Term
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Definition
| a duty (tariff) assessed as a percentage of the value of the item |
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Term
| comparable-access argument |
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Definition
| companies and industries often argue that they are entitled to the same access to foreign markets as foreign industries and companies have to their markets |
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Term
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Definition
| a tax placed on goods traded internationally, based on value plus units |
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Term
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Definition
| a reciprocal flow of goods or services valued and settled in monetary terms |
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Term
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Definition
| the underpricing of exports, usually below cost or below the home-country price |
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Term
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Definition
| a government tax (tariff) levied on goods shipped internationally. Also called tariff |
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Term
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Definition
| the real tariff on the manufactured portion of developing countries' exports, which is higher than indicated by the published rates because the ad valorem tariff is based on the total value of the products, which includes raw materials that would have had duty-free entry |
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Term
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Definition
| a specific type of quota that prohibits all trade |
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Term
| essential-industry argument |
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Definition
| the argument holding that certain domestic industries need protection for national security purposes |
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Term
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Definition
| an industrialization policy emphasizing industries that will have export capabilities |
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Term
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Definition
| a tax on goods leaving a country |
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Term
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Definition
| a requirement that an individual or company must apply to government authorities for permission to buy foreign currency above some determined threshold amount |
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Term
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Definition
| a tax on goods entering a country |
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Term
| import (or export) license |
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Definition
| a method of government control of the exchange rate whereby all recipients, exporters, and others who receive foreign exchange are required to sell to the central bank at the official buying rate |
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Term
| industrialization argument |
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Definition
| a rationale for protectionism that agues that the development of industrial output should come about even though domestic prices may not become competitive on the world market |
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Term
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Definition
| the position that holds that an emerging industry should be guaranteed a large share of the domestic market until if becomes efficient enough to compete against imports |
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Term
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Definition
| a reciprocal requirement. very similar to countertrade (synonomous) |
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Term
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Definition
| the argument that a foreign producer will lower its prices if an import tax ins placed on its products |
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Term
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Definition
| government restrictions on imports and occasionally on exports that frequently give direct or indirect subsidies to industries to enable them to compete with foreign production either at home or abroad |
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Term
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Definition
| a limit of the quantitative amount of a product allowed to be exported from or imported into a country |
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Term
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Definition
| a duty (tariff) assessed on a per-unit basis |
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Term
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Definition
| direct assistance from governments to companies to make them more competitive |
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Term
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Definition
| a government tax levied on goods, usually imports, shipped internationally |
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Term
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Definition
| the quantity of imports that can be bought by a given quantity of a country's exports |
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Term
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Definition
| taxes collected by a country through which the goods have passed |
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Term
| voluntary export restraint (VER) |
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Definition
| a negotiated limitation of exports between an importing and an exporting country |
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Term
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Definition
| A South American form of economic integration involving Bolivia, Columbia, Ecuador, Peru, and Venezuela |
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Term
| Asia Pacific Economic Cooperation (APEC) |
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Definition
| A cooperation formed by 21 countries that border the Pacific Rim to promote multilateral economic cooperation in trade and investment in the Pacific Rim |
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Term
| Association of Southeast Asian Nations (ASEAN) |
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Definition
| A free-trade area involving the Asian countries of Brunei, Indonesia, Malaysia, the Phillipines, Singapore, and Thailand |
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Term
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Definition
| a form of integration between two countries in which they decide to cooperate more closely together, usually in the form of tariff reductions |
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Term
| Caribbean Community (CARICOM) |
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Definition
| a customs union in the Caribbean region |
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Term
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Definition
| a form of regional economic integration in which countries abolish internal tariffs, use a common external tariff, and abolish restrictions on factor mobility |
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Term
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Definition
| the overall growth in the market and the impact on a company of expanding production and achieving greater economies of scale |
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Term
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Definition
| the abolition of economic discrimination between national economies, such as within the EU |
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Term
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Definition
| the lowering of cost per unit as output increases because of allocation of fixed costs over more units produced |
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Term
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Definition
| the currency of the european union |
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Term
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Definition
| a form of regional economic integration among countries in Europe that involves a free-trade area, a customs union, and the free mobility of factors of production that is working toward political and economic union |
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Term
| General Agreement on Tariffs and Trade (GATT) |
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Definition
| a multilateral arrangement aimed at reducing barriers to trade, both tariff and nontariff ones; at GATT was designated to become the World Trade Organization (WTO) |
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Term
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Definition
| a major subregional group established by Argentina, Brazil, and Uruguay, which spun off from ALADI in 1991 with the goal of setting up a customs union and common market. Venezuela has applied for membership |
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Term
| most-favored-nation (MFN) clause |
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Definition
| a GATT requirement that a trade concession that is given to one country must be given to all other countries |
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Term
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Definition
| a privilege that replaced the most-favored-nation clause and is granted to official members of the WTO |
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Term
| North American Free Trade Association (NAFTA) |
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Definition
| a free trade agreement involving the United States, Canada and Mexico that went into effect on January 1, 1994 and will be phased in over a period of 15 years |
