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Last updated: 08 Apr, 2008

SME Glossary

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Glossary of Export Import Trade Terms Starting with -
Words	Description

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Glossary of Export Import Trade Terms Starting with - A
Words	Description
AB	Appellate Body
ACP	African, Caribbean, and Pacific countries.
ADB	Asia Development Bank, head quartered located in Manila, Philippines (ASIA).
AEZs	Refers to a scheme of Agricultural Export Zones.
APEC	Asia-Pacific Economic Cooperation
ATC	Agreement on Textiles and Clothing
Absolute Advantage(AB-AD)	An absolute advantage exists in condition of when a nation or other economic region of any country is able to produce a good or service more efficiently than a second (other) nation or its region.
Acceptance	Any agreement to purchase goods under specified terms. An agreement to purchase goods at a stated price and under stated terms.
Accounting Translation Exposure	Changes in a organizations or corporation's financial statements as a result of changes in currency values.
Acquisition Premium	In a merger or acquisition, the difference between the purchase price and the reacquisition value of the target firm or company.
Acquisition of Assets	In an acquisition of assets, one firm acquires the assets of another company. None of the liabilities supporting that asset are transferred to the purchaser.
Acquisition of Stock	In an acquisition of stock, one firm buys an equity interest in another.
Active Fund Management	An investment approach that actively shifts funds either between asset classes (asset allocation) or between individual securities (security selection).
Active Income	In the U.S. tax code, income from an active business as opposed to passive investment income.
Activity-Based-Cost (ABC)	An accounting method that allocates costs to specific products based on breakdowns of cost drivers.
Ad Valorem	According to value
Ad valorem Tariff	A tariff assessed as a percentage of the value of an import.
Adjusted Present Value(APV)	An APV is a valuation method that separately identifies the value of an unlevered project from the value of financing side effects.
Advance Against Documents	A loan made on the security of the documents covering the shipment.
Advance Licence	Advance Licence is granted for import of inputs without payment of customs duties. It is issued in accordance with the Policy and procedures in force and subject to fulfillment of time-bound export obligation. Such licences can be issued
Advance Payment	Advance Payment is a Trading method in which the buyer pays for the goods before they are sent out , method is used when buyer is of unknown credit worthiness. It is applicable in International or domestic trade.
Adventure	Adventure also define for marine adventure." It is a term of art in the marine insurance business. All insured cargo owners and every shipper on that vessel are part of the adventure.
Advising Bank	Advising Bank is usually in the country of the seller, whose primary function is to authenticate the letter of credit and advise it to the seller, Purchase and collection of Export Bills.
Advisory Capacity	A term indicating that shipper's agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented.
African Developmental Bank (ABD)	The ABD is one of four major regional developmental banks currently operating in the global economy; it is headquartered in Abidjan, Cote d'Ivoire.
Agency Costs	The costs incurred to ensure that agents act in the best interest of the principal.
Agent	Someone who represents business in domestic and overseas market. In corporate governance terminology, management is the agent of the principal stakeholders in a principal-agent relationship.
Aggregate Demand	The total demand of all potential buyers of a commodity or service. Includes all individuals and organizations that have the ability, willingness, and authority to purchase such products.
Air Waybill	A BILL OF LADING that covers both domestic and international flights transporting goods to a specified destination.
All-in Cost	The percentage cost of a financing alternative, including any bank fees or placement fees.
Allocation Rules of Income	In the U.S. tax code, these rules define how income and deductions are to be allocated between domestic-source and foreign-source income.
Allocation efficiency	The efficiency with which a market channels capital toward its most productive uses.
Alongside	A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded aboard the ship.
Alteration	A change in the boundaries of an activated zone or subzone.
Andean Pact	A regional trade pact that includes Venezuela, Colombia, Ecuador, Peru, and Bolivia.
Annuity	A level stream of equal dollar payments that lasts for a fixed time. An example of an annuity is the coupon part of a bond with level annual payments.
Anti-Dumping Laws	Laws that are enacted to prevent dumping-offering prices in the overseas market that is lower than that at which a product is sold in its home domestic market.
Applicant	A corporation applying for the right to establish, operate and maintain a foreign-trade zone.
