This document defines 45 terms related to international trade and economics. It instructs the reader to write down definitions for terms like absolute advantage, balance of payments, bill of lading, exchange rate, exporting, free trade, and General Agreement on Tariffs and Trade (GATT) in a notebook or notepad. The terms cover topics such as tariffs, subsidies, trade agreements, international organizations, trade barriers, shipping terms, and trade documents.
This document defines 45 terms related to international trade and economics. It instructs the reader to write down definitions for terms like absolute advantage, balance of payments, bill of lading, exchange rate, exporting, free trade, and General Agreement on Tariffs and Trade (GATT) in a notebook or notepad. The terms cover topics such as tariffs, subsidies, trade agreements, international organizations, trade barriers, shipping terms, and trade documents.
This document defines 45 terms related to international trade and economics. It instructs the reader to write down definitions for terms like absolute advantage, balance of payments, bill of lading, exchange rate, exporting, free trade, and General Agreement on Tariffs and Trade (GATT) in a notebook or notepad. The terms cover topics such as tariffs, subsidies, trade agreements, international organizations, trade barriers, shipping terms, and trade documents.
In a notebook/notepad WRITE DOWN the definition of the following terms:
1. Absolute advantage - the ability of an individual or group to carry out a particular
economic activity more efficiently than another individual or group. 2. Balance of payment - the difference in total value between payments into and out of a country over a period. 3. Bill of lading - a detailed list of a shipment of goods in the form of a receipt given by the carrier to the person consigning the goods. 4. Exchange rate - the value of one currency for the purpose of conversion to another. 5. Exporting - send (goods or services) to another country for sale 6. Free trade - international trade left to its natural course without tariffs, quotas, or other restrictions. 7. General Agreement on Tariffs and Trade (GATT) - an international trade treaty designed to boost member nation's economic recovery after WWII. 8. Foreign direct investment - a purchase of an interest in a company by a company or an investor located outside its borders. 9. Import quota - a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. 10. International Monetary Fund - an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty 11. North American Free Trade Agreement (NAFTA) - controversial trade pact signed in 1992 that gradually eliminated most tariffs and other trade barriers on products and services passing between the United States, Canada, and Mexico. 12. Price discrimination - the action of selling the same product at different prices to different buyers, in order to maximize sales and profits. 13. Specific tariff - a tax levied as a fixed charge for each unit of a good that is imported – for instance $300 per ton of imported steel. 14. Ad valorem tariff - levied as a proportion of the value of imported goods. An example is a 20 percent tariff on imported automobiles. 15. Subsidy - a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive. 16. Voluntary export restraint - are arrangements between exporting and importing countries in which the exporting country agrees to limit the quantity of specific exports below a certain level in order to avoid imposition of mandatory restrictions by the importing country 17. World bank - an international development organization owned by 187 countries. Its role is to reduce poverty by lending money to the governments of its poorer members to improve their economies and to improve the standard of living of their people 18. World trade organization - It enacts the rules governing trade between countries of goods, services, agricultural and industrial goods, and intellectual property 19. Tariff - a tax or duty to be paid on a particular class of imports or exports. 20. Customs duty - refers to the tax imposed on goods when they are transported across international borders. 21. Dumping - a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country 22. Anti-dumping duty - a protectionist tariff that a domestic government imposes on foreign imports that it believes are priced below fair market value. 23. Countervailing duty - a specific form of duty that the government imposes in order to protect domestic producers by countering the negative impact of import subsidies. 24. INCOTERMS - a set of 11 internationally recognized rules which define the responsibilities of sellers and buyers 25. ASEAN - Association of Southeast Asian Nations, to accelerate economic growth, social progress and cultural development in the region and (2) to promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the Southeast Asia 26. ASEAN Free Trade Area - create a single market and an international production base; attract foreign direct investments; and. expand intra-ASEAN trade and investments. 27. Import License and Import Permit - Import License is an administrative procedures requiring the submission of an application or other documentation (other than those required for customs purposes) to the relevant administrative body as a prior condition for importation of goods. Import permit is an official document from the government that allows a person or a company to bring certain types of goods into a country 28. Countervailing measures - are measures that can be undertaken whenever an investigation, by the investigating authority of the importing country, has led to the determination that the imported goods are benefiting from subsidies, and that they result in an injury. 