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Words: Descriptions: Glossary of Export Import Trade Terms Starting with-A: AB: Appellate Body: Absolute Advantage(AB-AD) An absolute advantage exists in condition of when a nation or other economic region of any country is able to produce a good or service more efficiently than a second (other) nation or its region.

Dumping is an illegal trade practice. An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. Someone who represents business in domestic and overseas market.

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Words: Descriptions: Glossary of Export Import Trade Terms Starting with-A: AB: Appellate Body: Absolute Advantage(AB-AD) An absolute advantage exists in condition of when a nation or other economic region of any country is able to produce a good or service more efficiently than a second (other) nation or its region.

FIPS 10 codes are intended for general use throughout the U. Government, especially in activities associated with the mission of the U. Department of State and national defense programs. ISO includes two- and three-character alphabetic codes and three-digit numeric codes that may be needed for activities involving exchange of data with international organizations that have adopted that standard.

The 8th edition established trigraph codes for each country based upon the ISO alpha-3 character sets. These codes are used throughout NATO. This glossary of computer terms is not meant to be exhaustive.

Rather, it is designed to offer the user a solid base in understanding the basic terms of computing with an emphasis upon Internet technology and e-commerce.

Note that many terms are listed by their acronym when common usage dictates. In some instances the full term is spelled out with a cross reference to the main entry.

This page can be used to find individuals or groups that are restricted from commercial transactions with US exporters. This data is referred to as the Denied Persons List. Use the search field below to find specific tariffs, or browse the full document here. This tool provides the nautical distance from major global seaports to selected other ports in the world. Security is a very broad field. Up until the mid s, security was primarily concerned with loss prevention from a logistics and retail perspective , labor unrest and military issues.

Since that time, data security, cyber security, industrial espionage, and terrorism have become the hot new issues facing companies and governments alike. A comprehensive listing of security terms would fill an entire reference book. The emphasis of this glossary is to introduce the international trade and logistics reader to a sampling of key terms used primarily in supply chain management and data security.

As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific.

The Unverified List includes names and countries of foreign persons who in the past were parties to a transaction with respect to which the U. Any transaction to which a listed person is a party will be deemed by BIS to raise a Red Flag with respect to such transaction within the meaning of the guidance set forth in Supplement No.

The Red Flag; applies to the person on the Unverified List regardless of where the person is located in the country included on the list. Get the Global Edge Essential information for global knowledge.

Usage Reports Select a date range to run a report: Important Note As of October , a new reporting tool has been implemented to provide better user tracking. Server Uptime Month Uptime. Countries Viewed Country Views. Cities Viewed City Views. States Viewed State Views. Resources Viewed Resource Views. The following are the largest national banks in. Foreign Embassies and Consulates in.

National Private Day Schools. AFN Afghan afghani Af. ALL Albanian lek Lek. AOA Angolan kwanza Kz. BYR Belarusian ruble p. BTN Bhutanese ngultrum Nu. BWP Botswana pula P. HRK Croatian kuna kn. DKK Danish krone kr. DJF Djiboutian franc Fdj. ETB Ethiopian birr Br. GMD Gambian dalasi D. GTQ Guatemalan quetzal Q. HTG Haitian gourde G. HNL Honduran lempira L. HUF Hungarian forint Ft.

IDR Indonesian rupiah Rp. LVL Latvian lats Ls. LSL Lesotho loti L. MGA Malagasy ariary Ar. MDL Moldovan leu L. MMK Myanma kyat K. NOK Norwegian krone kr. PYG Paraguayan guarani Gs. RON Romanian leu lei. SOS Somali shilling S. SZL Swazi lilangeni L. SEK Swedish krona kr. About World Currency Converter is a multi-lingual foreign exchange rate calculator for global businesses and world travelers.

Contact us for more information. Forex Glossary arbitrage Simultaneous buying and selling of securities, commodities, or currencies in different markets to take advantage of price differences. Disclaimer The World Currency Converter is offered to users with no liability whatsoever assumed for errors in rates, conversions, trends, or otherwise.

The following are state Congressional District Maps for the th session of Congress. Note that these maps change from time to time due to population shifts, political manipulation gerrymandering , and litigation.