Appreciation	An increase in a currency value relative to another currency in a floating exchange rate system.
Arbitrage	The process of buying FOREIGN EXCHANGE, stocks, bonds and other commodities in one market and immediately selling them in another market at higher prices.
Arbitrage Pricing Theory (APT)	An asset pricing model that assumes a linear relation between required return and systematic risk as measured by one or more factors according to Rj = mj + b1jF1 + ... + bKjFK + ej.
Asia-Pacific Economic Cooperation (APEC)	APEC forum designed to promote economic growth, cooperation, and integration among member nations. The most prominent members are China, Japan, and Korea.
Asian Development Bank (ABD)	One of four major regional development banks currently operating in the global economy; it is headquartered in Manila, Philippines.
Asian Dollars	U.S. dollars deposited in Asia and the Pacific Basin.
Ask "offer" Rates	The rate at which a market maker is willing to sell the quoted asset.
Asset Allocation Policy	The target weights given to various asset classes in an investment portfolio.
Assets-in-Place	Those assets in which the firm has already invested. (Compare to growth options.)
Association of South East Asian Nations (ASEAN)	A loose or low economic and geopolitical affiliation that includes Singapore, Brunei, Malaysia, Thailand, the Philippines, Indonesia, and Vietnam. Future members are likely to include Myanmar (Burma), Laos, and Cambodia.
At-the-Money Option	An option with an exercise price that is equal to the current value of the underlying asset.
Attributive Basis	Method of accounting for merchandise where direct identification of the goods with the shipment as admitted to the zone has been lost.
Autarky	In models of international trade, a situation in which there is no cross-border trade.
Aval	A guarantee of the buyer's credit provided by the guarantor, unless the buyer is of unquestioned financial standing. The aval is an endorsement note as opposed to a guarantee agreement.
Avalisation	Payment undertaking given by a bank in respect of a bill of exchange drawn.
Average Accounting Return (AAR)	The average project earnings after taxes and depreciation divided by the average book value of the investment during its life.
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Glossary of Export Import Trade Terms Starting with - B
Words	Description
BTP	BTP means Biotechnology Park as notified by Director General of Foreign Trade on the recommendation of the Department of Biotechnology
Backward Innovation	Building a more basic version of an existing product for a lesser-developed market.
Balance Sheet	A statement showing a firm's accounting value on a particular date. It reflects the equation, Assets = Liabilities + Stockholders' equity.
Balance of Payments (BOP)	The BOP is the annual financial record of Foreign Payments and Foreign Receivables. Or the BOP is the International Money Fund's accounting system that tracks the flow of goods, services, and capital in and out of each country.
Balance of Trade (BOT)	The difference between a country's total imports and exports.
Bank for International Settlements (BIS)	An international organization which promotes international monetary and financial cooperation among nations.
Bank-based Corporate Governance System	A system of corporate governance in which the supervisory board is dominated by bankers and other corporate insiders.
Banker's Acceptance	A time draft drawn on and accepted by a commercial bank.
Banker's Draft	A payment instrument used to make international payments.
Bargain Purchase Option	A lease provision allowing the lessee, to purchase the equipment for a price predetermined at lease inception, which is substantially lower than the expected fair market value at the date the option can be exercised.
Barter	Trade in which goods or merchandise is exchanged directly for others import or export without use of money.
Basic IRR	Accept the project if IRR is greater than the discount rate; reject the project if IRR is less than the discount rate.
Basis	The simple difference between two nominal interest rates.
Basis Point	Equal to 1/100 of one percent.
Basis Risk	The risk of unexpected change in the relationship between futures and spot prices.
Basis Swap	A floating-for-floating interest rate swap that pairs two floating rate instruments at different maturities (such as six-month LIBOR versus thirty-day U.S. T-bills).
Bearer Bonds	Bonds that can be redeemed by the holder. The convention in most West European countries is to issue bonds in registered form.
Benchmarking	A systematic procedure of comparing a company's practices against the best practice and modifying actual knowledge to achieve superior performance.
Beneficiary	A party who receives a legal benefit Domestic or foreign Dealings.
