Glossary of Export Import International Trade and

Shipping Terms

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  Words
Glossary of Export Import Trade Terms Starting with-A
AB
Absolute Advantage(AB-AD)
Accounting Translation Exposure
ACP
Acquisition of Assets
Acquisition of Stock
Acquisition Premium
Active Fund Management
Active Income
Activity-Based-Cost (ABC)
Ad valorem Tariff
ADB
Adjusted Present Value(APV)
Advance Payment
Adventure
Advising Bank
  Descriptions
Appellate Body
An absolute advantage exists in condition of when a nation or other
economic region of any country is able to produce a good or service
more efficiently than a second (other) nation or its region.
Changes in a organizations or corporation’s financial statements as a
result of changes in currency values.
African, Caribbean, and Pacific countries.
In an acquisition of assets, one firm acquires the assets of another
company. None of the liabilities supporting that asset are
transferred to the purchaser.
In an acquisition of stock, one firm buys an equity interest in
another.
In a merger or acquisition, the difference between the purchase
price and the reacquisition value of the target firm or company.
An investment approach that actively shifts funds either between
asset classes (asset allocation) or between individual securities
(security selection).
In the U.S. tax code, income from an active business as opposed to
passive investment income.
An accounting method that allocates costs to specific products
based on breakdowns of cost drivers.
A tariff assessed as a percentage of the value of an import.
Asia Development Bank, head quartered located in Manila,
Philippines (ASIA).
An APV is a valuation method that separately identifies the value of
an unlevered project from the value of financing side effects.
Advance Payment is a Trading method in which the buyer pays for
the goods before they are sent out , method is used when buyer is
of unknown credit worthiness. It is applicable in International or
domestic trade.
Adventure also define for marine adventure." It is a term of art in
the marine insurance business. All insured cargo owners and every
shipper on that vessel are part of the adventure.
Advising Bank is usually in the country of the seller, whose primary
function is to authenticate the letter of credit and advise it to the
seller, Purchase and collection of Export Bills.
 Used to indicate that a shipper's agent or representative is not
Advisory Capacity empowered to make definitive changes or adjustments without
approval of the group or individual represented.
The ABD is one of four major regional developmental banks
African Developmental Bank (ABD) currently operating in the global economy; it is headquartered in
Abidjan, Cote d'Ivoire.
The costs incurred to ensure that agents act in the best interest of
Agency Costs
the principal.
Someone who represents business in domestic and overseas market.
Agent In corporate governance terminology, management is the agent of
the principal stakeholders in a principal-agent relationship.
The total demand of all potential buyers of a commodity or service.
Aggregate Demand Includes all individuals and organizations that have the ability,
willingness, and authority to purchase such products.
A no-negotiable instrument of domestic and international air
Air Waybill transport that functions as a bill of lading, all information described
about domestic and international trade.
The percentage cost of a financing alternative, including any bank
All-in Cost
fees or placement fees.
In the U.S. tax code, these rules define how income and deductions
Allocation Rules of Income are to be allocated between domestic-source and foreign-source
income.
The efficiency with which a market channels capital toward its most
Allocation efficiency
productive uses.
A regional trade pact that includes Venezuela, Colombia, Ecuador,
Andean Pact
Peru, and Bolivia.
A level stream of equal dollar payments that lasts for a fixed time.
Annuity An example of an annuity is the coupon part of a bond with level
annual payments.
The term used to calculate the present value of the stream of level
Annuity Factor
payments for a fixed period.
Laws that are enacted to prevent dumping-offering prices in the
Anti-Dumping Laws overseas market that is lower than that at which a product is sold in
its home domestic market.
APEC Asia-Pacific Economic Cooperation
An increase in a currency value relative to another currency in a
Appreciation
floating exchange rate system.
The process of purchasing and selling foreign exchange, stocks,
Arbitrage bonds and other commodities in several markets intending to make
profit from the difference in price.
An asset pricing model that assumes a linear relation between
Arbitrage Pricing Theory (APT) required return and systematic risk as measured by one or more
factors according to Rj = mj + b1jF1 + ... + bKjFK + ej.
APEC forum designed to promote economic growth, cooperation,
Asia-Pacific Economic Cooperation
and integration among member nations. The most prominent
(APEC)
members are China, Japan, and Korea.
One of four major regional development banks currently operating
Asian Development Bank (ABD)
in the global economy; it is headquartered in Manila, Philippines.
Ask "offer" Rates 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
Asset Allocation Policy
portfolio.
Those assets in which the firm has already invested. (Compare to
Assets-in-Place
growth options.)
A loose or low economic and geopolitical affiliation that includes
Association of South East Asian Singapore, Brunei, Malaysia, Thailand, the Philippines, Indonesia,
Nations (ASEAN) and Vietnam. Future members are likely to include Myanmar
(Burma), Laos, and Cambodia.
An option with an exercise price that is equal to the current value
At-the-Money Option
of the underlying asset.
ATC Agreement on Textiles and Clothing
In models of international trade, a situation in which there is no
Autarky
cross-border trade.
A guarantee of the buyer's credit provided by the guarantor, unless
Aval the buyer is of unquestioned financial standing. The aval is an
endorsement note as opposed to a guarantee agreement.
Payment undertaking given by a bank in respect of a bill of
Avalisation
exchange drawn.
The average project earnings after taxes and depreciation divided
Average Accounting Return (AAR)
by the average book value of the investment during its life.
AEZs Refers to a scheme of Agricultural Export Zones.
Advance Licence is granted for import of inputs without payment of
customs duties. It is issued in accordance with the Policy and
Advance Licence
procedures in force and subject to fulfillment of time-bound export
obligation. Such licences can be issu
Any agreement to purchase goods under specified terms. An
Acceptance agreement to purchase goods at a stated price and under stated
terms.
Ad Valorem According to value
A loan made on the security of the documents covering the
Advance Against Documents
shipment.
A bank, operating in the exporter's country, that handles LETTERS
Advising Bank OF CREDIT for a foreign bank by notifying the exporter that the
credit has been opened in his or her favor.
A term indicating that shipper's agent or representative is not
Advisory Capacity empowered to make definitive decisions or adjustments without
approval of the group or individual represented.
A BILL OF LADING that covers both domestic and international
Air Waybill
flights transporting goods to a specified destination.
A phrase referring to the side of a ship. Goods to be delivered
"alongside" are to be placed on the dock or barge within reach of
Alongside
the transport ship's tackle so that they can be loaded aboard the
ship.
Alteration A change in the boundaries of an activated zone or subzone.
A corporation applying for the right to establish, operate and
Applicant
maintain a foreign-trade zone.
Arbitrage The process of buying FOREIGN EXCHANGE, stocks, bonds and other
commodities in one market and immediately selling them in another
 market at higher prices.
Asian Dollars U.S. dollars deposited in Asia and the Pacific Basin.
Method of accounting for merchandise where direct identification of
Attributive Basis
the goods with the shipment as admitted to the zone has been lost.
Glossary of Export Import International Trade Terms Starting with-B
Building a more basic version of an existing product for a lesser-
Backward Innovation
developed market.
The BOP is the annual financial record of Foreign Payments and
Foreign Receivables. Or The BOP is the International Money Fund’s
Balance of Payments (BOP)
accounting system that tracks the flow of goods, services, and
capital in and out of each country.
Balance of Trade (BOT) The difference between a country’s total imports and exports.
A statement showing a firm's accounting value on a particular date.
Balance Sheet
It reflects the equation, Assets = Liabilities + Stockholders' equity.
Bank for International Settlements An international organization which promotes international
(BIS) monetary and financial cooperation among nations.
Bank-based Corporate Governance A system of corporate governance in which the supervisory board is
System dominated by bankers and other corporate insiders.
Banker's Draft A payment instrument used to make international payments.

Banker’s Acceptance A time draft drawn on and accepted by a commercial bank.

Basis The simple difference between two nominal interest rates.

A lease provision allowing the lessee, to purchase the equipment for
a price predetermined at lease inception, which is substantially
Bargain Purchase Option
lower than the expected fair market value at the date the option
can be exercised.
Trade in which goods or merchandise is exchanged directly for
Barter
others import or export without use of money.
Accept the project if IRR is greater than the discount rate; reject
Basic IRR
the project if IRR is less than the discount rate.
Basis Point Equal to 1/100 of one percent.
The risk of unexpected change in the relationship between futures
Basis Risk
and spot prices.
A floating-for-floating interest rate swap that pairs two floating rate
Basis Swap instruments at different maturities (such as six-month LIBOR versus
thirty-day U.S. T-bills).
Bonds that can be redeemed by the holder. The convention in most
Bearer Bonds
West European countries is to issue bonds in registered form.
A systematic procedure of comparing a company’s practices against
Benchmarking the best practice and modifying actual knowledge to achieve
superior performance.
Beneficiary A party who receives a legal benefit Domestic or foreign Dealings.
A measure of an asset’s sensitivity to changes in the market
portfolio (in the CAPM) or to a factor (in the APT). The beta of an
Beta
asset j is computed as bj = rj,k (sj/sk), where k represents a market
factor (such as returns to the market portfolio in the C

