An economy in which the government, rather than free-market activity, controls the allocation of resources.

A broad measure of import-export activity that includes services, travel and tourism, transportation, investment income and interest, gifts, and grants along with the trade balance on goods.

Term used in leasing. A document whereby the lessee acknowledges that the equipment to be leased has been delivered, is acceptable, and has been manufactured or constructed according to specifications.

The line between the risk-free asset and the market portfolio that represents the mean-variance efficient set of investment opportunities in the CAPM.

A receipt for goods issued by a carrier that indicates that the goods were received in apparently good order and without damage.

The political and financial risks of conducting business in a particular foreign country.

A contract giving the option holder the right to buy or sell an underlying currency at a specified price and on a specified date. The option writer (seller) holds the obligation to fulfill the other side of the contract.

A contractual agreement to exchange a principal amount of two different currencies and, after a prearranged length of time, to give back the original principal. Interest payments in each currency are also typically swapped during the life of the agreement

The risk of unexpected changes in a commodity price, such as the price of oil.

The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm.

General term for documents describing various aspects of a transaction, e.g. commercial invoice, transport document, insurance document, certificate of origin, certificate of inspection etc.

Duties levied on an imported good that has been unfairly subsidized by a foreign government. Imposing duties on the good is meant to raise the product's price to a "fair market value".

Another name for back-to-back letter of credit.

A futures hedge using a currency that is different from, but closely related to, the currency of the underlying exposure.

A swap in which the (often notional) principal amount on at least one side of the swap is a commodity such as oil or gold.

A trading system in which buy and sell orders are matched with market makers as the orders arrive, ensuring liquidity in individual shares.

Documents presented under a letter of credit that comply with all its terms and conditions. The banks are only obliged to pay the beneficiary if documents are totally compliant.

A measure of the covariability of two assets that is scaled for the standard deviations of the assets (rAB = sAB / sAsB such that -1 rAB +1).

Financial network through which banks in the United States conduct their financial transactions.

Collection in which only the financial document is sent through the banks.

Payment for goods where a commission house or other intermediary transfers title documents to the buyer upon payment in cash.

In a letter of credit transaction, money deposited by the applicant with the issuing bank.

Payment for goods prior to shipment.

Markets for financial assets and liabilities with maturity greater than one year, including long-term government and corporate bonds, preferred stock, and common stock.

Convention on the International Trade in Endangered Species

A measure of the covariability of two assets (sAB = sAsB rAB).

An asset pricing model that relates the required return on an asset to its systematic risk.

The sum of income across all of the multinational corporation’s domestic and foreign subsidiaries.

A fixed-for-floating rate nonamortizing currency swap traded primarily through international commercial banks.

Difference between net working capital from one period to another.

The authorities designated to collect duties levied by a country on imports and exports.

An individual or entity that transports persons or goods for compensation under the contract of carriage.

An economy based on government ownership and/or control of society's resources; during the 20th century, the dominant form of command economy was communism.

A fixed-for-floating interest rate swap.

The positive change in the value of an asset, a negative capital gain is a capital loss.

: A statement that is usually notarized in which the producer of goods certifies that the goods have been produced and are now available to the buyer.

A currency that can be traded for other currencies at will.

A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price.

The responsibilities that corporations (including MNCs) have to workers and their families, to consumers, to investors, and to the natural environment.

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.

The set of values, beliefs, relationships between individuals and functions that guide the decisions of a company to achieve its objectives.

Payment for goods in which the price is paid in full before the shipment is made. This type of payment is usually only made for very small shipments or when goods are made in order.

A bank that, in its own country, handles the business of a foreign bank.

The risk of unexpected changes in foreign currency exchange rates.

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

The process of increasing the amount of capital goods - also called capital stock - in a country.

A ranking of countries by level of corruption that is researched and published by Transparency International (TI), the world's leading non-governmental organization dedicated to fighting corruption.

The stated interest on a debt instrument.

In a collection, the document in which the seller instructs the banks as to how the collection is to be conducted.