It is the position of World Trade Press that photographic reproductions of visual works in the public domain are not copyrightable because the reproductions, while they may have required skill, involve no originality.

See Bridgeman Art Library v. Browse acronyms by letter: Introduction Search Entities Browse Search by Country Introduction The following tool provides a list of the most common business entities worldwide. Several definitions are useful at this time: Aktzionerno Drouzestvo Aktzionerno Drouzestvo. Associazione in Partecipazione Associazione in Partecipazione.

Commanditaire Vennootschap Commanditaire Vennootschap. Gesellschaft mit beschränkter Haftung Gesellschaft mit beschränkter Haftung. Kommandit Erwerbsgesellschaft Kommandit Erwerbsgesellschaft. Naamloze Vennootschap Naamloze Vennootschap. Offene Erwerbsgesellschaft Offene Erwerbsgesellschaft. Offene Handelsgesellschaft Offene Handelsgesellschaft. Publikt Aktiebolag-abp Publikt Aktiebolag-abp. Sociedad Commanditaria Sociedad Commanditaria. Sociedad en Comandita Sociedad en Comandita.

Subiratelno Druzestvo Subiratelno Druzestvo. IATA codes are primarily used to identify airports, but are also used to identify transshipment, pick-up and delivery locations; cities; bus and train stations; as well as harbors and ports. Approximately ten percent of these locations are major international airports.

The balance are municipal and smaller airfields and other locations. The interest earned in one period becomes in effect part of the principal in a following period. Process of reinvesting each interest payment to earn more interest. Compounding is based on the idea that interest itself becomes principal and therefore also earns interest in subsequent periods.

Delivery of merchandise from an exporter the consignor to an agent the consignee under agreement that the consignee sells the merchandise of the account of the consignor, while the consignor retains title to the goods until the consignee sells them.

A form of corporate reorganization in which two firms pool their assets and liabilities to form a new company. A document required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of shipment.

Certified by a consular official of the foreign country, it is used by the country's officials. Contingency insurance protects the exporter in any situation in which exporter responsibility relied on the buyer to insure, but sustained a loss because of inadequate coverage from that source.

It will cover situations in which the FOB endorsement. Claim whose value is directly dependent on, or is contingent on, the value of its underlying assets. For example, the debt and equity securities issued by a firm derive their value from the total value of the firm.

A trading system in which buy and sell orders are matched with market makers as the orders arrive, ensuring liquidity in individual shares. Amount that each additional product, such as a jet engine, contributes to after-tax profit of the whole project: Sales price - Variable cost X 1 - T , where T is the corporate tax rate.

Bonds sold with a conversion feature that allows the holder to convert the bond into common stock on or prior to a conversion date and at a pre specified conversion price.

A tax schedule in which the effective tax rate is greater at high levels of taxable income than at low levels of taxable income. Such a schedule results in progressive taxation. The set of values, beliefs, relationships between individuals and functions that guide the decisions of a company to achieve its objectives. The responsibilities that corporations including MNCs have to workers and their families, to consumers, to investors, and to the natural environment.

Form of business organization that is created as a distinct "legal person" composed of one or more actual individuals or legal entities. Primary advantages of a corporation include limited liability, ease of ownership, transfer, and perpetual succession.

A ranking of countries by level of corruption that is researched and published by Transparency International TI , the world's leading non-governmental organization dedicated to fighting corruption. A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price. The sale of goods or services that are paid for in whole or part by the transfer of goods or services from a foreign country. Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.

A futures hedge using a currency that is different from, but closely related to, the currency of the underlying exposure. The required return on the company's common stock in capital markets. It is also called the equity holders' required rate of return because it is what equity holders can expect to obtain in the capital market. It is a cost from the firm's perspective. Duties levied on an imported good that has been unfairly subsidized by a foreign government.

Imposing duties on the good is meant to raise the product's price to a "fair market value". Collective mental paradigms that a society imparts to individuals in the form of behavior patterns, shared values, norms and institutions. An equity account under FAS 52 that accumulates gains or losses caused by translation accounting adjustments. A fixed-for-floating rate no amortizing currency swap traded primarily through international commercial banks.