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
Glossary of Export Import Foreign Trade Terms Starting with-C
CAA
Call Option
Capital (Financial) Structure
Capital Account
Capital Asset Pricing Model
(CAPM)
The rate at which a market maker is willing to buy the quoted
asset.
The difference between the interest rate at which the bank borrows
money and lends money.
A document that establishes the terms and conditions of a contract
between a shipper and a shipping company under which freight is to
be moved between specified points for a specified charge. The B/L
is Negotiable or Non-Negotiable forms.
The method whereby a bill of lading is made into a freely negotiable
document of title.
A bond that coves a group of people, articles or properties.
A long-term contract in which the supplier promises to re-supply the
buyers as needed at agreed-upon prices over the contracting time.
Cash flows generated by a foreign project that cannot be
immediately repatriated to the parent firm because of capital flow
restrictions imposed by the host government.
A bond quotation convention based on a 365-day year and
semiannual coupons. (Contrast with effective annual yield.)
A warehouse authorized by customs authorities for storage of goods
on which payment of duties is deferred until the goods are
removed.
- a warehouse authorized for storage of good on which payment of
duty is deferred until the goods are removed from the warehouse.
Analysis of the level of sales at which a project would make zero
profit.
An agreement made in 1944 year the end of World War II to
promote exchange rate stability and facilitate the international flow
of currencies. The world Bank and IMF(International Monetary
funds ) come into the existence.
An international conference held in 1944 at Britton Woods, New
Hampshire, and established the International Monetary Fund and
the World Bank.
BTP means Biotechnology Park as notified by Director General of
Foreign Trade on the recommendation of the Department of
Biotechnology
A warehouse authorized by CUSTOMS authorities for storage of
goods on which payment of DUTIES is deferred until the goods are
removed.
An arrangement with a steamship company for the acceptance and
carriage of freight.
Clean Air Act (USA)
The right to buy the underlying currency at a specified price and on
a specified date.
The proportion of debt and equity and the particular forms of debt
and equity chosen to finance the assets of the firm.
A measure of change in cross-border ownership of long-term
financial assets, including financial securities and real estate.
An asset pricing model that relates the required return on an asset
to its systematic risk.
Capital Budgeting Planning and managing expenditures for long-lived assets.
The process of increasing the amount of capital goods - also called
Capital Formation
capital stock - in a country.
The positive change in the value of an asset, a negative capital gain
Capital Gain
is a capital loss.
The line between the risk-free asset and the market portfolio that
Capital Market Line represents the mean-variance efficient set of investment
opportunities in the CAPM.
Markets for financial assets and liabilities with maturity greater
Capital Markets than one year, including long-term government and corporate
bonds, preferred stock, and common stock.
The case where funds are limited to a fixed dollar amount and must
Capital Rationing
be allocated among the competing projects.
The mix of the various debt and equity capital maintained by a firm.
Also called financial structure. The composition of a corporation's
Capital Structure
securities used to finance its investment activities; the relative
proportions of short-term debt, long-term debt, and
An economic system that is based on private ownership; economic
Capitalism development is proportionate to and dependent upon the
accumulation and reinvestment of profits.
An individual or entity that transports persons or goods for
Carrier
compensation under the contract of carriage.
Cartel An agreement among, or an organization of, suppliers of a product.
Payment for goods where a commission house or other intermediary
Cash Against Documents (CAD)
transfers title documents to the buyer upon payment in cash.
In a letter of credit transaction, money deposited by the applicant
Cash Cover
with the issuing bank.
Cash generated by the firm and paid to creditors and shareholders.
It can be classified as (1) cash flow from operations, (2) cash flow
Cash Flow
from changes in fixed assets, and (3) cash flow from changes in net
working capital.
Payment for goods in which the price is paid in full before the
Cash in Advance (CIA) shipment is made. This type of payment is usually only made for
very small shipments or when goods are made in order.
An economy in which the government, rather than free-market
Centrally Planned Economy
activity, controls the allocation of resources.
Term used in leasing. A document whereby the lessee acknowledges
that the equipment to be leased has been delivered, is acceptable,
Certificate of Acceptance
and has been manufactured or constructed according to
specifications.
Documents that may be asked for by the importer and/or the
Certificate of Analysis/certificate
authorities of the importing country, as evidence of quality or
of Inspection
conformity to specifications.
A statement that is usually notarised in which the producer of goods
Certificate of Manufacture certifies that the goods have been produced and are now available
to the buyer.
Documents that may be asked for by the authorities of the
Certificate of Origin importing country, as evidence of the country of manufacture of the
goods.
A document required by certain foreign countries for tariff purpose,
Certificate of Product Origin
certifying the country of origin of specified goods.
Change in Net Working Capital Difference between net working capital from one period to another.
The line relating the expected return on a security to different
Characteristic Line
returns on the market.
CHIPS (Clearing House Interbank Financial network through which banks in the United States conduct
Payments System) their financial transactions.
CITES Convention on the International Trade in Endangered Species
Non-governmental and non-profit groups that work to improve
Civil Society Organizations (CSOs)
society and the human condition.
A receipt for goods issued by a carrier that indicates that the goods
Clean Bill of Lading
were received in apparently good order and without damage.
Collection in which only the financial document is sent through the
Clean Collection
banks.
The completion of customs entry requirements that results in the
Clearance
release of goods to the importer.
The settlement of a transaction, often involving exchange of
Clearing
payments and/or documentation.
A mutual fund in which the amount of funds under management is
Closed-End Fund fixed and ownership in the funds is bought and sold in the market
like a depository receipt.
Codex Codex Alimentarius Commission (a world food standards body)
In a collection, the document in which the seller instructs the banks
Collection Order
as to how the collection is to be conducted.
An economy based on government ownership and/or control of
Command Economy society's resources; during the 20th century, the dominant form of
command economy was communism.
General term for documents describing various aspects of a
transaction, e.g. commercial invoice, transport document,
Commercial Document
insurance document, certificate of origin, certificate of inspection
etc.
The risk of unexpected changes in a commodity price, such as the
Commodity Price Risk
price of oil.
A swap in which the (often notional) principal amount on at least
Commodity Swap
one side of the swap is a commodity such as oil or gold.
Common Carrier An organization that transports persons or goods for a fee.
A comparative advantage exists when a nation or economic region is
Comparative Advantage able to produce a product at a lower opportunity cost compared to
another nation or region.
Documents presented under a letter of credit that comply with all
Compliant Documents its terms and conditions. The banks are only obliged to pay the
beneficiary if documents are totally compliant.
Interest that is earned both on the initial principal and on interest
earned on the initial principal in previous periods. The interest
Compound Interest
earned in one period becomes in effect part of the principal in a
following period.
Value of a sum after investing it over one or more periods. Also
Compound Value
called future value.
Compounding Process of reinvesting each interest payment to earn more interest.
Compounding is based on the idea that interest itself becomes

Confirming Bank
Consignee
Consignment
Consolidated Income
Consolidation
Corporate Governance
Correspondent Bank
Country Risk
Coupon Swap
Credit Risk Insurance
Consular Statement
Contingency Insurance
Contingent Claim
Continuous Compounding
Continuous Quotation System
Contract Manufacturing
Contribution Margin
Controlled Foreign Corporation
(CFC)
Convertible Bonds
Convertible Currency
principal and therefore also earns interest in subsequent periods.
Bank that adds its payment undertaking to a letter of credit.
Party to whom goods are to be delivered.
Delivery of merchandise from an exporter (the consignor) to an
agent (the consignee) under agreement that the consignee sells the
merchandise of the account of the consignor, while the consignor
retains title to the goods until the consignee sells them.
The sum of income across all of the multinational corporation’s
domestic and foreign subsidiaries.
A form of corporate reorganization in which two firms pool their
assets and liabilities to form a new company.
The way in which major stakeholders exert control over the modern
corporation.
A bank that, in its own country, handles the business of a foreign
bank.
The political and financial risks of conducting business in a
particular foreign country.
A fixed-for-floating interest rate swap.
Insurance that covers the risk of non-payment for delivered goods.
A document required by some foreign countries, describing a
shipment of goods and showing information such as the consignor,
consignee, and value of shipment. Certified by a consular official of
the foreign country, it is used by the country's officials
Contingency insurance protects the exporter in any situation in
which exporter responsibility relied on the buyer to insure, but
sustained a loss because of inadequate coverage from that source. It
will cover situations in which the FOB endorsement.
Claim whose value is directly dependent on, or is contingent on, the
value of its underlying assets. For example, the debt and equity
securities issued by a firm derive their value from the total value of
the firm.
Interest compounded continuously, every instant, rather than at
fixed intervals.
A trading system in which buy and sell orders are matched with
market makers as the orders arrive, ensuring liquidity in individual
shares.
A firm allowing another firm to manufacture a pre-specified
product.
Amount that each additional product, such as a jet engine,
contributes to after-tax profit of the whole project: (Sales price -
Variable cost) X (1 - T), where T is the corporate tax rate.
In the U.S. tax code, a foreign corporation owned more than 50
percent either in terms of market value or voting power.
Bonds sold with a conversion feature that allows the holder to
convert the bond into common stock on or prior to a conversion
date and at a pre specified conversion price.
A currency that can be traded for other currencies at will.
 A tax schedule in which the effective tax rate is greater at high
Convex Tax Schedule 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
Corporate Culture functions that guide the decisions of a company to achieve its
objectives.
The responsibilities that corporations (including MNCs) have to
Corporate Social Responsibility 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
Corporation
entities. Primary advantages of a corporation include limited
liability, ease of ownership, transfer, and perpetual succession.
A measure of the co variability of two assets that is scaled for the
Correlation standard deviations of the assets (rAB = sAB / sAsB such that -1 <
rAB < +1).
A ranking of countries by level of corruption that is researched and
Corruption Perceptions Index (CPI) 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
Cost and Freight(C&F)
charges are included in the quoted price.
Counter Credit Another name for back-to-back letter of credit.
The sale of goods or services that are paid for in whole or part by
Counter Trade
the transfer of goods or services from a foreign country.
Coupon The stated interest on a debt instrument.

Covariance A measure of the co variability of two assets (sAB = sAsB rAB).

Insurance document evidencing that insurance cover for a
Cover Note
consignment has been taken out, but not giving full details.
A futures hedge using a currency that is different from, but closely
Cross-Hedge
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
Cost of Equity Capital
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
Countervailing Duties by a foreign government. Imposing duties on the good is meant to
raise the product's price to a "fair market value".
CTD WTO Committee on Trade and Development
Collective mental paradigms that a society imparts to individuals in
Culture the form of behavior patterns, shared values, norms and
institutions.
Cumulative Translation An equity account under FAS #52 that accumulates gains or losses
Adjustment (CTA) caused by translation accounting adjustments.
Currency (Foreign Exchange) Risk The risk of unexpected changes in foreign currency exchange rates.
A fixed-for-floating rate no amortizing currency swap traded
Currency Coupon Swap
primarily through international commercial banks.
 A hedge of currency risk using a currency that is correlated with the
Currency Cross-Hedge
currency in which the underlying exposure is denominated.
The currency that is being bought or sold. It is most convenient to
Currency of Reference 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.
Currency Option
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
Currency Swap
back the original principal. Interest payments in each currency are
also typically swapped during the life of the agreement
Current Account A measure of a country’s international trade in goods and services.
A broad measure of import-export activity that includes services,
Current Account Balance 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
Custom Union tariffs among member nations and establishes common external
tariffs.
A person or firm obtains the license from the treasury department
Customhouse Broker of its Country when required, and help clients (importers) to enter
and declare goods through customs.
The authorities designated to collect duties levied by a country on
Customs
imports and exports.
A customs document permitting the holder to carry or send
Carnet merchandise temporarily into certain foreign countries without
paying duties or posting bonds.
Payment for goods in which the buyer pays when ordering and in
Cash with Order (C.W.O.)
which the transaction is binding on both parties.
A document certifying that merchandise was in good condition
Certificate of Inspection
immediately prior to its shipment.
A pricing term indicating that the cost of the goods and freight
Cost And Freight (C & F)
charges are included in the quoted price.
Written contract between the owner of a vessel and a "chartered"
Charter Party
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
Cost and Insurance (C & I)
are included in the quoted price.
A pricing term indicating that the cost of the goods, insurance, and
Cost, Insurance, Freight
freight are included in the quoted price.
Clean Draft A draft to which no documents have been attached.
All documents submitted to a buyer for the purpose of receiving
Collection Papers
payment for a shipment.
The commerce expert on the diplomatic staff of his/her country's
Commercial Attachment
embassy or large consulate.
An itemized list of goods shipped, usually among an exporter's
Commercial Invoice
COLLECTION PAPERS.
An individual, partnership, or corporation that transports persons or
Common Carrier
goods for compensation.

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)
Glossary of EXIM International Trade Terms Starting with-D
Dealing Desk or Trading Desk
Debt capacity
Debt-for-Equity Swap
Decision Trees
Deferred Payment Credit
Devaluation
Developing Country (DCs)
Deliverable Instrument
Delta-Cross-Hedge
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.
A currency that can be bought and sold for other currencies at will.
Any corporation which is organized for the purpose of establishing,
operating and maintaining a foreign-trade zone and which is
chartered under a special act of the State within which it is to
operate such a zone.
A State, political subdivision thereof, a municipality, a public
agency of a State, political subdivision thereof, or municipality, or a
corporate municipal instrumentality of one or more States.
A bank that, in its own country, handles the business of a foreign
bank.
The sale of goods or services that are paid in whole or in part by the
transfer of goods or services from a foreign country.
Insurance designed to cover risks of nonpayment for delivered
goods.
Territory of the India in which the general tariff laws of the India
apply.
An individual or firm licensed to enter and clear goods through
Customs.
The desk at an international bank that trades spot and forward
foreign exchange.
The amount of debt that a firm chooses to borrow to support a
project.
A swap agreement to exchange equity (debt) returns for debt
(equity) returns over a prearranged length of time.
A graphical analysis of sequential decisions and the likely outcomes
of those decisions.
A type of letter of credit which provides for payment some time
after presentation of the shipping documents by the exporter.
The official lowering of the value of one country's currency in terms
of one or more foreign currencies.
A country that is in the process of becoming industrialized; the
poorer nations of the world.
The asset underlying a derivative security. For a currency option,
the deliverable instrument is determined by the options exchange
and is either spot currency or an equivalent value in futures
contracts.
A futures hedge that has both currency and maturity mismatches
with the underlying exposure.
 A futures hedge using a currency that matches the underlying
Delta-Hedge exposure and a maturity date that is different from, but preferably
close to, the maturity of the underlying exposure.
A business process with the intention to coordinate and influence all
Demand Management
sources of demand for a firm’s products.
A derivative security issued by a foreign borrower through a
Depository Receipt domestic trustee representing ownership in the deposit of foreign
shares held by the trustee.
A decrease in a currency value relative to another currency in a
Depreciation
floating exchange rate system.
A financial security whose price is derived from the price of another
Derivative Security
asset.
A decrease in a currency value relative to another currency in a
Devaluation
fixed exchange rate system.
Developed Countries The richer, more industrialized countries in the world.

