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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 aver
Refers to a scheme of Agricultural Export Zones.
Advance Licence is granted for import of inputs without payment of customs d
fulfillment of time-bound export obligation. Such licences can be issu
Any agreement to purchase goods under specified terms. An agreement to pur
An asset pricing model that assumes a linear relation between required returnbKjFK + ej.
APEC forum designed to promote economic growth, cooperation, and integrati
One of four major regional development banks currently operating in the glob
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 opti
A loose or low economic and geopolitical affiliation that includes Singapore, B
likely to include Myanmar (Burma), Laos, and Cambodia.
An option with an exercise price that is equal to the current value of the unde
Agreement on Textiles and Clothing
In models of international trade, a situation in which there is no cross-border
A guarantee of the buyer's credit provided by the guarantor, unless the buyer
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
The efficiency with which a market channels capital toward its most productiv
A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and
Laws that are enacted to prevent dumping-offering prices in the overseas mar
Asia-Pacific Economic Cooperation
An increase in a currency value relative to another currency in a floating exch
The process of purchasing and selling foreign exchange, stocks, bonds and oth
A level stream of equal dollar payments that lasts for a fixed time. An exampl
The term used to calculate the present value of the stream of level payments
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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 p
value at the date the option can be exercised.
Trade in which goods or merchandise is exchanged directly for others import
Accept the project if IRR is greater than the discount rate; reject the project
Equal to 1/100 of one percent.
A statement showing a firm's accounting value on a particular date. It reflects
An international organization which promotes international monetary and fina
A system of corporate governance in which the supervisory board is dominate
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 commodit
U.S. dollars deposited in Asia and the Pacific Basin.
Method of accounting for merchandise where direct identification of the good
Building a more basic version of an existing product for a lesser-developed ma
The BOP is the annual financial record of Foreign Payments and Foreign Recei
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
represented.
A BILL OF LADING that covers both domestic and international flights transpor
A phrase referring to the side of a ship. Goods to be delivered "alongside" are
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 forei
A bank, operating in the exporter's country, that handles LETTERS OF CREDIT
favor.
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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
An arrangement with a steamship company for the acceptance and carriage of
Clean Air Act (USA)
The right to buy the underlying currency at a specified price and on a specifie
Glossary of Export Import Trade Terms Starting with-C
A warehouse authorized by customs authorities for storage of goods on which
- a warehouse authorized for storage of good on which payment of duty is def
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 exchang
IMF(International Monetary funds ) come into the existence.
An international conference held in 1944 at Britton Woods, New Hampshire, a
BTP means Biotechnology Park as notified by Director General of Foreign Trad
A document that establishes the terms and conditions of a contract between a
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 documen
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
Cash flows generated by a foreign project that cannot be immediately repatri
government.
A bond quotation convention based on a 365-day year and semiannual coupons
Bonds that can be redeemed by the holder. The convention in most West Euro
A systematic procedure of comparing a companys practices against the best p
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 C
where k represents a market factor (such as returns to the market portfolio in
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 a
The risk of unexpected change in the relationship between futures and spot p
A floating-for-floating interest rate swap that pairs two floating rate instrume
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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
Analysis/certificate of
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
Term used in leasing. A document whereby the lessee acknowledges that the
constructed according to specifications.
Documents that may be asked for by the importer and/or the authorities of th
A statement that is usually notarised in which the producer of goods certifies
Documents that may be asked for by the authorities of the importing country,
A document required by certain foreign countries for tariff purpose, certifying
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
In a letter of credit transaction, money deposited by the applicant with the is
Cash generated by the firm and paid to creditors and shareholders. It can be c
(3) cash flow from changes in net working capital.
Payment for goods in which the price is paid in full before the shipment is ma
made in order.
An economy in which the government, rather than free-market activity, contr
The line between the risk-free asset and the market portfolio that represents
Markets for financial assets and liabilities with maturity greater than one year
The case where funds are limited to a fixed dollar amount and must be alloca
The mix of the various debt and equity capital maintained by a firm. Also callinvestment activities; the relative proportions of short-term debt, long-term
An economic system that is based on private ownership; economic developme
An individual or entity that transports persons or goods for compensation und
The proportion of debt and equity and the particular forms of debt and equity
A measure of change in cross-border ownership of long-term financial assets, i
An asset pricing model that relates the required return on an asset to its syste
Planning and managing expenditures for long-lived assets.
The process of increasing the amount of capital goods - also called capital sto
The positive change in the value of an asset, a negative capital gain is a capit
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Interbank Payments
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
A form of corporate reorganization in which two firms pool their assets and lia
Interest that is earned both on the initial principal and on interest earned on
part of the principal in a following period.
Value of a sum after investing it over one or more periods. Also called future
Process of reinvesting each interest payment to earn more interest. Compoun
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 con
consignor, while the consignor retains title to the goods until the consignee se
General term for documents describing various aspects of a transaction, e.g. c
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 t
An organization that transports persons or goods for a fee.
