Go to Aphabet B C D E F G H I J K L

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)
Advance Payment
Adventure
Advising Bank
Advisory Capacity
African Developmental
Bank (ABD)
Agency Costs
Agent
Aggregate Demand
Air Waybill
All-in Cost
Glossary of Export Import Trade Terms Starting with-A
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.
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.
The total demand of all potential buyers of a commodity or service. Includes all individuals and organizations that 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 information described about domestic and international trade.
The percentage cost of a financing alternative, including any bank fees or placement fees.
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 corporations 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.
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.
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, management is the agent of the principal stakeholders in a
principal-agent relationship.
Allocation Rules of Income
Allocation efficiency
Andean Pact
Annuity
Annuity Factor
Anti-Dumping Laws
APEC
Appreciation
Arbitrage
Arbitrage Pricing Theory
(APT)
Asia-Pacific Economic
Cooperation (APEC)
Asian Development Bank
(ABD)
Ask "offer" Rates
Asset Allocation Policy
Assets-in-Place
Association of South East
Asian Nations (ASEAN)
At-the-Money Option
ATC
Autarky
Aval
Avalisation
Average Accounting
Return (AAR)
AEZs
Advance Licence
Acceptance
The average project earnings after taxes and depreciation divided by the average book value of the investment during its life.
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 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. An agreement to purchase goods at a stated price and under stated terms.
An asset pricing model that assumes a linear relation between required return and systematic risk as measured by one or more factors according to Rj = mj + b1jF1 + ... +
bKjFK + ej.
APEC forum designed to promote economic growth, cooperation, and integration among member nations. The most prominent members are China, Japan, and Korea.
One of four major regional development banks currently operating in the global economy; it is headquartered in Manila, Philippines.
The rate at which a market maker is willing to sell the quoted asset.
The target weights given to various asset classes in an investment portfolio.
Those assets in which the firm has already invested. (Compare to growth options.)
A loose or low economic and geopolitical affiliation that includes Singapore, Brunei, Malaysia, Thailand, the 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 current value of the underlying asset.
Agreement on Textiles and Clothing
In models of international trade, a situation in which there is no cross-border trade.
A guarantee of the buyer's credit provided by the guarantor, unless the buyer is of unquestioned financial standing. The aval is an endorsement note as opposed to a
guarantee agreement.
Payment undertaking given by a bank in respect of a bill of exchange drawn.
In the U.S. tax code, these rules define how income and deductions are to be allocated between domestic-source and foreign-source income.
The efficiency with which a market channels capital toward its most productive uses.
A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and Bolivia.
Laws that are enacted to prevent dumping-offering prices in the overseas market that is lower than that at which a product is sold in its home domestic market.
Asia-Pacific Economic Cooperation
An increase in a currency value relative to another currency in a floating exchange rate system.
The process of purchasing and selling foreign exchange, stocks, bonds and other commodities in several markets intending to make profit from the difference in price.
A level stream of equal dollar payments that lasts for a 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 stream of level payments for a fixed period.
Ad Valorem
Advance Against
Documents
Advising Bank
Advisory Capacity
Air Waybill
Alongside
Alteration
Applicant
Arbitrage
Asian Dollars
Attributive Basis
Backward Innovation
Balance of Payments
(BOP)
Balance of Trade (BOT)
Balance Sheet
Bank for International
Settlements (BIS)
Bank-based Corporate
Governance System
Banker's Draft
Bankers Acceptance
Basis
Bargain Purchase Option
Barter
Basic IRR
Basis Point
Glossary of Export Import Trade Terms Starting with-B
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.
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.
The process of buying FOREIGN EXCHANGE, stocks, bonds and other commodities in one market and immediately 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 Funds accounting system that tracks the flow
of goods, services, and capital in and out of each country.
The difference between a countrys total imports and exports.
According to value
A loan made on the security of the documents covering the shipment.
A term indicating that shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual
represented.
A BILL OF LADING that covers both domestic and 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 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 subzone.
A corporation applying for the right to establish, operate and maintain a foreign-trade zone.
A bank, operating in the exporter's country, that handles LETTERS OF CREDIT for a foreign bank by notifying the exporter that the credit has been opened in his or her
favor.
Basis Risk
Basis Swap
Bearer Bonds
Benchmarking
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
Booking
CAA
Call Option
A warehouse authorized by CUSTOMS authorities for storage of goods on which payment of DUTIES is deferred until the goods are removed.
An arrangement with a steamship company for the acceptance and carriage of freight.
Clean Air Act (USA)
The right to buy the underlying currency at a specified price and on a specified date.
Glossary of Export Import Trade Terms Starting with-C
A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
- a warehouse authorized for storage of good on which payment of duty is deferred until the goods are removed from the warehouse.
Analysis of the level of sales at which a project would make zero profit.
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 world Bank and
IMF(International Monetary funds ) come into the existence.
An international conference held in 1944 at Britton Woods, New Hampshire, and established the International Monetary Fund and the World Bank.
BTP means Biotechnology Park as notified by Director General of Foreign Trade on the recommendation of the Department of Biotechnology
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. The B/L is Negotiable or Non-Negotiable forms.
The method whereby a bill of lading is made into a freely negotiable document of title.
A bond that coves a group of people, articles or properties.
A long-term contract in which the supplier promises to re-supply the buyers as needed at agreed-upon prices over the contracting time.
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.
A bond quotation convention based on a 365-day year and semiannual coupons. (Contrast with effective annual yield.)
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 companys practices against the best practice and modifying actual knowledge to achieve superior performance.
A party who receives a legal benefit Domestic or foreign Dealings.
A measure of an assets sensitivity to changes in the market portfolio (in the CAPM) or to a factor (in the APT). The beta of an asset j is computed as bj = rj,k (sj/sk),
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.
The difference between the interest rate at which the bank borrows money and lends money.
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).
Capital (Financial)
Structure
Capital Account
Capital Asset Pricing
Model (CAPM)
Capital Budgeting
Capital Formation
Capital Gain
Capital Market Line
Capital Markets
Capital Rationing
Capital Structure
Capitalism
Carrier
Cartel
Cash Against Documents
(CAD)
Cash Cover
Cash Flow
Cash in Advance (CIA)
Centrally Planned
Economy
Certificate of Acceptance
Certificate of
Analysis/certificate of
Inspection
Certificate of Manufacture
Certificate of Origin
Certificate of Product
Origin
Change in Net Working
Capital
Characteristic Line The line relating the expected return on a security to different returns on the market.
Term used in leasing. A document whereby the lessee acknowledges that the equipment to be leased has been delivered, is acceptable, and has been manufactured or
constructed according to specifications.
Documents that may be asked for by the importer and/or the authorities of the importing country, as evidence of quality or conformity to specifications.
A statement that is usually notarised in which the producer of goods certifies that the goods have been produced and are now available to the buyer.
Documents that may be asked for by the authorities of the importing country, as evidence of the country of manufacture of the goods.
A document required by certain foreign countries for tariff purpose, certifying the country of origin of specified goods.
Difference between net working capital from one period to another.
An agreement among, or an organization of, suppliers of a product.
Payment for goods where a commission house or other intermediary transfers title documents to the buyer upon payment in cash.
In a letter of credit transaction, money deposited by the applicant with the issuing bank.
Cash generated by the firm and paid to creditors and shareholders. It can be classified as (1) cash flow from operations, (2) cash flow from changes in fixed assets, and
(3) cash flow from changes in net working capital.
Payment for goods in which the price is paid in full before the shipment is made. This type of payment is usually only made for very small shipments or when goods are
made in order.
An economy in which the government, rather than free-market activity, controls the allocation of resources.
The line between the risk-free asset and the market portfolio that represents the mean-variance efficient set of investment opportunities in the CAPM.
Markets for financial assets and liabilities with maturity greater than one year, including long-term government and corporate bonds, preferred stock, and common stock.
The case where funds are limited to a fixed dollar amount and must be allocated among the competing projects.
The mix of the various debt and equity capital maintained by a firm. Also called financial structure. The composition of a corporation's securities used to finance its
investment activities; the relative proportions of short-term debt, long-term debt
An economic system that is based on private ownership; economic development is proportionate to and dependent upon the accumulation and reinvestment of profits.
An individual or entity that transports persons or goods for compensation under the contract of carriage.
The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm.
A measure of change in cross-border ownership of long-term financial assets, including financial securities and real estate.
An asset pricing model that relates the required return on an asset to its systematic risk.
Planning and managing expenditures for long-lived assets.
The process of increasing the amount of capital goods - also called capital stock - in a country.
The positive change in the value of an asset, a negative capital gain is a capital loss.
CHIPS (Clearing House
Interbank Payments
System)
CITES
Civil Society Organizations
(CSOs)
Clean Bill of Lading
Clean Collection
Clearance
Clearing
Closed-End Fund
Codex
Collection Order
Command Economy
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
The sum of income across all of the multinational corporations domestic and foreign subsidiaries.
A form of corporate reorganization in which two firms pool their assets and liabilities to form a new company.
Interest that is earned both on the initial principal and on interest earned on the initial principal in previous periods. The interest earned in one period becomes in effect
part of the principal in a following period.
Value of a sum after investing it over one or more periods. Also called future value.
Process of reinvesting each interest payment to earn more interest. Compounding is based on the idea that interest itself becomes principal and therefore also earns
interest in subsequent periods.
Bank that adds its payment undertaking to a letter of credit.
Party to whom goods are to be delivered.
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, while the consignor retains title to the goods until the consignee sells them.
General term for documents describing various aspects of a transaction, e.g. commercial invoice, transport document, insurance document, certificate of origin,
certificate of inspection etc.
The risk of unexpected changes in a commodity price, such as the price of oil.
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.
An organization that transports persons or goods for a fee.
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.
Documents presented under a letter of credit that comply with all its terms and conditions. The banks are only obliged to pay the beneficiary if documents are totally
compliant.
The completion of customs entry requirements that results in the release of goods to the importer.
The settlement of a transaction, often involving exchange of payments and/or documentation.
A mutual fund in which the amount of funds under management is fixed and ownership in the funds is bought and sold in the market like a depository receipt.
Codex Alimentarius Commission (a world food standards body)
In a collection, the document in which the seller instructs the banks as to how the collection is to be conducted.
An economy based on government ownership and/or control of society's resources; during the 20th century, the dominant form of command economy was communism.
Financial network through which banks in the United States conduct their financial transactions.
Convention on the International Trade in Endangered Species
Non-governmental and non-profit groups that work to improve society and the human condition.
A receipt for goods issued by a carrier that indicates that the goods were received in apparently good order and without damage.
Collection in which only the financial document is sent through the banks.
Corporate Governance
Correspondent Bank
Country Risk
Coupon Swap
Credit Risk Insurance
Consular Statement
Contingency Insurance
Contingent Claim
Continuous Compounding
Continuous Quotation
System
Contract Manufacturing
Contribution Margin
Controlled Foreign
Corporation (CFC)
Convertible Bonds
Convertible Currency
Convex Tax Schedule
Corporate Culture
Corporate Social
Responsibility
Corporation
Correlation
Corruption Perceptions
Index (CPI)
Cost and Freight(C&F)
Counter Credit
Counter Trade
Coupon
Another name for back-to-back letter of credit.
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.
The stated interest on a debt instrument.
The set of values, beliefs, relationships between individuals and functions that guide the decisions of a company to achieve its objectives.
The responsibilities that corporations (including MNCs) have to workers and their families, to consumers, to investors, and to the natural environment.
Form of business organization that is created as a distinct "legal person" composed of one or more actual individuals or legal entities. Primary advantages of a corporation
include limited liability, ease of ownership, transfer, and perpetual succession.
A measure of the co variability of two assets that is scaled for the standard deviations of the assets (rAB = sAB / sAsB such that -1 < rAB < +1).
A ranking of countries by level of corruption that is researched and published by Transparency International (TI), the world's leading non-governmental organization
dedicated to fighting corruption.
A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price.
A firm allowing another firm to manufacture a pre-specified product.
Amount that each additional product, such as a jet engine, contributes to after-tax profit of the whole project: (Sales price - Variable cost) X (1 - T), where T is the
corporate tax rate.
In the U.S. tax code, a foreign corporation owned more than 50 percent either in terms of market value or voting power.
Bonds sold with a conversion feature that allows the holder to convert the bond into common stock on or prior to a conversion date and at a pre specified conversion
price.
A currency that can be traded for other currencies at will.
A tax schedule in which the effective tax rate is greater at high levels of taxable income than at low levels of taxable income. Such a schedule results in progressive
taxation.
Insurance that covers the risk of non-payment for delivered goods.
A document required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of shipment.
Certified by a consular official of the foreign country, it is used by the country's officials.
Contingency insurance protects the exporter in any situation in which exporter responsibility relied on the buyer to insure, but sustained a loss because of inadequate
coverage from that source. It will cover situations in which the FOB endorsement.
Claim whose value is directly dependent on, or is contingent on, the value of its underlying assets. For example, the debt and equity securities issued by a firm derive
their value from the total value of the firm.
Interest compounded continuously, every instant, rather than at fixed intervals.
A trading system in which buy and sell orders are matched with market makers as the orders arrive, ensuring liquidity in individual shares.
The way in which major stakeholders exert control over the modern corporation.
A bank that, in its own country, handles the business of a foreign bank.
The political and financial risks of conducting business in a particular foreign country.
A fixed-for-floating interest rate swap.
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
Current Account Balance
Custom Union
Customhouse Broker
Customs
Carnet
Cash with Order (C.W.O.)
Certificate of Inspection
Cost And Freight (C & F)
Charter Party
Cost and Insurance (C & I)
A document certifying that merchandise was in good condition immediately prior to its shipment.
A pricing term indicating that the cost of the goods and freight charges are included in the quoted price.
Written contract between the owner of a vessel and a "chartered" who rents use of the vessel or a part of its freight space.
A pricing term indicating that the cost of the product and insurance are included in the quoted price.
A broad measure of import-export activity that includes services, travel and tourism, transportation, investment income and interest, gifts, and grants along with the
trade balance on goods.
A form of regional economic integration group that eliminates tariffs among member nations and establishes common external tariffs.
A person or firm obtains the license from the treasury department of its Country when required, and help clients (importers) to enter and declare goods through customs.
The authorities designated to collect duties levied by a country on imports and exports.
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.
Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.
A fixed-for-floating rate no amortizing currency swap traded primarily through international commercial banks.
A hedge of currency risk using a currency that is correlated with the currency in which the underlying exposure is denominated.
The currency that is being bought or sold. It is most convenient to place the currency of reference in the denominator of a foreign exchange quote.
A contract giving the option holder the right to buy or sell an underlying currency at a specified price and on a specified date. The option writer (seller) holds the
obligation to fulfill the other side of the contract.
A contractual agreement to exchange a principal amount of two different currencies and, after a prearranged length of time, to give back the original principal. Interest
payments in each currency are also typically swapped during the life of the agreement
A measure of a countrys international trade in goods and services.
The required return on the company's common stock in capital markets. 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. It is a cost from the firm's perspective.
Duties levied on an imported good that has been unfairly subsidized by a foreign government. Imposing duties on the good is meant to raise the product's price to a "fair
market value".
WTO Committee on Trade and Development
Collective mental paradigms that a society imparts to individuals in the form of behavior patterns, shared values, norms and institutions.
An equity account under FAS #52 that accumulates gains or losses caused by translation accounting adjustments.
The risk of unexpected changes in foreign currency exchange rates.
A measure of the co variability of two assets (sAB = sAsB rAB).
Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.
A futures hedge using a currency that is different from, but closely related to, the currency of the underlying exposure.
Cost, Insurance, Freight
Clean Draft
Collection Papers
Commercial Attachment
Commercial Invoice
Common Carrier
Confirmation of Letter of
Credit
Consignment
Constructive Transfer
Consular Invoice
Convertible Currency
Corporation (Private)
Corporation (Public)
Correspondent Bank
Counter Trade
Credit Risk Insurance
Customs Territory
Custom House Agent
(CHA)
Dealing Desk or Trading
Desk
Debt capacity
Debt-for-Equity Swap
Decision Trees
Deferred Payment Credit
Devaluation
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.
Insurance designed to cover risks of nonpayment for delivered goods.
Territory of the India in which the general tariff laws of the India apply.
An individual or firm licensed to enter and clear goods through Customs.
The desk at an international bank that trades spot and forward foreign exchange.
The amount of debt that a firm chooses to borrow to support a project.
Glossary of Export Import Trade Terms Starting with-D
A legal fiction which permits acceptance of a Customs entry for merchandise in a zone before its physical transfer to the Customs territory.
A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment.
A currency that can be bought and sold for other currencies at will.
Any corporation which is organized for the purpose of establishing, 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.
A State, political subdivision thereof, a municipality, a public agency of a State, political subdivision thereof, or municipality, or a corporate municipal instrumentality of
one or more States.
A bank that, in its own country, handles the business of a foreign bank.
All documents submitted to a buyer for the purpose of receiving payment for a shipment.
The commerce expert on the diplomatic staff of his/her country's embassy or large consulate.
An itemized list of goods shipped, usually among an exporter's COLLECTION PAPERS.
An individual, partnership, or corporation that transports persons or goods for compensation.
A letter of credit, issued by a foreign bank, whose validity has been confirmed by a Nationalized Indian bank.
Delivery of merchandise from an exporter (consignor) to an agent (consignee) under agreement that the agent sell the merchandise for the account of the exporter.
A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
A draft to which no documents have been attached.
The official lowering of the value of one country's currency in terms of one or more foreign currencies.
A swap agreement to exchange equity (debt) returns for debt (equity) returns over a prearranged length of time.
A graphical analysis of sequential decisions and the likely outcomes of those decisions.
A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter.
Developing Country (DCs)
Deliverable Instrument
Delta-Cross-Hedge
Delta-Hedge
Demand Management
Depository Receipt
Depreciation
Derivative Security
Devaluation
Developed Countries
DFID
Difference Check
Digital Divide
Direct Costs of Financial
Distress
Direct Exporting
Direct Financing Lease
Direct Product
Profitability
Direct Terms
Discount
Discounted Cash Flow
Discounted Payback
Discounted Payback
Period Rule
Discounting
Discretionary Reserves
Discriminatory Pricing
If a bond is selling below its face value, it is said to sell at a discount.
A valuation methodology that discounts expected future cash flows at a discount rate appropriate for the risk, currency, and maturity of the cash flows.