DFID Department for International Development (UK)

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
The difference in interest payments that is exchanged between two
swap counter parties.
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 45.70/USD for a India resident. (Contrast with indirect
quote.)
If a bond is selling below its face value, it is said to sell at a
discount.
A valuation methodology that discounts expected future cash flows
at a discount rate appropriate for the risk, currency, and maturity
of the cash flows.
The length of time needed to recoup the present value of an
investment; sometimes used when investing in locations with high
country risk.
An investment decision rule in which the cash flows are discounted
at an interest rate and the payback rule is applied on these
discounted cash flows.
Calculating the present value of a future amount. The process is the
opposite of compounding.
Balance sheet accounts that are used in some countries to
temporarily store earnings from the current year or the recent past.
The 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
Dispatch unloading is completed in less time than stipulated in the charter
party.
A Foreign agent who sells for a supplier directly and maintains an
Distributor
inventory of the supplier’s product.
Diversifiable (unique) A risk that specifically affects a single asset or a small group of
(unsystematic) risk assets. Also called unique or unsystematic risk.
Doc Department of Commerce (USA)
A receipt issued by an ocean carrier to acknowledge receipt of a
Dock Receipt
shipment at the carrier's dock or warehouse.
A receipt issued by an ocean carrier to acknowledge the receipt of a
Dock Statement
shipment at the carrier's dock or warehouse facilities.
Bonds issued and traded within the internal market of a single
Domestic Bonds
country and denominated in the currency of that country.
The aggregate of money supply, quasi-money or savings and time
Domestic Liquidity
deposits, and deposit substitutes.
A means of payment whereby a drawer (the importer) instructs a
Draft (trade bill, bill of exchange) drawee (either the importer or its commercial bank) to pay the
payee (the exporter).
DSB Dispute Settlement Body

DSP Dispute Settlement Panel

DSU Dispute Settlement Understanding

The practice of selling identical products in different markets for
Dual Pricing
different prices.
Selling goods or merchandise in another country at a price below
the price at which the same merchandise is sold in the home market
Dumping
or selling such merchandise below the costs incurred in production
and shipment. Dumping is an illegal trade practice.
Duty A tax imposed on imports by the customs authority of a country.
Directorate General of Foreign Trade, which is headed by the
Director General of Foreign Trade. The office of the DGFT is
DGFT
responsible for formulating and execution of Foreign Trade Policy,
including licensing. Formerly (till 1991), was known as the Chief
Allows duty-free import of inputs for exports under Advance
Duty Exemption/scheme Duty
Licence, Duty Entitlement Pass Book (DEPB) and Duty Free
Free Import of Inputs
Replenishment Certificate (DFRC) Scheme.
Refers to the Duty Entitlement Pass Book to neutralise the incidence
of basic customs duty on the import content of export product. This
DEPB
is provided by way of grant of duty credit against the export
product at specified rates. The DEPB Scheme
Refers to the Duty Free Replenishment Certificate Scheme which
was introduced from 1/4/2000 replacing. Transferable Advance
DFRC
Licensing Scheme. The scheme is available to merchant exporters as
well as to manufacturer exporters. However,
Refers to those transactions in which the goods supplied do not
Deemed Exports leave the country and the payment for the goods is received by the
supplier in India.
 A draft that matures in a specified number of days after the date it
Date Draft
is issued, without regard to the date of "ACCEPTANCE".
Voluntary discontinuation of the activation of an entire zone or
Deactivisation
subzone by the grantee or operator.
An act or omission that will result in a claim for duties, taxes,
Default
charges or liquidated damages under the FTZ Operator's Bond
Type of "LETTER OF CREDIT" providing for payment some time after
Deferred Payments Credit
presentation of shipping documents by exporter.
Any of various statements that the U.S. Government requires to be
Destination Control Statement displayed on export shipments and that specify the destinations for
which export of the shipment has been authorized.
The official lowering of the value of one country's currency in terms
Devaluation
of one or more foreign currencies.
Discrepancy - Letter of Credit When documents presented do not conform to the letter of credit.
Instructions given by a shipper to a bank indicating that documents
Documentary Against Acceptance
transferring title to goods should be delivered to the buyer only
(D/A)
upon the buyer's acceptance of the attached draft.
An unconditional order in writing from one person (the drawer) to
Draft 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
Drawback
entitled to a refund of the duty charged on the imported products
or components.
The individual or firm on whom a draft is drawn and who owes the
Drawee
stated amount.
The individual or firm that issues or signs a draft and thus stands to
Drawer
receive payment of the stated amount from the drawee.
Exporting/Importing merchandise into a country below the costs
Dumping
incurred in production and shipment.
Duty A tax imposed on imports by the customs authority of a country.

Glossary of Export Import Trade Terms Starting with-E

Earnings Response Coefficient
Eclectic Paradigm
Economic Exposure
Economic Freedom
Economic Integration
Economic Union
Economic Value Added
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: ownership-
specific, location-specific, and market internalisation advantages.
Change in the value of a corporation’s assets or liabilities as a result
of changes in currency values.
Economic freedom occurs when individuals and businesses make
most of the economic decisions in an economy.
The integration of commercial and financial activities among
countries through the abolishment of economic discrimination.
A group that combines the economic characteristics of a common
market with some degree of harmonization of monetary and fiscal
policies.
A method of performance evaluation that adjusts accounting
performance with a charge reflecting investors’ required return on
investment.

Economies of Scale
Economies of Vertical Integration chain within the firm rather than contracting through the
Effective Annual Interest Rate
Effective Annual Yield
Efficient Frontier
Efficient Market
Embargo
Emerging Market
Emerging Stock Markets
Employment Rate
Endogenous Uncertainty
Engagement
Equity-Linked Eurobonds
Erosion
Euro
Eurobond
Eurocurrencies
Eurocurrency Market
Eurodollars
European Bank for Reconstruction One of four major regional development banks currently operating
and Development (EBRD)
European Currency Unit (ECU)
Achieving lower average cost per unit through a larger scale of
production.
Achieving lower operating costs by bringing the entire production
marketplace.
the interest rate as if it were compounded once per time period
rather than several times per period.
Calculated as (1+i/n)n, where i is the stated annual interest rate
and n is the number of compounding periods per year. (Contrast
with bond equivalent yield and money market yield.)
The mean-variance efficient portion of the investment opportunity
set.
A market in which prices reflect all relevant information.
A 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.
The ratio, in percent, of the number of employed persons to total
labor force.
Price or input cost uncertainty that is within the control of the firm,
such as when the act of investing reveals information about price or
input cost.
The assumption of payment responsibility in respect of a letter of
credit, e.g.
A Eurobond with a convertibility option or warrant attached.
Eurobonds: Fixed rate Eurocurrency deposits and loans and
Eurocurrencies with longer maturities than five years.
Cash-flow amount transferred to a new project from customers and
sales of other products of the firm.
The single currency of the European Economic and Monetary Union
(EMU) introduced in January 1999. EMU members are Austria,
Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,
Netherlands, Portugal, and Spain.
A bond that is denominated in a currency other than that of the
country of issue.
Deposits and loans denominated in one currency and traded in a
market outside the borders of the country issuing that currency (like
: Eurodollars).
A money market for currencies held in the form of deposits in
countries other than that where the currency is issued.
Dollar-denominated deposits held in a country other than the United
States.
in the global economy.
A trade-weighted basket of currencies in the European Exchange
Rate Mechanism (ERM) of the European Union.
 The exchange rate system used by countries in the European Union
European Exchange ate
in which exchange rates are pegged within bands around an ERM
Mechanism (ERM)
central value.
An exchange rate system based on cooperation between European
European Monetary System (EMS)
Union central banks.
An option that can be exercised only at expiration. (Contrast with
European Option
American option.)
A foreign exchange quotation that states the foreign currency price
European Terms
of one U.S. dollar. (Contrast with American terms.)
An intergovernmental organization which coordinates foreign,
European Union (EU)
economic, and judicial policy among its 25 member nations.
The price of one currency in terms of another, i.e. the number of
Exchange Rate units of one currency that may be exchanged for one unit of another
currency.
The risk that losses may result from the changes in the relative
Exchange Risk
values of different currencies.
The price at which an option can be exercised (also called the
Exercise Price
striking price).
Export-Import Bank of the India. Provides guarantees of working
capital loans for Indian exporters, guarantees the repayment of
Exim Bank
loans or makes loans to foreign purchasers of Indian goods and
services.
Price or input cost uncertainty that is outside the control of the
Exogenous Uncertainty
firm.
The date when a letter of credit is no longer valid - i.e. the date
Expiry Date
beyond which it cannot be used.
A tax that is explicitly collected by a government; includes income,
Explicit Tax
withholding, property, sales, and value-added taxes and tariffs.
Any resource, intermediate good, or final good or service that
Export
producers in one country sell to buyers in another country.
A foreign or domestic company that acts as a sales agent and
Export Management Company
distributor for domestic exporters in international markets.
A private firm that transacts export business on behalf of its client
Export Management Company
companies in return for a commission, salary, or retainer.
An individual or firm that helps to locate and introduce buyers and
Export Broker 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
Export License
application or written authorization is needed to ship exports under
a general export license.
Quantitative restrictions imposed by exporting countries to limit
Export Restraints 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
Export Subsidies
manufacturing concern to lower its export costs.
A company that facilitates the export of goods and services. An ETC
Export Trading Company (ETC) can either act as the export department for producers or take title
to the product and export for its own account.
A specific type of political risk in which a government seizes foreign
Expropriation
assets.
 A market for financial securities that are placed outside the borders
External Market
of the country issuing that currency.
A government practice which applies its laws outside its territorial
Extraterritoriality
boundaries.
Refers to Export and Import (Exim) Policy. Exim Policy has got
incorporated into the comprehensive Foreign Trade Policy, which
Exim Policy
was announced by the Commerce & Industry Minister on 31st
August, 2004.
EPZs means Export Processing Zones which are special enclaves,
separated from the Domestic Tariff Area (DTA), to provide an
EPZs/EOUs
internationally competitive duty-free environment for export
production. EOU means Export Oriented Units.
Refers to electronic commerce. In the context of Foreign Trade
E-Commerce 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
EPCG
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
Exchange Permit
country's currency into foreign currency with which to pay a seller
in another country.
The price of one currency in terms of another, i.e., the number of
Exchange Rate units of one currency that may be exchanged for one unit of another
currency.
The showing of merchandise within a zone, usually to prospective
Exhibition
buyers.
An organization which, for a commission, acts as a purchasing agent
Export Commission House
for a foreign buyer.
A government document that permits the "Licensee" to engage in
Export License
the export of designated goods to certain destinations.
Glossary of Export Trade Terms Starting with-F
The value of a bond that appears on its face. Also referred to as par
Face Value
value or principal.
A model that assumes a linear relation between an asset’s expected
Factor Model
return and one or more systematic risk factors.
Sale of an accounts receivable balance to buyers (factors) that are
Factoring
willing and able to bear the costs and risks of credit and collections.
The proportion of debt and equity and the particular forms of debt
Financial (Capital) Structure
and equity chosen to finance the assets of the firm.
The spread of a financial crisis from one country or region to other
Financial Contagion
countries or regions.
The process of innovation by which new financial products are
Financial Engineering
created.
The process of designing new financial products, such as exotic
Financial Innovation
currency options and swaps.
Financial Markets Markets for financial assets and liabilities.
The risk of unexpected changes in a financial price, including
Financial Price Risk currency (foreign exchange) risk, interest rate risk, and commodity
price risk.
 Financial risk refers to unexpected events in a country’s financial,
Financial Risk
economic, or business life.
Financial Strategy The way in which the firm pursues its financial objectives.
A cost that is fixed in total for a given period of time and for given
Fixed Cost volume levels. It is not dependent on the amount of goods or
services produced during the period.
The corporation’s choices regarding the debt-equity mix, currencies
of denomination, maturity structure, method of financing
Financial Policy
investment projects, and hedging decisions with a goal of
maximizing the value of the firm to some set of stakeholders.
Also know as "first-mover advantage." The idea of first-mover
advantage is that the initial occupant of a strategic position or
First-to-Market Advantage
niche (market segment) gains access to resources and capabilities
that a follower cannot match.
An exchange rate system in which governments stand ready to buy
Fixed Exchange Rate System
and sell currency at official exchange rates.
Fixed Forward Contract Currency is bought or sold at a given future date.
An exchange rate system under which a government is not obligated
Floating Currency System 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
Floating Exchange Rate fluctuate according to supply and demand forces in the market
without direct interference by government authorities.
Used with FOB, FAS, C&F, or CFR (but not CIF) quotations, FOB sales
endorsement to an open marine policy can cover transit risk from
FoB Endorsement
the point of origin until title transfers. In these instances, the
exporter relies on the importer to insure.
The title of a standard clause in marine contracts exempting the
Force Majeure 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
Foreign Aid
assistance typically extended by richer nations to poorer nations.
Bonds that are issued in a domestic market by a foreign borrower,
Foreign Bonds 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. In the
Foreign Branch U.S. tax code, foreign branch income is taxed as it is earned in the
foreign country.
Money owed by a nation to foreign investors, banks, or
Foreign Debt
governments.
Foreign Direct investment (FDI) The act of building productive capacity directly in a foreign country.
Investment rules that limit foreign ownership to a minority holding
Foreign Equity Requirements
is a company.
Currency of another country, or a financial instrument that
Foreign Exchange
facilitates payment from one currency to another.
Foreign Exchange (Currency) Risk The risk of unexpected changes in foreign currency exchange rates.
Brokers serving as matchmakers in the foreign exchange market that
Foreign Exchange Broker
do not put their own money at risk.
Foreign Exchange Dealer A financial institution making a market in foreign exchange.
Networks of commercial banks, investment banks, and other
Foreign Exchange Markets financial institutions that convert, buy, and sell currencies in the
global economy.
A physical area in which the government allows firms to delay or
Foreign Trade Zone
avoid paying tariffs on imports.
Foreign-Source Income Income earned from foreign operations.
A form of factoring in which large, medium- to long-term
Forfaiting 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
Forward Contract
a specified amount of another currency on a specified future date.
A currency whose nominal value in the forward market is lower than
Forward Discount
in the spot market. (Contrast with forward premium.)
A market for forward contracts in which trades are made for future
Forward Market delivery according to an agreed-upon delivery date, exchange rate,
and amount.
When the forward rate is an unbiased predictor of future spot
Forward Parity
exchange rates.
A currency whose nominal value in the forward market is higher
Forward Premium
than in the spot market. (Contrast with forward discount.)
An agreement in which a domestic company (the franchiser) licenses
Franchise Agreement 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
Franchising to do business in a pre-specified manner, including manufacturing,
selling products, marketing technology and other business approach.
Cash flow after all positive-NPV projects have been exhausted in the
Free Cash Flow
firm’s main line of business.
An area such as a port city into which merchandise may legally be
Free Port
moved without payment of duties.
A proposed hemispheric trade zone that would cover all of the
Free Trade Area of the Americas
countries in North, South, and Latin America. The FTAA is highly
(FTAA)
controversial.
An area designated by the government to which goods may be
imported for processing and subsequent export on duty-free basis.
Free Trade Zone
Merchandise may be stored, used or manufactured in the zone and
re-exported without duties being paid.
An exchange rate system in which currency values are allowed to
Freely Floating Exchange Rate
fluctuate according to supply and demand forces in the market
System
without direct interference by government authorities.
An independent business that handles export shipment on behalf of
the shipper without vested interest in the products. A freight
Freight Forwarder
forwarder is a good source of information and assistance on export
regulations and documentation.
Freight Shippers (Freight
Agents used to coordinate the logistics of transportation.
Forwarders)
The organization of data to show how often certain values or ranges
Frequency Distribution
of values occur.