A comparative advantage exists when a nation or economic region is able to p
Documents presented under a letter of credit that comply with all its terms a
compliant.
The completion of customs entry requirements that results in the release of g
The settlement of a transaction, often involving exchange of payments and/or
A mutual fund in which the amount of funds under management is fixed and o
Codex Alimentarius Commission (a world food standards body)
In a collection, the document in which the seller instructs the banks as to ho
An economy based on government ownership and/or control of society's resou
Financial network through which banks in the United States conduct their fina
Convention on the International Trade in Endangered Species
Non-governmental and non-profit groups that work to improve society and the
A receipt for goods issued by a carrier that indicates that the goods were rece
Collection in which only the financial document is sent through the banks.
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Corporate Governance
Correspondent Bank
Country Risk
Coupon Swap
Credit Risk Insurance
Consular Statement
Contingency Insurance
Contingent Claim
Continuous Compounding
Continuous QuotationSystem
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
The stated interest on a debt instrument.
The set of values, beliefs, relationships between individuals and functions tha
The responsibilities that corporations (including MNCs) have to workers and th
Form of business organization that is created as a distinct "legal person" comp
include limited liability, ease of ownership, transfer, and perpetual successio
A measure of the co variability of two assets that is scaled for the standard de
A ranking of countries by level of corruption that is researched and published
dedicated to fighting corruption.
A pricing term that indicates that the cost of the goods and freight charges ar
A firm allowing another firm to manufacture a pre-specified product.
Amount that each additional product, such as a jet engine, contributes to aft
corporate tax rate.
In the U.S. tax code, a foreign corporation owned more than 50 percent eithe
Bonds sold with a conversion feature that allows the holder to convert the bo
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 taxa
taxation.
Insurance that covers the risk of non-payment for delivered goods.
A document required by some foreign countries, describing a shipment of goo
Certified by a consular official of the foreign country, it is used by the countr
Contingency insurance protects the exporter in any situation in which exporte
coverage from that source. It will cover situations in which the FOB endorsem
Claim whose value is directly dependent on, or is contingent on, the value of i
their value from the total value of the firm.
Interest compounded continuously, every instant, rather than at fixed interval
A trading system in which buy and sell orders are matched with market maker
The way in which major stakeholders exert control over the modern corporati
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 c
A fixed-for-floating interest rate swap.
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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
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 exchan
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 i
A document, required by some foreign countries, describing a shipment of goo
A currency that can be bought and sold for other currencies at will.
Any corporation which is organized for the purpose of establishing, operating
within which it is to operate such a zone.
A State, political subdivision thereof, a municipality, a public agency of a Stat
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
The commerce expert on the diplomatic staff of his/her country's embassy or l
An itemized list of goods shipped, usually among an exporter's COLLECTION P
An individual, partnership, or corporation that transports persons or goods for
A letter of credit, issued by a foreign bank, whose validity has been confirmed
Delivery of merchandise from an exporter (consignor) to an agent (consignee)
A pricing term indicating that the cost of the goods, insurance, and freight ar
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
A swap agreement to exchange equity (debt) returns for debt (equity) returns
A graphical analysis of sequential decisions and the likely outcomes of those d
A type of letter of credit which provides for payment some time after present
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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 disco
The length of time needed to recoup the present value of an investment; som
An investment decision rule in which the cash flows are discounted at an inter
Calculating the present value of a future amount. The process is the opposite
Balance sheet accounts that are used in some countries to temporarily store e
The digital divide refers to the widening technological gap between the richer
Costs of financial distress that are directly incurred during bankruptcy or liqui
A decrease in a currency value relative to another currency in a floating excha
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 exchang
The richer, more industrialized countries in the world.
Department for International Development (UK)
The difference in interest payments that is exchanged between two swap cou
A country that is in the process of becoming industrialized; the poorer nations
The asset underlying a derivative security. For a currency option, the delivera
equivalent value in futures contracts.
A futures hedge that has both currency and maturity mismatches with the und
A futures hedge using a currency that matches the underlying exposure and a
exposure.
A business process with the intention to coordinate and influence all sources o
A derivative security issued by a foreign borrower through a domestic trustee
Marketer takes direct responsibility for its products abroad by selling them dir
A non-leveraged lease by a lesser in which the lease meets any of the definiti
Measuring the direct costs associated with handling a product from the wareh
The price of a unit of foreign currency in domestic currency terms, such as IN
The practice that selling a product or service at different prices that do not r
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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 presentati
Any of various statements that the U.S. Government requires to be displayed
been authorized.
Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic
duty credit against the export product at specified rates. The DEPB Scheme
Refers to the Duty Free Replenishment Certificate Scheme which was introduc
available to merchant exporters as well as to manufacturer exporters. Howev
Refers to those transactions in which the goods supplied do not leave the cou
A draft that matures in a specified number of days after the date it is issued,
Voluntary discontinuation of the activation of an entire zone or subzone by th
An act or omission that will result in a claim for duties, taxes, charges or liqui
Dispute Settlement Understanding
The practice of selling identical products in different markets for different pri
Selling goods or merchandise in another country at a price below the price at
the costs incurred in production and shipment. Dumping is an illegal trade pra
A tax imposed on imports by the customs authority of a country.
Directorate General of Foreign Trade, which is headed by the Director Genera
Foreign Trade Policy, including licensing. Formerly (till 1991), was known as t
Allows duty-free import of inputs for exports under Advance Licence, Duty En
A receipt issued by an ocean carrier to acknowledge the receipt of a shipment
Bonds issued and traded within the internal market of a single country and de
The aggregate of money supply, quasi-money or savings and time deposits, an
A means of payment whereby a drawer (the importer) instructs a drawee (eith
Dispute Settlement Body
Dispute Settlement Panel
A Foreign agent who sells for a supplier directly and maintains an inventory of
A risk that specifically affects a single asset or a small group of assets. Also ca
Department of Commerce (USA)
A receipt issued by an ocean carrier to acknowledge receipt of a shipment at
An amount paid by a vessel's operator to a charter if loading or unloading is co
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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 pr
An emerging market has a very high growth rate, which yields enormous mark
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 interest rate as if it were compounded once per time period rather than s
Calculated as (1+i/n)n, where i is the stated annual interest rate and n is the
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 benefi
internalisation advantages.
Change in the value of a corporations assets or liabilities as a result of chang
Economic freedom occurs when individuals and businesses make most of the e
The integration of commercial and financial activities among countries throug
A group that combines the economic characteristics of a common market with
A method of performance evaluation that adjusts accounting performance wit
Articles manufactured or produced in the India with the use of imported comp
the imported products or components.
The individual or firm on whom a draft is drawn and who owes the stated amo
The individual or firm that issues or signs a draft and thus stands to receive pa
Exporting/Importing merchandise into a country below the costs incurred in p
A tax imposed on imports by the customs authority of a country.
The relation of stock returns to earnings surprises around the time of corporat
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
When documents presented do not conform to the letter of credit.
Instructions given by a shipper to a bank indicating that documents transferrin
attached draft.
An unconditional order in writing from one person (the drawer) to another (th
determinable future date.
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Emerging Stock Markets
Employment Rate
Endogenous Uncertainty
Engagement
Equity-Linked Eurobonds
Erosion
Euro
Eurobond
Eurocurrencies
Eurocurrency Market
Eurodollars
Reconstruction and
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 whic
A tax that is explicitly collected by a government; includes income, withholdi
A foreign exchange quotation that states the foreign currency price of one U.S
An intergovernmental organization which coordinates foreign, economic, and j
The price of one currency in terms of another, i.e. the number of units of one
The risk that losses may result from the changes in the relative values of diffe
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
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 glob
A trade-weighted basket of currencies in the European Exchange Rate Mechan
The exchange rate system used by countries in the European Union in which e
An exchange rate system based on cooperation between European Union centr
An option that can be exercised only at expiration. (Contrast with American o
A Eurobond with a convertibility option or warrant attached. Eurobonds: Fixed
years.
Cash-flow amount transferred to a new project from customers and sales of o
The single currency of the European Economic and Monetary Union (EMU) intr
Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.
A bond that is denominated in a currency other than that of the country of iss
Deposits and loans denominated in one currency and traded in a market outsi
A money market for currencies held in the form of deposits in countries other
The stock markets of emerging economies. These markets typically have high
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
The assumption of payment responsibility in respect of a letter of credit, e.g.
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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 en
which to pay a seller in another country.
The price of one currency in terms of another, i.e., the number of units of on
The showing of merchandise within a zone, usually to prospective buyers.
An organization which, for a commission, acts as a purchasing agent for a fore
A government document that permits the "Licensee" to engage in the export o
Glossary of Export Trade Terms Starting with-F
A market for financial securities that are placed outside the borders of the co
A government practice which applies its laws outside its territorial boundaries
Refers to Export and Import (Exim) Policy. Exim Policy has got incorporated in
Industry Minister on 31st August, 2004.
EPZs means Export Processing Zones which are special enclaves, separated fro
environment for export production.EOU means Export Oriented Units.
Refers to electronic commerce. In the context of Foreign Trade Policy, e-com
EPCG refers to the Export Promotion Capital Goods (EPCG) Scheme, which giv
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 in
A general export license covers the exportation of goods not restricted under
needed to ship exports under a general export license.
Quantitative restrictions imposed by exporting countries to limit exports to sp
with importing countries.