29. Carrier - a person or thing that carries, holds, or conveys something 30. CIF - Cost, insurance, and freight (CIF) is an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer's order while the cargo is in transit. Cost, insurance, and freight only applies to goods transported via a waterway, sea, or ocean. 31. FOB - The f.o.b. price (free on board price) of exports and imports of goods is the market value of the goods at the point of uniform valuation, (the customs frontier of the economy from which they are exported). 32. Certificate of Origin - is an important international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country. 33. Commercial Invoice - an export document that serves as legal evidence of a sale transaction between the buyer and the seller. 34. Consular Invoice - Describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment 35. De minimis - lacking significance or importance 36. Embargo - an official ban on trade or other commercial activity with a particular country. 37. Ex Works - a term used in shipping arrangements where the seller is only required to deliver goods at a predetermined location, and the buyer bears responsibility for shipping costs. 38. Export license - a government document that authorizes or grants permission to conduct a specific export transaction (including the export of technology). Export licenses are issued by the appropriate licensing agency after a careful review of the facts surrounding the given export transaction. 39. Regulated commodities - Regulated commodities. The group of registered commodity futures and options contracts traded on organized U.S. futures exchanges. 40. Non-regulated commodities - used to describe businesses, services, agreements, etc. that do not have to obey official rules: Non-regulated products and services: please note that the Financial Services Authority does not regulate all of the products featured on the website. 41. Harmonized system - a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for gathering statistics. 42. Most Favored Nation treatment - requires Members to accord the most favourable tariff and regulatory treatment given to the pro- duct of any one Member at the time of import or export of “like products” to all other Members. This is a bedrock principle of the WTO. 43. Modes of delivery - The formats in which the course is delivered. 44. Multilateral trade agreement - are commerce treaties among three or more nations. The agreements reduce tariffs and make it easier for businesses to import and export. Since they are among many countries, they are difficult to negotiate. 45. Non-tariff barriers - a trade restriction–such as a quota, embargo or sanction–that countries use to further their political and economic goals. Countries usually opt for nontariff barriers (rather than traditional tariffs) in international trade. Nontariff barriers include quotas, embargoes, sanctions, and levies. 46. Packing list - itemizes the contents of each package (box, pallets, etc). It includes weights, measurements and detailed lists of the goods in each package. The packing list should be included in carton or package, and can be attached to the outside of a package with a copy inside. 47. Protective tariffs - Protective tariffs are designed to shield domestic production from foreign competition by raising the price of the imported commodity. Revenue tariffs are designed to obtain revenue rather than to restrict imports. The two sets of objectives are, of course, not mutually exclusive. 48. Quota - a fixed share of something that a person or group is entitled to receive or is bound to \ contribute. 49. Export declaration - a form that is submitted by an exporter at the port of export. It provides information about the goods being shipped, including type, number, and value. This information is used by customs to control exports, in addition to compiling statistical information about a country's foreign trade. 50. Import declaration - a statement made by the importer (owner of the goods), or their agent (licensed customs broker) about: the goods being imported. details on the importer. How the goods are being transported; and. the tariff classification and customs value. 51. Letter of credit - essentially a financial contract between a bank, a bank's customer and a beneficiary. Generally issued by an importer's bank, the letter of credit guarantees the beneficiary will be paid once the conditions of the letter of credit have been met. 52. Wharfage - accommodations provided at a wharf for the loading, unloading, or storage of goods. 53. Arrastre - A person/entity who/which performs portside cargo handling operations, e.g. receiving, handling, custody, security and delivery of cargo passing over piers, quays or wharves, transit sheds/warehouses and open storages within the jurisdictional area of responsibility of the authorized contractor/operator. 54. Stevedoring - a term which is derived from the word stevedore. Stevedore refers to the act of loading or offloading cargo to and/or from a ship. A person or company engaged in such act is known as a stevedore. 55. Balance of trade - e difference between the value of the goods that a country (or another geographic or economic area such as the European Union (EU) or the euro area) exports and the value of the goods that it imports. (C) Globalization - a term used to describe how trade and technology have made the world into a more connected and interdependent place. Globalization also captures in its scope the economic and social changes that have come about as a result. (D) Philippines’ position in International Business and Trade – Philippines is currently our 31st largest goods trading partner with $18.9 billion in total (two way) goods trade during 2020. Goods exports totaled $7.7 billion; goods imports totaled $11.1 billion. The U.S. goods trade deficit with Philippines was $3.4 billion in 2020.