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Term
| Organization of Petroleum Exporting Countries (OPEC) |
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Definition
| a producers' alliance among 12 petroleum-exporting countries that attempt to agree on oil production and pricing policies |
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Term
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Definition
| a form of integration in which a group of countries located in the same geographic proximity decide to cooperate |
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Term
| South American Community of Nations (CSN) |
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Definition
| members of CAN and MERCOSUR formed CSN to liberalize trade and eventually have a common currency, parliament, and passport. |
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Term
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Definition
| the shifting of resources from inefficient to efficient companies as trade barriers fall |
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Term
| World Trade Organization (WTO) |
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Definition
| a voluntary organization through which groups of countries negotiate trading agreements and which has authority to oversee trade disputes among countries |
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Term
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Definition
| the practice of using the direct quote for exchange rates |
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Term
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Definition
| the process of buying and selling foreign currency at a profit that results from price discrepancies between or among markets |
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Term
| Bank for International Settlements (BIS) |
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Definition
| a bank in Basel, Switzerland, that facilitates transactions among central banks; it is effectively the central banks' central bank |
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Term
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Definition
| the currency whose value is implicitly 1 when a quote is made between two currencies; for example, if the Brazilian real is trading at 1.9 reals (reais) per dollar, the dollar is the base currency and the real is the quoted currency |
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Term
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Definition
| the amount a trader is willing to pay for foreign exchange |
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Term
| Chicago Mercantile Exchange (CME) Group |
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Definition
| major foreign exchange market |
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Term
| Confirmed letter of credit |
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Definition
| a letter of credit to which a bank in the exporter's country adds its guarantee of payment |
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Term
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Definition
| the exchange of principal and interest payments |
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Term
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Definition
| a foreign-exchange instrument such as an option or futures contract that derives its value from the underlying currency |
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Term
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Definition
| a quote expressed in terms of the number of units of the domestic currency given for one unit of a foreign currency |
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Term
| draft (or commercial bill of exchange) |
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Definition
| an instrument of payment in international business that instructs the importer to forward payment to the exporter |
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Term
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Definition
| the practice of using the indirect quote for exchange rates |
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Term
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Definition
| the price of one currency in terms of another currency |
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Term
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Definition
| checks and other instruments for making payments in another country's currency |
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Term
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Definition
| the market where foreign exchange is traded |
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Term
| forward discount (or forward premium) |
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Definition
| the difference between the spot and forward exchange rates in the forward market; a foreign currency sells at a premium when the forward rate exceeds the spot rate and when the domestic currency is quoted on a direct basis |
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Term
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Definition
| an agreement between two parties to buy or sell a particular currency at a particular price on a particular future date, as specified in a standardized contract to all participants in that currency futures exchange |
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Term
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Definition
| a simultaneous spot and forward transaction |
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Term
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Definition
| funds typically used by wealthy individuals and institutions that are allowed to use aggressive strategies that are unavailable to mutual funds |
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Term
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Definition
| an exchange rate given in terms of the number of units of the foreign currency for one unit of the domestic currency |
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Term
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Definition
| foreign-exchange transactions that take place between commercial banks |
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Term
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Definition
| the investing in debt instruments, such as bonds, in different countries. |
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Term
| irrevocable letter of credit |
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Definition
| a letter of credit that cannot be canceled or changed without the consent of all parties involved |
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Term
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Definition
| a precise document by which the importer's bank extends credit to the importer and agrees to pay the exporter |
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Term
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Definition
| the amount for which a foreign-exchange trader is willing to sell a currency |
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Term
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Definition
| a foreign-exchange instrument that gives the purchaser the right, but not the obligation, to buy or sell a certain amount of foreign currency at a set exchange rate within a specified amount of time |
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Term
| outright forward transactions |
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Definition
| a forward contract that is not connected to a spot transaction |
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Term
| revocable letter of credit |
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Definition
| a letter of credit that can be changed by any of the parties involved |
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Term
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Definition
| a commercial bill of exchange that requires payment to be made as soon as it is presented to the party obligated to pay |
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Term
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Definition
| the buying or selling of a foreign currency with the prospect of great risk and high return |
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Term
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Definition
| the market in which an asset is traded for immediate delivery, as opposed to a market for forward or future deliveries |
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Term
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Definition
| foreign exchange transactions involving the exchange of currency the second day after the date on which the two foreign exchange traders agree to the transaction |
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Term
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Definition
| in the forward market, the difference between the spot rate and the forward rate; in the spot market, the difference between the bid (buy) and offer (sell) rates quoted by a foreign exchange trader |
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Term
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Definition
| exchange rates are quoted as the number of units of the terms currency per base currency |
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Term
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Definition
| a commercial bill of exchange calling for payment to be made at some time after delivery |
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Term
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Definition
| a product that is difficult to differentiate from those of competitors, such as raw materials and agricultural output |
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Term
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Definition
| those functions of value creation in which the firm is most competent |
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Term
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Definition