Any form of government payment that helps an exporter or manufacturing co
A company that facilitates the export of goods and services. An ETC can eithe
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 on
A foreign or domestic company that acts as a sales agent and distributor for d
A private firm that transacts export business on behalf of its client companies
The value of a bond that appears on its face. Also referred to as par value or
A model that assumes a linear relation between an assets expected return an
Sale of an accounts receivable balance to buyers (factors) that are willing and
The proportion of debt and equity and the particular forms of debt and equity
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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 reta
A commitment to exchange a specified amount of one currency for a specified
periodically marked-to-market,
An independent business that handles export shipment on behalf of the shippe
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
A lease in which the lesser recovers, through the lease payments, all costs inc
equipment's future residual value.A method of predicting exchange rates using the relationships of exchange rat
balances.
Value of a sum after investing it over one or more periods. Also called compou
A parent company grants another independent entity the privilege to do busin
technology and other business approach.
Cash flow after all positive-NPV projects have been exhausted in the firms m
An area such as a port city into which merchandise may legally be moved with
A proposed hemispheric trade zone that would cover all of the countries in No
An area designated by the government to which goods may be imported for pr
manufactured in the zone and re-exported without duties being paid.
An exchange rate system in which currency values are allowed to fluctuate ac
government authorities.
A commitment to exchange a specified amount of one currency for a specified
A currency whose nominal value in the forward market is lower than in the sp
A market for forward contracts in which trades are made for future delivery a
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 sp
An agreement in which a domestic company (the franchiser) licenses its trade
market.
A financial institution making a market in foreign exchange.
Networks of commercial banks, investment banks, and other financial instituti
A physical area in which the government allows firms to delay or avoid paying
Income earned from foreign operations.
A form of factoring in which large, medium- to long-term receivables are sold
collections.
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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
Accounting Principles
General Agreement on
Tariffs and Trade (GATT)
Autoregressive conditional
Geocentric Multinational
Global Bond
Global Economy
Globalization
A bond that trades in the Eurobond market as well as in one or more national
The international network of individuals, businesses, governments, and multil
A global movement to increase the flow of goods, services, people, real capit
interdependent world economy.
A formal organization of seven highly industrialized democracies: Canada, Fra
The G-7 countries plus Russia.
A common set of accounting concepts, standards, and procedures by which fin
A post-World War II agreement designed to promote freer international trade
(WTO) in 1994.
A time series model in which returns at each instant of time are normally dist
A multinational in which the subsidiaries are neither satellites nor independen
objectives, each part making its unique contribution with its unique compete
A receipt of goods issued by a carrier with an indication that the goods were d
A pricing term indicating that the quoted price includes the cost of delivering
A pricing term indicating that the charter of a vessel is responsible for the cos
An area such as a port city into which merchandise may be legally moved with
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 n
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 tha
An individual or firm that serves as the foreign representative of a domestic s
A port designated by the government of a country for duty-free entry of any n
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. 8
Refers to Foreign Trade Policy, announced by the Commerce & Industry Minist
effect from September 1, 2004.
Free Trade and Warehousing Zone, a new scheme announced in the Foreign Tr
Fob means Free on Board - i.e., when an exporter delivers goods "free on boar
An accounting method based on an assumption regarding the flow of goods tha
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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 IncomeHeavily Indebted Poor
Countries (HIPC) Initiative
Hedge
Hedge Funds
Hedge Portfolio
The HIPC Inititiative is a major international response to the burdensome exte
joint undertaking of the World Bank and the International Monetary Fund (IMF)
A position or operation that offsets an underlying exposure. For example, a fo
underlying position in a foreign currency. Hedges reduce the total variability
Private investment partnerships with a general manager and a small number o
The country-specific hedge portfolio in the International Asset Pricing Model s
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 imp
Measured by the r-square in a regression of spot rate changes on futures price
The ratio of derivatives contracts to the underlying risk exposure.
Reducing the risk of a cash position by using the futures instruments to offset
In the U.S. tax code, interest income that has been subject to a foreign gross
The positive-NPV opportunities in which the firm has not yet invested. The valas well as the option value of the firms potential future investments.
Stocks with high price/book or price/earnings ratios. Historically, growth stoc
ratios) in a variety of countries.
A lease written under criteria established by the IRS to determine the availabi
A multilateral treaty intended to help reduce trade barriers between the sign
A corporation to which the privilege of establishing, operating, and maintaini
The full weight of a shipment, including goods and packaging.
A steady and calculated approach to transforming an economy from communis
Gray-market imports are parallel distribution of genuine goods by intermediar
A form of investment in which the firm designs and builds a new factory from
Buying shares on the open market in the hope that the targets business partn
A measure of the market value of goods and services produced by a nation. Un
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 indefinit
rise a certain percentage each year.
An exchange rate system used from 1925 to 1931 in which the United States a
dollars, or pounds sterling as reserves.
