to consumers. A currency that can be traded for other currencies at Convertible Currency will. A tax schedule in which the effective tax rate is greater at high levels of taxable income than at low levels of Convex Tax Schedule taxable income. transfer.S.
The required return on the company's common stock in capital markets. to give back the original principal. but closely related to. It is also called the equity holders' required rate of return because it is what equity holders can expect to obtain in the capital market.Cost and Freight(C&F) Counter Credit Counter Trade Coupon Covariance Cover Note Cross-Hedge Cost of Equity Capital Countervailing Duties CTD Culture Cumulative Translation Adjustment (CTA) Currency (Foreign Exchange) Risk Currency Coupon Swap Currency Cross-Hedge Currency of Reference Currency Option Currency Swap Current Account dedicated to fighting corruption. The risk of unexpected changes in foreign currency exchange rates. The sale of goods or services that are paid for in whole or part by the transfer of goods or services from a foreign country. A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price. the currency of the underlying exposure. A contract giving the option holder the right to buy or sell an underlying currency at a specified price and on a specified date. but not giving full details. A contractual agreement to exchange a principal amount of two different currencies and. A fixed-for-floating rate no amortizing currency swap traded primarily through international commercial banks. An equity account under FAS #52 that accumulates gains or losses caused by translation accounting adjustments. Duties levied on an imported good that has been unfairly subsidized by a foreign government. Another name for back-to-back letter of credit. . A hedge of currency risk using a currency that is correlated with the currency in which the underlying exposure is denominated. shared values. Interest payments in each currency are also typically swapped during the life of the agreement A measure of a country’s international trade in goods and services. Insurance document evidencing that insurance cover for a consignment has been taken out. norms and institutions. A futures hedge using a currency that is different from. WTO Committee on Trade and Development Collective mental paradigms that a society imparts to individuals in the form of behavior patterns. It is a cost from the firm's perspective. It is most convenient to place the currency of reference in the denominator of a foreign exchange quote. A measure of the co variability of two assets (sAB = sAsB rAB). Imposing duties on the good is meant to raise the product's price to a "fair market value". The currency that is being bought or sold. after a prearranged length of time. The option writer (seller) holds the obligation to fulfill the other side of the contract. The stated interest on a debt instrument.
required by some foreign countries. A form of regional economic integration group that Custom Union eliminates tariffs among member nations and establishes common external tariffs. An itemized list of goods shipped. describing a shipment of goods and showing information Consular Invoice such as the consignor. and value of the shipment.O. A pricing term indicating that the cost of the goods. Insurance. and help Customhouse Broker clients (importers) to enter and declare goods through customs. issued by a foreign bank. A letter of credit. Freight insurance. investment Current Account Balance income and interest. Cost. A person or firm obtains the license from the treasury department of its Country when required. An individual. All documents submitted to a buyer for the purpose of Collection Papers receiving payment for a shipment. A legal fiction which permits acceptance of a Customs Constructive Transfer entry for merchandise in a zone before its physical transfer to the Customs territory. travel and tourism. usually among an Commercial Invoice exporter's COLLECTION PAPERS. whose Confirmation of Letter of Credit validity has been confirmed by a Nationalized Indian bank.W.) and in which the transaction is binding on both parties. A pricing term indicating that the cost of the goods and Cost And Freight (C & F) freight charges are included in the quoted price. A document certifying that merchandise was in good Certificate of Inspection condition immediately prior to its shipment. Written contract between the owner of a vessel and a Charter Party "chartered" who rents use of the vessel or a part of its freight space. or corporation that transports Common Carrier persons or goods for compensation. Clean Draft A draft to which no documents have been attached.A broad measure of import-export activity that includes services. The commerce expert on the diplomatic staff of his/her Commercial Attachment country's embassy or large consulate. A pricing term indicating that the cost of the product and Cost and Insurance (C & I) insurance are included in the quoted price. The authorities designated to collect duties levied by a Customs country on imports and exports. partnership. and freight are included in the quoted price. and grants along with the trade balance on goods. Convertible Currency A currency that can be bought and sold for other . A customs document permitting the holder to carry or Carnet send merchandise temporarily into certain foreign countries without paying duties or posting bonds. gifts. Delivery of merchandise from an exporter (consignor) to Consignment an agent (consignee) under agreement that the agent sell the merchandise for the account of the exporter. consignee. transportation. A document. Payment for goods in which the buyer pays when ordering Cash with Order (C.
political subdivision thereof. the deliverable instrument is determined by the options exchange and is either spot currency or an equivalent value in futures contracts. the maturity of the underlying exposure. A business process with the intention to coordinate and influence all sources of demand for a firm’s products. in its own country. For a currency option. A derivative security issued by a foreign borrower through a domestic trustee representing ownership in the deposit of foreign shares held by the trustee. A futures hedge using a currency that matches the underlying exposure and a maturity date that is different from. A State. The official lowering of the value of one country's currency in terms of one or more foreign currencies. a municipality. A graphical analysis of sequential decisions and the likely outcomes of those decisions. A futures hedge that has both currency and maturity mismatches with the underlying exposure. The sale of goods or services that are paid in whole or in part by the transfer of goods or services from a foreign country. A country that is in the process of becoming industrialized. Insurance designed to cover risks of nonpayment for delivered goods. A bank that. but preferably close to. the poorer nations of the world. The amount of debt that a firm chooses to borrow to support a project. operating and maintaining a foreign-trade zone and which is chartered under a special act of the State within which it is to operate such a zone. Territory of the India in which the general tariff laws of the India apply. Glossary of EXIM International Trade Terms Starting with-D Dealing Desk or Trading Desk Debt capacity Debt-for-Equity Swap Decision Trees Deferred Payment Credit Devaluation Developing Country (DCs) Deliverable Instrument Delta-Cross-Hedge Delta-Hedge Demand Management Depository Receipt . The asset underlying a derivative security. handles the business of a foreign bank. An individual or firm licensed to enter and clear goods through Customs. Any corporation which is organized for the purpose of establishing. political subdivision thereof. A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter. or municipality. a public agency of a State. The desk at an international bank that trades spot and forward foreign exchange. A swap agreement to exchange equity (debt) returns for debt (equity) returns over a prearranged length of time. or a corporate municipal instrumentality of one or more States.Corporation (Private) Corporation (Public) Correspondent Bank Counter Trade Credit Risk Insurance Customs Territory Custom House Agent (CHA) currencies at will.
currency. An amount paid by a vessel's operator to a charter if Dispatch loading or unloading is completed in less time than stipulated in the charter party. A financial security whose price is derived from the price Derivative Security of another asset. Marketer takes direct responsibility for its products Direct Exporting abroad by selling them directly to foreign customers or through local representatives in foreign markets. Balance sheet accounts that are used in some countries Discretionary Reserves to temporarily store earnings from the current year or the recent past. An investment decision rule in which the cash flows are Discounted Payback Period Rule discounted at an interest rate and the payback rule is applied on these discounted cash flows. Developed Countries The richer. DFID Department for International Development (UK) The difference in interest payments that is exchanged Difference Check between two swap counter parties. A decrease in a currency value relative to another Devaluation currency in a fixed exchange rate system. The length of time needed to recoup the present value of Discounted Payback an investment. plus certain additional criteria. it is said to sell Discount at a discount. A Foreign agent who sells for a supplier directly and Distributor maintains an inventory of the supplier’s product.A decrease in a currency value relative to another currency in a floating exchange rate system.70/USD for a India resident. and maturity of the cash flows. sometimes used when investing in locations with high country risk. Depreciation .) If a bond is selling below its face value. The price of a unit of foreign currency in domestic Direct Terms currency terms. Measuring the direct costs associated with handling a Direct Product Profitability product from the warehouse until a customer buys from the retail store. more industrialized countries in the world. A non-leveraged lease by a lesser in which the lease Direct Financing Lease meets any of the definitional criteria of a capital lease. A valuation methodology that discounts expected future Discounted Cash Flow cash flows at a discount rate appropriate for the risk. The digital divide refers to the widening technological Digital Divide gap between the richer and the poorer countries of the world. such as INR 45. Calculating the present value of a future amount. The Discounting process is the opposite of compounding. The practice that selling a product or service at different Discriminatory Pricing prices that do not reflect a proportional difference in costs. Direct Costs of Financial Costs of financial distress that are directly incurred Distress during bankruptcy or liquidation proceedings. (Contrast with indirect quote.
Transferable Advance Licensing Scheme. A draft that matures in a specified number of days after the date it is issued. Also called unique or unsystematic risk. The aggregate of money supply. Dumping is an illegal trade practice. Selling goods or merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment. was known as the Chief Allows duty-free import of inputs for exports under Advance Licence. Refers to those transactions in which the goods supplied do not leave the country and the payment for the goods is received by the supplier in India. without regard to the date of "ACCEPTANCE". and deposit substitutes. . A receipt issued by an ocean carrier to acknowledge the receipt of a shipment at the carrier's dock or warehouse facilities. Bonds issued and traded within the internal market of a single country and denominated in the currency of that country. However. Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic customs duty on the import content of export product. Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment Certificate (DFRC) Scheme. Directorate General of Foreign Trade.Diversifiable (unique) (unsystematic) risk Doc Dock Receipt Dock Statement Domestic Bonds Domestic Liquidity Draft (trade bill. which is headed by the Director General of Foreign Trade. bill of exchange) DSB DSP DSU Dual Pricing Dumping Duty DGFT Duty Exemption/scheme Duty Free Import of Inputs DEPB DFRC Deemed Exports Date Draft A risk that specifically affects a single asset or a small group of assets. The scheme is available to merchant exporters as well as to manufacturer exporters. including licensing. A means of payment whereby a drawer (the importer) instructs a drawee (either the importer or its commercial bank) to pay the payee (the exporter). The DEPB Scheme Refers to the Duty Free Replenishment Certificate Scheme which was introduced from 1/4/2000 replacing. This is provided by way of grant of duty credit against the export product at specified rates. Formerly (till 1991). quasi-money or savings and time deposits. The office of the DGFT is responsible for formulating and execution of Foreign Trade Policy. A tax imposed on imports by the customs authority of a country. Dispute Settlement Body Dispute Settlement Panel Dispute Settlement Understanding The practice of selling identical products in different markets for different prices. Department of Commerce (USA) A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse.