The length of time needed to recoup the present value of an investment; sometimes used when investing in locations with high country risk.
An investment decision rule in which the cash flows are discounted at an interest rate and the payback rule is applied on these discounted cash flows.
Calculating the present value of a future amount. The process is the opposite of compounding.
Balance sheet accounts that are used in some countries to temporarily store earnings from the current year or the recent past.
The digital divide refers to the widening technological gap between the richer and the poorer countries of the world.
Costs of financial distress that are directly incurred during bankruptcy or liquidation proceedings.
A decrease in a currency value relative to another currency in a floating exchange rate system.
A financial security whose price is derived from the price of another asset.
A decrease in a currency value relative to another currency in a fixed exchange rate system.
The richer, more industrialized countries in the world.
Department for International Development (UK)
The difference in interest payments that is exchanged between two swap counter parties.
A country that is in the process of becoming industrialized; the poorer nations of the world.
The asset underlying a derivative security. For a currency option, the deliverable instrument is determined by the options exchange and is either spot currency or an
equivalent value in futures contracts.
A futures hedge that has both currency and maturity mismatches with the underlying exposure.
A futures hedge using a currency that matches the underlying exposure and a maturity date that is different from, but preferably close to, the maturity of the underlying
exposure.
A business process with the intention to coordinate and influence all sources of demand for a firms products.
A derivative security issued by a foreign borrower through a domestic trustee representing ownership in the deposit of foreign shares held by the trustee.
Marketer takes direct responsibility for its products abroad by selling them directly to foreign customers or through local representatives in foreign markets.
A non-leveraged lease by a lesser in which the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.
Measuring the direct costs associated with handling a product from the warehouse until a customer buys from the retail store.
The price of a unit of foreign currency in domestic currency terms, such as INR 45.70/USD for a India resident. (Contrast with indirect quote.)
The practice that selling a product or service at different prices that do not reflect a proportional difference in costs.
Dispatch
Distributor
Diversifiable (unique)
(unsystematic) risk
Doc
Dock Receipt
Dock Statement
Domestic Bonds
Domestic Liquidity
Draft (trade bill, 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
Deactivisation
Default
Deferred Payments Credit
Destination Control
Statement
Type of "LETTER OF CREDIT" providing for payment some time after presentation of shipping documents by exporter.
Any of various statements that the U.S. Government requires to be displayed on export shipments and that specify the destinations for which export of the shipment has
been authorized.
Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic customs duty on the import content of export product. This is provided by way of grant of
duty credit against the export product at specified rates. The DEPB Scheme
Refers to the Duty Free Replenishment Certificate Scheme which was introduced from 1/4/2000 replacing. Transferable Advance Licensing Scheme. The scheme is
available to merchant exporters as well as to manufacturer exporters. However,
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.
A draft that matures in a specified number of days after the date it is issued, without regard to the date of "ACCEPTANCE".
Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator.
An act or omission that will result in a claim for duties, taxes, charges or liquidated damages under the FTZ Operator's Bond
Dispute Settlement Understanding
The practice of selling identical products in different markets for different prices.
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. Dumping is an illegal trade practice.
A tax imposed on imports by the customs authority of a country.
Directorate General of Foreign Trade, which is headed by the Director General of Foreign Trade. The office of the DGFT is responsible for formulating and execution of
Foreign Trade Policy, including licensing. Formerly (till 1991), was known as the Chief
Allows duty-free import of inputs for exports under Advance Licence, Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment Certificate (DFRC) Scheme.
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.
The aggregate of money supply, quasi-money or savings and time deposits, and deposit substitutes.
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).
Dispute Settlement Body
Dispute Settlement Panel
A Foreign agent who sells for a supplier directly and maintains an inventory of the suppliers product.
A risk that specifically affects a single asset or a small group of assets. Also called unique or unsystematic risk.
Department of Commerce (USA)
A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse.
An amount paid by a vessel's operator to a charter if loading or unloading is completed in less time than stipulated in the charter party.
Devaluation
Discrepancy - Letter of
Credit
Documentary Against
Acceptance (D/A)
Draft
Drawback
Drawee
Drawer
Dumping
Duty
Earnings Response
Coefficient
Eclectic Paradigm
Economic Exposure
Economic Freedom
Economic Integration
Economic Union
Economic Value Added
Economies of Scale
Economies of Vertical
Integration
Effective Annual Interest
Rate
Effective Annual Yield
Efficient Frontier
Efficient Market
Embargo
Emerging Market
A type of economic sanction that totally disallows the imports of a specific product or all products from a specific country.
An emerging market has a very high growth rate, which yields enormous market potential. It is distinguished by the recent progress it has made in economic
liberalization.
Achieving lower average cost per unit through a larger scale of production.
Achieving lower operating costs by bringing the entire production chain within the firm rather than contracting through the marketplace.
the interest rate as if it were compounded once per time period rather than several times per period.
Calculated as (1+i/n)n, where i is the stated annual interest rate and n is the number of compounding periods per year. (Contrast with bond equivalent yield and money
market yield.)
The mean-variance efficient portion of the investment opportunity set.
A market in which prices reflect all relevant information.
A theory of the multinational firm that posits three types of advantage benefiting the multinational corporation: ownership-specific, location-specific, and market
internalisation advantages.
Change in the value of a corporations assets or liabilities as a result of changes in currency values.
Economic freedom occurs when individuals and businesses make most of the economic decisions in an economy.
The integration of commercial and financial activities among countries through the abolishment of economic discrimination.
A group that combines the economic characteristics of a common market with some degree of harmonization of monetary and fiscal policies.
A method of performance evaluation that adjusts accounting performance with a charge reflecting investors required return on investment.
Articles manufactured or produced in the India with the use of imported components or raw materials and later exported are entitled to a refund of the duty charged on
the imported products or components.
The individual or firm on whom a draft is drawn and who owes the stated amount.
The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee.
Exporting/Importing merchandise into a country below the costs incurred in production and shipment.
A tax imposed on imports by the customs authority of a country.
The relation of stock returns to earnings surprises around the time of corporate earnings announcements.
Glossary of Export Import Trade Terms Starting with-E
The official lowering of the value of one country's currency in terms of one or more foreign currencies.
When documents presented do not conform to the letter of credit.
Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the
attached draft.
An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or
determinable future date.
Emerging Stock Markets
Employment Rate
Endogenous Uncertainty
Engagement
Equity-Linked Eurobonds
Erosion
Euro
Eurobond
Eurocurrencies
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
Price or input cost uncertainty that is outside the control of the firm.
The date when a letter of credit is no longer valid - i.e. the date beyond which it cannot be used.
A tax that is explicitly collected by a government; includes income, withholding, property, sales, and value-added taxes and tariffs.
A foreign exchange quotation that states the foreign currency price of one U.S. dollar. (Contrast with American terms.)
An intergovernmental organization which coordinates foreign, economic, and judicial policy among its 25 member nations.
The price of one currency in terms of another, i.e. the number of units of one currency that may be exchanged for one unit of another currency.
The risk that losses may result from the changes in the relative values of different currencies.
The price at which an option can be exercised (also called the striking price).
Export-Import Bank of the India. Provides guarantees of working capital loans for Indian exporters, guarantees the repayment of loans or makes loans to foreign
purchasers of Indian goods and services.
Dollar-denominated deposits held in a country other than the United States.
One of four major regional development banks currently operating in the global economy.
A trade-weighted basket of currencies in the European Exchange Rate Mechanism (ERM) of the European Union.
The exchange rate system used by countries in the European Union in which exchange rates are pegged within bands around an ERM central value.
An exchange rate system based on cooperation between European Union central banks.
An option that can be exercised only at expiration. (Contrast with American option.)
A Eurobond with a convertibility option or warrant attached. Eurobonds: Fixed rate Eurocurrency deposits and loans and Eurocurrencies with longer maturities than five
years.
Cash-flow amount transferred to a new project from customers and sales of other products of the firm.
The single currency of the European Economic and Monetary Union (EMU) introduced in January 1999. EMU members are Austria, Belgium, Finland, France, Germany,
Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.
A bond that is denominated in a currency other than that of the country of issue.
Deposits and loans denominated in one currency and traded in a market outside the borders of the country issuing that currency (like : Eurodollars).
A money market for currencies held in the form of deposits in countries other than that where the currency is issued.
The stock markets of emerging economies. These markets typically have higher expected returns than established markets but also higher risk.
The ratio, in percent, of the number of employed persons to total labor force.
Price or input cost uncertainty that is within the control of the firm, such as when the act of investing reveals information about price or input cost.
The assumption of payment responsibility in respect of a letter of credit, e.g.
Export
Export Management
Company
Export Management
Company
Export Broker
Export License
Export Restraints
Export Subsidies
Export Trading Company
(ETC)
Expropriation
External Market
Extraterritoriality
Exim Policy
EPZs/EOUs
E-Commerce
EPCG
Exchange Permit
Exchange Rate
Exhibition
Export Commission House
Export License
Face Value
Factor Model
Factoring
Financial (Capital)
Structure
A government permit sometimes required by the importer's government to enable the importer to convert his or her own country's currency into foreign currency with
which to pay a seller in another country.
The price of one currency in terms of another, i.e., the number of units of one currency that may be exchanged for one unit of another currency.
The showing of merchandise within a zone, usually to prospective buyers.
An organization which, for a commission, acts as a purchasing agent for a foreign buyer.
A government document that permits the "Licensee" to engage in the export of designated goods to certain destinations.
Glossary of Export Trade Terms Starting with-F
A market for financial securities that are placed outside the borders of the country issuing that currency.
A government practice which applies its laws outside its territorial boundaries.
Refers to Export and Import (Exim) Policy. Exim Policy has got incorporated into the comprehensive Foreign Trade Policy, which was announced by the Commerce &
Industry Minister on 31st August, 2004.
EPZs means Export Processing Zones which are special enclaves, separated from the Domestic Tariff Area (DTA), to provide an internationally competitive duty-free
environment for export production.EOUmeans Export Oriented Units.
Refers to electronic commerce. In the context of Foreign Trade Policy, e-commerce relates to electronic filing and processing of applications etc.
EPCG refers to the Export Promotion Capital Goods (EPCG) Scheme, which gives the manufacturer facility for import of capital goods for export production at
concessional rate of duty (5 per cent) against certain level of export .
An individual or firm that helps to locate and introduce buyers and seller in international business for a commission but does not take part in actual sales transaction.
A general export license covers the exportation of goods not restricted under the terms of a validated export license. No formal application or written authorization is
needed to ship exports under a general export license.
Quantitative restrictions imposed by exporting countries to limit exports to specified foreign markets, usually as a follow-up to formal or informal agreements reached
with importing countries.
Any form of government payment that helps an exporter or manufacturing concern to lower its export costs.
A company that facilitates the export of goods and services. An ETC can either act as the export department for producers or take title to the product and export for its
own account.
A specific type of political risk in which a government seizes foreign assets.
Any resource, intermediate good, or final good or service that producers in one country sell to buyers in another country.
A foreign or domestic company that acts as a sales agent and distributor for domestic exporters in international markets.
A private firm that transacts export business on behalf of its client companies in return for a commission, salary, or retainer.
The value of a bond that appears on its face. Also referred to as par value or principal.
A model that assumes a linear relation between an assets 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.
Financial Contagion
Financial Engineering
Financial Innovation
Financial Markets
Financial Price Risk
Financial Risk
Financial Strategy
Fixed Cost
Financial Policy
First-to-Market Advantage
Fixed Exchange Rate
System
Fixed Forward Contract
Floating Currency System
Floating Exchange Rate
FoB Endorsement
Force Majeure
Foreign Aid
Foreign Bonds
Foreign Branch
Foreign Debt
Foreign Direct investment
(FDI)
Foreign Equity
Requirements
Foreign Exchange
Foreign Exchange
(Currency) Risk
Foreign Exchange Broker Brokers serving as matchmakers in the foreign exchange market that do not put their own money at risk.
A foreign affiliate that is legally a part of the parent firm. In the U.S. tax code, foreign branch income is taxed as it is earned in the foreign country.
Money owed by a nation to foreign investors, banks, or governments.
The act of building productive capacity directly in a foreign country.
Investment rules that limit foreign ownership to a minority holding is a company.
Currency of another country, or a financial instrument that facilitates payment from one currency to another.
The risk of unexpected changes in foreign currency exchange rates.
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.
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.
Used with FOB, FAS, C&F, or CFR (but not CIF) quotations, FOB sales endorsement to an open marine policy can cover transit risk from the point of origin until title
transfers. In these instances, the exporter relies on the importer to insure.
The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as Acts
of God, war.
A grant of money, technical assistance, capital equipment, or other assistance typically extended by richer nations to poorer nations.
Bonds that are issued in a domestic market by a foreign borrower, denominated in domestic currency, marketed to domestic residents, and regulated by the domestic
authorities.
The way in which the firm pursues its financial objectives.
A cost that is fixed in total for a given period of time and for given volume levels. It is not dependent on the amount of goods or services produced during the period.
The corporations choices regarding the debt-equity mix, currencies of denomination, maturity structure, method of financing investment projects, and hedging decisions
with a goal of maximizing the value of the firm to some set of stakeholders.
Also know as "first-mover advantage." The idea of first-mover 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.
An exchange rate system in which governments stand ready to buy and sell currency at official exchange rates.
Currency is bought or sold at a given future date.
The spread of a financial crisis from one country or region to other countries or regions.
The process of innovation by which new financial products are created.
The process of designing new financial products, such as exotic currency options and swaps.
Markets for financial assets and liabilities.
The risk of unexpected changes in a financial price, including currency (foreign exchange) risk, interest rate risk, and commodity price risk.
Financial risk refers to unexpected events in a countrys financial, economic, or business life.
Foreign Exchange Dealer
Foreign Exchange Markets
Foreign Trade Zone
Foreign-Source Income
Forfaiting
Forward Contract
Forward Discount
Forward Market
Forward Parity
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
Fundamental Analysis
Future Value
Futures Commission
Merchant
Futures Contract
A brokerage house that is authorized by a futures exchange to trade with retail clients.
A commitment to exchange a specified amount of one currency for a specified amount of another currency at a specified time in the future. Futures contracts are
periodically marked-to-market,
An independent business that handles export shipment on behalf of the shipper without vested interest in the products. A freight forwarder is a good source of
information and assistance on export regulations and documentation.
Agents used to coordinate the logistics of transportation.
The organization of data to show how often certain values or ranges of values occur.
A lease in which the lesser recovers, through the lease payments, all costs incurred in the lease plus an acceptable rate of return, without any reliance upon the leased
equipment's future residual value.
A method of predicting exchange rates using the relationships of exchange rates to fundamental economic variables such as GNP growth, money supply, and trade
balances.
Value of a sum after investing it over one or more periods. Also called compound value.
A parent company grants another independent entity the privilege to do business in a pre-specified manner, including manufacturing, selling products, marketing
technology and other business approach.
Cash flow after all positive-NPV projects have been exhausted in the firms main line of business.
An area such as a port city into which merchandise may legally be moved without payment of duties.
A proposed hemispheric trade zone that would cover all of the countries in North, South, and Latin America. The FTAA is highly controversial.
An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. Merchandise may be stored, used or
manufactured in the zone and re-exported without duties being paid.
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 commitment to exchange a specified amount of one currency for a specified amount of another currency on a specified future date.
A currency whose nominal value in the forward market is lower than in the spot market. (Contrast with forward premium.)
A market for forward contracts in which trades are made for future delivery according to an agreed-upon delivery date, exchange rate, and amount.
When the forward rate is an unbiased predictor of future spot exchange rates.
A currency whose nominal value in the forward market is higher than in the spot market. (Contrast with forward discount.)
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.
A financial institution making a market in foreign exchange.
Networks of commercial banks, investment banks, and other financial institutions that convert, buy, and sell currencies in the global economy.
A physical area in which the government allows firms to delay or avoid paying tariffs on imports.
Income earned from foreign operations.
A form of factoring in which large, medium- to long-term receivables are sold to buyers (forfaiters) that are willing and able to bear the costs and risks of credit and
collections.
FTP
FTWZ
FoB
First in-First Out (FIFO)
Force Majeure
Foreign Exchange
Foreign First (FOFI)
Foreign Sales Agent
Foreign-Trade Zone/Free
Trade Zone
Foreign -Trade Zones Act
Foul Bill of Lading
Free Alongside(F.A.S.)
Free in (F.I.)
Free Port
Freight Forwarder
G-7
G-8
Generally Accepted
Accounting Principles
(GAAP)
General Agreement on
Tariffs and Trade (GATT)
Generalized
Autoregressive conditional
Heteroskedasticity
Geocentric Multinational
Global Bond
Global Economy
Globalization
A bond that trades in the Eurobond market as well as in one or more national bond markets.
The international network of individuals, businesses, governments, and multilateral organizations which collectively make production and consumption decisions.
A global movement to increase the flow of goods, services, people, real capital, and money across national borders in order to create a more integrated and
interdependent world economy.
A formal organization of seven highly industrialized democracies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The G-7 countries plus Russia.
A common set of accounting concepts, standards, and procedures by which financial statements are prepared.
A post-World War II agreement designed to promote freer international trade among the nations of the world. The GATT was replaced by the World Trade Organization
(WTO) in 1994.
A time series model in which returns at each instant of time are normally distributed but volatility is a function of recent history of the series.
A multinational in which the subsidiaries are neither satellites nor independent city states, but parts of a whole whose focus is on worldwide objectives as well as local
objectives, each part making its unique contribution with its unique competence.
A receipt of goods issued by a carrier with an indication that the goods were damaged when received.
A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.
A pricing term indicating that the charter of a vessel is responsible for the cost of loading and unloading goods from the vessel.
An area such as a port city into which merchandise may be legally moved without payment of duties.
An independent business which handles export shipments for compensation.
Glossary of Import Trade Terms Starting with-G
The title of a standard clause in marine contracts exempting the parties for no fulfillment of their obligations as a result of conditions beyond their control, such as
earthquakes, floods, or war.
The currency or credit instruments of a foreign country.
An accounting method based on an assumption regarding the flow of goods that foreign status merchandise is disposed of first.
An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.
A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, or used for manufacturing,
etc., within the zone and re-exported without duties being paid.
The Foreign-Trade Zones Act of June 18, 1934, (48 Stat. 998-1003; 19 U.S.C. 81a-81u) as amended.