An exchange rate system used prior to 1914 in which gold was used to settle n
The accounting treatment of an intangible asset such as the takeover premiu
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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
scheduleIndirect 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 de
A schedule of rates for an interest rate or currency swap.
Costs of financial distress that are indirectly incurred prior to formal bankrupt
The end-users (e.g., consumers) of the products and services purchased from
Diversification benefits provided by the multinational corporation that are no
Export products to foreign markets by using an intermediary, usually export tr
Financial report that summarizes a firm's performance over a specified time p
IRR on the incremental investment from choosing a large project instead of a
A clause in which the one party indemnifies the other. In leasing, generally a
A project whose acceptance or rejection is independent of the acceptance or
A futures contract that allows investors to buy or sell an index (such as a forei
A call or put option contract on an index (such as a foreign stock market inde
Lower (higher) before-tax required returns on assets that are subject to lower
The volatility that is implied by an option value given the other determinants
Any resource, intermediate good, or final good or service that buyers in one c
Licenses required by some countries to bring in a foreign-made good. In many
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 inco
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,
An extremely high rate of inflation, often exceeding several hundred or sever
The behavior of firms that fail to enter markets that appear attractive and, o
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.
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Inflation Rate
Informational Efficiency
Integrated Financial
Market
Intellectual PropertyIntellectual 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
Reconstruction and
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 Or
International non-governmental body concerned with promotion of trade and
An international organization designed to promote global economic stability a
summary of each countrys balance of payments.
An agreement specifying the rights and responsibilities of a host government a
The set of possible investments available to an individual or corporation.
The investment approach-active or passive-pursued by an investment fund an
The norms which define the amount of input/inputs required to manufacture
A discount rate at which the net present value of an investment is zero. The I
The international version of the CAPM in which investors in each country shar
The global network of governmental and commercial institutions within which
The value of an option if exercised immediately.
Also called the World Bank, an international organization created at Breton W
Bonds that are traded outside the country of the issuer. International bonds a
international market.
The difference between a banks offer and bid rates for deposits in the Euroc
The risk of unexpected changes in an interest rate.
An agreement to exchange interest payments for a specific period of time on
coupon swap. The notional principal is typically not exchanged.
A financial market in which a financial institution (usually a commercial bank)
The use of two or more modes of transportation to complete a cargo move; tr
A market for financial securities denominated in the currency of a host countr
The general increase in the price level herein measured by the growth rate in
Whether or not market prices reflect information and thus the true (or intrinsi
A market in which there are no barriers to financial flows and purchasing pow
Material or communicable result in forms of discoveries, inventions, designs a
includes, but is not limited to, works in the form of scientific discoveries and i
Patents, copyrights, and proprietary technologies and processes that are the b
A regional development bank designed to promote sustainable economic devel
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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 AgreementA sales agreement in which a domestic company (the licensor) allows a foreig
fees, or other forms of compensation.
A letter issued by an importers bank guaranteeing payment upon presentatio
etc.).
The lesser provides an equity portion (usually 20 to 40 percent) of the equipm
The process by which certain business activities become more market driven.
Advantages (natural and created) that are available only or primarily in a singl
The bid rate that a Euro market bank is willing to pay to attract a deposit fro
A position in which a particular asset (such as a spot or forward currency) has
An organization-wide practice that keeps the inventory to the minimum and p
A multilateral environmental agreement; its goal is to control global warming
Collaborative groups of vertically and horizontally integrated firms with exten
A contract in which one party conveys the use of an asset to another party for
The quoted or invoiced cost of a commodity, plus any inbound transportation
The principle that equivalent assets sell for the same price. The law of one pr
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 cl
A document required and issued by some national governments authorizing th
A bill of lading used in transporting goods overland to the exporter's internati
A letter of credit in which the specified payment is guaranteed by the bank if
An agreement of two or more companies to pool their resources to execute a
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 cor
The periodic rental payment to a lesser for the use of assets. Others may defi
The poorest of the developing countries. They are characterized by a low gros
growth, inadequate infrastructure.
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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 antici
A failure of arms-length markets to efficiently complete the production of a g
internalization advantages take advantage of market failure.
Advantages that allow the multinational corporation to internalize or exploit
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 investmen
Duty-free assembly plants located mainly in the developing world. Maquilador
An account maintained by an investor with a brokerage firm in which securitie
may be sold short by borrowing the securities from the brokerage firm.
A performance bond paid upon purchase of a futures contract that ensures th
The extent to which a domestic industry can penetrate a related market in a f
An economy in which resource allocations, prices and other marketing decisio
The offer rate that a Euro market bank demands in order to place a deposit at
A document, issued by a bank per instructions by a buyer of goods, authorizin
the bank of certain documents within a given time.
A business arrangement in which the manufacturer of a product grants permis
royalties.
Document that lists in detail al the bills of lading issued by a carrier of its age
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 activiti
decisions.