Full Payout Lease
Fundamental Analysis
Future Value
Futures Commission Merchant
Futures Contract
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
A lease in which the lesser recovers, through the lease payments,
all costs incurred in the lease plus an acceptable rate of return,
without any reliance upon the leased equipment's future residual
value.
A method of predicting exchange rates using the relationships of
exchange rates to fundamental economic variables such as GNP
growth, money supply, and trade balances.
Value of a sum after investing it over one or more periods. Also
called compound value.
A brokerage house that is authorized by a futures exchange to trade
with retail clients.
A commitment to exchange a specified amount of one currency for
a specified amount of another currency at a specified time in the
future. Futures contracts are periodically marked-to-market,
Refers to Foreign Trade Policy, announced by the Commerce &
Industry Minister on 31st August, 2004. It is a 5-year Policy
(September 2004 -- March 2009), which takes effect from
September 1, 2004.
Free Trade and Warehousing Zone, a new scheme announced in the
Foreign Trade Policy 2004-2009.
Fob means Free on Board - i.e., when an exporter delivers goods
"free on board", he pays all charges involved in getting them
actually onto the ship.
An accounting method based on an assumption regarding the flow of
goods that older stock is disposed of first, in accordance with good
merchandising policy.
The title of a standard clause in marine contracts exempting the
parties for no fulfillment of their obligations as a result of
conditions beyond their control, such as earthquakes, floods, or
war.
The currency or credit instruments of a foreign country.
An accounting method based on an assumption regarding the flow of
goods that foreign status merchandise is disposed of first.
An individual or firm that serves as the foreign representative of a
domestic supplier and seeks sales abroad for the supplier.
A port designated by the government of a country for duty-free
entry of any non-prohibited goods. Merchandise may be stored,
displayed, or used for manufacturing, etc., within the zone and re-
exported without duties being paid.
The Foreign-Trade Zones Act of June 18, 1934, (48 Stat. 998-1003;
19 U.S.C. 81a-81u) as amended.
A receipt of goods issued by a carrier with an indication that the
goods were damaged when received.
A pricing term indicating that the quoted price includes the cost of
delivering the goods alongside a designated vessel.
A pricing term indicating that the charter of a vessel is responsible
for the cost of loading and unloading goods from the vessel.
An area such as a port city into which merchandise may be legally
moved without payment of duties.
An independent business which handles export shipments for
compensation.
 Glossary of Import Trade Terms Starting with-G
A formal organization of seven highly industrialized democracies:
G-7 Canada, France, Germany, Italy, Japan, the United Kingdom, and
the United States.
G-8 The G-7 countries plus Russia.
Generally Accepted Accounting A common set of accounting concepts, standards, and procedures by
Principles (GAAP) which financial statements are prepared.
A post-World War II agreement designed to promote freer
General Agreement on Tariffs and
international trade among the nations of the world. The GATT was
Trade (GATT)
replaced by the World Trade Organization (WTO) in 1994.
A time series model in which returns at each instant of time are
Generalized Autoregressive
normally distributed but volatility is a function of recent history of
conditional Heteroskedasticity
the series.
A multinational in which the subsidiaries are neither satellites nor
independent city states, but parts of a whole whose focus is on
Geocentric Multinational
worldwide objectives as well as local objectives, each part making
its unique contribution with its unique competence.
A bond that trades in the Eurobond market as well as in one or more
Global Bond
national bond markets.
The international network of individuals, businesses, governments,
Global Economy and multilateral organizations which collectively make production
and consumption decisions.
A global movement to increase the flow of goods, services, people,
Globalization real capital, and money across national borders in order to create a
more integrated and interdependent world economy.
An exchange rate system used from 1925 to 1931 in which the
United States and England were allowed to hold only gold reserves
Gold Exchange Standard
while other nations could hold gold, U.S. dollars, or pounds sterling
as reserves.
An exchange rate system used prior to 1914 in which gold was used
Gold Standard to settle national trade balances. Also called the classical gold
standard.
The accounting treatment of an intangible asset such as the
Goodwill
takeover premium in a merger or acquisition.
A steady and calculated approach to transforming an economy from
Gradualism
communism to capitalism.
Gray-market imports are parallel distribution of genuine goods by
Gray-Market Imports
intermediaries other than authorized channel members.
A form of investment in which the firm designs and builds a new
Greenfield
factory from scratch, starting with nothing but a
Buying shares on the open market in the hope that the target’s
Greenmail
business partners will buy back the shares at inflated prices.
A measure of the market value of goods and services produced by a
nation. Unlike Gross National Product, GDP excludes profits made
Gross Domestic Product (GDP)
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
Growing Perpetuity
apartment building might be expected to rise a certain percentage
each year.
 The positive-NPV opportunities in which the firm has not yet
invested. The value of growth options reflects the time value of the
Growth Options
firm’s current investment in real assets as well as the option value
of the firm’s potential future investments.
Stocks with high price/book or price/earnings ratios. Historically,
Growth Stocks growth stocks have had lower average returns than value stocks
(stocks with low price/book or PE ratios) in a variety of countries.
A lease written under criteria established by the IRS to determine
Guideline Lease
the availability of tax benefits to the lesser.
A multilateral treaty intended to help reduce trade barriers
GATT/General Agreement on
between the signatory countries and to promote trade through tariff
Tariffs And Trade
concessions.
A corporation to which the privilege of establishing, operating, and
Grantee maintaining a foreign-trade zone has been granted by the Foreign-
Trade Zones Board.
Gross Weight The full weight of a shipment, including goods and packaging.

Glossary of Import Export  Trade Terms Starting with-H

A method of classification used by many countries to determine
Harmonized Tariff Schedule (HTS)
tariffs on imports.
Measured by the r-square in a regression of spot rate changes on
Hedge Quality
futures price changes.
Hedge Ratio The ratio of derivatives contracts to the underlying risk exposure.
Reducing the risk of a cash position by using the futures instruments
Hedging
to offset the price movement of the cash asset.
High-Withholding-Tax Interest In the U.S. tax code, interest income that has been subject to a
Income foreign gross withholding tax of 5 percent or more.
The HIPC Inititiative is a major international response to the
Heavily Indebted Poor Countries burdensome external debt held by the world's poorest, most
(HIPC) Initiative indebted countries. It originated in 1996 as a joint undertaking of
the World Bank and the International Monetary Fund (IMF).
A position or operation that offsets an underlying exposure. For
example, a forward currency hedge uses a forward currency
Hedge contract to offset the exposure of an underlying position in a
foreign currency. Hedges reduce the total variability of the
combined
Private investment partnerships with a general manager and a small
Hedge Funds
number of limited partners.
The country-specific hedge portfolio in the International Asset
Pricing Model serves as a store of value (like the risk-free asset in
Hedge Portfolio
the CAPM) as well as a hedge against the currency risk of the
market portfolio.
Historical Volatility Volatility estimated from a historical time series.