Refers to Foreign Trade Policy, announced by the Commerce & Industry Minister on 31st August, 2004. It is a 5-year Policy (September 2004 -- March 2009), which takes
effect from September 1, 2004.
Free Trade and Warehousing Zone, a new scheme announced in the Foreign Trade Policy 2004-2009.
Fob means Free on Board - i.e., when an exporter delivers goods "free on board", he pays all charges involved in getting them actually onto the ship.
An accounting method based on an assumption regarding the flow of goods that older stock is disposed of first, in accordance with good merchandising policy.
Gold Exchange Standard
Gold Standard
Goodwill
Gradualism
Gray-Market Imports
Greenfield
Greenmail
Gross Domestic Product
(GDP)
Growing Perpetuity
Growth Options
Growth Stocks
Guideline Lease
GATT/General Agreement
on Tariffs And Trade
Grantee
Gross Weight
Harmonized Tariff
Schedule (HTS)
Hedge Quality
Hedge Ratio
Hedging
High-Withholding-Tax
Interest Income
Heavily Indebted Poor
Countries (HIPC) Initiative
Hedge
Hedge Funds
Hedge Portfolio
The HIPC Inititiative is a major international response to the burdensome external debt held by the world's poorest, most indebted countries. It originated in 1996 as a
joint undertaking of the World Bank and the International Monetary Fund (IMF).
A position or operation that offsets an underlying exposure. For example, a forward currency hedge uses a forward currency contract to offset the exposure of an
underlying position in a foreign currency. Hedges reduce the total variability of the combined
Private investment partnerships with a general manager and a small number of limited partners.
The country-specific hedge portfolio in the International Asset Pricing Model serves as a store of value (like the risk-free asset in the CAPM) as well as a hedge against the
currency risk of the market portfolio.
Glossary of Import Export Trade Terms Starting with-H
A method of classification used by many countries to determine tariffs on imports.
Measured by the r-square in a regression of spot rate changes on futures price changes.
The ratio of derivatives contracts to the underlying risk exposure.
Reducing the risk of a cash position by using the futures instruments to offset the price movement of the cash asset.
In the U.S. tax code, interest income that has been subject to a foreign gross withholding tax of 5 percent or more.
The positive-NPV opportunities in which the firm has not yet invested. The value of growth options reflects the time value of the firms current investment in real assets
as well as the option value of the firms potential future investments.
Stocks with high price/book or price/earnings ratios. Historically, growth stocks have had lower average returns than value stocks (stocks with low price/book or PE
ratios) in a variety of countries.
A lease written under criteria established by the IRS to determine the availability of tax benefits to the lesser.
A multilateral treaty intended to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions.
A corporation to which the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted by the Foreign-Trade Zones Board.
The full weight of a shipment, including goods and packaging.
A steady and calculated approach to transforming an economy from communism to capitalism.
Gray-market imports are parallel distribution of genuine goods by intermediaries other than authorized channel members.
A form of investment in which the firm designs and builds a new factory from scratch.
Buying shares on the open market in the hope that the targets business partners will buy back the shares at inflated prices.
A measure of the market value of goods and services produced by a nation. Unlike Gross National Product, GDP excludes profits made by domestic firms overseas, as well
as the share of reinvested earning in domestic firms' foreign-based operations.
A constant stream of cash flows without end that is expected to rise indefinitely. For example, cash flows to the landlord of an apartment building might be expected to
rise a certain percentage each year.
An exchange rate system used from 1925 to 1931 in which the United States and England were allowed to hold only gold reserves while other nations could hold gold, U.S.
dollars, or pounds sterling as reserves.
An exchange rate system used prior to 1914 in which gold was used to settle national trade balances. Also called the classical gold standard.
The accounting treatment of an intangible asset such as the takeover premium in a merger or acquisition.
Historical Volatility
Holding-Period Return
Home Asset Bias
Homogeneous
Expectations
Hyperinflation
Hysteresis
Implicit Tax
Implied Volatility
Import
Import Licenses
In-the-Money Option
Income Baskets
Income Statement
Incremental IRR
Indemnity Clause
Independent Project
Index futures
Index options
Index swap
Indication pricing
schedule
Indirect Costs of Financial
Distress
Indirect Customers
Indirect Diversification
Benefits
Indirect Exporting
A swap of a market index for some other asset (such as a stock-for-stock or debt-for-stock swap).
A schedule of rates for an interest rate or currency swap.
Costs of financial distress that are indirectly incurred prior to formal bankruptcy or liquidation.
The end-users (e.g., consumers) of the products and services purchased from the wholesalers, retailers, and consignees -- the direct customers of the seller.
Diversification benefits provided by the multinational corporation that are not available to investors through their portfolio investment.
Export products to foreign markets by using an intermediary, usually export trading company based in the exporters country.
Financial report that summarizes a firm's performance over a specified time period.
IRR on the incremental investment from choosing a large project instead of a smaller project.
A clause in which the one party indemnifies the other. In leasing, generally a clause whereby the lessee indemnifies the lesser from loss of tax benefits.
A project whose acceptance or rejection is independent of the acceptance or rejection of other projects.
A futures contract that allows investors to buy or sell an index (such as a foreign stock index) in the futures market.
A call or put option contract on an index (such as a foreign stock market index).
Lower (higher) before-tax required returns on assets that are subject to lower (higher) tax rates.
The volatility that is implied by an option value given the other determinants of option value.
Any resource, intermediate good, or final good or service that buyers in one country purchase from sellers in another country.
Licenses required by some countries to bring in a foreign-made good. In many cases, import licenses are also used by the issuing country to control the quantity of
imported items.
An option that has value if exercised immediately.
In the U.S. tax code, income is allocated to one of a number of separate income categories. Losses in one basket may not be used to offset gains in another basket.
The tendency of investors to over invest in assets based in their own country.
Idea that all individuals have the same beliefs concerning future investments, profits, and dividends.
An extremely high rate of inflation, often exceeding several hundred or several thousand percent, that causes a country's money to become practically worthless.
The behavior of firms that fail to enter markets that appear attractive and, once invested, persist in operating at a loss. This behavior is characteristic of situations with
high entry and exit costs along with high uncertainty.
Glossary of Import Export International Trade Terms Starting with-I
Volatility estimated from a historical time series.
The rate of return over a given period.
Inflation Rate
Informational Efficiency
Integrated Financial
Market
Intellectual Property
Intellectual Property
Rights
Inter-American
Development Bank(IADM)
Interbank Spread
Interest Rate Risk
Interest Rate Swap
Intermediated Market
Intermodal
Internal Market
Internal Rate of Return
(IRR)
International Asset Pricing
Model (IAPM)
International Monetary
System
Intrinsic Value of an
Option
International Bank for
Reconstruction and
Development
International Bonds
International Chamber of
Commerce
International Monetary
Fund (IMF)
Investment Agreement
Investment Opportunity
Set
Investment Philosophy
Input Output Norms
ISO-9000 Refers to international standards, laid down by the International Standards Organisation.
International non-governmental body concerned with promotion of trade and harmonization of trading practice. Responsible for drafting and publishing.
An international organization designed to promote global economic stability and development. It compiles statistics on cross-border transactions and publishes a monthly
summary of each countrys balance of payments.
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.
The investment approach-active or passive-pursued by an investment fund and its managers.
The norms which define the amount of input/inputs required to manufacture a unit of output.
A discount rate at which the net present value of an investment is zero. The IRR is a method of evaluating capital expenditure proposals.
The international version of the CAPM in which investors in each country share the same consumption basket and purchasing power parity holds.
The global network of governmental and commercial institutions within which currency exchange rates are determined.
The value of an option if exercised immediately.
Also called the World Bank, an international organization created at Breton Woods in 1944 to help in the reconstruction and development of its member nations.
Bonds that are traded outside the country of the issuer. International bonds are either foreign bonds trading in a foreign national market or Eurobonds trading in the
international market.
The difference between a banks offer and bid rates for deposits in the Eurocurrency market.
The risk of unexpected changes in an interest rate.
An agreement to exchange interest payments for a specific period of time on a given principal amount. The most common interest rate swap is a fixed-for-floating
coupon swap. The notional principal is typically not exchanged.
A financial market in which a financial institution (usually a commercial bank) stands between borrowers and savers.
The use of two or more modes of transportation to complete a cargo move; truck/rail/ship, or truck/air, for example.
A market for financial securities denominated in the currency of a host country and placed within that country.
The general increase in the price level herein measured by the growth rate in the GNP Implicit Price Index or the general price deflator.
Whether or not market prices reflect information and thus the true (or intrinsic) value of the underlying asset.
A market in which there are no barriers to financial flows and purchasing power parity holds across equivalent assets.
Material or communicable result in forms of discoveries, inventions, designs and literary and art works of scientific, humanistic, literary, and artistic endeavor. It
includes, but is not limited to, works in the form of scientific discoveries and invention.
Patents, copyrights, and proprietary technologies and processes that are the basis of the multinational corporations competitive advantage over local firms.
A regional development bank designed to promote sustainable economic development in the Western Hemisphere. Its headquarters are located in Washington, D.C.
ITC(HS)
Import License
Inland Bill of Lading
Irrevocable Letter of
credit
Joint Venture
Just In Time (JIT)
Kyoto Protocol
Keiretsu
Lease
Landed Cost
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
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,
fees, or other forms of compensation.
A letter issued by an importers bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of lading, inspection and insurance certificates,
etc.).
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 process by which certain business activities become more market driven.
Advantages (natural and created) that are available only or primarily in a single location.
The bid rate that a Euro market bank is willing to pay to attract a deposit from another Euro market bank in London.
A position in which a particular asset (such as a spot or forward currency) has been purchased.
An organization-wide practice that keeps the inventory to the minimum and provides customers the right goods or service at the right time.
A multilateral environmental agreement; its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere.
Collaborative groups of vertically and horizontally integrated firms with extensive share cross-holdings and with a major Japanese bank or corporation at the center.
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, plus any inbound transportation charges.
The principle that equivalent assets sell for the same price. The law of one price is enforced in the currency markets by financial market arbitrage.
Glossary of Export Import Trade Terms Starting with -L
Glossary of Export Import Foreign Trade Terms Starting with -K
Refers to Indian Trade Classification (Harmonized System). It is a system of classification of products for the purposes of export and import.
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.
A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee.
An agreement of two or more companies to pool their resources to execute a well-defined mission. Resource commitments, responsibilities, and earnings are shared
according to a predetermined contractual formula.
Glossary of Impex Trade Terms Starting with -J
The lead investment bank in a syndicate selling a public securities offering.
Reduction of transaction exposure through timing of cash flows within the corporation.
The periodic rental payment to a lesser for the use of assets. Others may define lease rate as the implicit interest rate in minimum lease payments.
The poorest of the developing countries. They are characterized by a low gross national product per capita, a reliance on subsistence agriculture, rapid population
growth, inadequate infrastructure.
Licensing
Limited Flexibility
Exchange Rate System
Liquid Market
Liquidity
Loanable Funds
London Interbank Offer
Rate (LIBOR)
Letter of Credit(L/C)
Licensing
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 An investment strategy of shifting among asset classes in an attempt to anticipate which asset classes) will appreciate or depreciate during the coming period.
A failure of arms-length markets to efficiently complete the production of a good or service. In the eclectic paradigm, the multinational corporations market
internalization advantages take advantage of market failure.
Advantages that allow the multinational corporation to internalize or exploit the failure of an arms-length market to efficiently accomplish a task.
A financial institution that quotes bid (buy) and offer (sell) prices.
The empirical version of the security market line: Rj = aj + bjRM + ej.
A portfolio of all assets weighted according to their market values.
The risk premium on an average stock; (E[RM]-RF).
Flexibility in the timing and scale of investment provided by a real investment option.
Duty-free assembly plants located mainly in the developing world. Maquiladoras are one type of foreign direct investment.
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, or
may be sold short by borrowing the securities from the brokerage firm.
A performance bond paid upon purchase of a futures contract that ensures the exchange clearinghouse against loss.
The extent to which a domestic industry can penetrate a related market in a foreign country. Access can be limited by tariffs or other non-trade barriers.
An economy in which resource allocations, prices and other marketing decisions are primarily determined by the free market.
The offer rate that a Euro market bank demands in order to place a deposit at (or, equivalently, make a loan to) another Euro market bank in London.
A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by
the bank of certain documents within a given time.
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.
Document that lists in detail al the bills of lading issued by a carrier of its agent or master, i.e., a detailed summary of the total cargo of a vessel.
Country (or political) risks that affect all foreign firms in a host country.
An agreement by which one firm allows another to manage its foreign activities on behalf of it. The managing firm is forbidden to make capital investment or financing
decisions.
Glossary of Export Trade Terms Starting with -M
One firm gives another firm a permission, which allows the latter to engage in an activity otherwise legally forbidden to it. Such activities usually involve the transfer of
intellectual and proprietary knowledge in return for royalty as revenue.
The International Monetary Funds name for an exchange rate system with a managed float.
A market in which traders can buy or sell large quantities of an asset when they want and with low transactions costs.
The ease with which an asset can be exchanged for another asset of equal value.
The pool of funds from which borrowers can attract capital; typically categorized by currency and maturity.
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 Modiglianis
Irrelevance Proposition
Mixed Tariff
Monetary Assets and
Liabilities(MAL)
Money Market Hedge
Money Market Yield
Money Markets
Money Supply
Monopoly
More Flexible Exchange
Rate System
Most Favored Nation
(MFN)
Multinational Corporation
Multinational Netting
Mutually Exclusive
Investment Decisions
Elimination of offsetting cash flows within the multinational corporation.
Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects.
Financial markets for debt securities that pay off in the short term (usually less than one year).
The total amount of currency in circulation and peso deposits subject to check of the monetary system.
Exclusive control or possession by one group of the means of producing or selling goods or services.
The International Monetary Funds name for a floating exchange rate system.
A status granted to one country by another; the granting country then accords the recipient's imports and exports the most favorable treatment that it accords any
country.
A corporation with operations in more than one country.
A market segment generally represented by financing under $2 million. In leasing this sector is dominated by single investor leases.
If financial markets are perfect, then corporate financial policy (including hedging policy) is irrelevant.
A combination of specific and ad valorem tariffs.
Assets and liabilities with contractual payoffs.
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. (Contrast with bond equivalent yield.)
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.
The common market of the South, a customs union which includes Argentina, Brazil, Paraguay, and Uruguay in a regional trade pact that reduces tariffs on intrapact
trade by up to 90 percent. Bolivia and Chile are associate members.
A form of corporate acquisition in which one firm absorbs another and the assets and liabilities of the two firms are combined.
The way in which a merger or acquisition is financed.
Country risks that are specific to an industry, company, or project within a host country.
Small loans, perhaps $50 or $100, that are extended to small businesses to finance a business start-up or other business activity.
A system of corporate governance in which the supervisory board represents a dispersed set of largely equity shareholders.
Environmental agreements negotiated by a number of countries.
The set of marketing tools that the firm uses to pursue its marketing objectives in the target market. One of the most popular classifications of marketing mix tools is
called the "4 P's" of marketing: product, price, place, and promotion.
The process by which changes in the value of futures contracts are settled daily.
The date on which the last payment on a bond is due.
Manipulation
Manufacturer
Marine Insurance
Marking
Merchandise
Merchandise, Domestic
Merchandise, Foreign
Merchandise, Fungible
Merchandise, Mixed Status
Merchandise/Operations,
Prohibited
Merchandise/Operations,
Restricted
Net Currency Exposure
National Tax Policy
National Treatment
Nationalization
Negative-NPV Tie-in
Project
Net Asset Value
Net Exposed Assets
Net Monetary Assets
Net Position
Net Present Value (NPV)
Net Working Capital
New Protectionism
Nominal Cash Flow
Recent efforts to pressure national governments to exercise greater control over foreign trade and foreign direct investment.
A cash flow expressed in nominal terms if the actual dollars to be received (or paid out) are given.
The sum of the individual asset values in a closed-end mutual fund. Closed-end funds can sell at substantial premiums or discounts to their net asset values.
Exposed assets less exposed liabilities. The term is used with market values or, in translation accounting, with book values.
Monetary assets less monetary liabilities.
A currency position after aggregating and canceling all offsetting transactions in each currency, maturity, and security.
The present value of future cash returns, discounted at the appropriate market interest rate, minus the present value of the cost of the investment.
Current assets minus current liabilities.
Merchandise which may not be authorized for delivery from Customs custody without a special permit, or a waiver thereof by an agency of the Indian Government.
Exposure to foreign exchange risk after netting all intracompany cash flows.
The way in which a nation chooses to allocate the burdens of tax collections across its residents.
A country accords no less favorable treatment to imported goods than it does to domestic goods.
A process whereby privately owned companies are brought under state ownership and control. (Contrast with privatization.)
A negative (-) NPV infrastructure development project that a local government requires of a company pursuing a positive (+) NPV investment project elsewhere in the
economy.
Glossary of EXIM Trade Terms Starting with -N
Includes goods, wares, and chattels of every description except Prohibited Merchandise, building materials, production equipment and supplies for use in operation of a
zone.
Merchandise which has been produced in the India and not exported therefrom.
Imported Merchandise which has not been properly released from Customs custody into the Customs territory of the India.
Merchandise which for commercial purposes is identical and interchangeable in all situations.
Foreign Merchandise which has been combined with Domestic Merchandise in the zone.
Merchandise, the importation of which is prohibited by law on grounds of public policy or morals, or excluded by order of the Foreign-Trade Zones Board..
Processing wherein merchandise is packed, unpacked, repacked, cleaned, sorted, graded or otherwise changed in condition but not manufactured.
Generally, the production of articles for use from raw or prepared materials by substantially transforming such materials into new forms.
Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally recovered from the carrier.
Letters, numbers, and other symbols on cargo packages to facilitate identification.
Nominal Interest Rate
Non-Governmental
Organizations (NGOs)
Non-Tariff Barrier
Noncash Item
Non-Intermediated Debt
Market
Non-Monetary Assets and
Liabilities
Normal Distribution
North American Free
Trade Agreement (NAFTA)
Notional Principal
NFE
Non-Privileged Foreign
(NPF)
Offer (Ask) Rates
Offering Statement
Official Settlements
Balance (Overall Balance)
Offshore Financial Centers
(OFCs)
Oligopoly
Open Account
Open and Reform Policy
Open-end Fund
Operating Cash Flow
Operating Exposure
Operating Leverage
Operational Efficiency
OPIC
Market efficiency with respect to how large an influence transactions costs and other market frictions have on the operation of a market.