Articles manufactured or produced in the India with the use of imported components or raw materials and later Drawback exported are entitled to a refund of the duty charged on the imported products or components. Instructions given by a shipper to a bank indicating that Documentary Against documents transferring title to goods should be delivered Acceptance (D/A) to the buyer only upon the buyer's acceptance of the attached draft. The individual or firm on whom a draft is drawn and who Drawee owes the stated amount. The official lowering of the value of one country's Devaluation currency in terms of one or more foreign currencies. The integration of commercial and financial activities among countries through the abolishment of economic discrimination. directing the drawee to Draft pay a specified amount to a named drawer at a fixed or determinable future date. A group that combines the economic characteristics of a . charges or liquidated damages under the FTZ Operator's Bond Type of "LETTER OF CREDIT" providing for payment some Deferred Payments Credit time after presentation of shipping documents by exporter.S. Deactivisation Glossary of Export Import Trade Terms Starting with-E Earnings Response Coefficient Eclectic Paradigm Economic Exposure Economic Freedom Economic Integration Economic Union The relation of stock returns to earnings surprises around the time of corporate earnings announcements. A theory of the multinational firm that posits three types of advantage benefiting the multinational corporation: ownership-specific. Economic freedom occurs when individuals and businesses make most of the economic decisions in an economy. Default taxes. Exporting/Importing merchandise into a country below Dumping the costs incurred in production and shipment. An unconditional order in writing from one person (the drawer) to another (the drawee). The individual or firm that issues or signs a draft and thus Drawer stands to receive payment of the stated amount from the drawee. Government requires to be displayed on export shipments and that Destination Control Statement specify the destinations for which export of the shipment has been authorized. Any of various statements that the U. and market internalisation advantages. Change in the value of a corporation’s assets or liabilities as a result of changes in currency values.Letter of Credit of credit. location-specific.Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator. A tax imposed on imports by the customs authority of a Duty country. An act or omission that will result in a claim for duties. When documents presented do not conform to the letter Discrepancy .
the interest rate as if it were compounded once per time period rather than several times per period. It is distinguished by the recent progress it has made in economic liberalization. Deposits and loans denominated in one currency and traded in a market outside the borders of the country issuing that currency (like : Eurodollars).g. Belgium. Italy. A bond that is denominated in a currency other than that of the country of issue. of the number of employed persons to total labor force. A Eurobond with a convertibility option or warrant attached. . Ireland. Netherlands. Eurobonds: Fixed rate Eurocurrency deposits and loans and Eurocurrencies with longer maturities than five years. Portugal. Finland. (Contrast with bond equivalent yield and money market yield. which yields enormous market potential. A method of performance evaluation that adjusts accounting performance with a charge reflecting investors’ required return on investment. Price or input cost uncertainty that is within the control of the firm. A type of economic sanction that totally disallows the imports of a specific product or all products from a specific country.) The mean-variance efficient portion of the investment opportunity set. Luxembourg. e. Achieving lower average cost per unit through a larger scale of production.Economic Value Added Economies of Scale Economies of Vertical Integration Effective Annual Interest Rate Effective Annual Yield Efficient Frontier Efficient Market Embargo Emerging Market Emerging Stock Markets Employment Rate Endogenous Uncertainty Engagement Equity-Linked Eurobonds Erosion Euro Eurobond Eurocurrencies common market with some degree of harmonization of monetary and fiscal policies. where i is the stated annual interest rate and n is the number of compounding periods per year. Calculated as (1+i/n)n. The assumption of payment responsibility in respect of a letter of credit. Achieving lower operating costs by bringing the entire production chain within the firm rather than contracting through the marketplace. An emerging market has a very high growth rate. The stock markets of emerging economies. France. A market in which prices reflect all relevant information. such as when the act of investing reveals information about price or input cost. Germany. and Spain. EMU members are Austria. Cash-flow amount transferred to a new project from customers and sales of other products of the firm. The ratio. The single currency of the European Economic and Monetary Union (EMU) introduced in January 1999. These markets typically have higher expected returns than established markets but also higher risk. in percent.
The exchange rate system used by countries in the European Union in which exchange rates are pegged within bands around an ERM central value. withholding. (Contrast with American terms. Export-Import Bank of the India. A trade-weighted basket of currencies in the European Exchange Rate Mechanism (ERM) of the European Union. Price or input cost uncertainty that is outside the control of the firm. Any resource. intermediate good.S. the date beyond which it cannot be used. A private firm that transacts export business on behalf of its client companies in return for a commission. dollar. economic. An exchange rate system based on cooperation between European Union central banks. and judicial policy among its 25 member nations. The price of one currency in terms of another. i.) An intergovernmental organization which coordinates foreign.i. (Contrast with American option. The date when a letter of credit is no longer valid . includes income. A foreign or domestic company that acts as a sales agent and distributor for domestic exporters in international markets. guarantees the repayment of loans or makes loans to foreign purchasers of Indian goods and services. property.e. The price at which an option can be exercised (also called the striking price). Provides guarantees of working capital loans for Indian exporters. the number of units of one currency that may be exchanged for one unit of another currency. and valueadded taxes and tariffs. An option that can be exercised only at expiration. One of four major regional development banks currently operating in the global economy. or retainer.Eurocurrency Market Eurodollars European Bank for Reconstruction and Development (EBRD) European Currency Unit (ECU) European Exchange ate Mechanism (ERM) European Monetary System (EMS) European Option European Terms European Union (EU) Exchange Rate Exchange Risk Exercise Price Exim Bank Exogenous Uncertainty Expiry Date Explicit Tax Export Export Management Company Export Management Company Export Broker A money market for currencies held in the form of deposits in countries other than that where the currency is issued. sales. Dollar-denominated deposits held in a country other than the United States. An individual or firm that helps to locate and introduce buyers and seller in international business for a . A tax that is explicitly collected by a government. The risk that losses may result from the changes in the relative values of different currencies.) A foreign exchange quotation that states the foreign currency price of one U. salary.e. or final good or service that producers in one country sell to buyers in another country.
2004.e. A government document that permits the "Licensee" to Export License engage in the export of designated goods to certain . EPZs/EOUs to provide an internationally competitive duty-free environment for export production. EPZs means Export Processing Zones which are special enclaves. An organization which. A market for financial securities that are placed outside External Market the borders of the country issuing that currency. A company that facilitates the export of goods and services. In the context of Foreign E-Commerce Trade Policy.. which was announced by the Commerce & Industry Minister on 31st August. The price of one currency in terms of another. Refers to Export and Import (Exim) Policy. i. e-commerce relates to electronic filing and processing of applications etc.EOU means Export Oriented Units. separated from the Domestic Tariff Area (DTA). the Exchange Rate number of units of one currency that may be exchanged for one unit of another currency. for a commission. Any form of government payment that helps an exporter Export Subsidies or manufacturing concern to lower its export costs. acts as a Export Commission House purchasing agent for a foreign buyer. Refers to electronic commerce. Exim Policy has got incorporated into the comprehensive Foreign Exim Policy Trade Policy. Quantitative restrictions imposed by exporting countries to limit exports to specified foreign markets. usually as a Export Restraints follow-up to formal or informal agreements reached with importing countries. An ETC can either act as the export department Export Trading Company (ETC) for producers or take title to the product and export for its own account. A general export license covers the exportation of goods not restricted under the terms of a validated export Export License license. A government practice which applies its laws outside its Extraterritoriality territorial boundaries. usually to Exhibition prospective buyers. No formal application or written authorization is needed to ship exports under a general export license. A specific type of political risk in which a government Expropriation seizes foreign assets.commission but does not take part in actual sales transaction. The showing of merchandise within a zone. A government permit sometimes required by the importer's government to enable the importer to convert Exchange Permit his or her own country's currency into foreign currency with which to pay a seller in another country. which gives the manufacturer facility for EPCG import of capital goods for export production at concessional rate of duty (5 per cent) against certain level of export . EPCG refers to the Export Promotion Capital Goods (EPCG) Scheme.
