NOTE TAKING

In a notebook/notepad WRITE DOWN the definition of the following terms:

1. Absolute advantage - the ability of an individual or group to carry out a particular

economic activity
more efficiently than another individual or group.
2. Balance of payment - the difference in total value between payments into and out of
a country over a
period.
3. Bill of lading - a detailed list of a shipment of goods in the form of a receipt given by
the carrier to the
person consigning the goods.
4. Exchange rate - the value of one currency for the purpose of conversion to another.
5. Exporting - send (goods or services) to another country for sale
6. Free trade - international trade left to its natural course without tariffs, quotas, or
other restrictions.
7. General Agreement on Tariffs and Trade (GATT) - an international trade treaty
designed to boost
member nation's economic recovery after WWII.
8. Foreign direct investment - a purchase of an interest in a company by a company or
an investor
located outside its borders.
9. Import quota - a government-imposed trade restriction that limits the number or
monetary value of
goods that a country can import or export during a particular period.
10. International Monetary Fund - an international organization that promotes global
economic growth
and financial stability, encourages international trade, and reduces
poverty
11. North American Free Trade Agreement (NAFTA) - controversial trade pact signed in
1992 that
 gradually eliminated most tariffs and other trade barriers on
products and services passing between the United States, Canada,
and Mexico.
12. Price discrimination - the action of selling the same product at different prices to
different buyers, in
order to maximize sales and profits.
13. Specific tariff - a tax levied as a fixed charge for each unit of a good that is
imported – for instance
$300 per ton of imported steel. 
14. Ad valorem tariff - levied as a proportion of the value of imported goods. An
example is a 20 percent
tariff on imported automobiles.
15. Subsidy - a sum of money granted by the government or a public body to assist an
industry or
business so that the price of a commodity or service may remain
low or competitive.
16. Voluntary export restraint - are arrangements between exporting and importing
countries in which
the exporting country agrees to limit the quantity of specific exports
below
a certain level in order to avoid imposition of mandatory restrictions
by the importing country
17. World bank - an international development organization owned by 187 countries. Its
role is to reduce
poverty by lending money to the governments of its poorer
members to improve
their economies and to improve the standard of living of their
people
18. World trade organization - It enacts the rules governing trade between countries of
goods, services,
agricultural and industrial goods, and intellectual property
19. Tariff - a tax or duty to be paid on a particular class of imports or exports.
20. Customs duty - refers to the tax imposed on goods when they are transported
across international
borders.
21. Dumping - a situation of international price discrimination, where the price of a
product when sold in
the importing country is less than the price of that product in the
market of the
exporting country
22. Anti-dumping duty - a protectionist tariff that a domestic government imposes on
foreign imports
that it believes are priced below fair market value.
23. Countervailing duty - a specific form of duty that the government imposes in order to
protect
domestic producers by countering the negative impact of import
subsidies. 
24. INCOTERMS -  a set of 11 internationally recognized rules which define the
responsibilities of sellers
and buyers
25. ASEAN - Association of Southeast Asian Nations, to accelerate economic growth,
social progress and
cultural development in the region and (2) to promote regional
peace and
stability through abiding respect for justice and the rule of law in the
relationship among countries in the Southeast Asia
26. ASEAN Free Trade Area - create a single market and an international production
base; attract foreign
direct investments; and. expand intra-ASEAN trade and
investments.
27. Import License and Import Permit - Import License is an administrative procedures
requiring the
submission of an application or other documentation (other than
those required
 for customs purposes) to the relevant administrative body as a prior
condition
for importation of goods.
Import permit is an official document from the government that allows a person or a
company to bring
certain types of goods into a country
28. Countervailing measures - are measures that can be undertaken whenever an
investigation, by the
investigating authority of the importing country, has led to the
determination
that the imported goods are benefiting from subsidies, and that
they result in an
injury.
29. Carrier - a person or thing that carries, holds, or conveys something
30. CIF - Cost, insurance, and freight (CIF) is an international shipping agreement,
which represents the
charges paid by a seller to cover the costs, insurance, and freight
of a buyer's
order while the cargo is in transit. Cost, insurance, and freight only
applies to
goods transported via a waterway, sea, or ocean.
31. FOB - The f.o.b. price (free on board price) of exports and imports of goods is the
market value of the
goods at the point of uniform valuation, (the customs frontier of the
economy
from which they are exported).
32. Certificate of Origin - is an important international trade document that certifies that
