International business: refer to transaction between parties from different countries
Visible trade:exporting and importing goods produced or manufactured in one country for consumption or resale in another
International investment: supplying capital by residents of one country to another
FDI(foreign direct investments)is made of returns through controlling the enterprises or assets invested in a host country.
Portfolio investment refers to purchase of foreign financial assets for a purpose other than controlling. such financial assets may be stocks, bonds or certificates of deposit.
Franchising,a firm called the franchisee,is allowed to operate in the name of another,called the franchiser who provides the former with trademarks,brand names,logos,and operating techniques for royalty.
Turnkey project,a firm signs a contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion.
BOT is a popular variant of the turnkey project where B stands for build,O for operate and T for transfer.For a BOT project,a firm operate a facility for a period of time after bulding it up before finally transferring it to a foreign company.
Customs union:A customs area extending beyond national boundaries to include two or more independent nations is called a customs union
Trade terms are terms used in international trade to describe the general information about the trade, such as the unit price, port of shipment, port of destination and the kind of currency.
Protectionism is a trade barrier to international trade for the purpose of protecting a nation’s own domestic market and industries. It includes tariff barriers and non-tariff barriers.
A multinational enterprise is a business organization which owns,controls and manages assets,in more than one country, through its member companies incorporated.
Per capita GNP refers to the total value of the goods and services per man provided by all kinds of sectors during a certain period ( a year, a quarter, etc )
Force majeure is a default of the contract which is given rise to not because of the contracting parties’default,but of the uncontrollable causes.One type of the cause is the natural force and the other is social cause.
Drawer: The person who draws the bill of exchange is called the drawer.
Proximate cause of loss:When an insurance policy is made out to cover a certain risk,a claim becomes payable only if the risk occurred as the proximate cause of the loss suffered.The proximate cause is the direct cause of the loss.
Shortfall means the shortage of amount or values of certain goods.
Tariff concession list:It refers to the list of commodities on which the deduced tariff rate is stipulated
Compound duty:a type of tariff levied according both the amounts and the prices of the commodities.
Customs cleance:as to customs clearance,for ordinary imported goods,the customs will sign on the shipping documents to release the goods.But for some particular duty–free goods or bonded goods,the customs still have control over it after the consignee acknowledged the receipt of shipment
Insurance is a social device in which a group of individuals transfer risk and provide a payment of losses from funds contributed by all members who transferred risk.Insurance is a risk transfer mechanism. Those who transfer risk are called insured. Those who assume risk are called insurers.
Standby arrangements:That’s the standby credit arrangement given by IMF to its member countries.
Escape clause:It’s a clause of contemporary canceling of the preferential tariff when some domestic industries are damaged because in bilateral and multilateral negotiations and agreements there are excessive importing commodities that enjoy the deduction of tariff and other trade allowance for the contracting parties.
Non-trade settlement mainly means the settlement which occurs not because of trade between the trading parties, but of the other reasons such as the government agreement.
Intermediate products are products which are not the same as the raw materials or as the finished goods. They can called semi-finished products.
Counter trade is the generic terms to describe a set of cross border contracts which link a seller’s exports to imports from the buyer.
Intra-MNE transfer refers to the transfer among the different units within the range and under the control of MNC
Fair trade refers to the trade conducted by two parties on the equal treatment.
Beneficiary: The exporter in whose favour the credit is opened
Consular visa is a visa signed by one country’s consul in another country when the visaed subject is about to go through the customs between these two countries.
Incoterms are short for the international rules for interpretation of trade terms,the purpose of it is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade.Thus,the uncertainties of different interpretation of such terms in different countries can be avoided or at least reduced to a considerable degree.
Contribution:A person can not be allowed to insure twice for the same risk,and claim compensation from both insurers.If two policies do cover the same event the insurance companies contribute pro rata to the loss, and the insured is only restored to the indemnity position.
The most favoured nation clause:It is most effective method to avoid the damage by bilateral talks to the world trade.Countries can automatically enjoy the favorable tariffs given by the relevant countries to the other countries.
Consignment trade is a kind of trade in which the seller ships his goods abroad,and his agent in that country will sell the goods for him,and the title to the goods still belongs to the seller before the goods are sold.
Productivity is a ratio figure which indicates how much inputs should be needed to produce the goods. It is a sensitive index to measure the economic growth of one industry or of one nation
Insurable interest:No one may insure anything unless he has an interest in it,which means that if the thing insured is preserved he will derive a benefit from its preservation
Group of77:It’s a group initiated by some countries in Asia,Africa and Latin America in order to maintain their interests and protest the deprivation of the imperialist countries.At present,the group of 77 countries has expanded to include more than 100 countries and regions
IDA refers to the international Development association established in1960to provide financial assistance primarily in the poorer developing countries and on terms that would bear less heavily on their balance of payments.
Documents against payment at sight requires immediate payment by the importer to get hold of the documents
Transportation deregulation has removed the shackles of control,both shippers and carriers are free to negotiate the best rate and service packages to meet the needs of both parties.
Clearing system is a government agreement where the trade balance is finalized by accounting and offsetting the debts and credits between two countries
Comparative advantage:Even if a country is less efficient than another in the production of both commodities, there is still a basis for mutually beneficial trade.
Clean credit,credits that only require clean draft,i.e.draft not accompanied with shipping documents for payment are clean credit.
Known premium is the cost the insured should have to pay the insurance company for the insured goods.
Hyperinflation is a kind of inflation in which the market prices are soaring quickly.The devaluation rate of the currency is astronomical.The normal economic activities are out of the order,and finally lead to the collapse of the whole monetary system.
Parent MNC is the original investing multinational corporation.It is also the international headquarters of the MNE.
Letter of credit is a letter issued by a bank at the request of the importer in which the bank promises to pay upon presentation of the relevant documents.
Legal holder is an owner of a property who is entitled to it by law
Trading practices are widely-acknowledged customary deeds experienced from actual trade. Secondary capital market is the market where the issued securites are traded,it includes the stock exchange and the over-the –counter market.
World Bank group,it is a complex institutions composed of IBRD,IDA,IFC and MIGA,with the main purpose of helping raise standards of living in developing countries by channeling financial resources to them from developed countries.
Opening bank: the bank that issues the letter of credit is called the opening bank.
Freight transportation is defined as the economic movement of commodities and products and the effect of such movement as the development and advancement of business
Claims are activities for the insured to get compensation from the insurer according to the insurance policy for the insured, also damaged subject.
Balance of payments:it is a statement of the total payments to the total receipts from foreitn countries
Transfer technology:it means the activity that technology suppliers transfer the technologies of production, management and marketing to the receivers in any proper way. The pure export of goods is not within this range.