A hedge of currency risk using a currency that is correlated with the currency in which the underlying exposure is denominated. The currency that is being bought or sold. It is most convenient to place the currency of reference in the denominator of a foreign exchange quote. A contract giving the option holder the right to buy or sell an underlying currency at a specified price and on a specified date. The option writer seller holds the obligation to fulfill the other side of the contract.

A contractual agreement to exchange a principal amount of two different currencies and, after a prearranged length of time, to give back the original principal. Interest payments in each currency are also typically swapped during the life of the agreement. A broad measure of import-export activity that includes services, travel and tourism, transportation, investment income and interest, gifts, and grants along with the trade balance on goods.

A form of regional economic integration group that eliminates tariffs among member nations and establishes common external tariffs. A person or firm obtains the license from the treasury department of its Country when required, and help clients importers to enter and declare goods through customs. A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds. Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.

A pricing term indicating that the cost of the goods and freight charges are included in the quoted price. Written contract between the owner of a vessel and a "chartered" who rents use of the vessel or a part of its freight space. A pricing term indicating that the cost of the product and insurance are included in the quoted price. A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price. A letter of credit, issued by a foreign bank, whose validity has been confirmed by a Nationalized Indian bank.

Delivery of merchandise from an exporter consignor to an agent consignee under agreement that the agent sell the merchandise for the account of the exporter. A legal fiction which permits acceptance of a Customs entry for merchandise in a zone before its physical transfer to the Customs territory.

A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Any corporation which is organized for the purpose of establishing, operating and maintaining a foreign-trade zone and which is chartered under a special act of the State within which it is to operate such a zone.

A State, political subdivision thereof, a municipality, a public agency of a State, political subdivision thereof, or municipality, or a corporate municipal instrumentality of one or more States. The sale of goods or services that are paid in whole or in part by the transfer of goods or services from a foreign country.

A swap agreement to exchange equity debt returns for debt equity returns over a prearranged length of time. A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter. The official lowering of the value of one country's currency in terms of one or more foreign currencies.

The asset underlying a derivative security. For a currency option, the deliverable instrument is determined by the options exchange and is either spot currency or an equivalent value in futures contracts. A futures hedge using a currency that matches the underlying exposure and a maturity date that is different from, but preferably close to, the maturity of the underlying exposure.

A derivative security issued by a foreign borrower through a domestic trustee representing ownership in the deposit of foreign shares held by the trustee. The digital divide refers to the widening technological gap between the richer and the poorer countries of the world.

Costs of financial distress that are directly incurred during bankruptcy or liquidation proceedings. Marketer takes direct responsibility for its products abroad by selling them directly to foreign customers or through local representatives in foreign markets. A non-leveraged lease by a lesser in which the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.

Measuring the direct costs associated with handling a product from the warehouse until a customer buys from the retail store. The price of a unit of foreign currency in domestic currency terms, such as INR Contrast with indirect quote. A valuation methodology that discounts expected future cash flows at a discount rate appropriate for the risk, currency, and maturity of the cash flows. The length of time needed to recoup the present value of an investment; sometimes used when investing in locations with high country risk.

An investment decision rule in which the cash flows are discounted at an interest rate and the payback rule is applied on these discounted cash flows. Balance sheet accounts that are used in some countries to temporarily store earnings from the current year or the recent past. The practice that selling a product or service at different prices that do not reflect a proportional difference in costs.

An amount paid by a vessel's operator to a charter if loading or unloading is completed in less time than stipulated in the charter party. A risk that specifically affects a single asset or a small group of assets. Also called unique or unsystematic risk. A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse. A receipt issued by an ocean carrier to acknowledge the receipt of a shipment at the carrier's dock or warehouse facilities.

Bonds issued and traded within the internal market of a single country and denominated in the currency of that country. The aggregate of money supply, quasi-money or savings and time deposits, and deposit substitutes.

A means of payment whereby a drawer the importer instructs a drawee either the importer or its commercial bank to pay the payee the exporter. Selling goods or merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment.

Dumping is an illegal trade practice. Formerly till , was known as the Chief. Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic customs duty on the import content of export product. This is provided by way of grant of duty credit against the export product at specified rates. Transferable Advance Licensing Scheme. The scheme is available to merchant exporters as well as to manufacturer exporters. Refers to those transactions in which the goods supplied do not leave the country and the payment for the goods is received by the supplier in India.

Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator. An act or omission that will result in a claim for duties, taxes, charges or liquidated damages under the FTZ Operator's Bond. Any of various statements that the U. Government requires to be displayed on export shipments and that specify the destinations for which export of the shipment has been authorized. Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the attached draft.

An unconditional order in writing from one person the drawer to another the drawee , directing the drawee to pay a specified amount to a named drawer at a fixed or determinable future date. Articles manufactured or produced in the India with the use of imported components or raw materials and later exported are entitled to a refund of the duty charged on the imported products or components.

The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee.

The relation of stock returns to earnings surprises around the time of corporate earnings announcements. A theory of the multinational firm that posits three types of advantage benefiting the multinational corporation: Economic freedom occurs when individuals and businesses make most of the economic decisions in an economy. The integration of commercial and financial activities among countries through the abolishment of economic discrimination.

A group that combines the economic characteristics of a common market with some degree of harmonization of monetary and fiscal policies.

Achieving lower operating costs by bringing the entire production chain within the firm rather than contracting through the marketplace. Contrast with bond equivalent yield and money market yield. A type of economic sanction that totally disallows the imports of a specific product or all products from a specific country. An emerging market has a very high growth rate, which yields enormous market potential. It is distinguished by the recent progress it has made in economic liberalization.

The stock markets of emerging economies. These markets typically have higher expected returns than established markets but also higher risk. Price or input cost uncertainty that is within the control of the firm, such as when the act of investing reveals information about price or input cost. A Eurobond with a convertibility option or warrant attached.

Fixed rate Eurocurrency deposits and loans and Eurocurrencies with longer maturities than five years. Cash-flow amount transferred to a new project from customers and sales of other products of the firm. Deposits and loans denominated in one currency and traded in a market outside the borders of the country issuing that currency like: A money market for currencies held in the form of deposits in countries other than that where the currency is issued. The exchange rate system used by countries in the European Union in which exchange rates are pegged within bands around an ERM central value.

A foreign exchange quotation that states the foreign currency price of one U. Contrast with American terms. An intergovernmental organization which coordinates foreign, economic, and judicial policy among its 25 member nations.

The price of one currency in terms of another, i. The risk that losses may result from the changes in the relative values of different currencies. Export-Import Bank of the India. Provides guarantees of working capital loans for Indian exporters, guarantees the repayment of loans or makes loans to foreign purchasers of Indian goods and services. The date when a letter of credit is no longer valid - i. A tax that is explicitly collected by a government; includes income, withholding, property, sales, and value-added taxes and tariffs.

Any resource, intermediate good, or final good or service that producers in one country sell to buyers in another country. A foreign or domestic company that acts as a sales agent and distributor for domestic exporters in international markets. A private firm that transacts export business on behalf of its client companies in return for a commission, salary, or retainer. An individual or firm that helps to locate and introduce buyers and seller in international business for a commission but does not take part in actual sales transaction.

A general export license covers the exportation of goods not restricted under the terms of a validated export license. No formal application or written authorization is needed to ship exports under a general export license. Quantitative restrictions imposed by exporting countries to limit exports to specified foreign markets, usually as a follow-up to formal or informal agreements reached with importing countries. Any form of government payment that helps an exporter or manufacturing concern to lower its export costs.

A company that facilitates the export of goods and services. An ETC can either act as the export department for producers or take title to the product and export for its own account.

A market for financial securities that are placed outside the borders of the country issuing that currency. Refers to Export and Import Exim Policy. Refers to electronic commerce. In the context of Foreign Trade Policy, e-commerce relates to electronic filing and processing of applications etc.

EPCG refers to the Export Promotion Capital Goods EPCG Scheme, which gives the manufacturer facility for import of capital goods for export production at concessional rate of duty 5 per cent against certain level of export. A government permit sometimes required by the importer's government to enable the importer to convert his or her own country's currency into foreign currency with which to pay a seller in another country.