method of financing investment projects. Financial risk refers to unexpected events in a country’s financial. An exchange rate system in which currency values are allowed to fluctuate according to supply and demand forces in the market without direct interference by government authorities. A cost that is fixed in total for a given period of time and for given volume levels. Used with FOB. Glossary of Export Trade Terms Starting with-F Face Value Factor Model Factoring Financial (Capital) Structure Financial Contagion Financial Engineering Financial Innovation Financial Markets Financial Price Risk Financial Risk Financial Strategy Fixed Cost The value of a bond that appears on its face. The spread of a financial crisis from one country or region to other countries or regions. An exchange rate system in which governments stand ready to buy and sell currency at official exchange rates. Markets for financial assets and liabilities. Also referred to as par value or principal. The process of innovation by which new financial products are created. including currency (foreign exchange) risk. or business life. An exchange rate system under which a government is not obligated to declare that its currency is convertible into a fixed amount of another currency. currencies of denomination. and hedging decisions with a goal of maximizing the value of the firm to some set of stakeholders. such as exotic currency options and swaps. and commodity price risk. Currency is bought or sold at a given future date. The process of designing new financial products. Also know as "first-mover advantage." The idea of firstmover advantage is that the initial occupant of a strategic position or niche (market segment) gains access to resources and capabilities that a follower cannot match.destinations. economic. It is not dependent on the amount of goods or services produced during the period. C&F. FAS. or CFR (but not CIF) Financial Policy First-to-Market Advantage Fixed Exchange Rate System Fixed Forward Contract Floating Currency System Floating Exchange Rate FoB Endorsement . interest rate risk. A model that assumes a linear relation between an asset’s expected return and one or more systematic risk factors. Sale of an accounts receivable balance to buyers (factors) that are willing and able to bear the costs and risks of credit and collections. The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm. The way in which the firm pursues its financial objectives. The corporation’s choices regarding the debt-equity mix. The risk of unexpected changes in a financial price. maturity structure.
investment banks. capital Foreign Aid equipment.quotations. A currency whose nominal value in the forward market is Forward Discount lower than in the spot market. banks. or other assistance typically extended by richer nations to poorer nations. In these instances. technical assistance. Foreign Exchange (Currency) The risk of unexpected changes in foreign currency Risk exchange rates. Brokers serving as matchmakers in the foreign exchange Foreign Exchange Broker market that do not put their own money at risk. Currency of another country. or Foreign Debt governments. exchange rate. medium. A grant of money. such as Acts of God. A financial institution making a market in foreign Foreign Exchange Dealer exchange. and Foreign Exchange Markets other financial institutions that convert. A commitment to exchange a specified amount of one Forward Contract currency for a specified amount of another currency on a specified future date. and amount. Foreign-Source Income Income earned from foreign operations. (Contrast with forward premium.S. Networks of commercial banks. and regulated by the domestic authorities. A form of factoring in which large. Forward Parity When the forward rate is an unbiased predictor of future .to long-term receivables are sold to buyers (forfaiters) that are willing Forfaiting and able to bear the costs and risks of credit and collections. tax code. The act of building productive capacity directly in a Foreign Direct investment (FDI) foreign country. buy. A physical area in which the government allows firms to Foreign Trade Zone delay or avoid paying tariffs on imports. Money owed by a nation to foreign investors. Investment rules that limit foreign ownership to a Foreign Equity Requirements minority holding is a company. foreign branch income is taxed as it is earned in the foreign country. and sell currencies in the global economy. war. FOB sales endorsement to an open marine policy can cover transit risk from the point of origin until title transfers.) A market for forward contracts in which trades are made Forward Market for future delivery according to an agreed-upon delivery date. Bonds that are issued in a domestic market by a foreign borrower. The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their Force Majeure obligations as a result of conditions beyond their control. denominated in domestic currency. In the U. the exporter relies on the importer to insure. A foreign affiliate that is legally a part of the parent Foreign Branch firm. marketed Foreign Bonds to domestic residents. or a financial instrument Foreign Exchange that facilitates payment from one currency to another.
through the lease payments. A commitment to exchange a specified amount of one currency for a specified amount of another currency at a specified time in the future. A lease in which the lesser recovers. A parent company grants another independent entity the privilege to do business in a pre-specified manner. A currency whose nominal value in the forward market is higher than in the spot market. marketing technology and other business approach. Futures contracts are Fundamental Analysis Future Value Futures Commission Merchant Futures Contract .Forward Premium Franchise Agreement Franchising Free Cash Flow Free Port Free Trade Area of the Americas (FTAA) Free Trade Zone Freely Floating Exchange Rate System Freight Forwarder Freight Shippers (Freight Forwarders) Frequency Distribution Full Payout Lease spot exchange rates.) An agreement in which a domestic company (the franchiser) licenses its trade name and or business system to an independent company (the franchisee) in a foreign market. An exchange rate system in which currency values are allowed to fluctuate according to supply and demand forces in the market without direct interference by government authorities. An independent business that handles export shipment on behalf of the shipper without vested interest in the products. used or manufactured in the zone and re-exported without duties being paid. Value of a sum after investing it over one or more periods. The organization of data to show how often certain values or ranges of values occur. An area such as a port city into which merchandise may legally be moved without payment of duties. South. (Contrast with forward discount. including manufacturing. A method of predicting exchange rates using the relationships of exchange rates to fundamental economic variables such as GNP growth. Agents used to coordinate the logistics of transportation. An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. A brokerage house that is authorized by a futures exchange to trade with retail clients. A proposed hemispheric trade zone that would cover all of the countries in North. Also called compound value. and trade balances. money supply. selling products. Merchandise may be stored. A freight forwarder is a good source of information and assistance on export regulations and documentation. all costs incurred in the lease plus an acceptable rate of return. The FTAA is highly controversial. Cash flow after all positive-NPV projects have been exhausted in the firm’s main line of business. and Latin America. without any reliance upon the leased equipment's future residual value.
A.I. within the zone and re-exported without duties being paid. Foreign Exchange The currency or credit instruments of a foreign country. An area such as a port city into which merchandise may Free Port be legally moved without payment of duties.periodically marked-to-market. and Principles (GAAP) procedures by which financial statements are prepared.March 2009).. An independent business which handles export shipments Freight Forwarder for compensation. displayed.S. G-8 The G-7 countries plus Russia.. or used for manufacturing.i. or war. Fob means Free on Board .C. 81a-81u) as amended.) the cost of delivering the goods alongside a designated vessel. when an exporter FoB delivers goods "free on board". An accounting method based on an assumption regarding Foreign First (FOFI) the flow of goods that foreign status merchandise is disposed of first. Free Trade and Warehousing Zone. An individual or firm that serves as the foreign Foreign Sales Agent representative of a domestic supplier and seeks sales abroad for the supplier. The title of a standard clause in marine contracts exempting the parties for no fulfillment of their Force Majeure obligations as a result of conditions beyond their control. and the United States. France. Generally Accepted Accounting A common set of accounting concepts. The Foreign-Trade Zones Act of June 18. the United Kingdom. Zone etc. Foreign -Trade Zones Act 998-1003.S. 19 U. Japan. floods. (48 Stat. 1934. A pricing term indicating that the charter of a vessel is Free in (F. Merchandise Foreign-Trade Zone/Free Trade may be stored. Italy. An accounting method based on an assumption regarding First in-First Out (FIFO) the flow of goods that older stock is disposed of first. 2004. Glossary of Import Trade Terms Starting with-G A formal organization of seven highly industrialized democracies: Canada. General Agreement on Tariffs A post-World War II agreement designed to promote freer G-7 . which takes effect from September 1. in accordance with good merchandising policy.) responsible for the cost of loading and unloading goods from the vessel. announced by the Commerce & Industry Minister on 31st August. A port designated by the government of a country for duty-free entry of any non-prohibited goods. a new scheme FTWZ announced in the Foreign Trade Policy 2004-2009. A receipt of goods issued by a carrier with an indication Foul Bill of Lading that the goods were damaged when received. standards. Refers to Foreign Trade Policy. he pays all charges involved in getting them actually onto the ship. Germany. It is FTP a 5-year Policy (September 2004 -. A pricing term indicating that the quoted price includes Free Alongside(F.e. 2004. such as earthquakes.
or pounds sterling as reserves. GDP Gross Domestic Product (GDP) excludes profits made by domestic firms overseas. A global movement to increase the flow of goods. real capital. A steady and calculated approach to transforming an Gradualism economy from communism to capitalism. A constant stream of cash flows without end that is expected to rise indefinitely. U. Unlike Gross National Product. A multinational in which the subsidiaries are neither satellites nor independent city states. starting with nothing but a Buying shares on the open market in the hope that the Greenmail target’s business partners will buy back the shares at inflated prices. and multilateral organizations which collectively make production and consumption decisions. dollars. services. An exchange rate system used prior to 1914 in which gold Gold Standard was used to settle national trade balances. A bond that trades in the Eurobond market as well as in Global Bond one or more national bond markets. Gray-market imports are parallel distribution of genuine Gray-Market Imports goods by intermediaries other than authorized channel members. people. An exchange rate system used from 1925 to 1931 in which the United States and England were allowed to hold only Gold Exchange Standard gold reserves while other nations could hold gold. each part making its unique contribution with its unique competence. cash flows to Growing Perpetuity the landlord of an apartment building might be expected to rise a certain percentage each year. Global Economy governments.S. Also called the classical gold standard. The GATT was replaced by the World Trade Organization (WTO) in 1994. The positive-NPV opportunities in which the firm has not yet invested. A time series model in which returns at each instant of Generalized Autoregressive time are normally distributed but volatility is a function conditional Heteroskedasticity of recent history of the series. as well as the share of reinvested earning in domestic firms' foreign-based operations. but parts of a Geocentric Multinational whole whose focus is on worldwide objectives as well as local objectives. The international network of individuals. The accounting treatment of an intangible asset such as Goodwill the takeover premium in a merger or acquisition.and Trade (GATT) international trade among the nations of the world. For example. A measure of the market value of goods and services produced by a nation. The value of growth options reflects the Growth Options time value of the firm’s current investment in real assets as well as the option value of the firm’s potential future . A form of investment in which the firm designs and builds Greenfield a new factory from scratch. businesses. and money across national Globalization borders in order to create a more integrated and interdependent world economy.