Overseas Private Investment Corporation. A US agency that assists US companies protect their investment against risk in a particular country besides providing other
services.
The seller delivers the goods to the buyer and then bills the buyer according to the terms of trade.
An economic policy enacted by the Chinese government combining central planning with market-oriented reforms to increase productivity, living standards, and
technological quality without exacerbating inflation, unemployment, and budget deficits.
A mutual fund in which the amount of money under management grows/shrinks as investors buy/sell the fund.
Earnings before interest and depreciation minus taxes. It measures the cash flow generated form operations, not counting capital spending or working capital
requirements.
Changes in the value of real (no monetary) assets or operating cash flows as a result of changes in currency values.
The trade-off between fixed and variable costs in the operation of the firm.
Foreign Merchandise or non-tax-paid domestic merchandise upon which the duty and applicable taxes will be determined at the time of entry from the zone for
consumption.
The rate at which a market maker is willing to sell the quoted asset.
In the United States, a shortened registration statement required by the Securities and Exchange Commission on debt issues with less than a nine-month maturity.
An overall measure of a countrys private financial and economic transactions with the rest of the world.
The many types of financial institutions that operate without financial supervision by governments or other agencies.
A market dominated by so few sellers that action by any of them will impact both the price of the good and the competitors.
Glossary of Export Business Trade Terms Starting with -O
A financial market in which borrowers (governments and large corporations) appeal directly to savers for debt capital through the securities markets without using a
financial institution as intermediary.
Assets and Liabilities with non-contractual payoffs.
Symmetric bell-shaped frequency distribution that can be defined by its mean and standard deviation.
A regional trade pact among the United States, Canada, and Mexico.
In a swap agreement, a principal amount that is only notional and is not exchanged.
Refers to Net Foreign Exchange. Net Foreign Exchange earning is calculated as a percentage of exports (NFEP).
Interest rate unadjusted for inflation.
Special interest groups that operate in the global community.
An indirect measure used to discriminate against foreign manufacturers, for example, extensive inspection procedures for foreign imports that create barriers to entering
the market.
Expense against revenue that does not directly affect cash flow, such as depreciation and deferred taxes.
Opportunity Cost
Opportunity Set
Organization for Economic
Cooperation and
Development (OECD)
Organization of Petroleum
Exporting Countries
(OPEC)
Out-of-the-Money Option
Outright Quote
Outsourcing
Overall Balance
Overall FTC limitation
Ownership-Specific
Advantages
Ocean Bill of Lading
On Board Bill of Lading
Open Account
Open Insurance Policy
Operator
Operator's Bond
Order Bill of Lading
Packing List
Parallel Loan
Partnership
Passive Income
Patent
Payback Period Rule
Payoff Profile
Glossary of Import Business Trade Terms Starting with -P
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, and all
those that pay off in more than the particular cutoff period are rejected.
A graph with the value of an underlying asset on the x-axis and the value of a position taken to hedge against risk exposure on the y-axis. Also used with changes in value.
(Contrast with risk profile.)
A negotiable bill of lading made out to the order of the shipper.
Document listing the contents of a consignment of goods. May be called for on a letter of credit.
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.
Form of business organization in which two or more co-owners form a business. In a general partnership each partner is liable for the debts of the partnership. Limited
partnership permits some partners to have limited liability.
In the U.S. tax code, income (such as investment income) that does not come from active participation in a business.
A government grant that gives inventors exclusive right of making, using, or selling the invention.
A bill of lading indicating that the exporter consigns a shipment to an int'l carrier for transportation to a specified foreign market.
A bill of lading in which a carrier certifies that goods have been placed on board a certain vessel.
A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.
A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
A corporation, partnership, or person that operates a zone or sub zone under the terms of an agreement with the Grantee.
All zone operators must submit to Customs a bond to assure compliance with Customs regulations.
An option that has no value if exercised immediately.
A quote in which all of the digits of the bid and offer prices are quoted. (Contrast with points quote.)
A situation in which a firm's functions are performed or provided by a person or group from outside the company.
(See official settlements balance.)
In the U.S. tax code, a limitation on the FTC equal to foreign-source income times U.S. tax on worldwide income divided by worldwide income.
Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology and management, and general
organizational abilities, that form the basis for the multinationals advantage over local firms
Most valuable alternative that is given up. The rate of return used in NPV computation is an opportunity interest rate.
The set of all possible investments.
A group of 30 countries that meets regularly to discuss global issues and make appropriate economic and social policies.
A producer cartel that produces and sells oil.
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
Product Life Cycle (PLC)
Production Possibilities
Schedule
Production Sharing
Profitability Index
The maximum amount of goods (for example, food and clothing) that a country is able to produce given its labor supply.
Production sharing occurs when a producer chooses to make a product in stages - and in different countries - so that the firm can employ the lowest-cost resources in the
production process.
A method used to evaluate projects. It is the ratio of the present value of expected future cash flows after initial investment divided by the amount of the initial
investment.
Uncertainty regarding the future price of an asset.
A securities issue privately placed with a small group of investors rather than through a public offering.
A process whereby publicly owned enterprises are sold to private investors. (Contrast with nationalization.)
An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent their value and important
specifications.
Product cycle theory views the products of the successful firm as evolving through four stages: (1) infancy, (2) growth, (3) maturity, and (4) decline.
The complete life of a product, from early planning through sales build-up, maximum sales, declining sales, and withdrawal of the product. Product life cycle lengths and
types can vary depending on the type of product, the frequency of replacement.
The risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. Political risk includes both macro and micro
risks.
The extent to which a society accepts hierarchical differences.
If a bond is selling above its face value, it is said to sell at a premium.
The value of a future cash stream discounted at the appropriate market interest rate.
Factor used to calculate an estimate of the present value of an amount to be received in a future period.
The sensitivity of quantity sold to a percentage change in price; -%changeQ/%changeP.
A trading system in which stocks are auctioned at intervals throughout the day.
A constant stream of cash flows without end. A British consol is an example.
Combined holding of more than one stock, bond, real estate asset, or other asset by an investor.
It is a form of price discrimination that requires selling below cost with the intention of destroying competition. However, predatory pricing is against law.
A piece of legislation, regulation, or procedure with the purpose of preventing the introduction or spread of pests. Phytosanitary procedures often include the
performance of inspections, tests, surveillance, or other treatments.
An abbreviated form of the outright quote used by traders in the interbank market.
Proportion of net income paid out in cash dividends.
The International Monetary Funds name for a fixed exchange rate system.
A recognition of future liabilities resulting from pension commitments made by the corporation. Accounting for pension liabilities varies widely by country.
A set of assumptions under which the law of one price holds. These assumptions include frictionless markets, rational investors, and equal access to market prices and
information.
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
Postal Parcel Receipt
Private Export Funding
Corporation(PEFCO)
Perils of the Sea
Phytosanitary Inspection
Certificate
Political Risk
Privileged Foreign (PF)
Purchasing Agent
QRs
Quota
Quotation
Glossary of IMPEX Business Trade Terms Starting with -Q
Lends to foreign buyers to finance exports from U.S.
A marine insurance term used to designate heavy weather, stranding, lightning, collision, and seawater damage.
A certificate, issued by the Indian Government Department of Agriculture to satisfy import regulations for foreign countries, indicating that a India shipment has been
inspected and is free from harmful pests and plant diseases.
In export financing the risk of loss due to such causes as currency, inconvertibility, government action preventing entry of goods, expropriation or confiscation, war, etc.
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.
An agent who purchases goods in his or her own country on behalf of foreign importers such as government agencies and large private concerns.
A variety of programs designed to promote and/or protect a company's image or its individual products.
The principle that equivalent assets sell for the same price. Purchasing power parity is a measurement of a currency's value based on the buying power within its own
domestic economy.
The right to sell the underlying asset at a specified price and on a specified date.
The relation of the value of a long call, a short put, the exercise price, and the forward price at expiration; CallTd/f - PutTd/f + Kd/f = FTd/f.
A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.
The postal authorities' signed acknowledgment of delivery to receiver of a shipment made by parcel post.
Private or exclusive knowledge that cannot be legally used or duplicated by competitors.
A brochure that describes a mutual funds investment objectives, strategies, and position limits.
Protection of local industries through tariffs, quotas, and regulations that discriminate against foreign businesses.
A securities issue placed with the public through an investment or commercial bank.
Bonds that pay no coupons and only pay back the face value at maturity. Also referred to as "bullets" and "zeros."
The similarities or lack thereof between country markets. This concept takes into account geographic distance, cultural similarities, linguistic aspects, legal systems and
methods of conducting business.
A convex tax schedule that results in a higher effective tax rate on high income levels than on low-income levels.
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.
QRs mean Quantitative Restrictions. QRs refer to specific limits imposed by countries on the quantity or value of goods that can be imported or exported. QRs are non-
tariff measures which are taken to regulate or prohibit international.
The quantity of goods of a specific kind that a country permit to be imported without restriction or imposition of additional Duties.
An offer to sell goods at a stated price and under specified conditions.
Quid Pro Quo
R-Square (the Coefficient
of Determination)
Random Walk
Re-Invoicing Centers
Real
Appreciation/Depreciation
Real Cash Flow(RCF)
Real Exchange Rate (RER)
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
Glossary of International Trade Terms Starting with -R
Net income after interest and taxes divided by average common stockholder's equity.
An increase in a currency value relative to other currencies in a fixed exchange rate system.
"The right of a patent holder of a patent issued in one country to intellectual property rights in a foreign market for one year, without filing for a local patent, even if
someone from the foreign market files a local patent for the same process.
An agreement defining each partys rights should one party default on its obligation. Rights of set-off were common in parallel loan arrangements.
In the United States, a statement filed with the Securities and Exchange Commission on securities issues that discloses relevant information to the public.
The act of remitting cash flows from a foreign affiliate to the parent firm.
The price below (above) which a seller (purchaser) is unwilling to go.
The value of an asset at the conclusion of a lease.
Endorsement transferring title or right to a named party.
Retained earnings divided by net income.
Interest rate expressed in terms of real goods; that is, the nominal interest rate minus the expected inflation rate.
An option or option-like feature embedded in a real investment opportunity.
A strategic alliance in which two companies agree to co market each others products in their home market. Production rights may or may not be transferred.
The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse.
Banks that are owned and operated by member nations; they are designed to extend development loans and provide other assistance to member nations. The world's four
regional development banks are the African Development Bank Group.
Bonds for which each issuer maintains a record of the owners of its bonds. Countries requiring that bonds be issued in registered form include the United States and
Japan. (Contrast with bearer bonds.)
The percent of the variation in a dependent variable (a y-variable) that is explained by variation in an independent variable (an x-variable).
A process in which instantaneous changes in exchange rates are normally distributed with a zero mean and constant variance.
An offshore financial affiliate that is used to channel funds to and from the multinationals foreign operations.
A change in the purchasing power of a currency.
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given.
A measure of the nominal exchange rate that has been adjusted for inflation differentials since an arbitrarily defined base period.
Latin for "this for that." An exchange of one thing for another.
Risk Averse
Risk Premium
Risk Profile
Rolls Critique
Royalty
Rule #1
Rule #2
Rules of Origin
Reactivation
Regional Commissioner
Remitting Bank
Retail Trade
Revocable Letter of Credit
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
Sharpe Index
Glossary of Export International Trade Terms Starting with -S
Analysis of the effect on the project when there is some change in critical variables such as sales and costs.
The principle that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio, which is purely technical problem, and
(2) the personal choice of the best mix of the risky portfolio.
A view of the corporation as the nexus of a set of legal contracts linking the various stakeholders. Important contracts include those with customers, suppliers, labor,
management, debt, and equity.
A measure of risk-adjusted investment performance in excess return per unit of total risk: SI = (RP - RF)/(sP).
A process of asking What if? using scenarios that capture key elements of possible future realities.
In the CAPM, the relation between required return and systematic risk (or beta): Rj - RF + bj (E[RM] - RF).
An investment strategy that attempts to identify individual securities that are under priced relative to other securities in a particular market or industry.
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.
A market that is partially or wholly isolated from other markets by one or more market imperfections.
A market in which prices fully reflect all publicly available information.
A resumption of the activated status of an entire area that was previously deactivated without any change in the operator or the area boundaries.
The Regional Commissioner of Customs for the Customs Region in which the zone is located.
Bank that sends the draft to overseas bank for collection.
Generally, sales or offers to sell goods or services to individuals for personal use.
A letter of credit that can be canceled or altered by the drawee (buyer) after it has been issued by the drawee's bank.
An independent agency of the U.S. federal government that aids, counsels, assists, 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 graph with the value of an underlying asset on the x-axis and the value of a position exposed to risk in the underlying asset on the y-axis. Also used with changes in
value. (Contrast with payoff profile.)
The CAPM holds by construction when performance is measured against a mean-variance efficient index. Otherwise, it holds not at all.
Payment made for the use of a person or businesss property based on an agreed percentage of the income arising from its use.
Always keep track of your currency units.
Always think of buying and selling the currency in the denominator of a foreign exchange quote.
Rules used to determine in what country a good will be considered as actually made for tariff and other trade purposes.
Seeking stability rather than risk.
The excess return on the risky asset that is the difference between expected return on risky assets and the return of risk-free assets.
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
Stationary Time Series
Stock Index Futures
Stock Index Swap
Stock Market
The interest rate expressed as a percentage per annum, by which interest payment is determined.
A time series in which the process generating returns is identical at every instant of time.
A futures contract on a stock index.
A swap involving a stock index. The other asset involved in a stock index swap can be another stock index (a stock-for-stock swap), a debt index (a debt-for-stock swap),
or any other financial asset or financial price index.
An institution that facilitates the buying and selling of stocks.
A market in which trades are made for immediate delivery (within two business days for most spot currencies).
Government policies designed to promote economic growth, steady employment, and stable prices.
Those with an interest in the firm. A narrow definition includes the corporations debt and equity holders. A broader definition includes labor, management, and perhaps
other interested parties, such as customers, suppliers, and society at large.
A tax on a financial transaction.
The positive square root of the variance. This is the standard statistical measure of the spread of a sample.
A standard numerical code system used by the U.S. government to classify products and services.
Physical or real capital that is owned by the public sector rather than by private firms.
A term referring to general trading companies that import and export merchandise.
A business owned by a single individual. The sole proprietorship pays no corporate income tax but has unlimited liability for business debts and obligations.
An international reserve created by the International Monetary Fund and allocated to member countries to supplement foreign exchange reserves.
A tariff assessed at a specific amount per unit of weight.
Exchange-rate today for settlement in two days.
Selling an asset that you do not own, or taking a short position.
Any aspect of an investment project that can be valued separately from the project itself.
A draft that is payable on demand.
The use of observable managerial actions in the marketplace as an indication of managements beliefs concerning the prospects of the company.
Interest calculated by considering only the original principal amount.
Passed in 1930, this protectionist act increased import duties to the highest rate ever imposed by the United States, resulting in the downfall of the world trade system.
Usually the supplier or owner of commodities shipped.
A position in which a particular asset (such as a spot or forward currency) has been sold.
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
Syndicate
Synergy
Synthetic Forward Position
Systematic Risk
SEZs
STPs
SEPC
Schedule - B
Ship's Manifest
Sight Draft
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), Paradeep (Orissa), Gopalpur (Orissa), Kulpi (West Bengal), 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.
Refers to Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the India.
An instrument in writing, signed by the captain of a ship, that lists the individual shipments constituting the ship's cargo.
A draft that is payable upon presentation to the drawee.
Network through which international banks conduct their financial transactions.
A sequence of options in which exercise of one option creates one or more additional options. Investment-disinvestments, entry-exit, expansion-contraction, and
suspension-reactivation decisions are examples of switching options.
The selling group of investment banks in a public securities offering.
In an acquisition or merger, when the value of the combination is greater than the sum of the individual parts: Synergy = VAT - (VA + VT).
A forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market.
Risk that is common to all assets and cannot be diversified away (measured by beta).
A cost that has already occurred and cannot be removed. Because sunk costs are in the past, such costs should be ignored when deciding whether to accept or reject a
project.
Expenditures that are at least partially lost once an investment is made.
The board of directors that represents stakeholders in the governance of the corporation.
An agreement to exchange two liabilities (or assets) and, after a prearranged length of time, to reexchange the liabilities (or assets).
A swap banks portfolio of swaps, usually arranged by currency and by maturity.
A swap with one or more options attached.
The price at which an option can be exercised (also called the exercise price).
In the U.S. tax code, 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.
Any organization controlled by another with more than 50 percent of its whose voting capital held by the latter.
Financing that is provided by a host government and that is issued at a below-market interest rate.
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.
Small-scale agriculture designed to meet the consumption needs of individual households.
A collaborative agreement between two companies designed to achieve some strategic goal. Strategic alliances include international licensing agreements, management
contracts, and joint ventures as special cases.
Spot Exchange
Standard Industrial
Classification (SIC)
Standard International
Trade Classification (SITC)
Steamship Conference
Straight Bill of Lading
Subzone
Tangibility
Tare Weight
Tariff-Quota
Tariffs
Tax Arbitrage
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
Glossary of Import International Trade Terms Starting with -T
A tax system that taxes domestic income but not foreign income. This tax regime is found in Hong Kong, France, Belgium, and the Netherlands.
A draft that is payable on a specified future dare.
The difference between the value of an option and the options intrinsic value.
Is the Indian Government's most comprehensive source of Foreign Trade Data and export promotion information. Types of information on the FTDB include: International
Market Research, Export Opportunities; Indices of Foreign and Domestic companies.
The ability of the firm to postpone investment (or disinvestments) and to reconsider the decision at a future date.
Total cash inflow minus total cash outflow.
A country or region imposing low or no taxes on foreign source income.
A reduced tax rate provided by a government as an inducement to foreign direct investment.
Taxes that do not interfere with the natural flow of capital toward its most productive use.
Items such as tax-loss carry forwards and carry backs and investment tax credits that shield corporate taxable income from taxes.
A wholly owned affiliate that is in a low-tax jurisdiction and that is used to channel funds to and from the multinationals foreign operations. (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.
Tangible assets are real assets that can be used as collateral to secure debt.
The weight of a container and packing materials that excludes the weight of the goods it contains.
A tariff that is set at a lower rate until a specified quantity (the quota) of goods has been imported, at which point the tariff increases for additional imports.