Glossary of Export Trade Terms Starting with - M
One firm gives another firm a permission, which allows the latter to engage in
intellectual and proprietary knowledge in return for royalty as revenue.
The International Monetary Funds name for an exchange rate system with a
A market in which traders can buy or sell large quantities of an asset when th
The ease with which an asset can be exchanged for another asset of equal val
The pool of funds from which borrowers can attract capital; typically categori
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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 SystemMost 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 acce
Financial markets for debt securities that pay off in the short term (usually le
The total amount of currency in circulation and peso deposits subject to chec
Exclusive control or possession by one group of the means of producing or selli
The International Monetary Funds name for a floating exchange rate system.
A status granted to one country by another; the granting country then accords
country.
A corporation with operations in more than one country.
A market segment generally represented by financing under $2 million. In leas
If financial markets are perfect, then corporate financial policy (including hed
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 currenc
A bond quotation convention based on a 360-day year and semiannual coupons
An asset that has higher mean return at a given level of risk (or lower risk at a
The common market of the South, a customs union which includes Argentina,
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 ass
The way in which a merger or acquisition is financed.
Country risks that are specific to an industry, company, or project within a ho
Small loans, perhaps $50 or $100, that are extended to small businesses to fin
A system of corporate governance in which the supervisory board represents a
Environmental agreements negotiated by a number of countries.
The set of marketing tools that the firm uses to pursue its marketing objectiv
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 dai
The date on which the last payment on a bond is due.
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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 o
A cash flow expressed in nominal terms if the actual dollars to be received (or
The sum of the individual asset values in a closed-end mutual fund. Closed-en
Exposed assets less exposed liabilities. The term is used with market values or
Monetary assets less monetary liabilities.
A currency position after aggregating and canceling all offsetting transactions
The present value of future cash returns, discounted at the appropriate mark
Current assets minus current liabilities.
Merchandise which may not be authorized for delivery from Customs custody
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 a
A country accords no less favorable treatment to imported goods than it does
A process whereby privately owned companies are brought under state owners
A negative (-) NPV infrastructure development project that a local governmen
economy.
Glossary of EXIM Trade Terms Starting with - N
Includes goods, wares, and chattels of every description except Prohibited Me
zone.
Merchandise which has been produced in the India and not exported therefro
Imported Merchandise which has not been properly released from Customs cus
Merchandise which for commercial purposes is identical and interchangeable i
Foreign Merchandise which has been combined with Domestic Merchandise in
Merchandise, the importation of which is prohibited by law on grounds of publ
Processing wherein merchandise is packed, unpacked, repacked, cleaned, sor
Generally, the production of articles for use from raw or prepared materials b
Insurance that compensates the owners of goods transported overseas in the e
Letters, numbers, and other symbols on cargo packages to facilitate identifica
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Nominal Interest Rate
Non-Governmental
Organizations (NGOs)
Non-Tariff Barrier
Noncash ItemNon-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 an
Overseas Private Investment Corporation. A US agency that assists US compani
services.
The seller delivers the goods to the buyer and then bills the buyer according t
An economic policy enacted by the Chinese government combining central pla
technological quality without exacerbating inflation, unemployment, and bud
A mutual fund in which the amount of money under management grows/shrin
Earnings before interest and depreciation minus taxes. It measures the cash fl
requirements.
Changes in the value of real (no monetary) assets or operating cash flows as a
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 du
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 Secu
An overall measure of a countrys private financial and economic transactions
The many types of financial institutions that operate without financial supervi
A market dominated by so few sellers that action by any of them will impact
Glossary of Export Business Trade Terms Starting with - O
A financial market in which borrowers (governments and large corporations) a
financial institution as intermediary.
Assets and Liabilities with non-contractual payoffs.
Symmetric bell-shaped frequency distribution that can be defined by its mean
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 excha
Refers to Net Foreign Exchange. Net Foreign Exchange earning is calculated as
Interest rate unadjusted for inflation.
Special interest groups that operate in the global community.
An indirect measure used to discriminate against foreign manufacturers, for e
the market.
Expense against revenue that does not directly affect cash flow, such as depr
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Opportunity Cost
Opportunity Set
Cooperation and
Exporting Countries
Out-of-the-Money Option
Outright Quote
Outsourcing
Overall Balance
Overall FTC limitation
Ownership-SpecificAdvantages
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 hav
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
(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 loan arrangement in which a company borrows in its home currency and the
Form of business organization in which two or more co-owners form a business
partnership permits some partners to have limited liability.
In the U.S. tax code, income (such as investment income) that does not come
A government grant that gives inventors exclusive right of making, using, or s
A bill of lading indicating that the exporter consigns a shipment to an int'l car
A bill of lading in which a carrier certifies that goods have been placed on boa
A trade arrangement in which goods are shipped to a foreign buyer without gu
A marine insurance policy that applies to all shipments made by an exporter o
A corporation, partnership, or person that operates a zone or sub zone under
All zone operators must submit to Customs a bond to assure compliance with
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. (Cont
A situation in which a firm's functions are performed or provided by a person
(See official settlements balance.)