Beta	A measure of an asset's sensitivity to changes in the market portfolio (in the CAPM) or to a factor (in the APT). The beta of an asset j is computed as bj = rj,k (sj/sk), where k represents a market factor (such as returns to the market portfolio in the C
Bid Rate	The rate at which a market maker is willing to buy the quoted asset.
Bid-offer Spread	The difference between the interest rate at which the bank borrows money and lends money.
Bill of Lading (B/L)	A document that establishes the terms and conditions of a contract between a shipper and a shipping company under which freight is to be moved between specified points for a specified charge. The B/L is Negotiable or Non-Negotiable forms.
Blank Endorsement	The method whereby a bill of lading is made into a freely negotiable document of title.
Blanket Bond	A bond that coves a group of people, articles or properties.
Blanket Contracts	A long-term contract in which the supplier promises to re-supply the buyers as needed at agreed-upon prices over the contracting time.
Blocked Funds	Cash flows generated by a foreign project that cannot be immediately repatriated to the parent firm because of capital flow restrictions imposed by the host government.
Bond Equivalent Yield	A bond quotation convention based on a 365-day year and semiannual coupons. (Contrast with effective annual yield.)
Bonded Warehouse	A warehouse authorized by CUSTOMS authorities for storage of goods on which payment of DUTIES is deferred until the goods are removed.
Booking	An arrangement with a steamship company for the acceptance and carriage of freight.
Break-Even Point Analysis	Analysis of the level of sales at which a project would make zero profit.
Britton Woods Agreement	An agreement made in 1944 year the end of World War II to promote exchange rate stability and facilitate the international flow of currencies. The world Bank and IMF(International Monetary funds ) come into the existence.
Britton Woods Conference	An international conference held in 1944 at Britton Woods, New Hampshire, and established the International Monetary Fund and the World Bank.
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Glossary of Export Import Trade Terms Starting with - C
Words	Description
"CFR"- Cost And Freight	In this term the exporter bears the cost of carriage or transport to the selected destination port, in this term the risk transferable to the buyers at the port of shipment. Seller: The chooses the carrier, concludes and bears the expenses by paying freight to the agreed port of destination, unloading not included. The loading of the duty-paid goods on the ship falls on him as well as the formalities of forwarding. On the other hand, the transfer of risks is the same one as in FOB. Buyer: The buyers supports all the risk of transport, when the goods are delivered aboard by ship at the loading port, buyer receives it from the carrier and takes delivery of the goods from nominated destination port.
"CIF"- Cost, Insurance And Freight	CIF- Cost, Insurance and Freight: Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation. This Term involves insurance with FOB price and ocean freight. The marine insurance is obtained by the exporter at his cost against the risk of loss or damage to the goods during the carriage. Seller: The CFR extends additional obligation to the seller for providing a maritime So insurance against the risk of loss or damage to the goods. The seller pays the insurance premium. Buyer: He supports the risk of transportation, when the goods have been delivered aboard the ship at the loading port. He takes delivery of the goods from the carrier to the appointed port or destination.
"CIP"- Carriage And Insurance Paid To	CIP- Carriage and Insurance Paid To: Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation. This term is similar to Carriage Paid To but the seller has to arrange and pay for the insurance against the risk or loss or damage of the goods during the shipment. Seller: The seller or buyer has to provide insurance and seller pays the freight and insurance premium. Buyer: The buyer or importer supports the risks of damages or loss, as goods are given to the first carrier. The buyer has to pay customs clearance and unloading charges.
"CPT"- Carriage Paid To	CPT- Carriage Paid To: Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation. This term uses land transport by rail, road and inland waterways. The seller and exporter are responsible for the carriage of goods to the nominated destination and have to pay freight up the first carrier. Seller: The seller or exporter controls the supply chain after paying customs clearance for export. Seller or Exporter select the carrier and pay the expenses up to the destination. Buyer: The risks of goods damages or loss are supported by the buyer as goods are given by the first carrier. The buyer or importer has to pay importation customs clearance and the unloading costs.
CAA	Clean Air Act (USA)
CHIPS (Clearing House Interbank Payments System)	Financial network through which banks in the United States conduct their financial transactions.