operating. Measured by the r-square in a regression of spot rate Hedge Quality changes on futures price changes. often exceeding . interest income that has been High-Withholding-Tax Interest subject to a foreign gross withholding tax of 5 percent or Income more. A position or operation that offsets an underlying exposure. Glossary of Import Export Trade Terms Starting with-H A method of classification used by many countries to determine tariffs on imports. A multilateral treaty intended to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions. Historical Volatility Volatility estimated from a historical time series. The HIPC Inititiative is a major international response to the burdensome external debt held by the world's Heavily Indebted Poor Countries poorest. The tendency of investors to over invest in assets based Home Asset Bias in their own country. a forward currency hedge uses a Hedge forward currency contract to offset the exposure of an underlying position in a foreign currency. The full weight of a shipment. It originated in 1996 as (HIPC) Initiative a joint undertaking of the World Bank and the International Monetary Fund (IMF). Hedges reduce the total variability of the combined Private investment partnerships with a general manager Hedge Funds and a small number of limited partners. A corporation to which the privilege of establishing. most indebted countries. Idea that all individuals have the same beliefs concerning Homogeneous Expectations future investments.Growth Stocks Guideline Lease GATT/General Agreement on Tariffs And Trade Grantee Gross Weight Harmonized Tariff Schedule (HTS) investments. including goods and packaging. The country-specific hedge portfolio in the International Asset Pricing Model serves as a store of value (like the Hedge Portfolio risk-free asset in the CAPM) as well as a hedge against the currency risk of the market portfolio. growth stocks have had lower average returns than value stocks (stocks with low price/book or PE ratios) in a variety of countries. tax code. Hyperinflation An extremely high rate of inflation.S. A lease written under criteria established by the IRS to determine the availability of tax benefits to the lesser. The ratio of derivatives contracts to the underlying risk Hedge Ratio exposure. Stocks with high price/book or price/earnings ratios. In the U. Reducing the risk of a cash position by using the futures Hedging instruments to offset the price movement of the cash asset. and dividends. For example. and maintaining a foreign-trade zone has been granted by the Foreign-Trade Zones Board. Holding-Period Return The rate of return over a given period. Historically. profits.
the direct customers of the seller. income is allocated to one of a Income Baskets number of separate income categories. In many cases. Diversification benefits provided by the multinational Indirect Diversification Benefits corporation that are not available to investors through their portfolio investment. The end-users (e. that causes a country's money to become practically worthless. retailers. Indication pricing schedule A schedule of rates for an interest rate or currency swap. Indirect Costs of Financial Costs of financial distress that are indirectly incurred Distress prior to formal bankruptcy or liquidation. generally a clause whereby the lessee indemnifies the lesser from loss of tax benefits. A call or put option contract on an index (such as a Index options foreign stock market index). A swap of a market index for some other asset (such as a Index swap stock-for-stock or debt-for-stock swap).S. Financial report that summarizes a firm's performance Income Statement over a specified time period. A project whose acceptance or rejection is independent Independent Project of the acceptance or rejection of other projects. consumers) of the products and Indirect Customers services purchased from the wholesalers. usually export trading company based in the exporter’s country. intermediate good. or final good or service Import that buyers in one country purchase from sellers in another country. A clause in which the one party indemnifies the other. A futures contract that allows investors to buy or sell an Index futures index (such as a foreign stock index) in the futures market. The volatility that is implied by an option value given the Implied Volatility other determinants of option value.g. import licenses are also used Import Licenses by the issuing country to control the quantity of imported items. IRR on the incremental investment from choosing a large Incremental IRR project instead of a smaller project. In Indemnity Clause leasing. Glossary of Import Export International Trade Terms Starting with-I Lower (higher) before-tax required returns on assets that are subject to lower (higher) tax rates. This behavior is characteristic of situations with high entry and exit costs along with high uncertainty. Export products to foreign markets by using an Indirect Exporting intermediary.Hysteresis several hundred or several thousand percent. The behavior of firms that fail to enter markets that appear attractive and. Inflation Rate The general increase in the price level herein measured Implicit Tax . persist in operating at a loss.. Licenses required by some countries to bring in a foreignmade good. once invested. Any resource. In-the-Money Option An option that has value if exercised immediately. Losses in one basket may not be used to offset gains in another basket. tax code. and consignees -. In the U.
truck/rail/ship. Interest Rate Risk The risk of unexpected changes in an interest rate. Its headquarters are located in Washington. Whether or not market prices reflect information and Informational Efficiency thus the true (or intrinsic) value of the underlying asset. A regional development bank designed to promote Inter-American Development sustainable economic development in the Western Bank(IADM) Hemisphere. The Interest Rate Swap most common interest rate swap is a fixed-for-floating coupon swap. The IRR is a method of evaluating capital expenditure proposals. A market in which there are no barriers to financial flows Integrated Financial Market and purchasing power parity holds across equivalent assets. It includes. an international organization Reconstruction and created at Breton Woods in 1944 to help in the Development reconstruction and development of its member nations. A market for financial securities denominated in the Internal Market currency of a host country and placed within that country.by the growth rate in the GNP Implicit Price Index or the general price deflator. International Bonds International bonds are either foreign bonds trading in a foreign national market or Eurobonds trading in the . inventions. and artistic endeavor.C. copyrights. and proprietary technologies and Intellectual Property Rights processes that are the basis of the multinational corporation’s competitive advantage over local firms. or truck/air. for example. designs and literary and art works of Intellectual Property scientific. Patents. The international version of the CAPM in which investors International Asset Pricing in each country share the same consumption basket and Model (IAPM) purchasing power parity holds. A financial market in which a financial institution (usually Intermediated Market a commercial bank) stands between borrowers and savers. The difference between a bank’s offer and bid rates for Interbank Spread deposits in the Eurocurrency market. Intrinsic Value of an Option The value of an option if exercised immediately. International Bank for Also called the World Bank. literary. The notional principal is typically not exchanged. The use of two or more modes of transportation to Intermodal complete a cargo move. Material or communicable result in forms of discoveries. D. An agreement to exchange interest payments for a specific period of time on a given principal amount. A discount rate at which the net present value of an Internal Rate of Return (IRR) investment is zero. humanistic. works in the form of scientific discoveries and invention. Bonds that are traded outside the country of the issuer. but is not limited to. The global network of governmental and commercial International Monetary System institutions within which currency exchange rates are determined.
laid down by the International Standards Organisation. The investment approach-active or passive-pursued by an investment fund and its managers. responsibilities. An agreement specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project The set of possible investments available to an individual or corporation. International non-governmental body concerned with promotion of trade and harmonization of trading practice. A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined rate. The quoted or invoiced cost of a commodity. and earnings are shared according to a predetermined contractual formula. It compiles statistics on cross-border transactions and publishes a monthly summary of each country’s balance of payments. A document required and issued by some national governments authorizing the importation of goods into their individual countries. A bill of lading used in transporting goods overland to the exporter's international carrier. An organization-wide practice that keeps the inventory to the minimum and provides customers the right goods or service at the right time. Resource commitments. A multilateral environmental agreement. Responsible for drafting and publishing. Glossary of Impex Trade Terms Starting with . The norms which define the amount of input/inputs required to manufacture a unit of output.J Joint Venture Just In Time (JIT) Glossary of Export Import Foreign Trade Terms Starting with . Collaborative groups of vertically and horizontally integrated firms with extensive share cross-holdings and with a major Japanese bank or corporation at the center. An agreement of two or more companies to pool their resources to execute a well-defined mission. its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere.K Kyoto Protocol Keiretsu Glossary of Export Import Trade Terms Starting with -L Lease Landed Cost .International Chamber of Commerce International Monetary Fund (IMF) Investment Agreement Investment Opportunity Set Investment Philosophy Input Output Norms ISO-9000 ITC(HS) Import License Inland Bill of Lading Irrevocable Letter of credit international market. plus any inbound transportation charges. An international organization designed to promote global economic stability and development. A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee. It is a system of classification of products for the purposes of export and import. Refers to international standards. Refers to Indian Trade Classification (Harmonized System).
A market in which traders can buy or sell large quantities of an asset when they want and with low transactions costs. a reliance on subsistence agriculture. A letter issued by an importer’s bank guaranteeing payment upon presentation of specified trade documents (invoice. The poorest of the developing countries. which allows the latter to engage in an activity otherwise legally forbidden to it. inspection and insurance certificates. Reduction of transaction exposure through timing of cash flows within the corporation. They are characterized by a low gross national product per capita.). bill of lading. The lead investment bank in a syndicate selling a public securities offering.Law of one Price (Purchasing Power Parity) Lead Manager Leading and Lagging Lease Rate Least-Developed Countries (LDCs) Letter of Credit (L/C) Leveraged Lease Liberalization Location-Specific Advantages London Interbank Bid Rate (LIBID) Long Position License Agreement Licensing Limited Flexibility Exchange Rate System Liquid Market Liquidity Loanable Funds London Interbank Offer Rate (LIBOR) Letter of Credit(L/C) The principle that equivalent assets sell for the same price. The pool of funds from which borrowers can attract capital. typically categorized by currency and maturity. issued by a bank per instructions by a buyer . Others may define lease rate as the implicit interest rate in minimum lease payments. make a loan to) another Euro market bank in London. inadequate infrastructure. or other forms of compensation. equivalently. A document. etc. The ease with which an asset can be exchanged for another asset of equal value. One firm gives another firm a permission. The lesser provides an equity portion (usually 20 to 40 percent) of the equipment cost and lenders provide the balance on a nonrecourse debt basis. The periodic rental payment to a lesser for the use of assets. The law of one price is enforced in the currency markets by financial market arbitrage. fees. A sales agreement in which a domestic company (the licensor) allows a foreign company (the licensee) to market its products in a foreign country in return for royalties. Such activities usually involve the transfer of intellectual and proprietary knowledge in return for royalty as revenue. The International Monetary Fund’s name for an exchange rate system with a managed float. Advantages (natural and created) that are available only or primarily in a single location. rapid population growth. The bid rate that a Euro market bank is willing to pay to attract a deposit from another Euro market bank in London. The offer rate that a Euro market bank demands in order to place a deposit at (or. The process by which certain business activities become more market driven. A position in which a particular asset (such as a spot or forward currency) has been purchased.