A government document that permits the "Licensee" to engage in the export of designated goods to certain destinations. Sale of an accounts receivable balance to buyers factors that are willing and able to bear the costs and risks of credit and collections. The risk of unexpected changes in a financial price, including currency foreign exchange risk, interest rate risk, and commodity price risk.

A cost that is fixed in total for a given period of time and for given volume levels. It is not dependent on the amount of goods or services produced during the period. Also know as "first-mover advantage. An exchange rate system in which governments stand ready to buy and sell currency at official exchange rates.

An exchange rate system under which a government is not obligated to declare that its currency is convertible into a fixed amount of another currency. An exchange rate system in which currency values are allowed to fluctuate according to supply and demand forces in the market without direct interference by government authorities. In these instances, the exporter relies on the importer to insure. The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as Acts of God, war.

A grant of money, technical assistance, capital equipment, or other assistance typically extended by richer nations to poorer nations. Bonds that are issued in a domestic market by a foreign borrower, denominated in domestic currency, marketed to domestic residents, and regulated by the domestic authorities. A foreign affiliate that is legally a part of the parent firm. Currency of another country, or a financial instrument that facilitates payment from one currency to another.

Brokers serving as matchmakers in the foreign exchange market that do not put their own money at risk. Networks of commercial banks, investment banks, and other financial institutions that convert, buy, and sell currencies in the global economy. A physical area in which the government allows firms to delay or avoid paying tariffs on imports. A form of factoring in which large, medium- to long-term receivables are sold to buyers forfaiters that are willing and able to bear the costs and risks of credit and collections.

A commitment to exchange a specified amount of one currency for a specified amount of another currency on a specified future date. A currency whose nominal value in the forward market is lower than in the spot market. Contrast with forward premium. A market for forward contracts in which trades are made for future delivery according to an agreed-upon delivery date, exchange rate, and amount.

A currency whose nominal value in the forward market is higher than in the spot market. Contrast with forward discount.

An agreement in which a domestic company the franchiser licenses its trade name and or business system to an independent company the franchisee in a foreign market. A parent company grants another independent entity the privilege to do business in a pre-specified manner, including manufacturing, selling products, marketing technology and other business approach.

An area such as a port city into which merchandise may legally be moved without payment of duties. A proposed hemispheric trade zone that would cover all of the countries in North, South, and Latin America. The FTAA is highly controversial.

An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. Merchandise may be stored, used or manufactured in the zone and re-exported without duties being paid. An independent business that handles export shipment on behalf of the shipper without vested interest in the products.

A freight forwarder is a good source of information and assistance on export regulations and documentation. A lease in which the lesser recovers, through the lease payments, all costs incurred in the lease plus an acceptable rate of return, without any reliance upon the leased equipment's future residual value. A method of predicting exchange rates using the relationships of exchange rates to fundamental economic variables such as GNP growth, money supply, and trade balances.

A commitment to exchange a specified amount of one currency for a specified amount of another currency at a specified time in the future. Futures contracts are periodically marked-to-market,.

It is a 5-year Policy September -- March , which takes effect from September 1, Fob means Free on Board - i. An accounting method based on an assumption regarding the flow of goods that older stock is disposed of first, in accordance with good merchandising policy.

The title of a standard clause in marine contracts exempting the parties for no fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war. An accounting method based on an assumption regarding the flow of goods that foreign status merchandise is disposed of first. An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.

A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, or used for manufacturing, etc. A receipt of goods issued by a carrier with an indication that the goods were damaged when received. A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.

A pricing term indicating that the charter of a vessel is responsible for the cost of loading and unloading goods from the vessel. An area such as a port city into which merchandise may be legally moved without payment of duties. A formal organization of seven highly industrialized democracies: A common set of accounting concepts, standards, and procedures by which financial statements are prepared.

A post-World War II agreement designed to promote freer international trade among the nations of the world. A time series model in which returns at each instant of time are normally distributed but volatility is a function of recent history of the series. A multinational in which the subsidiaries are neither satellites nor independent city states, but parts of a whole whose focus is on worldwide objectives as well as local objectives, each part making its unique contribution with its unique competence.

