| Glossary of Export Import Trade Terms Starting with - L |
| Words |
Description |
| Landed Cost |
The quoted or invoiced cost of a commodity, plus any inbound transportation charges. |
| Law of one Price (Purchasing Power Parity) |
The principle that equivalent assets sell for the same price. The law of one price is enforced in the currency markets by financial market arbitrage. |
| Lead Manager |
The lead investment bank in a syndicate selling a public securities offering. |
| Leading and Lagging |
Reduction of transaction exposure through timing of cash flows within the corporation. |
| Lease |
A contract in which one party conveys the use of an asset to another party for a specific period of time at a predetermined rate. |
| Lease Rate |
The periodic rental payment to a lesser for the use of assets. Others may define lease rate as the implicit interest rate in minimum lease payments. |
| Least-Developed Countries (LDCs) |
The poorest of the developing countries. They are characterized by a low gross national product per capita, a reliance on subsistence agriculture, rapid population growth, inadequate infrastructure. |
| Letter of Credit (L/C) |
A letter issued by an importer’s bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of lading, inspection and insurance certificates, etc.). |
| Letter of Credit(L/C) |
A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. |
| 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. |
| Liberalization |
The process by which certain business activities become more market driven. |
| License Agreement |
A sales agreement in which a domestic company (the licensor) allows a foreign company (the licensee) to market its products in a foreign country in return for royalties, fees, or other forms of compensation. |
| Licensing |
A business arrangement in which the manufacturer of a product grants permission to some other group or individual to manufacture that product in return for specified royalties. |
| Limited Flexibility Exchange Rate System |
The International Monetary Fund’s name for an exchange rate system with a managed float. |
| Liquid Market |
A market in which traders can buy or sell large quantities of an asset when they want and with low transactions costs. |
| Liquidity |
The ease with which an asset can be exchanged for another asset of equal value. |
| Loanable Funds |
The pool of funds from which borrowers can attract capital; typically categorized by currency and maturity. |
| Location-Specific Advantages |
Advantages (natural and created) that are available only or primarily in a single location. |
| London Interbank Bid Rate (LIBID) |
The bid rate that a Euro market bank is willing to pay to attract a deposit from another Euro market bank in London. |
| London Interbank Offer Rate (LIBOR) |
The offer rate that a Euro market bank demands in order to place a deposit at (or, equivalently, make a loan to) another Euro market bank in London. |
| Long Position |
A position in which a particular asset (such as a spot or forward currency) has been purchased. |