In the U.S. tax code, a limitation on the FTC equal to foreign-source income ti
Property rights or intangible assets, including patents, trademarks, organizatiorganizational abilities, that form the basis for the multinationals advantage
Most valuable alternative that is given up. The rate of return used in NPV com
The set of all possible investments.
A group of 30 countries that meets regularly to discuss global issues and make
A producer cartel that produces and sells oil.
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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 countr
Production sharing occurs when a producer chooses to make a product in stag
production process.
A method used to evaluate projects. It is the ratio of the present value of exp
investment.
Uncertainty regarding the future price of an asset.
A securities issue privately placed with a small group of investors rather than
A process whereby publicly owned enterprises are sold to private investors. (C
An invoice provided by a supplier prior to the shipment of merchandise, infor
specifications.
Product cycle theory views the products of the successful firm as evolving thr
The complete life of a product, from early planning through sales build-up, m
types can vary depending on the type of product, the frequency of replaceme
The risk that a sovereign host government will unexpectedly change the rules
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 inter
Factor used to calculate an estimate of the present value of an amount to be
The sensitivity of quantity sold to a percentage change in price; -%changeQ/%
A trading system in which stocks are auctioned at intervals throughout the da
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 as
It is a form of price discrimination that requires selling below cost with the in
A piece of legislation, regulation, or procedure with the purpose of preventin
performance of inspections, tests, surveillance, or other treatments.
An abbreviated form of the outright quote used by traders in the interbank m
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 b
A set of assumptions under which the law of one price holds. These assumptio
information.
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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, lightnin
A certificate, issued by the Indian Government Department of Agriculture to s
inspected and is free from harmful pests and plant diseases.
In export financing the risk of loss due to such causes as currency, inconvertib
Foreign merchandise or non-tax paid domestic merchandise upon which the d
An agent who purchases goods in his or her own country on behalf of foreign i
A variety of programs designed to promote and/or protect a company's image
The principle that equivalent assets sell for the same price. Purchasing power
domestic economy.
The right to sell the underlying asset at a specified price and on a specified da
The relation of the value of a long call, a short put, the exercise price, and th
A list showing the number and kinds of items being shipped, as well as other i
The postal authorities' signed acknowledgment of delivery to receiver of a shi
Private or exclusive knowledge that cannot be legally used or duplicated by c
A brochure that describes a mutual funds investment objectives, strategies, a
Protection of local industries through tariffs, quotas, and regulations that disc
A securities issue placed with the public through an investment or commercial
Bonds that pay no coupons and only pay back the face value at maturity. Also
The similarities or lack thereof between country markets. This concept takes i
methods of conducting business.
A convex tax schedule that results in a higher effective tax rate on high incom
A way to raise nonrecourse financing for a specific project characterized by th
and (2) the debt is contractually linked to the cash flow generated by the proj
Financial document in which the buyer agrees to make payment to the seller
QRs mean Quantitative Restrictions. QRs refer to specific limits imposed by co
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
An offer to sell goods at a stated price and under specified conditions.
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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
An increase in a currency value relative to other currencies in a fixed exchang
"The right of a patent holder of a patent issued in one country to intellectual
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 obli
In the United States, a statement filed with the Securities and Exchange Com
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 ra
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 p
The right to demand return of money paid. In negotiation of a letter of credit,
Banks that are owned and operated by member nations; they are designed to
regional development banks are the African Development Bank Group.
Bonds for which each issuer maintains a record of the owners of its bonds. Co
Japan. (Contrast with bearer bonds.)
The percent of the variation in a dependent variable (a y-variable) that is exp
A process in which instantaneous changes in exchange rates are normally distr
An offshore financial affiliate that is used to channel funds to and from the m
A change in the purchasing power of a currency.
A cash flow is expressed in real terms if the current, or date 0, purchasing po
A measure of the nominal exchange rate that has been adjusted for inflation
Latin for "this for that." An exchange of one thing for another.
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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 vari
The principle that portfolio choice can be separated into two independent tas
(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 v
management, debt, and equity.
A measure of risk-adjusted investment performance in excess return per unit
A process of asking What if? using scenarios that capture key elements of possi
In the CAPM, the relation between required return and systematic risk (or bet
An investment strategy that attempts to identify individual securities that are
An element of the Paris Convention for the Protection of Industrial Property t
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 mor
A market in which prices fully reflect all publicly available information.
A resumption of the activated status of an entire area that was previously dea
The Regional Commissioner of Customs for the Customs Region in which the z
Bank that sends the draft to overseas bank for collection.
Generally, sales or offers to sell goods or services to individuals for personal u
A letter of credit that can be canceled or altered by the drawee (buyer) after
An independent agency of the U.S. federal government that aids, counsels, as
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
value. (Contrast with payoff profile.)