The international network of individuals, businesses, governments, and multilateral organizations which collectively make production and consumption decisions. A global movement to increase the flow of goods, services, people, real capital, and money across national borders in order to create a more integrated and interdependent world economy. An exchange rate system used from to in which the United States and England were allowed to hold only gold reserves while other nations could hold gold, U.

An exchange rate system used prior to in which gold was used to settle national trade balances. Also called the classical gold standard. The accounting treatment of an intangible asset such as the takeover premium in a merger or acquisition. Gray-market imports are parallel distribution of genuine goods by intermediaries other than authorized channel members.

A form of investment in which the firm designs and builds a new factory from scratch, starting with nothing but a. A measure of the market value of goods and services produced by a nation. Unlike Gross National Product, GDP excludes profits made by domestic firms overseas, as well as the share of reinvested earning in domestic firms' foreign-based operations.

A constant stream of cash flows without end that is expected to rise indefinitely. For example, cash flows to the landlord of an apartment building might be expected to rise a certain percentage each year.

The positive-NPV opportunities in which the firm has not yet invested. A lease written under criteria established by the IRS to determine the availability of tax benefits to the lesser. A multilateral treaty intended to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions. A corporation to which the privilege of establishing, operating, and maintaining a foreign-trade zone has been granted by the Foreign-Trade Zones Board.

Reducing the risk of a cash position by using the futures instruments to offset the price movement of the cash asset.

The HIPC Inititiative is a major international response to the burdensome external debt held by the world's poorest, most indebted countries. A position or operation that offsets an underlying exposure. For example, a forward currency hedge uses a forward currency contract to offset the exposure of an underlying position in a foreign currency. Hedges reduce the total variability of the combined. The country-specific hedge portfolio in the International Asset Pricing Model serves as a store of value like the risk-free asset in the CAPM as well as a hedge against the currency risk of the market portfolio.

Idea that all individuals have the same beliefs concerning future investments, profits, and dividends. An extremely high rate of inflation, often exceeding several hundred or several thousand percent, that causes a country's money to become practically worthless. The behavior of firms that fail to enter markets that appear attractive and, once invested, persist in operating at a loss. This behavior is characteristic of situations with high entry and exit costs along with high uncertainty.

Lower higher before-tax required returns on assets that are subject to lower higher tax rates. Any resource, intermediate good, or final good or service that buyers in one country purchase from sellers in another country. Licenses required by some countries to bring in a foreign-made good.

In many cases, import licenses are also used by the issuing country to control the quantity of imported items. Losses in one basket may not be used to offset gains in another basket. A clause in which the one party indemnifies the other. In leasing, generally a clause whereby the lessee indemnifies the lesser from loss of tax benefits. A project whose acceptance or rejection is independent of the acceptance or rejection of other projects. A futures contract that allows investors to buy or sell an index such as a foreign stock index in the futures market.

A swap of a market index for some other asset such as a stock-for-stock or debt-for-stock swap. Costs of financial distress that are indirectly incurred prior to formal bankruptcy or liquidation.

Diversification benefits provided by the multinational corporation that are not available to investors through their portfolio investment. The general increase in the price level herein measured by the growth rate in the GNP Implicit Price Index or the general price deflator. Whether or not market prices reflect information and thus the true or intrinsic value of the underlying asset. A market in which there are no barriers to financial flows and purchasing power parity holds across equivalent assets.

Material or communicable result in forms of discoveries, inventions, designs and literary and art works of scientific, humanistic, literary, and artistic endeavor. It includes, but is not limited to, works in the form of scientific discoveries and invention.

A regional development bank designed to promote sustainable economic development in the Western Hemisphere. Its headquarters are located in Washington, D. An agreement to exchange interest payments for a specific period of time on a given principal amount.

The most common interest rate swap is a fixed-for-floating coupon swap. The notional principal is typically not exchanged. A financial market in which a financial institution usually a commercial bank stands between borrowers and savers. A market for financial securities denominated in the currency of a host country and placed within that country.

A discount rate at which the net present value of an investment is zero. The IRR is a method of evaluating capital expenditure proposals. The international version of the CAPM in which investors in each country share the same consumption basket and purchasing power parity holds. The global network of governmental and commercial institutions within which currency exchange rates are determined. Also called the World Bank, an international organization created at Breton Woods in to help in the reconstruction and development of its member nations.