Taxes on imported goods and services, levied by governments to raise revenues and create barriers to trade.
Arbitrage using a difference in tax rates or tax systems as the basis for profit.
Clienteles of investors with specific preferences for debt or equity that are driven by differences in investors personal tax rates.
The purchase or sale of foreign exchange for immediate delivery.
A standard numerical code system used by the U.S. Government to classify products and services.
A standard numerical code system developed by the U.N. to classify commodities used in international trade.
A group of steamship operators that operate under mutually agreed upon freight rates.
A nonnegotiable bill of lading in which the goods are consigned directly to a named consignee.
A special purpose zone established as part of a zone project for a limited purpose, that cannot be accommodated within an existing zone.
Total Quality Management
(TQM)
Total Risk
Trade Acceptance
Trade Balance
Trade Barrier
Trade Deficit
Trade Surplus
Trade-in Allowance
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
Glossary of Export Import Foreign Trade Terms Starting with -U
Designation of a payment as being due at sight, a given number of days after sight, or a given number of days after date.
A single bill of lading covering both the domestic and international carriage of an export shipment.
A ship not operating on regular routes or schedules.
A document that delineates the terms and conditions agreed upon between the importer and exporter.
To take merchandise with zone status from a zone for consumption, transportation, exportation, warehousing, cartage or lighter age, vessel supplies and equipment,
admission to another zone, and like purposes.
Release of merchandise by a bank to a buyer in which the bank retains title to the merchandise.
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.
Changes in a corporations financial statements as a result of changes in currency values.
A bank or trust company that holds title to or a security interest in leased property for the benefit of the lessee, lesser, 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.
The weight of a container and packing materials without the weight of the goods it contains.
A trade surplus occurs when the value of a country's exports is greater than the value of its imports.
Price discount granted for a new item by turning in an old item at the time of purchase.
A registration process under which a name, logo, or characteristic can be identified as exclusive.
The desk at an international bank that trades spot and forward foreign exchange.
Changes in the value of contractual (monetary) cash flows as a result of changes in currency values.
A document that clearly outlines the terms and conditions agreed upon between an importer and an exporter.
An organization-wide approach to continuously improving the overall quality of its process, products, and service.
The sum of systematic and unsystematic risk (measured by the standard deviation or variance of return).
A time draft that is drawn on and accepted by an importer.
A countrys net balance (exports minus imports) on merchandise trade.
A governmental policy, action, or practice that intentionally interrupts the free flow of goods or services between countries.
A trade deficit occurs when the value of a country's exports is less than the value of its imports.
Unbiased Expectations
Hypothesis
Uncertainty Avoidance
Unemployment Rate
Unlevered Beta
(Systematic Business Risk)
Unlevered Cost of Equity
Unsustainable Debt
Unsystematic Risk
Usury
Unique Identifier
Number(UIN)
User
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
Warehouse Receipt
Warehouse-to-Warehouse
Glossary of EXIM Terms Starting with -W
Glossary of Import Export Trade Terms Starting with -V
A receipt issued by a warehouse listing the goods received.
Value addition refers to the increment added in the process of manufacture of a particular item, which also becomes part of its price.
Vishesh Krishi Upaj Yojana, a new scheme introduced in the Foreign Trade Policy (2004-2009) as part of the package for agriculture.
A required document issued by the Indian Government authorizing the export of specific commodities.
An insurance policy that covers goods over the entire journey from the seller's to the buyer's premises.
Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book
or PE ratios) in a variety of countries.
A sales tax collected at each stage of production in proportion to the value added during that stage.
A cost that varies directly with volume and is zero when production is zero.
An investment in a start-up business that is perceived to have excellent growth prospects but that does not have access to capital markets.
Partnerships so close those two partners become a single firm for all operational purposes.
One country promises another country to limit its imports; this is often done when the promising country fears increased tariffs or quotas if it does not self-regulate.
Risk that is specific to a particular security or country and that can be eliminated through diversification.
The practice of charging or paying exorbitant interest on a loan or other transaction. Note: in Islamic societies, charging or receiving any amount of interest is considered
usury.
This inventory method controls merchandise in a zone by unique numbers and/or letters that identify merchandise admitted to a zone.
A person or firm using a zone for storage, handling or processing of merchandise.
A value-added process in a firm to transform raw materials and other inputs to finished goods, which creates value to customers.
Date on which a foreign exchange contract is executed, i.e. seller delivers.
The hypothesis that forward exchange rates are unbiased predictors of future spot rates.
The extent to which a society tolerates uncertainty and ambiguity.
The ratio of the total number of unemployed persons to the total number of persons in the labor force.
The beta (or systematic risk) of a project as if it were financed with 100 percent equity.
The discount rate appropriate for an investment assuming it is financed with 100 percent equity.
A financial condition in which a country is unable to service its foreign (external) debt without decimating its economy.
Warrant
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
Yield to Maturity
Zaibatsu
Zeitgeist
Zone Lot Number (ZLN)
Zone Project
Zone Restricted (ZR)
Zone Site
Zone Status
The physical location of a zone or subzone.
The status of merchandise admitted to a Foreign-Trade Zone, i.e., domestic (D), non-privileged foreign (NPF), privileged foreign (PF), or zone restricted (ZR) status.
Glossary of International Trade Export Import Terms Starting with -Z
Glossary of Export Trade Terms Starting with Y
The discount rate that equates the present value of interest payments and redemption value with the present price of the bond.
Large family-owned conglomerates that controlled much of the economy of Japan prior to World War II.
The spirit of the time; the general intellectual state and outlook of an era or generation.
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.
All of the zone and subzone sites under a single grantee, normally in a single port of entry.
Merchandise admitted to a zone for the sole purpose of exportation or destruction.
The WTO is a multilateral organization that promotes free and fair trade among the nations of the world. It was created in 1994 by 121 nations at the Uruguay Round of
the General Agreement on Tariffs and Trade (GATT). The WTO is responsible for implementation.
A tax system that taxes worldwide income as it is repatriated to the parent company. Used in Japan, the United Kingdom, and the United States.
A receipt issued by a warehouse listing goods received for storage.
A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
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.
Document issued by either the exporter or a third party declaring the weight of goods in a consignment.
A discount rate that reflects the after-tax required returns on debt and equity capital.
A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
A tax on dividend or interest income that is withheld for payment of taxes in a host country. Payment is typically withheld by the financial institution distributing the
payment.
An accounting term that indicates the difference between current assets and current liabilities.
One of the "Big Three" international organizations designed to oversee economic relations among the countries of the world. Its goal is to improve the quality of life for
people in the poorer regions of the world by promoting sustainable economic development.
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. Warrants are frequently
attached to Eurobonds.
A market in which prices fully reflect the information in past prices.
M N O P Q R S T U V W Y Z
Glossary of Export Import Trade Terms Starting with-A
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.
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.
The total demand of all potential buyers of a commodity or service. Includes all individuals and organizations that 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 information described about domestic and international trade.
The percentage cost of a financing alternative, including any bank fees or placement fees.
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 corporations 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.
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.
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, management is the agent of the principal stakeholders in a
principal-agent relationship.
The average project earnings after taxes and depreciation divided by the average book value of the investment during its life.
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 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. An agreement to purchase goods at a stated price and under stated terms.
An asset pricing model that assumes a linear relation between required return and systematic risk as measured by one or more factors according to Rj = mj + b1jF1 + ... +
bKjFK + ej.
APEC forum designed to promote economic growth, cooperation, and integration among member nations. The most prominent members are China, Japan, and Korea.
One of four major regional development banks currently operating in the global economy; it is headquartered in Manila, Philippines.
The rate at which a market maker is willing to sell the quoted asset.
The target weights given to various asset classes in an investment portfolio.
Those assets in which the firm has already invested. (Compare to growth options.)
A loose or low economic and geopolitical affiliation that includes Singapore, Brunei, Malaysia, Thailand, the 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 current value of the underlying asset.
Agreement on Textiles and Clothing
In models of international trade, a situation in which there is no cross-border trade.
A guarantee of the buyer's credit provided by the guarantor, unless the buyer is of unquestioned financial standing. The aval is an endorsement note as opposed to a
guarantee agreement.
Payment undertaking given by a bank in respect of a bill of exchange drawn.
In the U.S. tax code, these rules define how income and deductions are to be allocated between domestic-source and foreign-source income.
The efficiency with which a market channels capital toward its most productive uses.
A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and Bolivia.
Laws that are enacted to prevent dumping-offering prices in the overseas market that is lower than that at which a product is sold in its home domestic market.
Asia-Pacific Economic Cooperation
An increase in a currency value relative to another currency in a floating exchange rate system.
The process of purchasing and selling foreign exchange, stocks, bonds and other commodities in several markets intending to make profit from the difference in price.
A level stream of equal dollar payments that lasts for a 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 stream of level payments for a fixed period.
Glossary of Export Import Trade Terms Starting with-B
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.
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.
The process of buying FOREIGN EXCHANGE, stocks, bonds and other commodities in one market and immediately 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 Funds accounting system that tracks the flow
of goods, services, and capital in and out of each country.
The difference between a countrys total imports and exports.
According to value
A loan made on the security of the documents covering the shipment.
A term indicating that shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual
represented.
A BILL OF LADING that covers both domestic and 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 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 subzone.
A corporation applying for the right to establish, operate and maintain a foreign-trade zone.
A bank, operating in the exporter's country, that handles LETTERS OF CREDIT for a foreign bank by notifying the exporter that the credit has been opened in his or her
favor.
A warehouse authorized by CUSTOMS authorities for storage of goods on which payment of DUTIES is deferred until the goods are removed.
An arrangement with a steamship company for the acceptance and carriage of freight.
Clean Air Act (USA)
The right to buy the underlying currency at a specified price and on a specified date.
Glossary of Export Import Trade Terms Starting with-C
A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
- a warehouse authorized for storage of good on which payment of duty is deferred until the goods are removed from the warehouse.
Analysis of the level of sales at which a project would make zero profit.
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 world Bank and
IMF(International Monetary funds ) come into the existence.
An international conference held in 1944 at Britton Woods, New Hampshire, and established the International Monetary Fund and the World Bank.
BTP means Biotechnology Park as notified by Director General of Foreign Trade on the recommendation of the Department of Biotechnology
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. The B/L is Negotiable or Non-Negotiable forms.
The method whereby a bill of lading is made into a freely negotiable document of title.
A bond that coves a group of people, articles or properties.
A long-term contract in which the supplier promises to re-supply the buyers as needed at agreed-upon prices over the contracting time.
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.
A bond quotation convention based on a 365-day year and semiannual coupons. (Contrast with effective annual yield.)
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 companys practices against the best practice and modifying actual knowledge to achieve superior performance.
A party who receives a legal benefit Domestic or foreign Dealings.
A measure of an assets sensitivity to changes in the market portfolio (in the CAPM) or to a factor (in the APT). The beta of an asset j is computed as bj = rj,k (sj/sk),
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.
The difference between the interest rate at which the bank borrows money and lends money.
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).
The line relating the expected return on a security to different returns on the market.
Term used in leasing. A document whereby the lessee acknowledges that the equipment to be leased has been delivered, is acceptable, and has been manufactured or
constructed according to specifications.
Documents that may be asked for by the importer and/or the authorities of the importing country, as evidence of quality or conformity to specifications.
A statement that is usually notarised in which the producer of goods certifies that the goods have been produced and are now available to the buyer.
Documents that may be asked for by the authorities of the importing country, as evidence of the country of manufacture of the goods.
A document required by certain foreign countries for tariff purpose, certifying the country of origin of specified goods.
Difference between net working capital from one period to another.
An agreement among, or an organization of, suppliers of a product.
Payment for goods where a commission house or other intermediary transfers title documents to the buyer upon payment in cash.
In a letter of credit transaction, money deposited by the applicant with the issuing bank.
Cash generated by the firm and paid to creditors and shareholders. It can be classified as (1) cash flow from operations, (2) cash flow from changes in fixed assets, and
(3) cash flow from changes in net working capital.
Payment for goods in which the price is paid in full before the shipment is made. This type of payment is usually only made for very small shipments or when goods are
made in order.
An economy in which the government, rather than free-market activity, controls the allocation of resources.
The line between the risk-free asset and the market portfolio that represents the mean-variance efficient set of investment opportunities in the CAPM.
Markets for financial assets and liabilities with maturity greater than one year, including long-term government and corporate bonds, preferred stock, and common stock.
The case where funds are limited to a fixed dollar amount and must be allocated among the competing projects.
The mix of the various debt and equity capital maintained by a firm. Also called financial structure. The composition of a corporation's securities used to finance its
investment activities; the relative proportions of short-term debt, long-term debt
An economic system that is based on private ownership; economic development is proportionate to and dependent upon the accumulation and reinvestment of profits.
An individual or entity that transports persons or goods for compensation under the contract of carriage.
The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm.
A measure of change in cross-border ownership of long-term financial assets, including financial securities and real estate.
An asset pricing model that relates the required return on an asset to its systematic risk.
Planning and managing expenditures for long-lived assets.
The process of increasing the amount of capital goods - also called capital stock - in a country.
The positive change in the value of an asset, a negative capital gain is a capital loss.
The sum of income across all of the multinational corporations domestic and foreign subsidiaries.
A form of corporate reorganization in which two firms pool their assets and liabilities to form a new company.
Interest that is earned both on the initial principal and on interest earned on the initial principal in previous periods. The interest earned in one period becomes in effect
part of the principal in a following period.
Value of a sum after investing it over one or more periods. Also called future value.
Process of reinvesting each interest payment to earn more interest. Compounding is based on the idea that interest itself becomes principal and therefore also earns
interest in subsequent periods.
Bank that adds its payment undertaking to a letter of credit.
Party to whom goods are to be delivered.
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, while the consignor retains title to the goods until the consignee sells them.
General term for documents describing various aspects of a transaction, e.g. commercial invoice, transport document, insurance document, certificate of origin,
certificate of inspection etc.
The risk of unexpected changes in a commodity price, such as the price of oil.
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.
An organization that transports persons or goods for a fee.
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.
Documents presented under a letter of credit that comply with all its terms and conditions. The banks are only obliged to pay the beneficiary if documents are totally
compliant.
The completion of customs entry requirements that results in the release of goods to the importer.
The settlement of a transaction, often involving exchange of payments and/or documentation.
A mutual fund in which the amount of funds under management is fixed and ownership in the funds is bought and sold in the market like a depository receipt.
Codex Alimentarius Commission (a world food standards body)
In a collection, the document in which the seller instructs the banks as to how the collection is to be conducted.
An economy based on government ownership and/or control of society's resources; during the 20th century, the dominant form of command economy was communism.
Financial network through which banks in the United States conduct their financial transactions.
Convention on the International Trade in Endangered Species
Non-governmental and non-profit groups that work to improve society and the human condition.
A receipt for goods issued by a carrier that indicates that the goods were received in apparently good order and without damage.
Collection in which only the financial document is sent through the banks.
Another name for back-to-back letter of credit.
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.
The stated interest on a debt instrument.
The set of values, beliefs, relationships between individuals and functions that guide the decisions of a company to achieve its objectives.
The responsibilities that corporations (including MNCs) have to workers and their families, to consumers, to investors, and to the natural environment.
Form of business organization that is created as a distinct "legal person" composed of one or more actual individuals or legal entities. Primary advantages of a corporation
include limited liability, ease of ownership, transfer, and perpetual succession.
A measure of the co variability of two assets that is scaled for the standard deviations of the assets (rAB = sAB / sAsB such that -1 < rAB < +1).
A ranking of countries by level of corruption that is researched and published by Transparency International (TI), the world's leading non-governmental organization
dedicated to fighting corruption.
A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price.
A firm allowing another firm to manufacture a pre-specified product.
Amount that each additional product, such as a jet engine, contributes to after-tax profit of the whole project: (Sales price - Variable cost) X (1 - T), where T is the
corporate tax rate.
In the U.S. tax code, a foreign corporation owned more than 50 percent either in terms of market value or voting power.
Bonds sold with a conversion feature that allows the holder to convert the bond into common stock on or prior to a conversion date and at a pre specified conversion
price.
A currency that can be traded for other currencies at will.
A tax schedule in which the effective tax rate is greater at high levels of taxable income than at low levels of taxable income. Such a schedule results in progressive
taxation.
Insurance that covers the risk of non-payment for delivered goods.
A document required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of shipment.
Certified by a consular official of the foreign country, it is used by the country's officials.
Contingency insurance protects the exporter in any situation in which exporter responsibility relied on the buyer to insure, but sustained a loss because of inadequate
coverage from that source. It will cover situations in which the FOB endorsement.
Claim whose value is directly dependent on, or is contingent on, the value of its underlying assets. For example, the debt and equity securities issued by a firm derive
their value from the total value of the firm.
Interest compounded continuously, every instant, rather than at fixed intervals.
A trading system in which buy and sell orders are matched with market makers as the orders arrive, ensuring liquidity in individual shares.
The way in which major stakeholders exert control over the modern corporation.
A bank that, in its own country, handles the business of a foreign bank.
The political and financial risks of conducting business in a particular foreign country.
A fixed-for-floating interest rate swap.
A document certifying that merchandise was in good condition immediately prior to its shipment.
A pricing term indicating that the cost of the goods and freight charges are included in the quoted price.
Written contract between the owner of a vessel and a "chartered" who rents use of the vessel or a part of its freight space.
A pricing term indicating that the cost of the product and insurance are included in the quoted price.
A broad measure of import-export activity that includes services, travel and tourism, transportation, investment income and interest, gifts, and grants along with the
trade balance on goods.
A form of regional economic integration group that eliminates tariffs among member nations and establishes common external tariffs.
A person or firm obtains the license from the treasury department of its Country when required, and help clients (importers) to enter and declare goods through customs.
The authorities designated to collect duties levied by a country on imports and exports.
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.
Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.
A fixed-for-floating rate no amortizing currency swap traded primarily through international commercial banks.
A hedge of currency risk using a currency that is correlated with the currency in which the underlying exposure is denominated.
The currency that is being bought or sold. It is most convenient to place the currency of reference in the denominator of a foreign exchange quote.
A contract giving the option holder the right to buy or sell an underlying currency at a specified price and on a specified date. The option writer (seller) holds the
obligation to fulfill the other side of the contract.