CITES	Convention on the International Trade in Endangered Species
CTD	WTO Committee on Trade and Development
Call Option	The right to buy the underlying currency at a specified price and on a specified date.
Capital (Financial) Structure	The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm.
Capital Account	A measure of change in cross-border ownership of long-term financial assets, including financial securities and real estate.
Capital Asset Pricing Model (CAPM)	An asset pricing model that relates the required return on an asset to its systematic risk.
Capital Budgeting	Planning and managing expenditures for long-lived assets.
Capital Formation	The process of increasing the amount of capital goods - also called capital stock - in a country.
Capital Gain	The positive change in the value of an asset, a negative capital gain is a capital loss.
Capital Market Line	The line between the risk-free asset and the market portfolio that represents the mean-variance efficient set of investment opportunities in the CAPM.
Capital Markets	Markets for financial assets and liabilities with maturity greater than one year, including long-term government and corporate bonds, preferred stock, and common stock.
Capital Rationing	The case where funds are limited to a fixed dollar amount and must be allocated among the competing projects.
Capital Structure	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, etc.
Capitalism	An economic system that is based on private ownership; economic development is proportionate to and dependent upon the accumulation and reinvestment of profits.
Carnet	A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.
Carrier	An individual or entity that transports persons or goods for compensation under the contract of carriage.
Cartel	An agreement among, or an organization of, suppliers of a product.
Cash Against Documents (CAD)	Payment for goods where a commission house or other intermediary transfers title documents to the buyer upon payment in cash.
Cash Cover	In a letter of credit transaction, money deposited by the applicant with the issuing bank.
Cash Flow	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.
Cash in Advance (CIA)	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.
Cash with Order (C.W.O.)	Payment for goods in which the buyer pays when ordering and in which the transaction is binding on both parties.
Centrally Planned Economy	An economy in which the government, rather than free-market activity, controls the allocation of resources.
Certificate of Acceptance	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.
Certificate of Analysis/certificate of Inspection	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.
Certificate of Inspection	A document certifying that merchandise was in good condition immediately prior to its shipment.
Certificate of Manufacture	A statement that is usually notarised in which the producer of goods certifies that the goods have been produced and are now available to the buyer.
Certificate of Origin	Documents that may be asked for by the authorities of the importing country, as evidence of the country of manufacture of the goods.
Certificate of Product Origin	A document required by certain foreign countries for tariff purpose, certifying the country of origin of specified goods.
Change in Net Working Capital	Difference between net working capital from one period to another.
Characteristic Line	The line relating the expected return on a security to different returns on the market.
Charter Party	Written contract between the owner of a vessel and a "chartered" who rents use of the vessel or a part of its freight space.
Civil Society Organizations (CSOs)	Non-governmental and non-profit groups that work to improve society and the human condition.
Clean Bill of Lading	A receipt for goods issued by a carrier that indicates that the goods were received in apparently good order and without damage.
Clean Collection	Collection in which only the financial document is sent through the banks.
Clean Draft	A draft to which no documents have been attached.
Clearance	The completion of customs entry requirements that results in the release of goods to the importer.
Clearing	The settlement of a transaction, often involving exchange of payments and/or documentation.
Closed-End Fund	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.
Codex	Codex Alimentarius Commission (a world food standards body)
Collection Order	In a collection, the document in which the seller instructs the banks as to how the collection is to be conducted.
Collection Papers	All documents submitted to a buyer for the purpose of receiving payment for a shipment.
Command Economy	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.
Commercial Attachment	The commerce expert on the diplomatic staff of his/her country's embassy or large consulate.
Commercial Document	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.
Commercial Invoice	An itemized list of goods shipped, usually among an exporter's COLLECTION PAPERS.
Commodity Price Risk	The risk of unexpected changes in a commodity price, such as the price of oil.
Commodity Swap	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.
Common Carrier	An individual, partnership, or corporation that transports persons or goods for compensation.
Comparative Advantage	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.
Compliant Documents	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.
Compound Interest	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.
Compound Value	Value of a sum after investing it over one or more periods. Also called future value.
Compounding	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.
Confirmation of Letter of Credit	A letter of credit, issued by a foreign bank, whose validity has been confirmed by a Nationalized Indian bank.