Bonds that are traded outside the country of the issuer. International bonds are either foreign bonds trading in a foreign national market or Eurobonds trading in the international market. International non-governmental body concerned with promotion of trade and harmonization of trading practice.

Responsible for drafting and publishing. An international organization designed to promote global economic stability and development. An agreement specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project.

It is a system of classification of products for the purposes of export and import. A document required and issued by some national governments authorizing the importation of goods into their individual countries. A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee.

An agreement of two or more companies to pool their resources to execute a well-defined mission. Resource commitments, responsibilities, and earnings are shared according to a predetermined contractual formula. An organization-wide practice that keeps the inventory to the minimum and provides customers the right goods or service at the right time. A multilateral environmental agreement; its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere.

Collaborative groups of vertically and horizontally integrated firms with extensive share cross-holdings and with a major Japanese bank or corporation at the center. A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined rate.

The principle that equivalent assets sell for the same price. The law of one price is enforced in the currency markets by financial market arbitrage. The periodic rental payment to a lesser for the use of assets. Others may define lease rate as the implicit interest rate in minimum lease payments. The poorest of the developing countries. They are characterized by a low gross national product per capita, a reliance on subsistence agriculture, rapid population growth, inadequate infrastructure.

The lesser provides an equity portion usually 20 to 40 percent of the equipment cost and lenders provide the balance on a nonrecourse debt basis. The bid rate that a Euro market bank is willing to pay to attract a deposit from another Euro market bank in London.

A sales agreement in which a domestic company the licensor allows a foreign company the licensee to market its products in a foreign country in return for royalties, fees, or other forms of compensation. One firm gives another firm a permission, which allows the latter to engage in an activity otherwise legally forbidden to it. Such activities usually involve the transfer of intellectual and proprietary knowledge in return for royalty as revenue. A market in which traders can buy or sell large quantities of an asset when they want and with low transactions costs.

The pool of funds from which borrowers can attract capital; typically categorized by currency and maturity. The offer rate that a Euro market bank demands in order to place a deposit at or, equivalently, make a loan to another Euro market bank in London.

A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. A business arrangement in which the manufacturer of a product grants permission to some other group or individual to manufacture that product in return for specified royalties.

Document that lists in detail al the bills of lading issued by a carrier of its agent or master, i. An agreement by which one firm allows another to manage its foreign activities on behalf of it.

The managing firm is forbidden to make capital investment or financing decisions. Duty-free assembly plants located mainly in the developing world. Maquiladoras are one type of foreign direct investment.

An account maintained by an investor with a brokerage firm in which securities may be purchased by borrowing a portion of the purchase price from the brokerage, or may be sold short by borrowing the securities from the brokerage firm. A performance bond paid upon purchase of a futures contract that ensures the exchange clearinghouse against loss. The extent to which a domestic industry can penetrate a related market in a foreign country.

Access can be limited by tariffs or other non-trade barriers. An economy in which resource allocations, prices and other marketing decisions are primarily determined by the free market. A failure of arms-length markets to efficiently complete the production of a good or service.

Advantages that allow the multinational corporation to internalize or exploit the failure of an arms-length market to efficiently accomplish a task. An investment strategy of shifting among asset classes in an attempt to anticipate which asset classes will appreciate or depreciate during the coming period.

A system of corporate governance in which the supervisory board represents a dispersed set of largely equity shareholders. The set of marketing tools that the firm uses to pursue its marketing objectives in the target market. One of the most popular classifications of marketing mix tools is called the "4 P's" of marketing: An asset that has higher mean return at a given level of risk or lower risk at a given level of return than other assets.

The common market of the South, a customs union which includes Argentina, Brazil, Paraguay, and Uruguay in a regional trade pact that reduces tariffs on intrapact trade by up to 90 percent.

Bolivia and Chile are associate members. A form of corporate acquisition in which one firm absorbs another and the assets and liabilities of the two firms are combined.

In leasing this sector is dominated by single investor leases. If financial markets are perfect, then corporate financial policy including hedging policy is irrelevant. A hedge that replicates a currency forward contract through the spot currency and Eurocurrency markets.