goods in a
particular export shipment are wholly obtained, produced,
manufactured or
processed in a particular country.
33. Commercial Invoice - an export document that serves as legal evidence of a sale
transaction between
 the buyer and the seller. 
34. Consular Invoice - Describes the shipment of goods and shows information such as
the consignor,
consignee, and value of the shipment
35. De minimis - lacking significance or importance
36. Embargo - an official ban on trade or other commercial activity with a particular
country.
37. Ex Works - a term used in shipping arrangements where the seller is only required
to deliver goods at
a predetermined location, and the buyer bears responsibility for
shipping costs.
38. Export license - a government document that authorizes or grants permission to
conduct a specific
export transaction (including the export of technology). Export
licenses are
issued by the appropriate licensing agency after a careful review of
the facts
surrounding the given export transaction.
39. Regulated commodities - Regulated commodities. The group of registered
commodity futures and
options contracts traded on organized U.S. futures exchanges.
40. Non-regulated commodities - used to describe businesses, services, agreements,
etc. that do not have
to obey official rules: Non-regulated products and services: please
note that the
Financial Services Authority does not regulate all of the products
featured on the
website.
41. Harmonized system - a standardized numerical method of classifying traded
products. It is used by
customs authorities around the world to identify products when
assessing duties
and taxes and for gathering statistics.
42. Most Favored Nation treatment - requires Members to accord the most favourable
tariff and
regulatory treatment given to the pro- duct of any one Member at
the time of
import or export of “like products” to all other Members. This is a
bedrock
principle of the WTO.
43. Modes of delivery - The formats in which the course is delivered.
44. Multilateral trade agreement - are commerce treaties among three or more nations.
The agreements
reduce tariffs and make it easier for businesses to import and
export. Since they
are among many countries, they are difficult to negotiate.
45. Non-tariff barriers - a trade restriction–such as a quota, embargo or sanction–that
countries use to
further their political and economic goals. Countries usually opt for
nontariff
barriers (rather than traditional tariffs) in international trade.
Nontariff barriers
include quotas, embargoes, sanctions, and levies.
46. Packing list - itemizes the contents of each package (box, pallets, etc). It includes
weights,
measurements and detailed lists of the goods in each package.
The packing list
should be included in carton or package, and can be attached to
the outside of a
package with a copy inside.
47. Protective tariffs - Protective tariffs are designed to shield domestic production from
foreign
competition by raising the price of the imported commodity.
Revenue tariffs are
designed to obtain revenue rather than to restrict imports. The two
sets of
 objectives are, of course, not mutually exclusive.
48. Quota - a fixed share of something that a person or group is entitled to receive or is
bound to \
contribute.
49. Export declaration - a form that is submitted by an exporter at the port of export. It
provides
information about the goods being shipped, including type, number,
and value.
This information is used by customs to control exports, in addition
to compiling
statistical information about a country's foreign trade.
50. Import declaration - a statement made by the importer (owner of the goods), or their
agent (licensed
customs broker) about: the goods being imported. details on the
importer. How
the goods are being transported; and. the tariff classification and
customs value.
51. Letter of credit -  essentially a financial contract between a bank, a bank's customer
and a
beneficiary. Generally issued by an importer's bank, the letter of
credit
guarantees the beneficiary will be paid once the conditions of the
letter of credit
have been met.
52. Wharfage - accommodations provided at a wharf for the loading, unloading, or
storage of goods.
53. Arrastre - A person/entity who/which performs portside cargo handling operations,
e.g. receiving,
handling, custody, security and delivery of cargo passing over
piers, quays or
wharves, transit sheds/warehouses and open storages within the
jurisdictional
area of responsibility of the authorized contractor/operator.
54. Stevedoring - a term which is derived from the word stevedore. Stevedore refers to
the act of loading
or offloading cargo to and/or from a ship. A person or company
engaged in such
act is known as a stevedore.
55. Balance of trade - e difference between the value of the goods that a country (or
another geographic
or economic area such as the European Union (EU) or the euro
area) exports and
the value of the goods that it imports.
 (C) Globalization - a term used to describe how trade and technology have made the
world into a more
connected and interdependent place. Globalization also captures in
its scope the
economic and social changes that have come about as a result.
(D) Philippines’ position in International Business and Trade –
Philippines is currently our 31st largest goods trading partner with
$18.9 billion
in total (two way) goods trade during 2020. Goods exports totaled
$7.7 billion;
goods imports totaled $11.1 billion. The U.S. goods trade deficit
with Philippines
was $3.4 billion in 2020.