Holding-Period Return The rate of return over a given period.

The tendency of investors to over invest in assets based in their own
Home Asset Bias
country.
Idea that all individuals have the same beliefs concerning future
Homogeneous Expectations
investments, profits, and dividends.
 An extremely high rate of inflation, often exceeding several
Hyperinflation 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
Hysteresis
behavior is characteristic of situations with high entry and exit costs
along with high uncertainty.
Glossary of Import Export International  Trade Terms Starting with-I  
Lower (higher) before-tax required returns on assets that are
Implicit Tax
subject to lower (higher) tax rates.
The volatility that is implied by an option value given the other
Implied Volatility
determinants of option value.
Any resource, intermediate good, or final good or service that
Import
buyers in one country purchase from sellers in another country.
Licenses required by some countries to bring in a foreign-made
Import Licenses good. In many cases, import licenses are also used by the issuing
country to control the quantity of imported items.
In-the-Money Option An option that has value if exercised immediately.
In the U.S. tax code, income is allocated to one of a number of
Income Baskets separate income categories. Losses in one basket may not be used
to offset gains in another basket.
Financial report that summarizes a firm's performance over a
Income Statement
specified time period.
IRR on the incremental investment from choosing a large project
Incremental IRR
instead of a smaller project.
A clause in which the one party indemnifies the other. In leasing,
Indemnity Clause generally a clause whereby the lessee indemnifies the lesser from
loss of tax benefits.
A project whose acceptance or rejection is independent of the
Independent Project
acceptance or rejection of other projects.
A futures contract that allows investors to buy or sell an index (such
Index futures
as a foreign stock index) in the futures market.
A call or put option contract on an index (such as a foreign stock
Index options
market index).
A swap of a market index for some other asset (such as a stock-for-
Index swap
stock or debt-for-stock swap).
Indication pricing schedule A schedule of rates for an interest rate or currency swap.
Costs of financial distress that are indirectly incurred prior to formal
Indirect Costs of Financial Distress
bankruptcy or liquidation.
The end-users (e.g., consumers) of the products and services
Indirect Customers purchased from the wholesalers, retailers, and consignees -- the
direct customers of the seller.
Diversification benefits provided by the multinational corporation
Indirect Diversification Benefits that are not available to investors through their portfolio
investment.
Export products to foreign markets by using an intermediary, usually
Indirect Exporting
export trading company based in the exporter’s country.
The general increase in the price level herein measured by the
Inflation Rate growth rate in the GNP Implicit Price Index or the general price
deflator.
Whether or not market prices reflect information and thus the true
Informational Efficiency
(or intrinsic) value of the underlying asset.

Integrated Financial Market
Intellectual Property
Intellectual Property Rights
Inter-American Development
Bank(IADM)
Interbank Spread
Interest Rate Risk
Interest Rate Swap
Intermediated Market
Intermodal
Internal Market
Internal Rate of Return (IRR)
International Asset Pricing Model
(IAPM)
International Monetary System
Intrinsic Value of an Option
International Bank for
Reconstruction and Development
International Bonds
International Chamber of
Commerce
International Monetary Fund (IMF)
Investment Agreement
Investment Opportunity Set
Investment Philosophy
A market in which there are no barriers to financial flows and
purchasing power parity holds across equivalent assets.
Material or communicable result in forms of discoveries, inventions,
designs and literary and art works of scientific, humanistic, literary,
and artistic endeavor. It includes, but is not limited to, works in the
form of scientific discoveries and invention.
Patents, copyrights, and proprietary technologies and processes that
are the basis of the multinational corporation’s competitive
advantage over local firms.
A regional development bank designed to promote sustainable
economic development in the Western Hemisphere. Its headquarters
are located in Washington, D.C.
The difference between a bank’s offer and bid rates for deposits in
the Eurocurrency market.
The risk of unexpected changes in an interest rate.
An agreement to exchange interest payments for a specific period
of time on a given principal amount. The most common interest rate
swap is a fixed-for-floating coupon swap. The notional principal is
typically not exchanged.
A financial market in which a financial institution (usually a
commercial bank) stands between borrowers and savers.
The use of two or more modes of transportation to complete a cargo
move; truck/rail/ship, or truck/air, for example.
A market for financial securities denominated in the currency of a
host country and placed within that country.
A discount rate at which the net present value of an investment is
zero. The IRR is a method of evaluating capital expenditure
proposals.
The international version of the CAPM in which investors in each
country share the same consumption basket and purchasing power
parity holds.
The global network of governmental and commercial institutions
within which currency exchange rates are determined.
The value of an option if exercised immediately.
Also called the World Bank, an international organization created at
Breton Woods in 1944 to help in the reconstruction and
development of its member nations.
Bonds that are traded outside the country of the issuer.
International bonds are either foreign bonds trading in a foreign
national market or Eurobonds trading in the international market.
International non-governmental body concerned with promotion of
trade and harmonization of trading practice. Responsible for
drafting and publishing.
An international organization designed to promote global economic
stability and development. It compiles statistics on cross-border
transactions and publishes a monthly summary of each country’s
balance of payments.
An agreement specifying the rights and responsibilities of a host
government and a corporation in the structure and operation of an
investment project
The set of possible investments available to an individual or
corporation.
The investment approach-active or passive-pursued by an
 investment fund and its managers.
The norms which define the amount of input/inputs required to
Input Output Norms
manufacture a unit of output.
Refers to international standards, laid down by the International
ISO-9000
Standards Organisation.
Refers to Indian Trade Classification (Harmonized System). It is a
ITC(HS) system of classification of products for the purposes of export and
import.
A document required and issued by some national governments
Import License
authorizing the importation of goods into their individual countries.
A bill of lading used in transporting goods overland to the exporter's
Inland Bill of Lading
international carrier.
A letter of credit in which the specified payment is guaranteed by
Irrevocable Letter of credit
the bank if all terms and conditions are met by the drawee.
Glossary of Impex Trade Terms Starting with - J
An agreement of two or more companies to pool their resources to
execute a well-defined mission. Resource commitments,
Joint Venture
responsibilities, and earnings are shared according to a
predetermined contractual formula.
An organization-wide practice that keeps the inventory to the
Just In Time (JIT) minimum and provides customers the right goods or service at the
right time.
 Glossary of Export Import Foreign Trade Terms Starting with - K
A multilateral environmental agreement; its goal is to control global
Kyoto Protocol warming by reducing greenhouse gases emitted into the Earth's
atmosphere.
Collaborative groups of vertically and horizontally integrated firms
Keiretsu with extensive share cross-holdings and with a major Japanese bank
or corporation at the center.
Glossary of Export Import Trade Terms Starting with -L
A contract in which one party conveys the use of an asset to another
Lease
party for a specific period of time at a predetermined rate.
The quoted or invoiced cost of a commodity, plus any inbound
Landed Cost
transportation charges.
The principle that equivalent assets sell for the same price. The law
Law of one Price (Purchasing
of one price is enforced in the currency markets by financial market
Power Parity)
arbitrage.
The lead investment bank in a syndicate selling a public securities
Lead Manager
offering.
Reduction of transaction exposure through timing of cash flows
Leading and Lagging
within the corporation.
The periodic rental payment to a lesser for the use of assets. Others
Lease Rate may define lease rate as the implicit interest rate in minimum lease
payments.
The poorest of the developing countries. They are characterized by
Least-Developed Countries (LDCs) a low gross national product per capita, a reliance on subsistence
agriculture, rapid population growth, inadequate infrastructure.
A letter issued by an importer’s bank guaranteeing payment upon
Letter of Credit (L/C) presentation of specified trade documents (invoice, bill of lading,
inspection and insurance certificates, etc.).
Leveraged Lease The lesser provides an equity portion (usually 20 to 40 percent) of
the equipment cost and lenders provide the balance on a
 nonrecourse debt basis.
The process by which certain business activities become more
Liberalization
market driven.
Advantages (natural and created) that are available only or
Location-Specific Advantages
primarily in a single location.
The bid rate that a Euro market bank is willing to pay to attract a
London Interbank Bid Rate (LIBID)
deposit from another Euro market bank in London.
A position in which a particular asset (such as a spot or forward
Long Position
currency) has been purchased.
A sales agreement in which a domestic company (the licensor)
allows a foreign company (the licensee) to market its products in a
License Agreement
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
Licensing
activities usually involve the transfer of intellectual and proprietary
knowledge in return for royalty as revenue.
Limited Flexibility Exchange Rate The International Monetary Fund’s name for an exchange rate
System system with a managed float.
A market in which traders can buy or sell large quantities of an
Liquid Market
asset when they want and with low transactions costs.
The ease with which an asset can be exchanged for another asset of
Liquidity
equal value.
The pool of funds from which borrowers can attract capital;
Loanable Funds
typically categorized by currency and maturity.
The offer rate that a Euro market bank demands in order to place a
London Interbank Offer Rate
deposit at (or, equivalently, make a loan to) another Euro market
(LIBOR)
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
Letter of Credit(L/C)
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
Licensing grants permission to some other group or individual to manufacture
that product in return for specified royalties.
Glossary of Export Trade Terms Starting with - M
Document that lists in detail al the bills of lading issued by a carrier
Manifest of its agent or master, i.e., a detailed summary of the total cargo of
a vessel.
Country (or political) risks that affect all foreign firms in a host
Macro Country Risks
country.
An agreement by which one firm allows another to manage its
Management Contract foreign activities on behalf of it. The managing firm is forbidden to
make capital investment or financing decisions.
Flexibility in the timing and scale of investment provided by a real
Managerial Flexibility
investment option.
Duty-free assembly plants located mainly in the developing world.
Maquiladoras
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
Margin Account
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
Margin Requirement
ensures the exchange clearinghouse against loss.
The extent to which a domestic industry can penetrate a related
Market Access 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
Market Economy
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. In the eclectic paradigm, the
Market Failure
multinational corporation’s market internalization advantages take
advantage of market failure.
Advantages that allow the multinational corporation to internalize
Market Internalization Advantages or exploit the failure of an arms-length market to efficiently
accomplish a task.
Market Maker A financial institution that quotes bid (buy) and offer (sell) prices.
Market Model (One-Factor Market The empirical version of the security market line: Rj = aj + bjRM +
Model) ej.
Market Portfolio A portfolio of all assets weighted according to their market values.
Market Risk Premium The risk premium on an average stock; (E[RM]-RF).
An investment strategy of shifting among asset classes in an attempt
Market Timing to anticipate which asset classes) will appreciate or depreciate
during the coming period.
Market-Based Corporate A system of corporate governance in which the supervisory board
Governance System represents a dispersed set of largely equity shareholders.
Multilateral Environmental
Environmental agreements negotiated by a number of countries.
Agreements (MEAs)
The set of marketing tools that the firm uses to pursue its marketing
objectives in the target market. One of the most popular
Marketing Mix
classifications of marketing mix tools is called the "4 P's" of
marketing: product, price, place, and promotion.
The process by which changes in the value of futures contracts are
Marking to Market
settled daily.
Maturity Date The date on which the last payment on a bond is due.
An asset that has higher mean return at a given level of risk (or
Mean-Variance Efficient
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
Mercosur
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
Merger
and the assets and liabilities of the two firms are combined.
Method of Payment The way in which a merger or acquisition is financed.
Country risks that are specific to an industry, company, or project
Micro Country Risks
within a host country.
Small loans, perhaps $50 or $100, that are extended to small
Micro Credit
businesses to finance a business start-up or other business activity.
A market segment generally represented by financing under $2
Middle Market
million. In leasing this sector is dominated by single investor leases.
Miller and Modigliani’s Irrelevance If financial markets are perfect, then corporate financial policy
Proposition (including hedging policy) is irrelevant.
Mixed Tariff A combination of specific and ad valorem tariffs.
Monetary Assets and Assets and liabilities with contractual payoffs.
Liabilities(MAL)
Money Market Hedge
Money Market Yield
Money Markets
Money Supply
Monopoly
More Flexible Exchange Rate
System
Most Favored Nation (MFN)
Multinational Corporation
Multinational Netting
Mutually Exclusive Investment
Decisions
Manipulation
Manufacturer
Marine Insurance
Marking
Merchandise
Merchandise, Domestic
Merchandise, Foreign
Merchandise, Fungible
Merchandise, Mixed Status
Merchandise/Operations,
Prohibited
Merchandise/Operations,
Restricted
Glossary of EXIM  Trade Terms Starting with  - N
Net Currency Exposure
A hedge that replicates a currency forward contract through the
spot currency and Eurocurrency markets.
A bond quotation convention based on a 360-day year and
semiannual coupons. (Contrast with bond equivalent yield.)
Financial markets for debt securities that pay off in the short term
(usually less than one year).
The total amount of currency in circulation and peso deposits
subject to check of the monetary system.
Exclusive control or possession by one group of the means of
producing or selling goods or services.
The International Monetary Fund’s name for a floating exchange
rate system.
A status granted to one country by another; the granting country
then accords the recipient's imports and exports the most favorable
treatment that it accords any country.
A corporation with operations in more than one country.
Elimination of offsetting cash flows within the multinational
corporation.
Investment decisions in which the acceptance of a project precludes
the acceptance of one or more alternative projects.
Processing wherein merchandise is packed, unpacked, repacked,
cleaned, sorted, graded or otherwise changed in condition but not
manufactured.
Generally, the production of articles for use from raw or prepared
materials by substantially transforming such materials into new
forms.
Insurance that compensates the owners of goods transported
overseas in the event of loss that cannot be legally recovered from
the carrier.
Letters, numbers, and other symbols on cargo packages to facilitate
identification.
Includes goods, wares, and chattels of every description except
Prohibited Merchandise, building materials, production equipment
and supplies for use in operation of a zone.
Merchandise which has been produced in the India and not exported
therefrom.
Imported Merchandise which has not been properly released from
Customs custody into the Customs territory of the India.
Merchandise which for commercial purposes is identical and
interchangeable in all situations.
Foreign Merchandise which has been combined with Domestic
Merchandise in the zone.
Merchandise, the importation of which is prohibited by law on
grounds of public policy or morals, or excluded by order of the
Foreign-Trade Zones Board..
Merchandise which may not be authorized for delivery from Customs
custody without a special permit, or a waiver thereof by an agency
of the Indian Government.
Exposure to foreign exchange risk after netting all intracompany
cash flows.