Document that lists in detail al the bills of lading issued by a carrier of its agent or master. A failure of arms-length markets to efficiently complete the production of a good or service. the multinational corporation’s market internalization advantages take advantage of market failure. a detailed summary of the total cargo of a vessel. Flexibility in the timing and scale of investment provided by a real investment option. The managing firm is forbidden to make capital investment or financing decisions. An agreement by which one firm allows another to manage its foreign activities on behalf of it. usually the receipt by the bank of certain documents within a given time. Advantages that allow the multinational corporation to internalize or exploit the failure of an arms-length market to efficiently accomplish a task. Maquiladoras are one type of foreign direct investment. A performance bond paid upon purchase of a futures contract that ensures the exchange clearinghouse against loss. Access can be limited by tariffs or other non-trade barriers. (E[RM]-RF). Duty-free assembly plants located mainly in the developing world. A financial institution that quotes bid (buy) and offer (sell) prices. or may be sold short by borrowing the securities from the brokerage firm. A portfolio of all assets weighted according to their market values. A business arrangement in which the manufacturer of a product grants permission to some other group or individual to manufacture that product in return for specified royalties.e. The risk premium on an average stock. Country (or political) risks that affect all foreign firms in a host country. The empirical version of the security market line: Rj = aj + bjRM + ej. An account maintained by an investor with a brokerage firm in which securities may be purchased by borrowing a portion of the purchase price from the brokerage.. The extent to which a domestic industry can penetrate a related market in a foreign country. An investment strategy of shifting among asset classes in Glossary of Export Trade Terms Starting with .Licensing of goods. An economy in which resource allocations. In the eclectic paradigm. i. authorizing the seller to draw a specified sum of money under specified terms. prices and other marketing decisions are primarily determined by the free market.M Manifest Macro Country Risks Management Contract Managerial Flexibility Maquiladoras Margin Account Margin Requirement Market Access Market Economy Market Failure Market Internalization Advantages Market Maker Market Model (One-Factor Market Model) Market Portfolio Market Risk Premium Market Timing .
. A system of corporate governance in which the supervisory board represents a dispersed set of largely equity shareholders. perhaps $50 or $100. Country risks that are specific to an industry. A form of corporate acquisition in which one firm absorbs another and the assets and liabilities of the two firms are combined. a customs union which includes Argentina. price. The process by which changes in the value of futures contracts are settled daily. One of the most popular classifications of marketing mix tools is called the "4 P's" of marketing: product. Environmental agreements negotiated by a number of countries. and promotion. then corporate financial policy (including hedging policy) is irrelevant. Brazil. A combination of specific and ad valorem tariffs. The common market of the South. place. The set of marketing tools that the firm uses to pursue its marketing objectives in the target market.) Financial markets for debt securities that pay off in the short term (usually less than one year). In leasing this sector is dominated by single investor leases. A hedge that replicates a currency forward contract through the spot currency and Eurocurrency markets. A bond quotation convention based on a 360-day year and semiannual coupons. The date on which the last payment on a bond is due. Paraguay. The way in which a merger or acquisition is financed. Assets and liabilities with contractual payoffs. that are extended to small businesses to finance a business start-up or other business activity. A market segment generally represented by financing under $2 million. or project within a host country. An asset that has higher mean return at a given level of risk (or lower risk at a given level of return) than other assets. company. Exclusive control or possession by one group of the means of producing or selling goods or services. (Contrast with bond equivalent yield. Small loans. If financial markets are perfect. Bolivia and Chile are associate members. and Uruguay in a regional trade pact that reduces tariffs on intrapact trade by up to 90 percent.Market-Based Corporate Governance System Multilateral Environmental Agreements (MEAs) Marketing Mix Marking to Market Maturity Date Mean-Variance Efficient Mercosur Merger Method of Payment Micro Country Risks Micro Credit Middle Market Miller and Modigliani’s Irrelevance Proposition Mixed Tariff Monetary Assets and Liabilities(MAL) Money Market Hedge Money Market Yield Money Markets Money Supply Monopoly an attempt to anticipate which asset classes) will appreciate or depreciate during the coming period. The total amount of currency in circulation and peso deposits subject to check of the monetary system.
the granting country then accords the recipient's imports and exports the most favorable treatment that it accords any country. Exposure to foreign exchange risk after netting all intracompany cash flows. building materials. sorted. A process whereby privately owned companies are brought under state ownership and control. Prohibited Merchandise/Operations. numbers. or a waiver thereof by an agency of the Indian Government. (Contrast with privatization. repacked.) Glossary of EXIM Trade Terms Starting with . Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects. A status granted to one country by another. Merchandise which may not be authorized for delivery from Customs custody without a special permit. Fungible Merchandise. Generally. and other symbols on cargo packages to facilitate identification. Merchandise which has been produced in the India and not exported therefrom. A country accords no less favorable treatment to imported goods than it does to domestic goods.. Domestic Merchandise. Imported Merchandise which has not been properly released from Customs custody into the Customs territory of the India.N Net Currency Exposure National Tax Policy National Treatment Nationalization . Merchandise which for commercial purposes is identical and interchangeable in all situations. and chattels of every description except Prohibited Merchandise. Letters. Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally recovered from the carrier. or excluded by order of the Foreign-Trade Zones Board. Restricted The International Monetary Fund’s name for a floating exchange rate system. the importation of which is prohibited by law on grounds of public policy or morals. Foreign Merchandise which has been combined with Domestic Merchandise in the zone. Foreign Merchandise. The way in which a nation chooses to allocate the burdens of tax collections across its residents. Elimination of offsetting cash flows within the multinational corporation. cleaned. the production of articles for use from raw or prepared materials by substantially transforming such materials into new forms. A corporation with operations in more than one country. Includes goods. unpacked. wares. graded or otherwise changed in condition but not manufactured. Mixed Status Merchandise/Operations. Merchandise.More Flexible Exchange Rate System Most Favored Nation (MFN) Multinational Corporation Multinational Netting Mutually Exclusive Investment Decisions Manipulation Manufacturer Marine Insurance Marking Merchandise Merchandise. production equipment and supplies for use in operation of a zone. Processing wherein merchandise is packed.
The term is used Net Exposed Assets with market values or. Non-Governmental Special interest groups that operate in the global Organizations (NGOs) community. A financial market in which borrowers (governments and large corporations) appeal directly to savers for debt Non-Intermediated Debt Market capital through the securities markets without using a financial institution as intermediary. with book values. such as depreciation and deferred taxes. discounted at Net Present Value (NPV) the appropriate market interest rate. Canada. Glossary of Export Business Trade Terms Starting with . and security. a principal amount that is only Notional Principal notional and is not exchanged. An indirect measure used to discriminate against foreign manufacturers. A currency position after aggregating and canceling all Net Position offsetting transactions in each currency. Net Foreign Exchange NFE earning is calculated as a percentage of exports (NFEP). The sum of the individual asset values in a closed-end Net Asset Value mutual fund. In a swap agreement. minus the present value of the cost of the investment. Liabilities Symmetric bell-shaped frequency distribution that can be Normal Distribution defined by its mean and standard deviation.A negative (-) NPV infrastructure development project that a local government requires of a company pursuing a Negative-NPV Tie-in Project positive (+) NPV investment project elsewhere in the economy. Foreign Merchandise or non-tax-paid domestic merchandise upon which the duty and applicable taxes Non-Privileged Foreign (NPF) will be determined at the time of entry from the zone for consumption. in translation accounting. Net Monetary Assets Monetary assets less monetary liabilities. Net Working Capital Current assets minus current liabilities. North American Free Trade A regional trade pact among the United States. Closed-end funds can sell at substantial premiums or discounts to their net asset values. Non-Monetary Assets and Assets and Liabilities with non-contractual payoffs. for example. Exposed assets less exposed liabilities. Nominal Interest Rate Interest rate unadjusted for inflation.O . A cash flow expressed in nominal terms if the actual Nominal Cash Flow dollars to be received (or paid out) are given. Refers to Net Foreign Exchange. extensive inspection Non-Tariff Barrier procedures for foreign imports that create barriers to entering the market. Agreement (NAFTA) and Mexico. Expense against revenue that does not directly affect Noncash Item cash flow. The present value of future cash returns. maturity. Recent efforts to pressure national governments to New Protectionism exercise greater control over foreign trade and foreign direct investment.