Confirming Bank	Bank that adds its payment undertaking to a letter of credit.
Consignee	Party to whom goods are to be delivered.
Consignment	Delivery of merchandise from an exporter (consignor) to an agent (consignee) under agreement that the agent sell the merchandise for the account of the exporter.
Consolidated Income	The sum of income across all of the multinational corporation's domestic and foreign subsidiaries.
Consolidation	A form of corporate reorganization in which two firms pool their assets and liabilities to form a new company.
Consular Invoice	A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment.
Consular Statement	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
Contingency Insurance	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.
Contingent Claim	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.
Continuous Compounding	Interest compounded continuously, every instant, rather than at fixed intervals.
Continuous Quotation System	A trading system in which buy and sell orders are matched with market makers as the orders arrive, ensuring liquidity in individual shares.
Contract Manufacturing	A firm allowing another firm to manufacture a pre-specified product.
Contribution Margin	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.
Controlled Foreign Corporation (CFC)	In the U.S. tax code, a foreign corporation owned more than 50 percent either in terms of market value or voting power.
Convertible Bonds	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 pre specified conversion price.
Convertible Currency	A currency that can be bought and sold for other currencies at will.
Convex Tax Schedule	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.
Corporate Culture	The set of values, beliefs, relationships between individuals and functions that guide the decisions of a company to achieve its objectives.
Corporate Governance	The way in which major stakeholders exert control over the modern corporation.
Corporate Social Responsibility	The responsibilities that corporations (including MNCs) have to workers and their families, to consumers, to investors, and to the natural environment.
Corporation	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.
Corporation (Private)	Any corporation which is organized for the purpose of establishing, operating and maintaining a foreign-trade zone and which is chartered under a special act of the State within which it is to operate such a zone.
Corporation (Public)	A State, political subdivision thereof, a municipality, a public agency of a State, political subdivision thereof, or municipality, or a corporate municipal instrumentality of one or more States.
Correlation	A measure of the co variability of two assets that is scaled for the standard deviations of the assets (rAB = sAB / sAsB such that -1 < rAB < +1).
Correspondent Bank	A bank that, in its own country, handles the business of a foreign bank.
Corruption Perceptions Index (CPI)	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.
Cost And Freight (C & F)	A pricing term indicating that the cost of the goods and freight charges are included in the quoted price.
Cost and Freight (C&F)	A pricing term that indicates that the cost of the goods and freight charges are included in the quoted price.
Cost and Insurance (C & I)	A pricing term indicating that the cost of the product and insurance are included in the quoted price.
Cost of Equity Capital	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.
Cost, Insurance, Freight	A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price.
Counter Credit	Another name for back-to-back letter of credit.
Counter Trade	The sale of goods or services that are paid in whole or in part by the transfer of goods or services from a foreign country.
Countervailing Duties	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".
Country Risk	The political and financial risks of conducting business in a particular foreign country.
Coupon	The stated interest on a debt instrument.
Coupon Swap	A fixed-for-floating interest rate swap.
Covariance	A measure of the co variability of two assets (sAB = sAsB rAB).
Cover Note	Insurance document evidencing that insurance cover for a consignment has been taken out, but not giving full details.
Credit Risk Insurance	Insurance designed to cover risks of nonpayment for delivered goods.
Cross-Hedge	A futures hedge using a currency that is different from, but closely related to, the currency of the underlying exposure.
Culture	Collective mental paradigms that a society imparts to individuals in the form of behavior patterns, shared values, norms and institutions.
Cumulative Translation Adjustment (CTA)	An equity account under FAS #52 that accumulates gains or losses caused by translation accounting adjustments.
Currency (Foreign Exchange) Risk	The risk of unexpected changes in foreign currency exchange rates.
Currency Coupon Swap	A fixed-for-floating rate no amortizing currency swap traded primarily through international commercial banks.
Currency Cross-Hedge	A hedge of currency risk using a currency that is correlated with the currency in which the underlying exposure is denominated.
Currency Option	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.
Currency Swap	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.
Currency of Reference	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.
Current Account	A measure of a country's international trade in goods and services.
Current Account Balance	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.
Custom House Agent (CHA)	An individual or firm licensed to enter and clear goods through Customs.