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
Nominal Interest Rate
Non-Governmental Organizations
(NGOs)
Non-Tariff Barrier
Noncash Item
Non-Intermediated Debt Market
Non-Monetary Assets and
Liabilities
Normal Distribution
North American Free Trade
Agreement (NAFTA)
Notional Principal
NFE
Non-Privileged Foreign (NPF)
Glossary of Export Business  Trade Terms Starting with - O
Offer (Ask) Rates
The way in which a nation chooses to allocate the burdens of tax
collections across its residents.
A country accords no less favorable treatment to imported goods
than it does to domestic goods.
A process whereby privately owned companies are brought under
state ownership and control. (Contrast with privatization.)
A negative (-) NPV infrastructure development project that a local
government requires of a company pursuing a positive (+) NPV
investment project elsewhere in the economy.
The sum of the individual asset values in a closed-end mutual fund.
Closed-end funds can sell at substantial premiums or discounts to
their net asset values.
Exposed assets less exposed liabilities. The term is used with market
values or, in translation accounting, with book values.
Monetary assets less monetary liabilities.
A currency position after aggregating and canceling all offsetting
transactions in each currency, maturity, and security.
The present value of future cash returns, discounted at the
appropriate market interest rate, minus the present value of the
cost of the investment.
Current assets minus current liabilities.
Recent efforts to pressure national governments to exercise greater
control over foreign trade and foreign direct investment.
A cash flow expressed in nominal terms if the actual dollars to be
received (or paid out) are given.
Interest rate unadjusted for inflation.
Special interest groups that operate in the global community.
An indirect measure used to discriminate against foreign
manufacturers, for example, extensive inspection procedures for
foreign imports that create barriers to entering the market.
Expense against revenue that does not directly affect cash flow,
such as depreciation and deferred taxes.
A financial market in which borrowers (governments and large
corporations) appeal directly to savers for debt capital through the
securities markets without using a financial institution as
intermediary.
Assets and Liabilities with non-contractual payoffs.
Symmetric bell-shaped frequency distribution that can be defined
by its mean and standard deviation.
A regional trade pact among the United States, Canada, and Mexico.
In a swap agreement, a principal amount that is only notional and is
not exchanged.
Refers to Net Foreign Exchange. Net Foreign Exchange earning is
calculated as a percentage of exports (NFEP).
Foreign Merchandise or non-tax-paid domestic merchandise upon
which the duty and applicable taxes will be determined at the time
of entry from the zone for consumption.
The rate at which a market maker is willing to sell the quoted asset.

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
Opportunity Cost
Opportunity Set
Organization for Economic
Cooperation and Development
(OECD)
Organization of Petroleum
Exporting Countries (OPEC)
Out-of-the-Money Option
Outright Quote
Outsourcing
Overall Balance
Overall FTC limitation
Ownership-Specific Advantages
Ocean Bill of Lading
In the United States, a shortened registration statement required by
the Securities and Exchange Commission on debt issues with less
than a nine-month maturity.
An overall measure of a country’s private financial and economic
transactions with the rest of the world.
The many types of financial institutions that operate without
financial supervision by governments or other agencies.
A market dominated by so few sellers that action by any of them
will impact both the price of the good and the competitors.
The seller delivers the goods to the buyer and then bills the buyer
according to the terms of trade.
An economic policy enacted by the Chinese government combining
central planning with market-oriented reforms to increase
productivity, living standards, and technological quality without
exacerbating inflation, unemployment, and budget deficits.
A mutual fund in which the amount of money under management
grows/shrinks as investors buy/sell the fund.
Earnings before interest and depreciation minus taxes. It measures
the cash flow generated form operations, not counting capital
spending or working capital requirements.
Changes in the value of real (no monetary) assets or operating cash
flows as a result of changes in currency values.
The trade-off between fixed and variable costs in the operation of
the firm.
Market efficiency with respect to how large an influence
transactions costs and other market frictions have on the operation
of a market.
Overseas Private Investment Corporation. A US agency that assists
US companies protect their investment against risk in a particular
country besides providing other services.
Most valuable alternative that is given up. The rate of return used in
NPV computation is an opportunity interest rate.
The set of all possible investments.
A group of 30 countries that meets regularly to discuss global issues
and make appropriate economic and social policies.
A producer cartel that produces and sells oil.
An option that has no value if exercised immediately.
A quote in which all of the digits of the bid and offer prices are
quoted. (Contrast with points quote.)
A situation in which a firm's functions are performed or provided by
a person or group from outside the company.
(See official settlements balance.)
In the U.S. tax code, a limitation on the FTC equal to foreign-source
income times U.S. tax on worldwide income divided by worldwide
income.
Property rights or intangible assets, including patents, trademarks,
organizational and marketing expertise, production technology and
management, and general organizational abilities, that form the
basis for the multinational’s advantage over local firms
A bill of lading indicating that the exporter consigns a shipment to
 an int'l carrier for transportation to a specified foreign market.
A bill of lading in which a carrier certifies that goods have been
On Board Bill of Lading
placed on board a certain vessel.
A trade arrangement in which goods are shipped to a foreign buyer
Open Account
without guarantee of payment.
A marine insurance policy that applies to all shipments made by an
Open Insurance Policy
exporter over a period of time rather than to one shipment only.
A corporation, partnership, or person that operates a zone or sub
Operator
zone under the terms of an agreement with the Grantee.
All zone operators must submit to Customs a bond to assure
Operator's Bond
compliance with Customs regulations.
Order Bill of Lading A negotiable bill of lading made out to the order of the shipper.
Glossary of Import Business Trade Terms Starting with -  P
Document listing the contents of a consignment of goods. May be
Packing List
called for on a letter of credit.
A loan arrangement in which a company borrows in its home
Parallel Loan currency and then trades this debt for the foreign currency debt of
a foreign counterpart.
Form of business organization in which two or more co-owners form
a business. In a general partnership each partner is liable for the
Partnership
debts of the partnership. Limited partnership permits some partners
to have limited liability.
In the U.S. tax code, income (such as investment income) that does
Passive Income
not come from active participation in a business.
A government grant that gives inventors exclusive right of making,
Patent
using, or selling the invention.
An investment decision rule which states that all investment
projects that have payback periods equal to or less than a particular
Payback Period Rule
cutoff period are accepted, and all those that pay off in more than
the particular cutoff period are rejected.
A graph with the value of an underlying asset on the x-axis and the
Payoff Profile value of a position taken to hedge against risk exposure on the y-
axis. Also used with changes in value. (Contrast with risk profile.)
Payout Ratio Proportion of net income paid out in cash dividends.
The International Monetary Fund’s name for a fixed exchange rate
Pegged Exchange Rate System
system.
A recognition of future liabilities resulting from pension
Pension Liabilities commitments made by the corporation. Accounting for pension
liabilities varies widely by country.
A set of assumptions under which the law of one price holds. These
Perfect Market Assumptions assumptions include frictionless markets, rational investors, and
equal access to market prices and information.
A trading system in which stocks are auctioned at intervals
Periodic Call Auction
throughout the day.
A constant stream of cash flows without end. A British consol is an
Perpetuity
example.
Combined holding of more than one stock, bond, real estate asset,
Portfolio
or other asset by an investor.
It is a form of price discrimination that requires selling below cost
Predatory Pricing with the intention of destroying competition. However, predatory
pricing is against law.
Phytosanitary Measure A piece of legislation, regulation, or procedure with the purpose of
 preventing the introduction or spread of pests. Phytosanitary
procedures often include the performance of inspections, tests,
surveillance, or other treatments.
An abbreviated form of the outright quote used by traders in the
Points Quote
interbank market.
The risk that a sovereign host government will unexpectedly change
Political Risk the rules of the game under which businesses operate. Political risk
includes both macro and micro risks.
Power Distance 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
premium.
The value of a future cash stream discounted at the appropriate
Present Value
market interest rate.
Factor used to calculate an estimate of the present value of an
Present Value Factor
amount to be received in a future period.
The sensitivity of quantity sold to a percentage change in price; -
Price Elasticity of Demand
%changeQ/%changeP.
Price Uncertainty Uncertainty regarding the future price of an asset.
A securities issue privately placed with a small group of investors
Private Placement
rather than through a public offering.
A process whereby publicly owned enterprises are sold to private
Privatization
investors. (Contrast with nationalization.)
An invoice provided by a supplier prior to the shipment of
Proforma Invoice merchandise, informing the buyer of the kinds and quantities of
goods to be sent their value and important specifications.
Product cycle theory views the products of the successful firm as
Product Cycle Theory evolving through four stages: (1) infancy, (2) growth, (3) maturity,
and (4) decline.
The complete life of a product, from early planning through sales
build-up, maximum sales, declining sales, and withdrawal of the
Product Life Cycle (PLC)
product. Product life cycle lengths and types can vary depending on
the type of product, the frequency of replacement.
The maximum amount of goods (for example, food and clothing)
Production Possibilities Schedule
that a country is able to produce given its labor supply.
Production sharing occurs when a producer chooses to make a
Production Sharing product in stages - and in different countries - so that the firm can
employ the lowest-cost resources in the production process.
A method used to evaluate projects. It is the ratio of the present
Profitability Index value of expected future cash flows after initial investment divided
by the amount of the initial investment.
A convex tax schedule that results in a higher effective tax rate on
Progressive Taxation
high income levels than on low-income levels.
A way to raise nonrecourse financing for a specific project
characterized by the following: (1) the project is a separate legal
Project Financing
entity and relies heavily on debt financing and (2) the debt is
contractually linked to the cash flow generated by the project.
Financial document in which the buyer agrees to make payment to
Promissory Note
the seller at a specified time.
Private or exclusive knowledge that cannot be legally used or
Proprietary Knowledge
duplicated by competitors.
A brochure that describes a mutual fund’s investment objectives,
Prospectus
strategies, and position limits.