A contractual agreement to exchange a principal amount of two different currencies and, after a prearranged length of time, to give back the original principal. Interest
payments in each currency are also typically swapped during the life of the agreement
A measure of a countrys international trade in goods and services.
The required return on the company's common stock in capital markets. 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. It is a cost from the firm's perspective.
Duties levied on an imported good that has been unfairly subsidized by a foreign government. Imposing duties on the good is meant to raise the product's price to a "fair
market value".
WTO Committee on Trade and Development
Collective mental paradigms that a society imparts to individuals in the form of behavior patterns, shared values, norms and institutions.
An equity account under FAS #52 that accumulates gains or losses caused by translation accounting adjustments.
The risk of unexpected changes in foreign currency exchange rates.
A measure of the co variability of two assets (sAB = sAsB rAB).
Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.
A futures hedge using a currency that is different from, but closely related to, the currency of 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.
Insurance designed to cover risks of nonpayment for delivered goods.
Territory of the India in which the general tariff laws of the India apply.
An individual or firm licensed to enter and clear goods through Customs.
The desk at an international bank that trades spot and forward foreign exchange.
The amount of debt that a firm chooses to borrow to support a project.
Glossary of Export Import Trade Terms Starting with-D
A legal fiction which permits acceptance of a Customs entry for merchandise in a zone before its physical transfer to the Customs territory.
A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment.
A currency that can be bought and sold for other currencies at will.
Any corporation which is organized for the purpose of establishing, 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.
A State, political subdivision thereof, a municipality, a public agency of a State, political subdivision thereof, or municipality, or a corporate municipal instrumentality of
one or more States.
A bank that, in its own country, handles the business of a foreign bank.
All documents submitted to a buyer for the purpose of receiving payment for a shipment.
The commerce expert on the diplomatic staff of his/her country's embassy or large consulate.
An itemized list of goods shipped, usually among an exporter's COLLECTION PAPERS.
An individual, partnership, or corporation that transports persons or goods for compensation.
A letter of credit, issued by a foreign bank, whose validity has been confirmed by a Nationalized Indian bank.
Delivery of merchandise from an exporter (consignor) to an agent (consignee) under agreement that the agent sell the merchandise for the account of the exporter.
A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
A draft to which no documents have been attached.
The official lowering of the value of one country's currency in terms of one or more foreign currencies.
A swap agreement to exchange equity (debt) returns for debt (equity) returns over a prearranged length of time.
A graphical analysis of sequential decisions and the likely outcomes of those decisions.
A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter.
If a bond is selling below its face value, it is said to sell at a discount.
A valuation methodology that discounts expected future cash flows at a discount rate appropriate for the risk, currency, and maturity of the cash flows.
The length of time needed to recoup the present value of an investment; sometimes used when investing in locations with high country risk.
An investment decision rule in which the cash flows are discounted at an interest rate and the payback rule is applied on these discounted cash flows.
Calculating the present value of a future amount. The process is the opposite of compounding.
Balance sheet accounts that are used in some countries to temporarily store earnings from the current year or the recent past.
The digital divide refers to the widening technological gap between the richer and the poorer countries of the world.
Costs of financial distress that are directly incurred during bankruptcy or liquidation proceedings.
A decrease in a currency value relative to another currency in a floating exchange rate system.
A financial security whose price is derived from the price of another asset.
A decrease in a currency value relative to another currency in a fixed exchange rate system.
The richer, more industrialized countries in the world.
Department for International Development (UK)
The difference in interest payments that is exchanged between two swap counter parties.
A country that is in the process of becoming industrialized; the poorer nations of the world.
The asset underlying a derivative security. For a currency option, the deliverable instrument is determined by the options exchange and is either spot currency or an
equivalent value in futures contracts.
A futures hedge that has both currency and maturity mismatches with the underlying exposure.
A futures hedge using a currency that matches the underlying exposure and a maturity date that is different from, but preferably close to, the maturity of the underlying
exposure.
A business process with the intention to coordinate and influence all sources of demand for a firms products.
A derivative security issued by a foreign borrower through a domestic trustee representing ownership in the deposit of foreign shares held by the trustee.
Marketer takes direct responsibility for its products abroad by selling them directly to foreign customers or through local representatives in foreign markets.
A non-leveraged lease by a lesser in which the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.
Measuring the direct costs associated with handling a product from the warehouse until a customer buys from the retail store.
The price of a unit of foreign currency in domestic currency terms, such as INR 45.70/USD for a India resident. (Contrast with indirect quote.)
The practice that selling a product or service at different prices that do not reflect a proportional difference in costs.
Type of "LETTER OF CREDIT" providing for payment some time after presentation of shipping documents by exporter.
Any of various statements that the U.S. Government requires to be displayed on export shipments and that specify the destinations for which export of the shipment has
been authorized.
Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic customs duty on the import content of export product. This is provided by way of grant of
duty credit against the export product at specified rates. The DEPB Scheme
Refers to the Duty Free Replenishment Certificate Scheme which was introduced from 1/4/2000 replacing. Transferable Advance Licensing Scheme. The scheme is
available to merchant exporters as well as to manufacturer exporters. However,
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.
A draft that matures in a specified number of days after the date it is issued, without regard to the date of "ACCEPTANCE".
Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator.
An act or omission that will result in a claim for duties, taxes, charges or liquidated damages under the FTZ Operator's Bond
Dispute Settlement Understanding
The practice of selling identical products in different markets for different prices.
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. Dumping is an illegal trade practice.
A tax imposed on imports by the customs authority of a country.
Directorate General of Foreign Trade, which is headed by the Director General of Foreign Trade. The office of the DGFT is responsible for formulating and execution of
Foreign Trade Policy, including licensing. Formerly (till 1991), was known as the Chief
Allows duty-free import of inputs for exports under Advance Licence, Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment Certificate (DFRC) Scheme.
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.
The aggregate of money supply, quasi-money or savings and time deposits, and deposit substitutes.
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).
Dispute Settlement Body
Dispute Settlement Panel
A Foreign agent who sells for a supplier directly and maintains an inventory of the suppliers product.
A risk that specifically affects a single asset or a small group of assets. Also called unique or unsystematic risk.
Department of Commerce (USA)
A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse.
An amount paid by a vessel's operator to a charter if loading or unloading is completed in less time than stipulated in the charter party.
A type of economic sanction that totally disallows the imports of a specific product or all products from a specific country.
An emerging market has a very high growth rate, which yields enormous market potential. It is distinguished by the recent progress it has made in economic
liberalization.
Achieving lower average cost per unit through a larger scale of production.
Achieving lower operating costs by bringing the entire production chain within the firm rather than contracting through the marketplace.
the interest rate as if it were compounded once per time period rather than several times per period.
Calculated as (1+i/n)n, where i is the stated annual interest rate and n is the number of compounding periods per year. (Contrast with bond equivalent yield and money
market yield.)
The mean-variance efficient portion of the investment opportunity set.
A market in which prices reflect all relevant information.
A theory of the multinational firm that posits three types of advantage benefiting the multinational corporation: ownership-specific, location-specific, and market
internalisation advantages.
Change in the value of a corporations assets or liabilities as a result of changes in currency values.
Economic freedom occurs when individuals and businesses make most of the economic decisions in an economy.
The integration of commercial and financial activities among countries through the abolishment of economic discrimination.
A group that combines the economic characteristics of a common market with some degree of harmonization of monetary and fiscal policies.
A method of performance evaluation that adjusts accounting performance with a charge reflecting investors required return on investment.
Articles manufactured or produced in the India with the use of imported components or raw materials and later exported are entitled to a refund of the duty charged on
the imported products or components.
The individual or firm on whom a draft is drawn and who owes the stated amount.
The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee.
Exporting/Importing merchandise into a country below the costs incurred in production and shipment.
A tax imposed on imports by the customs authority of a country.
The relation of stock returns to earnings surprises around the time of corporate earnings announcements.
Glossary of Export Import Trade Terms Starting with-E
The official lowering of the value of one country's currency in terms of one or more foreign currencies.
When documents presented do not conform to the letter of credit.
Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the
attached draft.
An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or
determinable future date.
Price or input cost uncertainty that is outside the control of the firm.
The date when a letter of credit is no longer valid - i.e. the date beyond which it cannot be used.
A tax that is explicitly collected by a government; includes income, withholding, property, sales, and value-added taxes and tariffs.
A foreign exchange quotation that states the foreign currency price of one U.S. dollar. (Contrast with American terms.)
An intergovernmental organization which coordinates foreign, economic, and judicial policy among its 25 member nations.
The price of one currency in terms of another, i.e. the number of units of one currency that may be exchanged for one unit of another currency.
The risk that losses may result from the changes in the relative values of different currencies.
The price at which an option can be exercised (also called the striking price).
Export-Import Bank of the India. Provides guarantees of working capital loans for Indian exporters, guarantees the repayment of loans or makes loans to foreign
purchasers of Indian goods and services.
Dollar-denominated deposits held in a country other than the United States.
One of four major regional development banks currently operating in the global economy.
A trade-weighted basket of currencies in the European Exchange Rate Mechanism (ERM) of the European Union.
The exchange rate system used by countries in the European Union in which exchange rates are pegged within bands around an ERM central value.
An exchange rate system based on cooperation between European Union central banks.
An option that can be exercised only at expiration. (Contrast with American option.)
A Eurobond with a convertibility option or warrant attached. Eurobonds: Fixed rate Eurocurrency deposits and loans and Eurocurrencies with longer maturities than five
years.
Cash-flow amount transferred to a new project from customers and sales of other products of the firm.
The single currency of the European Economic and Monetary Union (EMU) introduced in January 1999. EMU members are Austria, Belgium, Finland, France, Germany,
Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.
A bond that is denominated in a currency other than that of the country of issue.
Deposits and loans denominated in one currency and traded in a market outside the borders of the country issuing that currency (like : Eurodollars).
A money market for currencies held in the form of deposits in countries other than that where the currency is issued.
The stock markets of emerging economies. These markets typically have higher expected returns than established markets but also higher risk.
The ratio, in percent, of the number of employed persons to total labor force.
Price or input cost uncertainty that is within the control of the firm, such as when the act of investing reveals information about price or input cost.
The assumption of payment responsibility in respect of a letter of credit, e.g.
A government permit sometimes required by the importer's government to enable the importer to convert his or her own country's currency into foreign currency with
which to pay a seller in another country.
The price of one currency in terms of another, i.e., the number of units of one currency that may be exchanged for one unit of another currency.
The showing of merchandise within a zone, usually to prospective buyers.
An organization which, for a commission, acts as a purchasing agent for a foreign buyer.
A government document that permits the "Licensee" to engage in the export of designated goods to certain destinations.
Glossary of Export Trade Terms Starting with-F
A market for financial securities that are placed outside the borders of the country issuing that currency.
A government practice which applies its laws outside its territorial boundaries.
Refers to Export and Import (Exim) Policy. Exim Policy has got incorporated into the comprehensive Foreign Trade Policy, which was announced by the Commerce &
Industry Minister on 31st August, 2004.
EPZs means Export Processing Zones which are special enclaves, separated from the Domestic Tariff Area (DTA), to provide an internationally competitive duty-free
environment for export production.EOUmeans Export Oriented Units.
Refers to electronic commerce. In the context of Foreign Trade Policy, e-commerce relates to electronic filing and processing of applications etc.
EPCG refers to the Export Promotion Capital Goods (EPCG) Scheme, which gives the manufacturer facility for import of capital goods for export production at
concessional rate of duty (5 per cent) against certain level of export .
An individual or firm that helps to locate and introduce buyers and seller in international business for a commission but does not take part in actual sales transaction.
A general export license covers the exportation of goods not restricted under the terms of a validated export license. No formal application or written authorization is
needed to ship exports under a general export license.
Quantitative restrictions imposed by exporting countries to limit exports to specified foreign markets, usually as a follow-up to formal or informal agreements reached
with importing countries.
Any form of government payment that helps an exporter or manufacturing concern to lower its export costs.
A company that facilitates the export of goods and services. An ETC can either act as the export department for producers or take title to the product and export for its
own account.
A specific type of political risk in which a government seizes foreign assets.
Any resource, intermediate good, or final good or service that producers in one country sell to buyers in another country.
A foreign or domestic company that acts as a sales agent and distributor for domestic exporters in international markets.
A private firm that transacts export business on behalf of its client companies in return for a commission, salary, or retainer.
The value of a bond that appears on its face. Also referred to as par value or principal.
A model that assumes a linear relation between an assets 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.
Brokers serving as matchmakers in the foreign exchange market that do not put their own money at risk.
A foreign affiliate that is legally a part of the parent firm. In the U.S. tax code, foreign branch income is taxed as it is earned in the foreign country.
Money owed by a nation to foreign investors, banks, or governments.
The act of building productive capacity directly in a foreign country.
Investment rules that limit foreign ownership to a minority holding is a company.
Currency of another country, or a financial instrument that facilitates payment from one currency to another.
The risk of unexpected changes in foreign currency exchange rates.
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.
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.
Used with FOB, FAS, C&F, or CFR (but not CIF) quotations, FOB sales endorsement to an open marine policy can cover transit risk from the point of origin until title
transfers. In these instances, the exporter relies on the importer to insure.
The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as Acts
of God, war.
A grant of money, technical assistance, capital equipment, or other assistance typically extended by richer nations to poorer nations.
Bonds that are issued in a domestic market by a foreign borrower, denominated in domestic currency, marketed to domestic residents, and regulated by the domestic
authorities.
The way in which the firm pursues its financial objectives.
A cost that is fixed in total for a given period of time and for given volume levels. It is not dependent on the amount of goods or services produced during the period.
The corporations choices regarding the debt-equity mix, currencies of denomination, maturity structure, method of financing investment projects, and hedging decisions
with a goal of maximizing the value of the firm to some set of stakeholders.
Also know as "first-mover advantage." The idea of first-mover 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.
An exchange rate system in which governments stand ready to buy and sell currency at official exchange rates.
Currency is bought or sold at a given future date.
The spread of a financial crisis from one country or region to other countries or regions.
The process of innovation by which new financial products are created.
The process of designing new financial products, such as exotic currency options and swaps.
Markets for financial assets and liabilities.
The risk of unexpected changes in a financial price, including currency (foreign exchange) risk, interest rate risk, and commodity price risk.
Financial risk refers to unexpected events in a countrys financial, economic, or business life.
A brokerage house that is authorized by a futures exchange to trade with retail clients.
A commitment to exchange a specified amount of one currency for a specified amount of another currency at a specified time in the future. Futures contracts are
periodically marked-to-market,
An independent business that handles export shipment on behalf of the shipper without vested interest in the products. A freight forwarder is a good source of
information and assistance on export regulations and documentation.
Agents used to coordinate the logistics of transportation.
The organization of data to show how often certain values or ranges of values occur.
A lease in which the lesser recovers, through the lease payments, all costs incurred in the lease plus an acceptable rate of return, without any reliance upon the leased
equipment's future residual value.
A method of predicting exchange rates using the relationships of exchange rates to fundamental economic variables such as GNP growth, money supply, and trade
balances.
Value of a sum after investing it over one or more periods. Also called compound value.
A parent company grants another independent entity the privilege to do business in a pre-specified manner, including manufacturing, selling products, marketing
technology and other business approach.
Cash flow after all positive-NPV projects have been exhausted in the firms main line of business.
An area such as a port city into which merchandise may legally be moved without payment of duties.
A proposed hemispheric trade zone that would cover all of the countries in North, South, and Latin America. The FTAA is highly controversial.
An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. Merchandise may be stored, used or
manufactured in the zone and re-exported without duties being paid.
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 commitment to exchange a specified amount of one currency for a specified amount of another currency on a specified future date.
A currency whose nominal value in the forward market is lower than in the spot market. (Contrast with forward premium.)
A market for forward contracts in which trades are made for future delivery according to an agreed-upon delivery date, exchange rate, and amount.
When the forward rate is an unbiased predictor of future spot exchange rates.
A currency whose nominal value in the forward market is higher than in the spot market. (Contrast with forward discount.)
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.
A financial institution making a market in foreign exchange.
Networks of commercial banks, investment banks, and other financial institutions that convert, buy, and sell currencies in the global economy.
A physical area in which the government allows firms to delay or avoid paying tariffs on imports.
Income earned from foreign operations.
A form of factoring in which large, medium- to long-term receivables are sold to buyers (forfaiters) that are willing and able to bear the costs and risks of credit and
collections.
A bond that trades in the Eurobond market as well as in one or more national bond markets.
The international network of individuals, businesses, governments, and multilateral organizations which collectively make production and consumption decisions.
A global movement to increase the flow of goods, services, people, real capital, and money across national borders in order to create a more integrated and
interdependent world economy.
A formal organization of seven highly industrialized democracies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The G-7 countries plus Russia.
A common set of accounting concepts, standards, and procedures by which financial statements are prepared.
A post-World War II agreement designed to promote freer international trade among the nations of the world. The GATT was replaced by the World Trade Organization
(WTO) in 1994.
A time series model in which returns at each instant of time are normally distributed but volatility is a function of recent history of the series.
A multinational in which the subsidiaries are neither satellites nor independent city states, but parts of a whole whose focus is on worldwide objectives as well as local
objectives, each part making its unique contribution with its unique competence.
A receipt of goods issued by a carrier with an indication that the goods were damaged when received.
A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.
A pricing term indicating that the charter of a vessel is responsible for the cost of loading and unloading goods from the vessel.
An area such as a port city into which merchandise may be legally moved without payment of duties.
An independent business which handles export shipments for compensation.
Glossary of Import Trade Terms Starting with-G
The title of a standard clause in marine contracts exempting the parties for no fulfillment of their obligations as a result of conditions beyond their control, such as
earthquakes, floods, or war.
The currency or credit instruments of a foreign country.
An accounting method based on an assumption regarding the flow of goods that foreign status merchandise is disposed of first.
An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.
A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, or used for manufacturing,
etc., within the zone and re-exported without duties being paid.
The Foreign-Trade Zones Act of June 18, 1934, (48 Stat. 998-1003; 19 U.S.C. 81a-81u) as amended.
Refers to Foreign Trade Policy, announced by the Commerce & Industry Minister on 31st August, 2004. It is a 5-year Policy (September 2004 -- March 2009), which takes
effect from September 1, 2004.
Free Trade and Warehousing Zone, a new scheme announced in the Foreign Trade Policy 2004-2009.
Fob means Free on Board - i.e., when an exporter delivers goods "free on board", he pays all charges involved in getting them actually onto the ship.