Earnings before interest and depreciation minus taxes. Official Settlements Balance An overall measure of a country’s private financial and (Overall Balance) economic transactions with the rest of the world. The seller delivers the goods to the buyer and then bills Open Account the buyer according to the terms of trade. Opportunity Set The set of all possible investments.) Outsourcing A situation in which a firm's functions are performed or Offer (Ask) Rates . Overseas Private Investment Corporation. living standards. a shortened registration statement Offering Statement required by the Securities and Exchange Commission on debt issues with less than a nine-month maturity. The trade-off between fixed and variable costs in the Operating Leverage operation of the firm. A quote in which all of the digits of the bid and offer Outright Quote prices are quoted. not Operating Cash Flow counting capital spending or working capital requirements. Organization for Economic A group of 30 countries that meets regularly to discuss Cooperation and Development global issues and make appropriate economic and social (OECD) policies. An economic policy enacted by the Chinese government combining central planning with market-oriented reforms Open and Reform Policy to increase productivity. A mutual fund in which the amount of money under Open-end Fund management grows/shrinks as investors buy/sell the fund. The many types of financial institutions that operate Offshore Financial Centers without financial supervision by governments or other (OFCs) agencies. and technological quality without exacerbating inflation. Organization of Petroleum A producer cartel that produces and sells oil. It measures the cash flow generated form operations. unemployment. In the United States. (Contrast with points quote. Market efficiency with respect to how large an influence Operational Efficiency transactions costs and other market frictions have on the operation of a market. Exporting Countries (OPEC) Out-of-the-Money Option An option that has no value if exercised immediately. A US agency that assists US companies protect their investment OPIC against risk in a particular country besides providing other services. The rate of Opportunity Cost return used in NPV computation is an opportunity interest rate.The rate at which a market maker is willing to sell the quoted asset. Most valuable alternative that is given up. and budget deficits. Changes in the value of real (no monetary) assets or Operating Exposure operating cash flows as a result of changes in currency values. A market dominated by so few sellers that action by any Oligopoly of them will impact both the price of the good and the competitors.
a limitation on the FTC equal to Overall FTC limitation foreign-source income times U. An investment decision rule which states that all investment projects that have payback periods equal to or less than a particular cutoff period are accepted. Limited partnership permits some partners to have limited liability. May be called for on a letter of credit. and all those that pay off in more than the particular cutoff period are rejected. Also used with changes in value. A corporation.S. (Contrast with risk profile. A marine insurance policy that applies to all shipments Open Insurance Policy made by an exporter over a period of time rather than to one shipment only. or selling the invention.S. partnership. tax on worldwide income divided by worldwide income. organizational and marketing expertise. tax code. A trade arrangement in which goods are shipped to a Open Account foreign buyer without guarantee of payment.provided by a person or group from outside the company. income (such as investment income) that does not come from active participation in a business. and general organizational abilities. All zone operators must submit to Customs a bond to Operator's Bond assure compliance with Customs regulations. including patents. In the U.P Packing List Parallel Loan Document listing the contents of a consignment of goods. using.) In the U. Form of business organization in which two or more coowners form a business. A graph with the value of an underlying asset on the xaxis and the value of a position taken to hedge against risk exposure on the y-axis.S. In a general partnership each partner is liable for the debts of the partnership. that form the basis for the multinational’s advantage over local firms A bill of lading indicating that the exporter consigns a Ocean Bill of Lading shipment to an int'l carrier for transportation to a specified foreign market. A loan arrangement in which a company borrows in its home currency and then trades this debt for the foreign currency debt of a foreign counterpart. A government grant that gives inventors exclusive right of making. Property rights or intangible assets. A negotiable bill of lading made out to the order of the Order Bill of Lading shipper. Overall Balance (See official settlements balance. tax code. A bill of lading in which a carrier certifies that goods On Board Bill of Lading have been placed on board a certain vessel. or person that operates a Operator zone or sub zone under the terms of an agreement with the Grantee. Glossary of Import Business Trade Terms Starting with . trademarks.) Partnership Passive Income Patent Payback Period Rule Payoff Profile . Ownership-Specific Advantages production technology and management.
However. A recognition of future liabilities resulting from pension commitments made by the corporation. A set of assumptions under which the law of one price holds. Factor used to calculate an estimate of the present value of an amount to be received in a future period.) An invoice provided by a supplier prior to the shipment of merchandise. If a bond is selling above its face value. The sensitivity of quantity sold to a percentage change in price. Combined holding of more than one stock. -%changeQ/%changeP. or other asset by an investor. predatory pricing is against law. real estate asset. it is said to sell at a premium.Payout Ratio Pegged Exchange Rate System Pension Liabilities Perfect Market Assumptions Periodic Call Auction Perpetuity Portfolio Predatory Pricing Phytosanitary Measure Points Quote Political Risk Power Distance Premium Present Value Present Value Factor Price Elasticity of Demand Price Uncertainty Private Placement Privatization Proforma Invoice Product Cycle Theory Proportion of net income paid out in cash dividends. or other treatments. and equal access to market prices and information. The risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. A trading system in which stocks are auctioned at intervals throughout the day. or procedure with the purpose of preventing the introduction or spread of pests. Political risk includes both macro and micro risks. (Contrast with nationalization. Phytosanitary procedures often include the performance of inspections. rational investors. . A process whereby publicly owned enterprises are sold to private investors. The value of a future cash stream discounted at the appropriate market interest rate. Accounting for pension liabilities varies widely by country. A British consol is an example. and (4) decline. A securities issue privately placed with a small group of investors rather than through a public offering. An abbreviated form of the outright quote used by traders in the interbank market. (3) maturity. A constant stream of cash flows without end. informing the buyer of the kinds and quantities of goods to be sent their value and important specifications. tests. The extent to which a society accepts hierarchical differences. A piece of legislation. regulation. (2) growth. Product cycle theory views the products of the successful firm as evolving through four stages: (1) infancy. surveillance. These assumptions include frictionless markets. bond. Uncertainty regarding the future price of an asset. It is a form of price discrimination that requires selling below cost with the intention of destroying competition. The International Monetary Fund’s name for a fixed exchange rate system.
so that the firm can employ the lowest-cost resources in the production process. food and clothing) that a country is able to produce given its labor supply. Also referred to as "bullets" and "zeros. and the forward price at expiration. Production sharing occurs when a producer chooses to make a product in stages . and regulations that discriminate against foreign businesses. A securities issue placed with the public through an investment or commercial bank. a short put. from early planning through sales build-up. A method used to evaluate projects. Private or exclusive knowledge that cannot be legally used or duplicated by competitors. The relation of the value of a long call. legal systems and methods of conducting business. Product life cycle lengths and types can vary depending on the type of product. A way to raise nonrecourse financing for a specific project characterized by the following: (1) the project is a separate legal entity and relies heavily on debt financing and (2) the debt is contractually linked to the cash flow generated by the project. Financial document in which the buyer agrees to make payment to the seller at a specified time. The principle that equivalent assets sell for the same price. maximum sales. linguistic aspects. and withdrawal of the product. A variety of programs designed to promote and/or protect a company's image or its individual products. and position limits. A list showing the number and kinds of items being . A convex tax schedule that results in a higher effective tax rate on high income levels than on low-income levels. the exercise price. This concept takes into account geographic distance. The maximum amount of goods (for example. quotas.PutTd/f + Kd/f = FTd/f. strategies.Product Life Cycle (PLC) Production Possibilities Schedule Production Sharing Profitability Index Progressive Taxation Project Financing Promissory Note Proprietary Knowledge Prospectus Protectionism Public Securities Offering Pure Discount Bond Psychic Distance Public Relations Purchasing Power Parity (PPP) Put Option Put-Call Parity Packing List The complete life of a product. It is the ratio of the present value of expected future cash flows after initial investment divided by the amount of the initial investment. CallTd/f . declining sales. Bonds that pay no coupons and only pay back the face value at maturity. A brochure that describes a mutual fund’s investment objectives. the frequency of replacement. Purchasing power parity is a measurement of a currency's value based on the buying power within its own domestic economy." The similarities or lack thereof between country markets. cultural similarities. The right to sell the underlying asset at a specified price and on a specified date. Protection of local industries through tariffs.and in different countries .
stranding. government action preventing entry of goods. as well as other information needed for transportation purposes. A process in which instantaneous changes in exchange Random Walk rates are normally distributed with a zero mean and constant variance. Lends to foreign buyers to finance exports from U. The postal authorities' signed acknowledgment of delivery to receiver of a shipment made by parcel post.Postal Parcel Receipt Private Export Funding Corporation(PEFCO) Perils of the Sea shipped. purchasing power of the cash flow is given. QRs are nontariff measures which are taken to regulate or prohibit international." An exchange of one thing for another. Phytosanitary Inspection Certificate Political Risk Privileged Foreign (PF) Purchasing Agent Glossary of IMPEX Business Trade Terms Starting with . The quantity of goods of a specific kind that a country permit to be imported without restriction or imposition of additional Duties. or Real Cash Flow(RCF) date 0. war.S. An offshore financial affiliate that is used to channel Re-Invoicing Centers funds to and from the multinational’s foreign operations. A marine insurance term used to designate heavy weather. issued by the Indian Government Department of Agriculture to satisfy import regulations for foreign countries. Foreign merchandise or non-tax paid domestic merchandise upon which the duty and applicable taxes have been determined at the time this status is approved. collision. etc.R The percent of the variation in a dependent variable (a yvariable) that is explained by variation in an independent variable (an x-variable). inconvertibility. Real Appreciation/Depreciation A change in the purchasing power of a currency. lightning. An offer to sell goods at a stated price and under specified conditions. QRs mean Quantitative Restrictions. A cash flow is expressed in real terms if the current.Q QRs Quota Quotation Quid Pro Quo Glossary of International Trade Terms Starting with . expropriation or confiscation. and seawater damage. A measure of the nominal exchange rate that has been Real Exchange Rate (RER) adjusted for inflation differentials since an arbitrarily R-Square (the Coefficient of Determination) . QRs refer to specific limits imposed by countries on the quantity or value of goods that can be imported or exported. Latin for "this for that. A certificate. An agent who purchases goods in his or her own country on behalf of foreign importers such as government agencies and large private concerns. In export financing the risk of loss due to such causes as currency. indicating that a India shipment has been inspected and is free from harmful pests and plant diseases.