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
Glossary of IMPEX Business Trade Terms Starting with - Q
QRs
Quota
Quotation
Quid Pro Quo
Glossary of International Trade Terms Starting with - R
Protection of local industries through tariffs, quotas, and
regulations that discriminate against foreign businesses.
A securities issue placed with the public through an investment or
commercial bank.
Bonds that pay no coupons and only pay back the face value at
maturity. Also referred to as "bullets" and "zeros."
The similarities or lack thereof between country markets. This
concept takes into account geographic distance, cultural
similarities, linguistic aspects, legal systems and methods of
conducting business.
A variety of programs designed to promote and/or protect a
company's image or its individual products.
The principle that equivalent assets sell for the same price.
Purchasing power parity is a measurement of a currency's value
based on the buying power within its own domestic economy.
The right to sell the underlying asset at a specified price and on a
specified date.
The relation of the value of a long call, a short put, the exercise
price, and the forward price at expiration; CallTd/f - PutTd/f + Kd/f
= FTd/f.
A list showing the number and kinds of items being shipped, as well
as other information needed for transportation purposes.
The postal authorities' signed acknowledgment of delivery to
receiver of a shipment made by parcel post.
Lends to foreign buyers to finance exports from U.S.
A marine insurance term used to designate heavy weather,
stranding, lightning, collision, and seawater damage.
A certificate, issued by the Indian Government Department of
Agriculture to satisfy import regulations for foreign countries,
indicating that a India shipment has been inspected and is free from
harmful pests and plant diseases.
In export financing the risk of loss due to such causes as currency,
inconvertibility, government action preventing entry of goods,
expropriation or confiscation, war, etc.
Foreign merchandise or non-tax paid domestic merchandise upon
which the duty and applicable taxes have been determined at the
time this status is approved.
An agent who purchases goods in his or her own country on behalf of
foreign importers such as government agencies and large private
concerns.
QRs mean Quantitative Restrictions. QRs refer to specific limits
imposed by countries on the quantity or value of goods that can be
imported or exported. QRs are non-tariff measures which are taken
to regulate or prohibit international.
The quantity of goods of a specific kind that a country permit to be
imported without restriction or imposition of additional Duties.
An offer to sell goods at a stated price and under specified
conditions.
Latin for "this for that." An exchange of one thing for another.
 