| the lowering of cost per unit as output increases because of allocation of fixed costs over more units produced |
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Term
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Definition
| the relationship of production-cost reductions to increases in output |
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Term
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Definition
the moves of rivals battling for market share
the entry of new rivals seeking market share
the efforts of other companies outside the industry to convince buyers to switch to their own substitute products
the push by input suppliers to charge more for their inputs
the push by output suppliers to pay less for products |
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Term
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Definition
| the unification of distinct national economic systems into one global market |
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Term
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Definition
| a strategy that management uses to focus on increasing profitability by achieving cost reductions from experience curves and location economies. licensors with the use of improvement made on the technology originally licensed |
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Term
| industry organization (IO) paradigm |
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Definition
| presumes a perfectly competitive market. risk-adjusted rates of return should be constant across the firms. no one firm or industry will consistently outperform the others. those that do, attract more companies, making more competition, driving prices down. |
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Term
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Definition
| the makeup of an industry: its number of sellers and their size distribution, the nature of the product, and the extent of barriers to entry |
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Term
| integration-responsiveness (IR) grid |
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Definition
| the interaction of global integration and local responsiveness shown in a grid format |
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Term
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Definition
| the effort of managers to create value by transferring core competencies from the home market to foreign markets in which local competitors lack those competencies |
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Term
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Definition
| the amount a company customizes its activities to the particular demands of a country |
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Term
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Definition
| cost advantages from performing a value creation activity at the optimal location for that activity |
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Term
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Definition
| emphasizing the need to be responsive to the unique conditions prevailing in different national markets |
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Term
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Definition
| theoretical context in which the performance of any firm is largely determined by the industry characteristics |
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Term
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Definition
| the means companies select to achieve their objectives |
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Term
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Definition
| a strategy that attempts to take advantage of corporate strengths across national boundaries; it is very interdependent |
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Term
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Definition
| benefits derived from doing business (profits) |
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Term
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Definition
| the collective activities that occur as a product moves from raw materials through production to final distribution |
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Term
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Definition
| a strategy by which an international company builds up operations quickly in one or a few countries before going to another |
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Term
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Definition
| a term used in international business to describe a strategy whereby a company moves rapidly into many markets and gradually increases its commitments within each one |
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Term
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Definition
| a cost-reduction advantage due to economies of scale attained through moving into a foreign market ahead of competitors |
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Term
| harvesting (or divesting) |
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Definition
| reduction in the amount of investment. also known as divestment |
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Term
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Definition
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Term
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Definition
| foreign companies' lower survival rate in comparison to local companies for many years after they begin operations |
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Term
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Definition
| a theory that helps explain capital budgeting and, when applied to international operations, means that investors are willing to take less return in order to be able to shift the resources to alternative uses |
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Term
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Definition
| the process in oligopoly industries for competitors to emulate each other, such as going to the same locations |
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Term
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Definition
| situations in which the marketing program in one country results in awareness of the product in other countries |
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Term
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Definition
| agencies monitoring all goods and services entering and exiting the country. |
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Term
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Definition
| a sale of goods by an exporter directly to distributors or final consumers rather that to trading companies or other intermediaries in order to achieve greater control over the marketing function and to earn higher profits |
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Term
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Definition
| goods or services leaving the country |
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Term
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Definition
| any companies doing business in between the shipper and the buyer |
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Term
| export management company (EMC) |
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Definition
| a company that buys merchandise from manufacturers for international distribution or sometimes acts as an agent for manufacturers |
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Term
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Definition
| specification of the key issues that shape the success of an export venture |
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Term
| export trading company (ETC) |
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Definition
| a form of trading company sanctioned by U.S. law to become involved in international commerce as independent distributors to match up foreign buyers with domestic sellers |
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Term
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Definition
| a company that facilitates the movement of goods from one country to another |
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Term
| import broker (customs broker) |
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Definition
| an individual who obtains various government permissions and other clearances before forwarding necessary paperwork to the carrier that will deliver the goods from the dock to the importer |
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Term
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Definition
| goods or services entering a country |
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Term
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Definition
| specification of the key issues that shape the success of an import venture |
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Term
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Definition
| a sale of goods by an exporter through another domestic company as an intermediary |
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Term
| intermodal transportation |
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Definition
| the transportation of freight in a container or vehicle, using multiple modes of transportation(rail, ocean vessel, and truck), without any handling of the freight itself when changing modes |
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Term
| small and medium-sized enterprise (SME) |
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Definition
| fewer than 250 employees that typically do not have export managers |
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Term
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Definition
| the chance of circumstances |
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Term
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Definition
| assess export(import) potential, select a market or markets, formulate and implement an export(import) strategy |
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