A comparative advantage exists when a nation or economic region is able to produce a product at a lower opportunity cost compared to another nation or region. The rule of economics that states that each country should specialize in producing those goods t

Documents that may be asked for by the authorities of the importing country, as evidence of the country of manufacture of the goods.

Planning and managing expenditures for long-lived assets.

Documents that may be asked for by the importer and/or the authorities of the importing country, as evidence of quality or conformity to specifications.

Non-governmental and non-profit groups that work to improve society and the human condition.

The way in which major stakeholders exert control over the modern corporation.

A hedge of currency risk using a currency that is correlated with the currency in which the underlying exposure is denominated.

Party to whom goods are to be delivered.

The right to buy the underlying currency at a specified price and on a specified date.

In the U.S. tax code, a foreign corporation owned more than 50 percent either in terms of market value or voting power.

: Insurance that covers the risk of nonpayment for delivered goods.

The line relating the expected return on a security to different returns on the market.

WTO Committee on Trade and Development

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 prespecified conversion price.

A form of regional economic integration group that eliminates tariffs among member nations and establishes common external tariffs.

An economic system that is based on private ownership; economic development is proportionate to and dependent upon the accumulation and reinvestment of profits.

An equity account under FAS #52 that accumulates gains or losses caused by translation accounting adjustments.

Clean Air Act (USA)

The case where funds are limited to a fixed dollar amount and must be allocated among the competing projects.

Interest that is earned both on the initial principal and on interest earned on the initial principal in previous periods. The interest earned in one period becomes in effect part of the principal in a following period.

See MERCOSUR.

The currency that is being bought or sold. It is most convenient to place the currency of reference in the denominator of a foreign exchange quote.

An agreement among, or an organization of, suppliers of a product.

Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.

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 would

Codex Alimentarius Commission (a world food standards body)

Collective mental paradigms that a society imparts to individuals in the form of behavior patterns, shared values, norms and institutions.

A measure of change in cross-border ownership of long-term financial assets, including financial securities and real estate.

The mix of the various debt and equity capital maintained by a firm. Also called financial structure. The composition of a corporation's securities used to finance its investment activities; the relative proportions of short-term debt, long-term debt, and

A measure of a country’s international trade in goods and services.

A firm allowing another firm to manufacture a pre-specified product.

A document required by certain foreign countries for tariff purpose, certifying the country of origin of specified goods.

The sale of goods or services that are paid for in whole or part by the transfer of goods or services from a foreign country.

The settlement of a transaction, often involving exchange of payments and/or documentation.

A form of corporate reorganization in which two firms pool their assets and liabilities to form a new company.

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.

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 required return on the company's common stock in capital markets. It is also called the equity holders' required rate of return because it is what equity holders can expect to obtain in the capital market. It is a cost from the firm's perspective.

A mutual fund in which the amount of funds under management is fixed and ownership in the funds is bought and sold in the market like a depository receipt.

A person or firm obtains the license from the treasury department of its Country when required, and help clients (importers) to enter and declare goods through customs.

Interest compounded continuously, every instant, rather than at fixed intervals.

Bank that adds its payment undertaking to a letter of credit.

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 t

Process of reinvesting each interest payment to earn more interest. Compounding is based on the idea that interest itself becomes principal and therefore also earns interest in subsequent periods.

Value of a sum after investing it over one or more periods. Also called future value.

A translation accounting method, such as FAS #52 in the United States, that translates monetary and real assets and monetary liabilities at current exchange rates. FSA #52 places any imbalance into an equity account called the “cumulative translation adju

Cash generated by the firm and paid to creditors and shareholders. It can be classified as (1) cash flow from operations, (2) cash flow from changes in fixed assets, and (3) cash flow from changes in net working capital.

An organization that transports persons or goods for a fee.

A tax schedule in which the effective tax rate is greater at high levels of taxable income than at low levels of taxable income. Such a schedule results in progressive taxation.

The completion of customs entry requirements that results in the release of goods to the importer.