An accounting method based on an assumption regarding the flow of goods that older stock is disposed of first, in accordance with good merchandising policy.
The HIPC Inititiative is a major international response to the burdensome external debt held by the world's poorest, most indebted countries. It originated in 1996 as a
joint undertaking of the World Bank and the International Monetary Fund (IMF).
A position or operation that offsets an underlying exposure. For example, a forward currency hedge uses a forward currency contract to offset the exposure of an
underlying position in a foreign currency. Hedges reduce the total variability of the combined
Private investment partnerships with a general manager and a small number of limited partners.
The country-specific hedge portfolio in the International Asset Pricing Model serves as a store of value (like the risk-free asset in the CAPM) as well as a hedge against the
currency risk of the market portfolio.
Glossary of Import Export Trade Terms Starting with-H
A method of classification used by many countries to determine tariffs on imports.
Measured by the r-square in a regression of spot rate changes on futures price changes.
The ratio of derivatives contracts to the underlying risk exposure.
Reducing the risk of a cash position by using the futures instruments to offset the price movement of the cash asset.
In the U.S. tax code, interest income that has been subject to a foreign gross withholding tax of 5 percent or more.
The positive-NPV opportunities in which the firm has not yet invested. The value of growth options reflects the time value of the firms current investment in real assets
as well as the option value of the firms potential future investments.
Stocks with high price/book or price/earnings ratios. Historically, growth stocks have had lower average returns than value stocks (stocks with low price/book or PE
ratios) in a variety of countries.
A lease written under criteria established by the IRS to determine the availability of tax benefits to the lesser.
A multilateral treaty intended to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions.
A corporation to which the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted by the Foreign-Trade Zones Board.
The full weight of a shipment, including goods and packaging.
A steady and calculated approach to transforming an economy from communism to capitalism.
Gray-market imports are parallel distribution of genuine goods by intermediaries other than authorized channel members.
A form of investment in which the firm designs and builds a new factory from scratch.
Buying shares on the open market in the hope that the targets business partners will buy back the shares at inflated prices.
A measure of the market value of goods and services produced by a nation. Unlike Gross National Product, GDP excludes profits made by domestic firms overseas, as well
as the share of reinvested earning in domestic firms' foreign-based operations.
A constant stream of cash flows without end that is expected to rise indefinitely. For example, cash flows to the landlord of an apartment building might be expected to
rise a certain percentage each year.
An exchange rate system used from 1925 to 1931 in which the United States and England were allowed to hold only gold reserves while other nations could hold gold, U.S.
dollars, or pounds sterling as reserves.
An exchange rate system used prior to 1914 in which gold was used to settle national trade balances. Also called the classical gold standard.
The accounting treatment of an intangible asset such as the takeover premium in a merger or acquisition.
A swap of a market index for some other asset (such as a stock-for-stock or debt-for-stock swap).
A schedule of rates for an interest rate or currency swap.
Costs of financial distress that are indirectly incurred prior to formal bankruptcy or liquidation.
The end-users (e.g., consumers) of the products and services purchased from the wholesalers, retailers, and consignees -- the direct customers of the seller.
Diversification benefits provided by the multinational corporation that are not available to investors through their portfolio investment.
Export products to foreign markets by using an intermediary, usually export trading company based in the exporters country.
Financial report that summarizes a firm's performance over a specified time period.
IRR on the incremental investment from choosing a large project instead of a smaller project.
A clause in which the one party indemnifies the other. In leasing, generally a clause whereby the lessee indemnifies the lesser from loss of tax benefits.
A project whose acceptance or rejection is independent of the acceptance or rejection of other projects.
A futures contract that allows investors to buy or sell an index (such as a foreign stock index) in the futures market.
A call or put option contract on an index (such as a foreign stock market index).
Lower (higher) before-tax required returns on assets that are subject to lower (higher) tax rates.
The volatility that is implied by an option value given the other determinants of option value.
Any resource, intermediate good, or final good or service that buyers in one country purchase from sellers in another country.
Licenses required by some countries to bring in a foreign-made good. In many cases, import licenses are also used by the issuing country to control the quantity of
imported items.
An option that has value if exercised immediately.
In the U.S. tax code, income is allocated to one of a number of separate income categories. Losses in one basket may not be used to offset gains in another basket.
The tendency of investors to over invest in assets based in their own country.
Idea that all individuals have the same beliefs concerning future investments, profits, and dividends.
An extremely high rate of inflation, often exceeding several hundred or several thousand percent, that causes a country's money to become practically worthless.
The behavior of firms that fail to enter markets that appear attractive and, once invested, persist in operating at a loss. This behavior is characteristic of situations with
high entry and exit costs along with high uncertainty.
Glossary of Import Export International Trade Terms Starting with-I
Volatility estimated from a historical time series.
The rate of return over a given period.
Refers to international standards, laid down by the International Standards Organisation.
International non-governmental body concerned with promotion of trade and harmonization of trading practice. Responsible for drafting and publishing.
An international organization designed to promote global economic stability and development. It compiles statistics on cross-border transactions and publishes a monthly
summary of each countrys balance of payments.
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.
The investment approach-active or passive-pursued by an investment fund and its managers.
The norms which define the amount of input/inputs required to manufacture a unit of output.
A discount rate at which the net present value of an investment is zero. The IRR is a method of evaluating capital expenditure proposals.
The international version of the CAPM in which investors in each country share the same consumption basket and purchasing power parity holds.
The global network of governmental and commercial institutions within which currency exchange rates are determined.
The value of an option if exercised immediately.
Also called the World Bank, an international organization created at Breton Woods in 1944 to help in the reconstruction and development of its member nations.
Bonds that are traded outside the country of the issuer. International bonds are either foreign bonds trading in a foreign national market or Eurobonds trading in the
international market.
The difference between a banks offer and bid rates for deposits in the Eurocurrency market.
The risk of unexpected changes in an interest rate.
An agreement to exchange interest payments for a specific period of time on a given principal amount. The most common interest rate swap is a fixed-for-floating
coupon swap. The notional principal is typically not exchanged.
A financial market in which a financial institution (usually a commercial bank) stands between borrowers and savers.
The use of two or more modes of transportation to complete a cargo move; truck/rail/ship, or truck/air, for example.
A market for financial securities denominated in the currency of a host country and placed within that country.
The general increase in the price level herein measured by the growth rate in the GNP Implicit Price Index or the general price deflator.
Whether or not market prices reflect information and thus the true (or intrinsic) value of the underlying asset.
A market in which there are no barriers to financial flows and purchasing power parity holds across equivalent assets.
Material or communicable result in forms of discoveries, inventions, designs and literary and art works of scientific, humanistic, literary, and artistic endeavor. It
includes, but is not limited to, works in the form of scientific discoveries and invention.
Patents, copyrights, and proprietary technologies and processes that are the basis of the multinational corporations competitive advantage over local firms.
A regional development bank designed to promote sustainable economic development in the Western Hemisphere. Its headquarters are located in Washington, D.C.
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,
fees, or other forms of compensation.
A letter issued by an importers bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of lading, inspection and insurance certificates,
etc.).
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 process by which certain business activities become more market driven.
Advantages (natural and created) that are available only or primarily in a single location.
The bid rate that a Euro market bank is willing to pay to attract a deposit from another Euro market bank in London.
A position in which a particular asset (such as a spot or forward currency) has been purchased.
An organization-wide practice that keeps the inventory to the minimum and provides customers the right goods or service at the right time.
A multilateral environmental agreement; its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere.
Collaborative groups of vertically and horizontally integrated firms with extensive share cross-holdings and with a major Japanese bank or corporation at the center.
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, plus any inbound transportation charges.
The principle that equivalent assets sell for the same price. The law of one price is enforced in the currency markets by financial market arbitrage.
Glossary of Export Import Trade Terms Starting with -L
Glossary of Export Import Foreign Trade Terms Starting with -K
Refers to Indian Trade Classification (Harmonized System). It is a system of classification of products for the purposes of export and import.
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.
A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee.
An agreement of two or more companies to pool their resources to execute a well-defined mission. Resource commitments, responsibilities, and earnings are shared
according to a predetermined contractual formula.
Glossary of Impex Trade Terms Starting with -J
The lead investment bank in a syndicate selling a public securities offering.
Reduction of transaction exposure through timing of cash flows within the corporation.
The periodic rental payment to a lesser for the use of assets. Others may define lease rate as the implicit interest rate in minimum lease payments.
The poorest of the developing countries. They are characterized by a low gross national product per capita, a reliance on subsistence agriculture, rapid population
growth, inadequate infrastructure.
An investment strategy of shifting among asset classes in an attempt to anticipate which asset classes) will appreciate or depreciate during the coming period.
A failure of arms-length markets to efficiently complete the production of a good or service. In the eclectic paradigm, the multinational corporations market
internalization advantages take advantage of market failure.
Advantages that allow the multinational corporation to internalize or exploit the failure of an arms-length market to efficiently accomplish a task.
A financial institution that quotes bid (buy) and offer (sell) prices.
The empirical version of the security market line: Rj = aj + bjRM + ej.
A portfolio of all assets weighted according to their market values.
The risk premium on an average stock; (E[RM]-RF).
Flexibility in the timing and scale of investment provided by a real investment option.
Duty-free assembly plants located mainly in the developing world. Maquiladoras are one type of foreign direct investment.
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, or
may be sold short by borrowing the securities from the brokerage firm.
A performance bond paid upon purchase of a futures contract that ensures the exchange clearinghouse against loss.
The extent to which a domestic industry can penetrate a related market in a foreign country. Access can be limited by tariffs or other non-trade barriers.
An economy in which resource allocations, prices and other marketing decisions are primarily determined by the free market.
The offer rate that a Euro market bank demands in order to place a deposit at (or, equivalently, make a loan to) another Euro market bank in London.
A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by
the bank of certain documents within a given time.
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.
Document that lists in detail al the bills of lading issued by a carrier of its agent or master, i.e., a detailed summary of the total cargo of a vessel.
Country (or political) risks that affect all foreign firms in a host country.
An agreement by which one firm allows another to manage its foreign activities on behalf of it. The managing firm is forbidden to make capital investment or financing
decisions.
Glossary of Export Trade Terms Starting with -M
One firm gives another firm a permission, which allows the latter to engage in an activity otherwise legally forbidden to it. Such activities usually involve the transfer of
intellectual and proprietary knowledge in return for royalty as revenue.
The International Monetary Funds name for an exchange rate system with a managed float.
A market in which traders can buy or sell large quantities of an asset when they want and with low transactions costs.
The ease with which an asset can be exchanged for another asset of equal value.
The pool of funds from which borrowers can attract capital; typically categorized by currency and maturity.
Elimination of offsetting cash flows within the multinational corporation.
Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects.
Financial markets for debt securities that pay off in the short term (usually less than one year).
The total amount of currency in circulation and peso deposits subject to check of the monetary system.
Exclusive control or possession by one group of the means of producing or selling goods or services.
The International Monetary Funds name for a floating exchange rate system.
A status granted to one country by another; the granting country then accords the recipient's imports and exports the most favorable treatment that it accords any
country.
A corporation with operations in more than one country.
A market segment generally represented by financing under $2 million. In leasing this sector is dominated by single investor leases.
If financial markets are perfect, then corporate financial policy (including hedging policy) is irrelevant.
A combination of specific and ad valorem tariffs.
Assets and liabilities with contractual payoffs.
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. (Contrast with bond equivalent yield.)
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.
The common market of the South, a customs union which includes Argentina, Brazil, Paraguay, and Uruguay in a regional trade pact that reduces tariffs on intrapact
trade by up to 90 percent. Bolivia and Chile are associate members.
A form of corporate acquisition in which one firm absorbs another and the assets and liabilities of the two firms are combined.
The way in which a merger or acquisition is financed.
Country risks that are specific to an industry, company, or project within a host country.
Small loans, perhaps $50 or $100, that are extended to small businesses to finance a business start-up or other business activity.
A system of corporate governance in which the supervisory board represents a dispersed set of largely equity shareholders.
Environmental agreements negotiated by a number of countries.
The set of marketing tools that the firm uses to pursue its marketing objectives in the target market. One of the most popular classifications of marketing mix tools is
called the "4 P's" of marketing: product, price, place, and promotion.
The process by which changes in the value of futures contracts are settled daily.
The date on which the last payment on a bond is due.
Recent efforts to pressure national governments to exercise greater control over foreign trade and foreign direct investment.
A cash flow expressed in nominal terms if the actual dollars to be received (or paid out) are given.
The sum of the individual asset values in a closed-end mutual fund. Closed-end funds can sell at substantial premiums or discounts to their net asset values.
Exposed assets less exposed liabilities. The term is used with market values or, in translation accounting, with book values.
Monetary assets less monetary liabilities.
A currency position after aggregating and canceling all offsetting transactions in each currency, maturity, and security.
The present value of future cash returns, discounted at the appropriate market interest rate, minus the present value of the cost of the investment.
Current assets minus current liabilities.
Merchandise which may not be authorized for delivery from Customs custody without a special permit, or a waiver thereof by an agency of the Indian Government.
Exposure to foreign exchange risk after netting all intracompany cash flows.
The way in which a nation chooses to allocate the burdens of tax collections across its residents.
A country accords no less favorable treatment to imported goods than it does to domestic goods.
A process whereby privately owned companies are brought under state ownership and control. (Contrast with privatization.)
A negative (-) NPV infrastructure development project that a local government requires of a company pursuing a positive (+) NPV investment project elsewhere in the
economy.
Glossary of EXIM Trade Terms Starting with -N
Includes goods, wares, and chattels of every description except Prohibited Merchandise, building materials, production equipment and supplies for use in operation of a
zone.
Merchandise which has been produced in the India and not exported therefrom.
Imported Merchandise which has not been properly released from Customs custody into the Customs territory of the India.
Merchandise which for commercial purposes is identical and interchangeable in all situations.
Foreign Merchandise which has been combined with Domestic Merchandise in the zone.
Merchandise, the importation of which is prohibited by law on grounds of public policy or morals, or excluded by order of the Foreign-Trade Zones Board..
Processing wherein merchandise is packed, unpacked, repacked, cleaned, sorted, graded or otherwise changed in condition but not manufactured.
Generally, the production of articles for use from raw or prepared materials by substantially transforming such materials into new forms.
Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally recovered from the carrier.
Letters, numbers, and other symbols on cargo packages to facilitate identification.
Market efficiency with respect to how large an influence transactions costs and other market frictions have on the operation of a market.
Overseas Private Investment Corporation. A US agency that assists US companies protect their investment against risk in a particular country besides providing other
services.
The seller delivers the goods to the buyer and then bills the buyer according to the terms of trade.
An economic policy enacted by the Chinese government combining central planning with market-oriented reforms to increase productivity, living standards, and
technological quality without exacerbating inflation, unemployment, and budget deficits.
A mutual fund in which the amount of money under management grows/shrinks as investors buy/sell the fund.
Earnings before interest and depreciation minus taxes. It measures the cash flow generated form operations, not counting capital spending or working capital
requirements.
Changes in the value of real (no monetary) assets or operating cash flows as a result of changes in currency values.
The trade-off between fixed and variable costs in the operation of the firm.
Foreign Merchandise or non-tax-paid domestic merchandise upon which the duty and applicable taxes will be determined at the time of entry from the zone for
consumption.
The rate at which a market maker is willing to sell the quoted asset.
In the United States, a shortened registration statement required by the Securities and Exchange Commission on debt issues with less than a nine-month maturity.
An overall measure of a countrys private financial and economic transactions with the rest of the world.
The many types of financial institutions that operate without financial supervision by governments or other agencies.
A market dominated by so few sellers that action by any of them will impact both the price of the good and the competitors.
Glossary of Export Business Trade Terms Starting with -O
A financial market in which borrowers (governments and large corporations) appeal directly to savers for debt capital through the securities markets without using a
financial institution as intermediary.
Assets and Liabilities with non-contractual payoffs.
Symmetric bell-shaped frequency distribution that can be defined by its mean and standard deviation.
A regional trade pact among the United States, Canada, and Mexico.
In a swap agreement, a principal amount that is only notional and is not exchanged.
Refers to Net Foreign Exchange. Net Foreign Exchange earning is calculated as a percentage of exports (NFEP).
Interest rate unadjusted for inflation.
Special interest groups that operate in the global community.
An indirect measure used to discriminate against foreign manufacturers, for example, extensive inspection procedures for foreign imports that create barriers to entering
the market.
Expense against revenue that does not directly affect cash flow, such as depreciation and deferred taxes.
Glossary of Import Business Trade Terms Starting with -P
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, and all
those that pay off in more than the particular cutoff period are rejected.
A graph with the value of an underlying asset on the x-axis and the value of a position taken to hedge against risk exposure on the y-axis. Also used with changes in value.
(Contrast with risk profile.)
A negotiable bill of lading made out to the order of the shipper.
Document listing the contents of a consignment of goods. May be called for on a letter of credit.
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.
Form of business organization in which two or more co-owners form a business. In a general partnership each partner is liable for the debts of the partnership. Limited
partnership permits some partners to have limited liability.
In the U.S. tax code, income (such as investment income) that does not come from active participation in a business.
A government grant that gives inventors exclusive right of making, using, or selling the invention.
A bill of lading indicating that the exporter consigns a shipment to an int'l carrier for transportation to a specified foreign market.
A bill of lading in which a carrier certifies that goods have been placed on board a certain vessel.
A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.
A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
A corporation, partnership, or person that operates a zone or sub zone under the terms of an agreement with the Grantee.
All zone operators must submit to Customs a bond to assure compliance with Customs regulations.
An option that has no value if exercised immediately.
A quote in which all of the digits of the bid and offer prices are quoted. (Contrast with points quote.)
A situation in which a firm's functions are performed or provided by a person or group from outside the company.
(See official settlements balance.)
In the U.S. tax code, a limitation on the FTC equal to foreign-source income times U.S. tax on worldwide income divided by worldwide income.
Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology and management, and general
organizational abilities, that form the basis for the multinationals advantage over local firms
Most valuable alternative that is given up. The rate of return used in NPV computation is an opportunity interest rate.
The set of all possible investments.
A group of 30 countries that meets regularly to discuss global issues and make appropriate economic and social policies.
A producer cartel that produces and sells oil.
The maximum amount of goods (for example, food and clothing) that a country is able to produce given its labor supply.