The CAPM holds by construction when performance is measured against a mea
Payment made for the use of a person or businesss property based on an agre
Always keep track of your currency units.
Always think of buying and selling the currency in the denominator of a foreig
Rules used to determine in what country a good will be considered as actually
Seeking stability rather than risk.
The excess return on the risky asset that is the difference between expected
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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 pay
A time series in which the process generating returns is identical at every inst
A futures contract on a stock index.
A swap involving a stock index. The other asset involved in a stock index 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 busine
Government policies designed to promote economic growth, steady employme
Those with an interest in the firm. A narrow definition includes the corporatio
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 measu
A standard numerical code system used by the U.S. government to classify pro
Physical or real capital that is owned by the public sector rather than by priva
A term referring to general trading companies that import and export mercha
A business owned by a single individual. The sole proprietorship pays no corpo
An international reserve created by the International Monetary Fund and alloc
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 p
A draft that is payable on demand.
The use of observable managerial actions in the marketplace as an indication
Interest calculated by considering only the original principal amount.
Passed in 1930, this protectionist act increased import duties to the highest ra
Usually the supplier or owner of commodities shipped.
A position in which a particular asset (such as a spot or forward currency) has
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Strategic Alliance
Striking Price
Subpart F Income
Subsidiary
Subsidized Financing
Subsidy
Subsistence Agriculture
Sunk Cost
Sunk Costs
Supervisory Board
Swap
Swap Book
Swaption
Worldwide Interbank
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
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 Trad
Refers to Schedule B, Statistical Classification of Domestic and Foreign Comm
An instrument in writing, signed by the captain of a ship, that lists the individ
A draft that is payable upon presentation to the drawee.
Network through which international banks conduct their financial transaction
A sequence of options in which exercise of one option creates one or more ad
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 tha
A forward position constructed through borrowing in one currency, lending in
Risk that is common to all assets and cannot be diversified away (measured by
A cost that has already occurred and cannot be removed. Because sunk costs 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 c
An agreement to exchange two liabilities (or assets) and, after a prearranged
A swap banks portfolio of swaps, usually arranged by currency and by maturit
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 pe
Any organization controlled by another with more than 50 percent of its whos
Financing that is provided by a host government and that is issued at a below-
Monetary assistance granted by the government to an individual or other entit
Small-scale agriculture designed to meet the consumption needs of individual
A collaborative agreement between two companies designed to achieve some
contracts, and joint ventures as special cases.
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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 regi
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
Market Research, Export Opportunities; Indices of Foreign and Domestic comp
The ability of the firm to postpone investment (or disinvestments) and to reco
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 dir
Taxes that do not interfere with the natural flow of capital toward its most pr
Items such as tax-loss carry forwards and carry backs and investment tax credi
A wholly owned affiliate that is in a low-tax jurisdiction and that is used to ch
haven affiliates were largely removed in the United States by the Tax Reform
Any method of forecasting future exchange rates based on the history of exch
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 t
A tariff that is set at a lower rate until a specified quantity (the quota) of goo
Taxes on imported goods and services, levied by governments to raise revenu
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 dr
The purchase or sale of foreign exchange for immediate delivery.
A standard numerical code system used by the U.S. Government to classify pr
A standard numerical code system developed by the U.N. to classify commodi
A group of steamship operators that operate under mutually agreed upon frei
A nonnegotiable bill of lading in which the goods are consigned directly to a n
A special purpose zone established as part of a zone project for a limited purp
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Total Quality Management
(TQM)
Total Risk
Trade Acceptance
Trade Balance
Trade Barrier
Trade Deficit
Trade Surplus
Trade-in Allowance
Trademark
Trading Desk (DealingDesk)
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 s
A single bill of lading covering both the domestic and international carriage of
A ship not operating on regular routes or schedules.
A document that delineates the terms and conditions agreed upon between th
To take merchandise with zone status from a zone for consumption, transport
admission to another zone, and like purposes.
Release of merchandise by a bank to a buyer in which the bank retains title to
Prices on intercompany sales
The price one unit of a company charges to another unit of the same company
Changes in a corporations financial statements as a result of changes in curre
A bank or trust company that holds title to or a security interest in leased pro
An agreement in which a contractor is responsible for setting up a facility fro
The weight of a container and packing materials without the weight of the go
A trade surplus occurs when the value of a country's exports is greater than th
Price discount granted for a new item by turning in an old item at the time of
A registration process under which a name, logo, or characteristic can be iden
The desk at an international bank that trades spot and forward foreign exchan
Changes in the value of contractual (monetary) cash flows as a result of chang
A document that clearly outlines the terms and conditions agreed upon betwe
An organization-wide approach to continuously improving the overall quality o
The sum of systematic and unsystematic risk (measured by the standard devia
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 intentio