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
Risk Averse
Risk Premium
The percent of the variation in a dependent variable (a y-variable)
that is explained by variation in an independent variable (an x-
variable).
A process in which instantaneous changes in exchange rates are
normally distributed with a zero mean and constant variance.
An offshore financial affiliate that is used to channel funds to and
from the multinational’s foreign operations.
A change in the purchasing power of a currency.
A cash flow is expressed in real terms if the current, or date 0,
purchasing power of the cash flow is given.
A measure of the nominal exchange rate that has been adjusted for
inflation differentials since an arbitrarily defined base period.
Interest rate expressed in terms of real goods; that is, the nominal
interest rate minus the expected inflation rate.
An option or option-like feature embedded in a real investment
opportunity.
A strategic alliance in which two companies agree to co market
each other’s products in their home market. Production rights may
or may not be transferred.
The right to demand return of money paid. In negotiation of a letter
of credit, payment by the negotiating bank will normally be with
recourse.
Banks that are owned and operated by member nations; they are
designed to extend development loans and provide other assistance
to member nations. The world's four regional development banks
are the African Development Bank Group.
Bonds for which each issuer maintains a record of the owners of its
bonds. Countries requiring that bonds be issued in registered form
include the United States and Japan. (Contrast with bearer bonds.)
In the United States, a statement filed with the Securities and
Exchange Commission on securities issues that discloses relevant
information to the public.
The act of remitting cash flows from a foreign affiliate to the parent
firm.
The price below (above) which a seller (purchaser) is unwilling to
go.
The value of an asset at the conclusion of a lease.
Endorsement transferring title or right to a named party.
Retained earnings divided by net income.
Net income after interest and taxes divided by average common
stockholder's equity.
An increase in a currency value relative to other currencies in a
fixed exchange rate system.
"The right of a patent holder of a patent issued in one country to
intellectual property rights in a foreign market for one year,
without filing for a local patent, even if someone from the foreign
market files a local patent for the same process.
An agreement defining each party’s rights should one party default
on its obligation. Rights of set-off were common in parallel loan
arrangements.
Seeking stability rather than risk.
The excess return on the risky asset that is the difference between
 expected return on risky assets and the return of risk-free assets.
A graph with the value of an underlying asset on the x-axis and the
Risk Profile value of a position exposed to risk in the underlying asset on the y-
axis. Also used with changes in value. (Contrast with payoff profile.)
The CAPM holds by construction when performance is measured
Roll’s Critique against a mean-variance efficient index. Otherwise, it holds not at
all.
Payment made for the use of a person or business’s property based
Royalty
on an agreed percentage of the income arising from its use.
Rule #1 Always keep track of your currency units.
Always think of buying and selling the currency in the denominator
Rule #2
of a foreign exchange quote.
Rules used to determine in what country a good will be considered
Rules of Origin
as actually made for tariff and other trade purposes.
A resumption of the activated status of an entire area that was
Reactivation previously deactivated without any change in the operator or the
area boundaries.
The Regional Commissioner of Customs for the Customs Region in
Regional Commissioner
which the zone is located.
Remitting Bank Bank that sends the draft to overseas bank for collection.
Generally, sales or offers to sell goods or services to individuals for
Retail Trade
personal use.
A letter of credit that can be canceled or altered by the drawee
Revocable Letter of Credit
(buyer) after it has been issued by the drawee's bank.
Glossary of Export International Trade Terms Starting with -S
An independent agency of the U.S. federal government that aids,
SBA (Small Business counsels, assists, and protects the interests of small business
Administration) concerns to preserve free competitive enterprise and to maintain
and strengthen the overall economy of the nation.
A process of asking What if? using scenarios that capture key
Scenario Analysis
elements of possible future realities.
In the CAPM, the relation between required return and systematic
Security Market Line (SML)
risk (or beta): Rj - RF + bj (E[RM] - RF).
An investment strategy that attempts to identify individual
Security Selection securities that are under priced relative to other securities in a
particular market or industry.
An element of the Paris Convention for the Protection of Industrial
Property that gives an inventor 12 months from the date of the first
Seeking Stability Rather than Risk
application filed in a Paris Convention country in which to file in
other Paris Convention countries.
A market that is partially or wholly isolated from other markets by
Segmented Market
one or more market imperfections.
A market in which prices fully reflect all publicly available
Semi-Strong form Efficient Market
information.
Analysis of the effect on the project when there is some change in
Sensitivity Analysis (SA)
critical variables such as sales and costs.
The principle that portfolio choice can be separated into two
independent tasks: (1) determination of the optimal risky portfolio,
Separation Principle
which is purely technical problem, and (2) the personal choice of
the best mix of the risky portfolio.
Set-of-Contracts Perspective A view of the corporation as the nexus of a set of legal contracts
linking the various stakeholders. Important contracts include those
 with customers, suppliers, labor, management, debt, and equity.
A measure of risk-adjusted investment performance in excess return
Sharpe Index
per unit of total risk: SI = (RP - RF)/(sP).
Shipper Usually the supplier or owner of commodities shipped.
A position in which a particular asset (such as a spot or forward
Short Position
currency) has been sold.
Short Selling Selling an asset that you do not own, or taking a short position.
Any aspect of an investment project that can be valued separately
Side Effect
from the project itself.
Sight Draft A draft that is payable on demand.
The use of observable managerial actions in the marketplace as an
Signaling indication of management’s beliefs concerning the prospects of the
company.
Interest calculated by considering only the original principal
Simple Interest
amount.
Passed in 1930, this protectionist act increased import duties to the
Smoot Hawley Act highest rate ever imposed by the United States, resulting in the
downfall of the world trade system.
Physical or real capital that is owned by the public sector rather
Social Capital
than by private firms.
A term referring to general trading companies that import and
Sogo Sosha
export merchandise.
A business owned by a single individual. The sole proprietorship
Sole Proprietorship pays no corporate income tax but has unlimited liability for business
debts and obligations.
An international reserve created by the International Monetary Fund
Special Drawing Right (SDR) and allocated to member countries to supplement foreign exchange
reserves.
Specific Tariff A tariff assessed at a specific amount per unit of weight.
Spot Exchange-Rate Exchange-rate today for settlement in two days.
A market in which trades are made for immediate delivery (within
Spot Market
two business days for most spot currencies).
Government policies designed to promote economic growth, steady
Stabilization Policies
employment, and stable prices.
Those with an interest in the firm. A narrow definition includes the
corporation’s debt and equity holders. A broader definition includes
Stakeholders
labor, management, and perhaps other interested parties, such as
customers, suppliers, and society at large.
Stamp Tax A tax on a financial transaction.
The positive square root of the variance. This is the standard
Standard Deviation
statistical measure of the spread of a sample.
Standard Industrial Classification A standard numerical code system used by the U.S. government to
(SIC) classify products and services.
The interest rate expressed as a percentage per annum, by which
Stated Annual Interest Rate
interest payment is determined.
A time series in which the process generating returns is identical at
Stationary Time Series
every instant of time.
Stock Index Futures A futures contract on a stock index.
A swap involving a stock index. The other asset involved in a stock
index swap can be another stock index (a stock-for-stock swap), a
Stock Index Swap
debt index (a debt-for-stock swap), or any other financial asset or
financial price index.
Stock Market An institution that facilitates the buying and selling of stocks.
A collaborative agreement between two companies designed to
achieve some strategic goal. Strategic alliances include
Strategic Alliance
international licensing agreements, management contracts, and
joint ventures as special cases.
The price at which an option can be exercised (also called the
Striking Price
exercise price).
In the U.S. tax code, income from foreign subsidiaries owned more
Subpart F Income than 10 percent and controlled foreign corporations that is taxed on
a pro rata basis as it is earned.
Any organization controlled by another with more than 50 percent
Subsidiary
of its whose voting capital held by the latter.
Financing that is provided by a host government and that is issued
Subsidized Financing
at a below-market interest rate.
Monetary assistance granted by the government to an individual or
Subsidy other entity in support of an activity that is regarded as being in the
public interest.
Small-scale agriculture designed to meet the consumption needs of
Subsistence Agriculture
individual households.
A cost that has already occurred and cannot be removed. Because
Sunk Cost sunk costs are in the past, such costs should be ignored when
deciding whether to accept or reject a project.
Expenditures that are at least partially lost once an investment is
Sunk Costs
made.
The board of directors that represents stakeholders in the
Supervisory Board
governance of the corporation.
An agreement to exchange two liabilities (or assets) and, after a
Swap
prearranged length of time, to reexchange the liabilities (or assets).
A swap bank’s portfolio of swaps, usually arranged by currency and
Swap Book
by maturity.
Swaption A swap with one or more options attached.
SWIFT (Society for Worldwide Network through which international banks conduct their financial
Interbank Financial Transactions) transactions.
A sequence of options in which exercise of one option creates one
or more additional options. Investment-disinvestments, entry-exit,
Switching Options
expansion-contraction, and suspension-reactivation decisions are
examples of switching options.
Syndicate The selling group of investment banks in a public securities offering.
In an acquisition or merger, when the value of the combination is
Synergy greater than the sum of the individual parts: Synergy = VAT - (VA +
VT).
A forward position constructed through borrowing in one currency,
Synthetic Forward Position lending in another currency, and offsetting these transactions in the
spot exchange market.
Risk that is common to all assets and cannot be diversified away
Systematic Risk
(measured by beta).
SEZs means Special Economic Zones In principle approvals have
already been given for setting up of 26 new SEZs (state
SEZs
government/private sector) at Nanguneri (Tamil Nadu), Paradeep
(Orissa), Gopalpur (Orissa), Kulpi (West Bengal), Bhadohi (U
STPs STP means Software Technology Parks
SEPC An exclusive Services Export Promotion Council announced in the
 Foreign Trade Policy to map opportunities for key services in key
markets.
Refers to Schedule B, Statistical Classification of Domestic and
Schedule - B
Foreign Commodities Exported from the India.
An instrument in writing, signed by the captain of a ship, that lists
Ship's Manifest
the individual shipments constituting the ship's cargo.
Sight Draft A draft that is payable upon presentation to the drawee.
Spot Exchange The purchase or sale of foreign exchange for immediate delivery.
Standard Industrial Classification A standard numerical code system used by the U.S. Government to
(SIC) classify products and services.
Standard International Trade A standard numerical code system developed by the U.N. to classify
Classification (SITC) commodities used in international trade.
A group of steamship operators that operate under mutually agreed
Steamship Conference
upon freight rates.
A nonnegotiable bill of lading in which the goods are consigned
Straight Bill of Lading
directly to a named consignee.
A special purpose zone established as part of a zone project for a
Subzone limited purpose, that cannot be accommodated within an existing
zone.
Glossary of Import International Trade Terms Starting with - T
Tangible assets are real assets that can be used as collateral to
Tangibility
secure debt.
The weight of a container and packing materials that excludes the
Tare Weight
weight of the goods it contains.
A tariff that is set at a lower rate until a specified quantity (the
Tariff-Quota quota) of goods has been imported, at which point the tariff
increases for additional imports.
Taxes on imported goods and services, levied by governments to
Tariffs
raise revenues and create barriers to trade.
Arbitrage using a difference in tax rates or tax systems as the basis
Tax Arbitrage
for profit.
Clienteles of investors with specific preferences for debt or equity
Tax Clienteles
that are driven by differences in investors’ personal tax rates.
A country or region imposing low or no taxes on foreign source
Tax Haven
income.
A reduced tax rate provided by a government as an inducement to
Tax Holiday
foreign direct investment.
Taxes that do not interfere with the natural flow of capital toward
Tax Neutrality
its most productive use.
Items such as tax-loss carry forwards and carry backs and
Tax Preference Items investment tax credits that shield corporate taxable income from
taxes.
A wholly owned affiliate that is in a low-tax jurisdiction and that is
used to channel funds to and from the multinational’s foreign
Tax-Haven Affiliate
operations. (The tax benefits of tax-haven affiliates were largely
removed in the United States by the Tax Reform Act of 1
Any method of forecasting future exchange rates based on the
Technical Analysis
history of exchange rates.
A tax system that taxes domestic income but not foreign income.
Territorial Tax System This tax regime is found in Hong Kong, France, Belgium, and the
Netherlands.
Time Draft A draft that is payable on a specified future dare.
 The difference between the value of an option and the option’s
Time Value of an Option
intrinsic value.
Is the Indian Government's most comprehensive source of Foreign
Trade Data and export promotion information. Types of information
The Foreign Trade Data Bank
on the FTDB include: International Market Research, Export
Opportunities; Indices of Foreign and Domestic companies.
The ability of the firm to postpone investment (or disinvestments)
Timing Option
and to reconsider the decision at a future date.
Total Cash Flow Total cash inflow minus total cash outflow.
An organization-wide approach to continuously improving the
Total Quality Management (TQM)
overall quality of its process, products, and service.
The sum of systematic and unsystematic risk (measured by the
Total Risk
standard deviation or variance of return).
Trade Acceptance A time draft that is drawn on and accepted by an importer.
A country’s net balance (exports minus imports) on merchandise
Trade Balance
trade.
A governmental policy, action, or practice that intentionally
Trade Barrier
interrupts the free flow of goods or services between countries.
A trade deficit occurs when the value of a country's exports is less
Trade Deficit
than the value of its imports.
A trade surplus occurs when the value of a country's exports is
Trade Surplus
greater than the value of its imports.
Price discount granted for a new item by turning in an old item at
Trade-in Allowance
the time of purchase.
A registration process under which a name, logo, or characteristic
Trademark
can be identified as exclusive.
The desk at an international bank that trades spot and forward
Trading Desk (Dealing Desk)
foreign exchange.
Changes in the value of contractual (monetary) cash flows as a
Transaction Exposure
result of changes in currency values.
A document that clearly outlines the terms and conditions agreed
Transaction Statement
upon between an importer and an exporter.
Transfer Prices Prices on intercompany sales
The price one unit of a company charges to another unit of the
Transfer Pricing
same company for goods or services exchanged between the two.
Changes in a corporation’s financial statements as a result of
Translation (Accounting) Exposure
changes in currency values.
A bank or trust company that holds title to or a security interest in
Trustee leased property for the benefit of the lessee, lesser, and/or
creditors of the lesser.
An agreement in which a contractor is responsible for setting up a
Turnkey Contract
facility from start to finish for another firm.
The weight of a container and packing materials without the weight
Tare Weight
of the goods it contains.
Designation of a payment as being due at sight, a given number of
Tenor
days after sight, or a given number of days after date.
A single bill of lading covering both the domestic and international
Through Bill of Lading
carriage of an export shipment.
Tramp Steamer A ship not operating on regular routes or schedules.
A document that delineates the terms and conditions agreed upon
Transaction Statement
between the importer and exporter.
Transfer To take merchandise with zone status from a zone for consumption,
 transportation, exportation, warehousing, cartage or lighter age,
vessel supplies and equipment, admission to another zone, and like
purposes.
Release of merchandise by a bank to a buyer in which the bank
Trust Receipt
retains title to the merchandise.
Glossary of Export Import Foreign Trade Terms Starting with - U
The hypothesis that forward exchange rates are unbiased predictors
Unbiased Expectations Hypothesis
of future spot rates.
Uncertainty Avoidance The extent to which a society tolerates uncertainty and ambiguity.
The ratio of the total number of unemployed persons to the total
Unemployment Rate
number of persons in the labor force.
Unlevered Beta (Systematic The beta (or systematic risk) of a project as if it were financed with
Business Risk) 100 percent equity.
The discount rate appropriate for an investment assuming it is
Unlevered Cost of Equity
financed with 100 percent equity.
A financial condition in which a country is unable to service its
Unsustainable Debt
foreign (external) debt without decimating its economy.
Risk that is specific to a particular security or country and that can
Unsystematic Risk
be eliminated through diversification.
The practice of charging or paying exorbitant interest on a loan or
Usury other transaction. Note: in Islamic societies, charging or receiving
any amount of interest is considered usury.
This inventory method controls merchandise in a zone by unique
Unique Identifier Number(UIN) numbers and/or letters that identify merchandise admitted to a
zone.
A person or firm using a zone for storage, handling or processing of
User
merchandise.
Glossary of Import Export Trade Terms Starting with - V
A value-added process in a firm to transform raw materials and
Value Chain
other inputs to finished goods, which creates value to customers.
Date on which a foreign exchange contract is executed, i.e. seller
Value Date
delivers.
Stocks with low price/book ratios or price/earnings ratios.
Historically, value stocks have enjoyed higher average returns than
Value Stocks
growth stocks (stocks with high price/book or PE ratios) in a variety
of countries.
A sales tax collected at each stage of production in proportion to
Value-Added Tax (VAT)
the value added during that stage.
A cost that varies directly with volume and is zero when production
Variable Costs
is zero.
An investment in a start-up business that is perceived to have
Venture Capital excellent growth prospects but that does not have access to capital
markets.
Partnerships so close those two partners become a single firm for all
Virtual Corporation
operational purposes.
One country promises another country to limit its imports; this is
Voluntary Export Restraint (VER) often done when the promising country fears increased tariffs or
quotas if it does not self-regulate.
Value addition refers to the increment added in the process of
Value Addition manufacture of a particular item, which also becomes part of its
price.
VKUJ Vishesh Krishi Upaj Yojana, a new scheme introduced in the Foreign
 Trade Policy (2004-2009) as part of the package for agriculture.
A required document issued by the Indian Government authorizing
Validated Export Licence
the export of specific commodities.
Glossary of EXIM  Terms Starting with -  W
Warehouse Receipt A receipt issued by a warehouse listing the goods received.
An insurance policy that covers goods over the entire journey from
Warehouse-to-Warehouse
the seller's to the buyer's premises.
An option issued by a company that allows the holder to purchase
Warrant equity from the company at a predetermined price prior to an
expiration date. Warrants are frequently attached to Eurobonds.
Weak form Efficient Market A market in which prices fully reflect the information in past prices.
Document issued by either the exporter or a third party declaring
Weight Note
the weight of goods in a consignment.
Weighted Average Cost of Capital A discount rate that reflects the after-tax required returns on debt
(WACC) and equity capital.
A charge assessed by a pier or dock owner for handling incoming or
Wharfage Charge
outgoing cargo.
A tax on dividend or interest income that is withheld for payment of
Withholding Tax taxes in a host country. Payment is typically withheld by the
financial institution distributing the payment.
An accounting term that indicates the difference between current
Working Capital
assets and current liabilities.
One of the "Big Three" international organizations designed to
oversee economic relations among the countries of the world. Its
World Bank
goal is to improve the quality of life for people in the poorer regions
of the world by promoting sustainable economic development.
The WTO is a multilateral organization that promotes free and fair
trade among the nations of the world. It was created in 1994 by 121
World Trade Organization (WTO)
nations at the Uruguay Round of the General Agreement on Tariffs
and Trade (GATT). The WTO is responsible for implementation.
A tax system that taxes worldwide income as it is repatriated to the
Worldwide Tax System parent company. Used in Japan, the United Kingdom, and the
United States.
Warehouse Receipt A receipt issued by a warehouse listing goods received for storage.
A charge assessed by a pier or dock owner for handling incoming or
Wharf age
outgoing cargo.
A term indicating that a shipper's agent or representative is
Without Reserve empowered to make definitive decisions and adjustments abroad
without approval of the group or individual represented.
Glossary of Export Trade Terms Starting withY - Words and Definitions
The discount rate that equates the present value of interest
Yield to Maturity
payments and redemption value with the present price of the bond.
Glossary of International  Trade Export Import Terms Starting with - Z
Large family-owned conglomerates that controlled much of the
Zaibatsu
economy of Japan prior to World War II.
The spirit of the time; the general intellectual state and outlook of
Zeitgeist
an era or generation.
A collection of merchandise maintained under an inventory control
Zone Lot Number (ZLN) method based on specific identification of merchandise admitted to
a zone by lot and lot number.
All of the zone and subzone sites under a single grantee, normally in
Zone Project
a single port of entry.
 Merchandise admitted to a zone for the sole purpose of exportation
Zone Restricted (ZR)
or destruction.
Zone Site The physical location of a zone or subzone.
The status of merchandise admitted to a Foreign-Trade Zone, i.e.,
Zone Status domestic (D), non-privileged foreign (NPF), privileged foreign (PF),
or zone restricted (ZR) status.