Endorsement transferring title or right to a named party.Real Interest Rate (RIR) Real Options (RO) Reciprocal Marketing Agreement Recourse Regional Development Banks Registered Bonds (RB) Registration Statement (RS) Repatriation Reservation Price Residual Value Restrictive Endorsement Retention Ratio Return on Equity (ROE) Revaluation Right of Priority (ROP) Rights of Set-Off Risk Averse Risk Premium Risk Profile Roll’s Critique defined base period. payment by the negotiating bank will normally be with recourse. The right to demand return of money paid. Production rights may or may not be transferred. "The right of a patent holder of a patent issued in one country to intellectual property rights in a foreign market for one year. In negotiation of a letter of credit. An option or option-like feature embedded in a real investment opportunity. Bonds for which each issuer maintains a record of the owners of its bonds. Net income after interest and taxes divided by average common stockholder's equity. The act of remitting cash flows from a foreign affiliate to the parent firm.) In the United States. Seeking stability rather than risk. The price below (above) which a seller (purchaser) is unwilling to go. the nominal interest rate minus the expected inflation rate. An agreement defining each party’s rights should one party default on its obligation. a statement filed with the Securities and Exchange Commission on securities issues that discloses relevant information to the public. A strategic alliance in which two companies agree to co market each other’s products in their home market. An increase in a currency value relative to other currencies in a fixed exchange rate system. The world's four regional development banks are the African Development Bank Group. (Contrast with bearer bonds. they are designed to extend development loans and provide other assistance to member nations. even if someone from the foreign market files a local patent for the same process. (Contrast with payoff profile. Retained earnings divided by net income. Countries requiring that bonds be issued in registered form include the United States and Japan. Banks that are owned and operated by member nations. that is. Also used with changes in value. Interest rate expressed in terms of real goods. Rights of set-off were common in parallel loan arrangements. The excess return on the risky asset that is the difference between expected return on risky assets and the return of risk-free assets. without filing for a local patent. A graph with the value of an underlying asset on the xaxis and the value of a position exposed to risk in the underlying asset on the y-axis.) The CAPM holds by construction when performance is . The value of an asset at the conclusion of a lease.
federal government that aids. Rules used to determine in what country a good will be considered as actually made for tariff and other trade purposes. and (2) the personal choice of the best mix of the risky portfolio. and protects the interests of small business concerns to preserve free competitive enterprise and to maintain and strengthen the overall economy of the nation. A resumption of the activated status of an entire area that was previously deactivated without any change in the operator or the area boundaries. Payment made for the use of a person or business’s property based on an agreed percentage of the income arising from its use. assists. A view of the corporation as the nexus of a set of legal Glossary of Export International Trade Terms Starting with -S SBA (Small Business Administration) Scenario Analysis Security Market Line (SML) Security Selection Seeking Stability Rather than Risk Segmented Market Semi-Strong form Efficient Market Sensitivity Analysis (SA) Separation Principle Set-of-Contracts Perspective .S. Analysis of the effect on the project when there is some change in critical variables such as sales and costs. A letter of credit that can be canceled or altered by the drawee (buyer) after it has been issued by the drawee's bank. it holds not at all. which is purely technical problem. Always keep track of your currency units.RF + bj (E[RM] . An investment strategy that attempts to identify individual securities that are under priced relative to other securities in a particular market or industry. Otherwise.Royalty Rule #1 Rule #2 Rules of Origin Reactivation Regional Commissioner Remitting Bank Retail Trade Revocable Letter of Credit measured against a mean-variance efficient index. counsels. An element of the Paris Convention for the Protection of Industrial Property that gives an inventor 12 months from the date of the first application filed in a Paris Convention country in which to file in other Paris Convention countries. In the CAPM. An independent agency of the U. Always think of buying and selling the currency in the denominator of a foreign exchange quote. A market that is partially or wholly isolated from other markets by one or more market imperfections.RF). The principle that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio. sales or offers to sell goods or services to individuals for personal use. Bank that sends the draft to overseas bank for collection. A market in which prices fully reflect all publicly available information. the relation between required return and systematic risk (or beta): Rj . The Regional Commissioner of Customs for the Customs Region in which the zone is located. Generally. A process of asking What if? using scenarios that capture key elements of possible future realities.
A business owned by a single individual. suppliers. The positive square root of the variance.S. Any aspect of an investment project that can be valued separately from the project itself. This is the standard statistical measure of the spread of a sample. government to classify products and services. and equity. A term referring to general trading companies that import and export merchandise.Sharpe Index Shipper Short Position Short Selling Side Effect Sight Draft Signaling Simple Interest Smoot Hawley Act Social Capital Sogo Sosha Sole Proprietorship Special Drawing Right (SDR) Specific Tariff Spot Exchange-Rate Spot Market Stabilization Policies Stakeholders Stamp Tax Standard Deviation Standard Industrial Classification (SIC) Stated Annual Interest Rate contracts linking the various stakeholders. A measure of risk-adjusted investment performance in excess return per unit of total risk: SI = (RP . or taking a short position. A market in which trades are made for immediate delivery (within two business days for most spot currencies). The interest rate expressed as a percentage per annum. A narrow definition includes the corporation’s debt and equity holders. and perhaps other interested parties. suppliers. A tax on a financial transaction. Physical or real capital that is owned by the public sector rather than by private firms. this protectionist act increased import duties to the highest rate ever imposed by the United States.RF)/(sP). by which interest payment is determined. Exchange-rate today for settlement in two days. The use of observable managerial actions in the marketplace as an indication of management’s beliefs concerning the prospects of the company. . A position in which a particular asset (such as a spot or forward currency) has been sold. and society at large. Important contracts include those with customers. and stable prices. such as customers. Interest calculated by considering only the original principal amount. Government policies designed to promote economic growth. A draft that is payable on demand. resulting in the downfall of the world trade system. The sole proprietorship pays no corporate income tax but has unlimited liability for business debts and obligations. Passed in 1930. management. A broader definition includes labor. Those with an interest in the firm. debt. labor. An international reserve created by the International Monetary Fund and allocated to member countries to supplement foreign exchange reserves. Usually the supplier or owner of commodities shipped. Selling an asset that you do not own. A tariff assessed at a specific amount per unit of weight. steady employment. management. A standard numerical code system used by the U.
Strategic alliances include international licensing agreements. A swap involving a stock index. In the U. An institution that facilitates the buying and selling of stocks. A sequence of options in which exercise of one option creates one or more additional options. or any other financial asset or financial price index. Because sunk costs are in the past. Investmentdisinvestments. after a prearranged length of time. and joint ventures as special cases.S. management contracts. The board of directors that represents stakeholders in the governance of the corporation. An agreement to exchange two liabilities (or assets) and. Financing that is provided by a host government and that is issued at a below-market interest rate. A futures contract on a stock index. such costs should be ignored when deciding whether to accept or reject a project. income from foreign subsidiaries owned more than 10 percent and controlled foreign corporations that is taxed on a pro rata basis as it is earned. tax code. a debt index (a debt-for-stock swap). The other asset involved in a stock index swap can be another stock index (a stock-for-stock swap). Monetary assistance granted by the government to an individual or other entity in support of an activity that is regarded as being in the public interest. to reexchange the liabilities (or assets). Network through which international banks conduct their financial transactions. expansion-contraction. Any organization controlled by another with more than 50 percent of its whose voting capital held by the latter. and suspension-reactivation decisions are examples of switching options. entry-exit. Small-scale agriculture designed to meet the consumption needs of individual households. A swap with one or more options attached. A cost that has already occurred and cannot be removed. usually arranged by currency and by maturity. Expenditures that are at least partially lost once an investment is made. A collaborative agreement between two companies designed to achieve some strategic goal. . The price at which an option can be exercised (also called the exercise price).Stationary Time Series Stock Index Futures Stock Index Swap Stock Market Strategic Alliance Striking Price Subpart F Income Subsidiary Subsidized Financing Subsidy Subsistence Agriculture Sunk Cost Sunk Costs Supervisory Board Swap Swap Book Swaption SWIFT (Society for Worldwide Interbank Financial Transactions) Switching Options A time series in which the process generating returns is identical at every instant of time. A swap bank’s portfolio of swaps.
Statistical Classification of Domestic and Foreign Commodities Exported from the India. A standard numerical code system developed by the U. Government to classify products and services. Bhadohi (U STP means Software Technology Parks An exclusive Services Export Promotion Council announced in the Foreign Trade Policy to map opportunities for key services in key markets. that cannot be accommodated within an existing zone. that lists the individual shipments constituting the ship's cargo. A group of steamship operators that operate under mutually agreed upon freight rates. A tariff that is set at a lower rate until a specified quantity (the quota) of goods has been imported. A standard numerical code system used by the U.B Ship's Manifest Sight Draft Spot Exchange Standard Industrial Classification (SIC) Standard International Trade Classification (SITC) Steamship Conference Straight Bill of Lading Subzone The selling group of investment banks in a public securities offering. Kulpi (West Bengal). and offsetting these transactions in the spot exchange market. Gopalpur (Orissa).N. at which point the tariff increases for additional imports. An instrument in writing. Risk that is common to all assets and cannot be diversified away (measured by beta). signed by the captain of a ship. Paradeep (Orissa). A nonnegotiable bill of lading in which the goods are consigned directly to a named consignee.Syndicate Synergy Synthetic Forward Position Systematic Risk SEZs STPs SEPC Schedule .(VA + VT). The purchase or sale of foreign exchange for immediate delivery. A draft that is payable upon presentation to the drawee. A forward position constructed through borrowing in one currency. levied by governments to raise revenues and create barriers to trade. lending in another currency. to classify commodities used in international trade. SEZs means Special Economic Zones In principle approvals have already been given for setting up of 26 new SEZs (state government/private sector) at Nanguneri (Tamil Nadu). In an acquisition or merger. when the value of the combination is greater than the sum of the individual parts: Synergy = VAT . Tangible assets are real assets that can be used as collateral to secure debt.T Tangibility Tare Weight Tariff-Quota Tariffs Tax Arbitrage . A special purpose zone established as part of a zone project for a limited purpose. Taxes on imported goods and services. Refers to Schedule B. The weight of a container and packing materials that excludes the weight of the goods it contains.S. Arbitrage using a difference in tax rates or tax systems as Glossary of Import International Trade Terms Starting with .