Production sharing occurs when a producer chooses to make a product in stages - and in different countries - so that the firm can employ the lowest-cost resources in the
production process.
A method used to evaluate projects. It is the ratio of the present value of expected future cash flows after initial investment divided by the amount of the initial
investment.
Uncertainty regarding the future price of an asset.
A securities issue privately placed with a small group of investors rather than through a public offering.
A process whereby publicly owned enterprises are sold to private investors. (Contrast with nationalization.)
An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent their value and important
specifications.
Product cycle theory views the products of the successful firm as evolving through four stages: (1) infancy, (2) growth, (3) maturity, and (4) decline.
The complete life of a product, from early planning through sales build-up, maximum sales, declining sales, and withdrawal of the product. Product life cycle lengths and
types can vary depending on the type of product, the frequency of replacement.
The risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. Political risk includes both macro and micro
risks.
The extent to which a society accepts hierarchical differences.
If a bond is selling above its face value, it is said to sell at a premium.
The value of a future cash stream discounted at the appropriate market interest rate.
Factor used to calculate an estimate of the present value of an amount to be received in a future period.
The sensitivity of quantity sold to a percentage change in price; -%changeQ/%changeP.
A trading system in which stocks are auctioned at intervals throughout the day.
A constant stream of cash flows without end. A British consol is an example.
Combined holding of more than one stock, bond, real estate asset, or other asset by an investor.
It is a form of price discrimination that requires selling below cost with the intention of destroying competition. However, predatory pricing is against law.
A piece of legislation, regulation, or procedure with the purpose of preventing the introduction or spread of pests. Phytosanitary procedures often include the
performance of inspections, tests, surveillance, or other treatments.
An abbreviated form of the outright quote used by traders in the interbank market.
Proportion of net income paid out in cash dividends.
The International Monetary Funds name for a fixed exchange rate system.
A recognition of future liabilities resulting from pension commitments made by the corporation. Accounting for pension liabilities varies widely by country.
A set of assumptions under which the law of one price holds. These assumptions include frictionless markets, rational investors, and equal access to market prices and
information.
Glossary of IMPEX Business Trade Terms Starting with -Q
Lends to foreign buyers to finance exports from U.S.
A marine insurance term used to designate heavy weather, stranding, lightning, collision, and seawater damage.
A certificate, issued by the Indian Government Department of Agriculture to satisfy import regulations for foreign countries, indicating that a India shipment has been
inspected and is free from harmful pests and plant diseases.
In export financing the risk of loss due to such causes as currency, inconvertibility, government action preventing entry of goods, expropriation or confiscation, war, etc.
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.
An agent who purchases goods in his or her own country on behalf of foreign importers such as government agencies and large private concerns.
A variety of programs designed to promote and/or protect a company's image or its individual products.
The principle that equivalent assets sell for the same price. Purchasing power parity is a measurement of a currency's value based on the buying power within its own
domestic economy.
The right to sell the underlying asset at a specified price and on a specified date.
The relation of the value of a long call, a short put, the exercise price, and the forward price at expiration; CallTd/f - PutTd/f + Kd/f = FTd/f.
A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes.
The postal authorities' signed acknowledgment of delivery to receiver of a shipment made by parcel post.
Private or exclusive knowledge that cannot be legally used or duplicated by competitors.
A brochure that describes a mutual funds investment objectives, strategies, and position limits.
Protection of local industries through tariffs, quotas, and regulations that discriminate against foreign businesses.
A securities issue placed with the public through an investment or commercial bank.
Bonds that pay no coupons and only pay back the face value at maturity. Also referred to as "bullets" and "zeros."
The similarities or lack thereof between country markets. This concept takes into account geographic distance, cultural similarities, linguistic aspects, legal systems and
methods of conducting business.
A convex tax schedule that results in a higher effective tax rate on high income levels than on low-income levels.
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.
QRs mean Quantitative Restrictions. QRs refer to specific limits imposed by countries on the quantity or value of goods that can be imported or exported. QRs are non-
tariff measures which are taken to regulate or prohibit international.
The quantity of goods of a specific kind that a country permit to be imported without restriction or imposition of additional Duties.
An offer to sell goods at a stated price and under specified conditions.
Glossary of International Trade Terms Starting with -R
Net income after interest and taxes divided by average common stockholder's equity.
An increase in a currency value relative to other currencies in a fixed exchange rate system.
"The right of a patent holder of a patent issued in one country to intellectual property rights in a foreign market for one year, without filing for a local patent, even if
someone from the foreign market files a local patent for the same process.
An agreement defining each partys rights should one party default on its obligation. Rights of set-off were common in parallel loan arrangements.
In the United States, a statement filed with the Securities and Exchange Commission on securities issues that discloses relevant information to the public.
The act of remitting cash flows from a foreign affiliate to the parent firm.
The price below (above) which a seller (purchaser) is unwilling to go.
The value of an asset at the conclusion of a lease.
Endorsement transferring title or right to a named party.
Retained earnings divided by net income.
Interest rate expressed in terms of real goods; that is, the nominal interest rate minus the expected inflation rate.
An option or option-like feature embedded in a real investment opportunity.
A strategic alliance in which two companies agree to co market each others products in their home market. Production rights may or may not be transferred.
The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse.
Banks that are owned and operated by member nations; they are designed to extend development loans and provide other assistance to member nations. The world's four
regional development banks are the African Development Bank Group.
Bonds for which each issuer maintains a record of the owners of its bonds. Countries requiring that bonds be issued in registered form include the United States and
Japan. (Contrast with bearer bonds.)
The percent of the variation in a dependent variable (a y-variable) that is explained by variation in an independent variable (an x-variable).
A process in which instantaneous changes in exchange rates are normally distributed with a zero mean and constant variance.
An offshore financial affiliate that is used to channel funds to and from the multinationals foreign operations.
A change in the purchasing power of a currency.
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given.
A measure of the nominal exchange rate that has been adjusted for inflation differentials since an arbitrarily defined base period.
Latin for "this for that." An exchange of one thing for another.
Glossary of Export International Trade Terms Starting with -S
Analysis of the effect on the project when there is some change in critical variables such as sales and costs.
The principle that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio, which is purely technical problem, and
(2) the personal choice of the best mix of the risky portfolio.
A view of the corporation as the nexus of a set of legal contracts linking the various stakeholders. Important contracts include those with customers, suppliers, labor,
management, debt, and equity.
A measure of risk-adjusted investment performance in excess return per unit of total risk: SI = (RP - RF)/(sP).
A process of asking What if? using scenarios that capture key elements of possible future realities.
In the CAPM, the relation between required return and systematic risk (or beta): Rj - RF + bj (E[RM] - RF).
An investment strategy that attempts to identify individual securities that are under priced relative to other securities in a particular market or industry.
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.
A market that is partially or wholly isolated from other markets by one or more market imperfections.
A market in which prices fully reflect all publicly available information.
A resumption of the activated status of an entire area that was previously deactivated without any change in the operator or the area boundaries.
The Regional Commissioner of Customs for the Customs Region in which the zone is located.
Bank that sends the draft to overseas bank for collection.
Generally, sales or offers to sell goods or services to individuals for personal use.
A letter of credit that can be canceled or altered by the drawee (buyer) after it has been issued by the drawee's bank.
An independent agency of the U.S. federal government that aids, counsels, assists, 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 graph with the value of an underlying asset on the x-axis and the value of a position exposed to risk in the underlying asset on the y-axis. Also used with changes in
value. (Contrast with payoff profile.)
The CAPM holds by construction when performance is measured against a mean-variance efficient index. Otherwise, it holds not at all.
Payment made for the use of a person or businesss property based on an agreed percentage of the income arising from its use.
Always keep track of your currency units.
Always think of buying and selling the currency in the denominator of a foreign exchange quote.
Rules used to determine in what country a good will be considered as actually made for tariff and other trade purposes.
Seeking stability rather than risk.
The excess return on the risky asset that is the difference between expected return on risky assets and the return of risk-free assets.
The interest rate expressed as a percentage per annum, by which interest payment is determined.
A time series in which the process generating returns is identical at every instant of time.
A futures contract on a stock index.
A swap involving a stock index. The other asset involved in a stock index swap can be another stock index (a stock-for-stock swap), a debt index (a debt-for-stock swap),
or any other financial asset or financial price index.
An institution that facilitates the buying and selling of stocks.
A market in which trades are made for immediate delivery (within two business days for most spot currencies).
Government policies designed to promote economic growth, steady employment, and stable prices.
Those with an interest in the firm. A narrow definition includes the corporations debt and equity holders. A broader definition includes labor, management, and perhaps
other interested parties, such as customers, suppliers, and society at large.
A tax on a financial transaction.
The positive square root of the variance. This is the standard statistical measure of the spread of a sample.
A standard numerical code system used by the U.S. government to classify products and services.
Physical or real capital that is owned by the public sector rather than by private firms.
A term referring to general trading companies that import and export merchandise.
A business owned by a single individual. The sole proprietorship pays no corporate income tax but has unlimited liability for business debts and obligations.
An international reserve created by the International Monetary Fund and allocated to member countries to supplement foreign exchange reserves.
A tariff assessed at a specific amount per unit of weight.
Exchange-rate today for settlement in two days.
Selling an asset that you do not own, or taking a short position.
Any aspect of an investment project that can be valued separately from the project itself.
A draft that is payable on demand.
The use of observable managerial actions in the marketplace as an indication of managements beliefs concerning the prospects of the company.
Interest calculated by considering only the original principal amount.
Passed in 1930, this protectionist act increased import duties to the highest rate ever imposed by the United States, resulting in the downfall of the world trade system.
Usually the supplier or owner of commodities shipped.
A position in which a particular asset (such as a spot or forward currency) has been sold.
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), Paradeep (Orissa), Gopalpur (Orissa), Kulpi (West Bengal), 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.
Refers to Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the India.
An instrument in writing, signed by the captain of a ship, that lists the individual shipments constituting the ship's cargo.
A draft that is payable upon presentation to the drawee.
Network through which international banks conduct their financial transactions.
A sequence of options in which exercise of one option creates one or more additional options. Investment-disinvestments, entry-exit, expansion-contraction, and
suspension-reactivation decisions are examples of switching options.
The selling group of investment banks in a public securities offering.
In an acquisition or merger, when the value of the combination is greater than the sum of the individual parts: Synergy = VAT - (VA + VT).
A forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market.
Risk that is common to all assets and cannot be diversified away (measured by beta).
A cost that has already occurred and cannot be removed. Because sunk costs are in the past, such costs should be ignored when deciding whether to accept or reject a
project.
Expenditures that are at least partially lost once an investment is made.
The board of directors that represents stakeholders in the governance of the corporation.
An agreement to exchange two liabilities (or assets) and, after a prearranged length of time, to reexchange the liabilities (or assets).
A swap banks portfolio of swaps, usually arranged by currency and by maturity.
A swap with one or more options attached.
The price at which an option can be exercised (also called the exercise price).
In the U.S. tax code, 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.
Any organization controlled by another with more than 50 percent of its whose voting capital held by the latter.
Financing that is provided by a host government and that is issued at a below-market interest rate.
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.
Small-scale agriculture designed to meet the consumption needs of individual households.
A collaborative agreement between two companies designed to achieve some strategic goal. Strategic alliances include international licensing agreements, management
contracts, and joint ventures as special cases.
Glossary of Import International Trade Terms Starting with -T
A tax system that taxes domestic income but not foreign income. This tax regime is found in Hong Kong, France, Belgium, and the Netherlands.
A draft that is payable on a specified future dare.
The difference between the value of an option and the options intrinsic value.
Is the Indian Government's most comprehensive source of Foreign Trade Data and export promotion information. Types of information on the FTDB include: International
Market Research, Export Opportunities; Indices of Foreign and Domestic companies.
The ability of the firm to postpone investment (or disinvestments) and to reconsider the decision at a future date.
Total cash inflow minus total cash outflow.
A country or region imposing low or no taxes on foreign source income.
A reduced tax rate provided by a government as an inducement to foreign direct investment.
Taxes that do not interfere with the natural flow of capital toward its most productive use.
Items such as tax-loss carry forwards and carry backs and investment tax credits that shield corporate taxable income from taxes.
A wholly owned affiliate that is in a low-tax jurisdiction and that is used to channel funds to and from the multinationals foreign operations. (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.
Tangible assets are real assets that can be used as collateral to secure debt.
The weight of a container and packing materials that excludes the weight of the goods it contains.
A tariff that is set at a lower rate until a specified quantity (the quota) of goods has been imported, at which point the tariff increases for additional imports.
Taxes on imported goods and services, levied by governments to raise revenues and create barriers to trade.
Arbitrage using a difference in tax rates or tax systems as the basis for profit.
Clienteles of investors with specific preferences for debt or equity that are driven by differences in investors personal tax rates.
The purchase or sale of foreign exchange for immediate delivery.
A standard numerical code system used by the U.S. Government to classify products and services.
A standard numerical code system developed by the U.N. to classify commodities used in international trade.
A group of steamship operators that operate under mutually agreed upon freight rates.
A nonnegotiable bill of lading in which the goods are consigned directly to a named consignee.
A special purpose zone established as part of a zone project for a limited purpose, that cannot be accommodated within an existing zone.
Glossary of Export Import Foreign Trade Terms Starting with -U
Designation of a payment as being due at sight, a given number of days after sight, or a given number of days after date.
A single bill of lading covering both the domestic and international carriage of an export shipment.
A ship not operating on regular routes or schedules.
A document that delineates the terms and conditions agreed upon between the importer and exporter.
To take merchandise with zone status from a zone for consumption, transportation, exportation, warehousing, cartage or lighter age, vessel supplies and equipment,
admission to another zone, and like purposes.
Release of merchandise by a bank to a buyer in which the bank retains title to the merchandise.
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.
Changes in a corporations financial statements as a result of changes in currency values.
A bank or trust company that holds title to or a security interest in leased property for the benefit of the lessee, lesser, 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.
The weight of a container and packing materials without the weight of the goods it contains.
A trade surplus occurs when the value of a country's exports is greater than the value of its imports.
Price discount granted for a new item by turning in an old item at the time of purchase.
A registration process under which a name, logo, or characteristic can be identified as exclusive.
The desk at an international bank that trades spot and forward foreign exchange.
Changes in the value of contractual (monetary) cash flows as a result of changes in currency values.
A document that clearly outlines the terms and conditions agreed upon between an importer and an exporter.
An organization-wide approach to continuously improving the overall quality of its process, products, and service.
The sum of systematic and unsystematic risk (measured by the standard deviation or variance of return).
A time draft that is drawn on and accepted by an importer.
A countrys net balance (exports minus imports) on merchandise trade.
A governmental policy, action, or practice that intentionally interrupts the free flow of goods or services between countries.
A trade deficit occurs when the value of a country's exports is less than the value of its imports.
Glossary of EXIM Terms Starting with -W
Glossary of Import Export Trade Terms Starting with -V
A receipt issued by a warehouse listing the goods received.
Value addition refers to the increment added in the process of manufacture of a particular item, which also becomes part of its price.
Vishesh Krishi Upaj Yojana, a new scheme introduced in the Foreign Trade Policy (2004-2009) as part of the package for agriculture.
A required document issued by the Indian Government authorizing the export of specific commodities.
An insurance policy that covers goods over the entire journey from the seller's to the buyer's premises.
Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book
or PE ratios) in a variety of countries.
A sales tax collected at each stage of production in proportion to the value added during that stage.
A cost that varies directly with volume and is zero when production is zero.
An investment in a start-up business that is perceived to have excellent growth prospects but that does not have access to capital markets.
Partnerships so close those two partners become a single firm for all operational purposes.
One country promises another country to limit its imports; this is often done when the promising country fears increased tariffs or quotas if it does not self-regulate.
Risk that is specific to a particular security or country and that can be eliminated through diversification.
The practice of charging or paying exorbitant interest on a loan or other transaction. Note: in Islamic societies, charging or receiving any amount of interest is considered
usury.
This inventory method controls merchandise in a zone by unique numbers and/or letters that identify merchandise admitted to a zone.
A person or firm using a zone for storage, handling or processing of merchandise.
A value-added process in a firm to transform raw materials and other inputs to finished goods, which creates value to customers.
Date on which a foreign exchange contract is executed, i.e. seller delivers.
The hypothesis that forward exchange rates are unbiased predictors of future spot rates.
The extent to which a society tolerates uncertainty and ambiguity.
The ratio of the total number of unemployed persons to the total number of persons in the labor force.
The beta (or systematic risk) of a project as if it were financed with 100 percent equity.
The discount rate appropriate for an investment assuming it is financed with 100 percent equity.
A financial condition in which a country is unable to service its foreign (external) debt without decimating its economy.
The physical location of a zone or subzone.
The status of merchandise admitted to a Foreign-Trade Zone, i.e., domestic (D), non-privileged foreign (NPF), privileged foreign (PF), or zone restricted (ZR) status.
Glossary of International Trade Export Import Terms Starting with -Z
Glossary of Export Trade Terms Starting with Y
The discount rate that equates the present value of interest payments and redemption value with the present price of the bond.
Large family-owned conglomerates that controlled much of the economy of Japan prior to World War II.
The spirit of the time; the general intellectual state and outlook of an era or generation.
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.
All of the zone and subzone sites under a single grantee, normally in a single port of entry.
Merchandise admitted to a zone for the sole purpose of exportation or destruction.
The WTO is a multilateral organization that promotes free and fair trade among the nations of the world. It was created in 1994 by 121 nations at the Uruguay Round of
the General Agreement on Tariffs and Trade (GATT). The WTO is responsible for implementation.
A tax system that taxes worldwide income as it is repatriated to the parent company. Used in Japan, the United Kingdom, and the United States.
A receipt issued by a warehouse listing goods received for storage.
A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
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.
Document issued by either the exporter or a third party declaring the weight of goods in a consignment.
A discount rate that reflects the after-tax required returns on debt and equity capital.
A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
A tax on dividend or interest income that is withheld for payment of taxes in a host country. Payment is typically withheld by the financial institution distributing the
payment.
An accounting term that indicates the difference between current assets and current liabilities.
One of the "Big Three" international organizations designed to oversee economic relations among the countries of the world. Its goal is to improve the quality of life for
people in the poorer regions of the world by promoting sustainable economic development.
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. Warrants are frequently
attached to Eurobonds.
A market in which prices fully reflect the information in past prices.