Glossary International Trade Terms

8/12/2019 Glossary International Trade Terms

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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


18/72

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


19/72

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.


20/72

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


21/72

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.


22/72

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


23/72

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.


24/72

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


25/72

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


26/72

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.


27/72

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.


28/72

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.


29/72

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.


30/72

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


32/72

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


34/72

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

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