A reduced tax rate provided by a government as an inducement to foreign direct investment. and the Netherlands. (The tax benefits of tax-haven affiliates were largely removed in the United States by the Tax Reform Act of 1 Any method of forecasting future exchange rates based on the history of exchange rates. Export Opportunities. Is the Indian Government's most comprehensive source of Foreign Trade Data and export promotion information. The ability of the firm to postpone investment (or disinvestments) and to reconsider the decision at a future date. A country’s net balance (exports minus imports) on merchandise trade. Clienteles of investors with specific preferences for debt or equity that are driven by differences in investors’ personal tax rates. Belgium. Taxes that do not interfere with the natural flow of capital toward its most productive use. and service. products. A governmental policy.Tax Clienteles Tax Haven Tax Holiday Tax Neutrality Tax Preference Items Tax-Haven Affiliate Technical Analysis Territorial Tax System Time Draft Time Value of an Option The Foreign Trade Data Bank Timing Option Total Cash Flow Total Quality Management (TQM) Total Risk Trade Acceptance Trade Balance Trade Barrier Trade Deficit Trade Surplus Trade-in Allowance the basis for profit. France. A tax system that taxes domestic income but not foreign income. A time draft that is drawn on and accepted by an importer. An organization-wide approach to continuously improving the overall quality of its process. A wholly owned affiliate that is in a low-tax jurisdiction and that is used to channel funds to and from the multinational’s foreign operations. Total cash inflow minus total cash outflow. This tax regime is found in Hong Kong. Indices of Foreign and Domestic companies. A country or region imposing low or no taxes on foreign source income. The sum of systematic and unsystematic risk (measured by the standard deviation or variance of return). Price discount granted for a new item by turning in an old . A draft that is payable on a specified future dare. or practice that intentionally interrupts the free flow of goods or services between countries. action. A trade deficit occurs when the value of a country's exports is less than the value of its imports. Items such as tax-loss carry forwards and carry backs and investment tax credits that shield corporate taxable income from taxes. A trade surplus occurs when the value of a country's exports is greater than the value of its imports. Types of information on the FTDB include: International Market Research. The difference between the value of an option and the option’s intrinsic value.
logo. Release of merchandise by a bank to a buyer in which the bank retains title to the merchandise. A document that delineates the terms and conditions agreed upon between the importer and exporter. or a given number of days after date. and/or creditors of the lesser. An agreement in which a contractor is responsible for setting up a facility from start to finish for another firm. and like purposes. warehousing. transportation. The ratio of the total number of unemployed persons to the total number of persons in the labor force. Changes in a corporation’s financial statements as a result of changes in currency values. exportation. A single bill of lading covering both the domestic and international carriage of an export shipment.Trademark Trading Desk (Dealing Desk) Transaction Exposure Transaction Statement Transfer Prices Transfer Pricing Translation (Accounting) Exposure Trustee Turnkey Contract Tare Weight Tenor Through Bill of Lading Tramp Steamer Transaction Statement Transfer Trust Receipt Unbiased Expectations Hypothesis Uncertainty Avoidance Unemployment Rate Unlevered Beta (Systematic Business Risk) Unlevered Cost of Equity Unsustainable Debt item at the time of purchase. or characteristic can be identified as exclusive. To take merchandise with zone status from a zone for consumption. The hypothesis that forward exchange rates are unbiased predictors of future spot rates. The discount rate appropriate for an investment assuming it is financed with 100 percent equity. lesser. cartage or lighter age. A ship not operating on regular routes or schedules. vessel supplies and equipment. A bank or trust company that holds title to or a security interest in leased property for the benefit of the lessee. A document that clearly outlines the terms and conditions agreed upon between an importer and an exporter. a given number of days after sight. Prices on intercompany sales The price one unit of a company charges to another unit of the same company for goods or services exchanged between the two. The extent to which a society tolerates uncertainty and ambiguity. Changes in the value of contractual (monetary) cash flows as a result of changes in currency values. A financial condition in which a country is unable to service its foreign (external) debt without decimating its economy. The weight of a container and packing materials without the weight of the goods it contains. Designation of a payment as being due at sight. admission to another zone.U . The beta (or systematic risk) of a project as if it were financed with 100 percent equity. The desk at an international bank that trades spot and forward foreign exchange. A registration process under which a name. Glossary of Export Import Foreign Trade Terms Starting with .
Value addition refers to the increment added in the process of manufacture of a particular item. Unsystematic Risk Glossary of Import Export Trade Terms Starting with . Note: in Islamic societies. handling or User processing of merchandise. Partnerships so close those two partners become a single firm for all operational purposes. which creates value to customers. Vishesh Krishi Upaj Yojana. An option issued by a company that allows the holder to purchase equity from the company at a predetermined price prior to an expiration date. Glossary of EXIM Terms Starting with .W Warehouse Receipt Warehouse-to-Warehouse Warrant .e. One country promises another country to limit its imports. Warrants are frequently attached to Eurobonds. i. A required document issued by the Indian Government authorizing the export of specific commodities. a new scheme introduced in the Foreign Trade Policy (2004-2009) as part of the package for agriculture. A cost that varies directly with volume and is zero when production is zero. this is often done when the promising country fears increased tariffs or quotas if it does not selfregulate. seller delivers.Risk that is specific to a particular security or country and that can be eliminated through diversification. This inventory method controls merchandise in a zone by Unique Identifier Number(UIN) unique numbers and/or letters that identify merchandise admitted to a zone. Stocks with low price/book ratios or price/earnings ratios.V Value Chain Value Date Value Stocks Value-Added Tax (VAT) Variable Costs Venture Capital Virtual Corporation Voluntary Export Restraint (VER) Value Addition VKUJ Validated Export Licence A value-added process in a firm to transform raw materials and other inputs to finished goods. An insurance policy that covers goods over the entire journey from the seller's to the buyer's premises. which also becomes part of its price. Usury charging or receiving any amount of interest is considered usury. An investment in a start-up business that is perceived to have excellent growth prospects but that does not have access to capital markets. Historically. value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or PE ratios) in a variety of countries. The practice of charging or paying exorbitant interest on a loan or other transaction. A person or firm using a zone for storage. A sales tax collected at each stage of production in proportion to the value added during that stage. A receipt issued by a warehouse listing the goods received. Date on which a foreign exchange contract is executed.
normally in a single port of entry. the general intellectual state and outlook of an era or generation. All of the zone and subzone sites under a single grantee. A charge assessed by a pier or dock owner for handling incoming or outgoing cargo. A tax system that taxes worldwide income as it is repatriated to the parent company. Payment is typically withheld by the financial institution distributing the payment. Used in Japan. One of the "Big Three" international organizations designed to oversee economic relations among the countries of the world. The WTO is responsible for implementation. Document issued by either the exporter or a third party declaring the weight of goods in a consignment. A tax on dividend or interest income that is withheld for payment of taxes in a host country. The discount rate that equates the present value of interest payments and redemption value with the present price of the bond.Words and Definitions Yield to Maturity Glossary of International Trade Export Import Terms Starting with . A receipt issued by a warehouse listing goods received for storage. Merchandise admitted to a zone for the sole purpose of Glossary of Export Trade Terms Starting withY . and the United States. An accounting term that indicates the difference between current assets and current liabilities. A term indicating that a shipper's agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented.Weak form Efficient Market Weight Note Weighted Average Cost of Capital (WACC) Wharfage Charge Withholding Tax Working Capital World Bank World Trade Organization (WTO) Worldwide Tax System Warehouse Receipt Wharf age Without Reserve A market in which prices fully reflect the information in past prices. A collection of merchandise maintained under an inventory control method based on specific identification of merchandise admitted to a zone by lot and lot number. The WTO is a multilateral organization that promotes free and fair trade among the nations of the world. The spirit of the time. Large family-owned conglomerates that controlled much of the economy of Japan prior to World War II. the United Kingdom.Z Zaibatsu Zeitgeist Zone Lot Number (ZLN) Zone Project Zone Restricted (ZR) . A charge assessed by a pier or dock owner for handling incoming or outgoing cargo. It was created in 1994 by 121 nations at the Uruguay Round of the General Agreement on Tariffs and Trade (GATT). Its goal is to improve the quality of life for people in the poorer regions of the world by promoting sustainable economic development. A discount rate that reflects the after-tax required returns on debt and equity capital.
Zone Site Zone Status exportation or destruction.. . The status of merchandise admitted to a Foreign-Trade Zone. The physical location of a zone or subzone. domestic (D). non-privileged foreign (NPF).e. i. or zone restricted (ZR) status. privileged foreign (PF).
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.