Custom Union	A form of regional economic integration group that eliminates tariffs among member nations and establishes common external tariffs.
Customhouse Broker	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.
Customs	The authorities designated to collect duties levied by a country on imports and exports.
Customs Territory	Territory of the India in which the general tariff laws of the India apply.
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Glossary of Export Import Trade Terms Starting with - D
Words	Description
"DAF"- Delivered At Frontier	DAF- Delivered At Frontier: Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation. This term is used when the goods are to be carried by rail or road. Seller: The seller is responsible to make the goods available to the buyer by the carrier till the customs border as defined in sales contract. Buyer: The buyer takes delivery of the goods at the contract agreed point border and he is responsible for bearing all customs formalities.
"DDP"- Delivered Duty Paid	DDP- Delivered Duty Paid: Title and risk pass to buyer when seller delivers goods to the named destination point cleared for import. Used for any mode of transportation. Seller: The seller is responsible to make the goods available to the buyer at his risk and cost as promised by the buyer. All the Taxes and duty on importation is promised by the buyer to the seller. Buyer: The buyer is responsible to take delivery at a nominated place and pays the expenses for unloading of goods.
"DDU"- Delivered Duty Unpaid	DDU- Delivered Duty Unpaid: Seller fulfills his obligation when goods have been made available at the named place in the country of importation. Seller: The seller is responsible for all transportation cost and accept the customs duty and taxes as per defined in customs procedures. Buyer: The buyer is responsible of the importation customs formalities.
DEPB	Refers to the Duty Entitlement Pass Book to neutralise the incidence of basic customs duty on the import content of export product. This is provided by way of grant of duty credit against the export product at specified rates. The DEPB Scheme
DEQ"- Delivered Ex-Quay	DEQ- Delivered Ex-Quay: Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation.
DES"- Delivered Ex-Ship	DES- Delivered Ex-Ship: Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation. Seller: The seller is responsible to make the goods available to the buyer up to the named quay or after crossing the customs border. Buyer: The buyer takes delivery of the goods from ship at destination port and pays the expenses of unloading.
DFID	Department for International Development (UK)
DFRC	Refers to the Duty Free Replenishment Certificate Scheme which was introduced from 1/4/2000 replacing. Transferable Advance Licensing Scheme. The scheme is available to merchant exporters as well as to manufacturer exporters.
DGFT	Directorate General of Foreign Trade, which is headed by the Director General of Foreign Trade. The office of the DGFT is responsible for formulating and execution of Foreign Trade Policy, including licensing. Formerly (till 1991), was known as the Chief
DSB	Dispute Settlement Body
DSP	Dispute Settlement Panel
DSU	Dispute Settlement Understanding
Date Draft	A draft that matures in a specified number of days after the date it is issued, without regard to the date of "ACCEPTANCE".
Deactivisation	Voluntary discontinuation of the activation of an entire zone or subzone by the grantee or operator.
Dealing Desk or Trading Desk	The desk at an international bank that trades spot and forward foreign exchange.
Debt Capacity	The amount of debt that a firm chooses to borrow to support a project.
Debt-for-Equity Swap	A swap agreement to exchange equity (debt) returns for debt (equity) returns over a prearranged length of time.
Decision Trees	A graphical analysis of sequential decisions and the likely outcomes of those decisions.
Deemed Exports	Refers to those transactions in which the goods supplied do not leave the country and the payment for the goods is received by the supplier in India.
Deferred Payment Credit	A type of letter of credit which provides for payment some time after presentation of the shipping documents by the exporter.
Deferred Payments Credit	Type of "LETTER OF CREDIT" providing for payment some time after presentation of shipping documents by exporter.
Deliverable Instrument	The asset underlying a derivative security. For a currency option, the deliverable instrument is determined by the options exchange and is either spot currency or an equivalent value in futures contracts.
Delta-Cross-Hedge	A futures hedge that has both currency and maturity mismatches with the underlying exposure.
Delta-Hedge	A futures hedge using a currency that matches the underlying exposure and a maturity date that is different from, but preferably close to, the maturity of the underlying exposure.
Demand Management	A business process with the intention to coordinate and influence all sources of demand for a firm's products.
Depository Receipt	A derivative security issued by a foreign borrower through a domestic trustee representing ownership in the deposit of foreign shares held by the trustee.
Depreciation	A decrease in a currency value relative to another currency in a floating exchange rate system.
Derivative Security	A financial security whose price is derived from the price of another asset.
Destination Control Statement	Any of various statements that the U.S. Government requires to be displayed on export shipments and that specify the destinations for which export of the shipment has been authorized.
Devaluation	The official lowering of the value of one country's currency in terms of one or more foreign currencies.
Developed Countries	The richer, more industrialized countries in the world.
Developing Country (DCs)	A country that is in the process of becoming industrialized; the poorer nations of the world.
Difference Check	The difference in interest payments that is exchanged between two swap counter parties.
Digital Divide	The digital divide refers to the widening technological gap between the richer and the poorer countries of the world.
Direct Costs of Financial Distress	Costs of financial distress that are directly incurred during bankruptcy or liquidation proceedings.
Direct Exporting	Marketer takes direct responsibility for its products abroad by selling them directly to foreign customers or through local representatives in foreign markets.
Direct Financing Lease	A non-leveraged lease by a lesser in which the lease meets any of the definitional criteria of a capital lease, plus certain additional criteria.
Direct Product Profitability	Measuring the direct costs associated with handling a product from the warehouse until a customer buys from the retail store.
Direct Terms	The price of a unit of foreign currency in domestic currency terms, such as INR 45.70/USD for a India resident. (Contrast with indirect quote.)
Discount	If a bond is selling below its face value, it is said to sell at a discount.
Discounted Cash Flow	A valuation methodology that discounts expected future cash flows at a discount rate appropriate for the risk, currency, and maturity of the cash flows.
Discounted Payback	The length of time needed to recoup the present value of an investment; sometimes used when investing in locations with high country risk.
Discounted Payback Period Rule	An investment decision rule in which the cash flows are discounted at an interest rate and the payback rule is applied on these discounted cash flows.
Discounting	Calculating the present value of a future amount. The process is the opposite of compounding.
Discrepancy - Letter of Credit	When documents presented do not conform to the letter of credit.
Discretionary Reserves	Balance sheet accounts that are used in some countries to temporarily store earnings from the current year or the recent past.
Discriminatory Pricing	The practice that selling a product or service at different prices that do not reflect a proportional difference in costs.
Dispatch	An amount paid by a vessel's operator to a charter if loading or unloading is completed in less time than stipulated in the charter party.
Distributor	A Foreign agent who sells for a supplier directly and maintains an inventory of the supplier's product.
Diversifiable (unique) (unsystematic) risk	A risk that specifically affects a single asset or a small group of assets. Also called unique or unsystematic risk.
DoC	Department of Commerce (USA)
Dock Receipt	A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse.
Dock Statement	A receipt issued by an ocean carrier to acknowledge the receipt of a shipment at the carrier's dock or warehouse facilities.
Documentary Against Acceptance (D/A)	Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the attached draft.
Domestic Bonds	Bonds issued and traded within the internal market of a single country and denominated in the currency of that country.
Domestic Liquidity	The aggregate of money supply, quasi-money or savings and time deposits, and deposit substitutes.
Draft	An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or determinable future date.
Draft (trade bill, bill of exchange)	A means of payment whereby a drawer (the importer) instructs a drawee (either the importer or its commercial bank) to pay the payee (the exporter).
Drawback	Articles manufactured or produced in the India with the use of imported components or raw materials and later exported are entitled to a refund of the duty charged on the imported products or components.
Drawee	The individual or firm on whom a draft is drawn and who owes the stated amount.
Drawer	The individual or firm that issues or signs a draft and thus stands to receive payment of the stated amount from the drawee.
Dual Pricing	The practice of selling identical products in different markets for different prices.
Dumping	Exporting/Importing merchandise into a country below the costs incurred in production and shipment.
Duty	A tax imposed on imports by the customs authority of a country.
Duty Exemption/scheme Duty Free Import of Inputs	Allows duty-free import of inputs for exports under Advance Licence, Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment Certificate (DFRC) Scheme.
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Glossary of Export Import Trade Terms Starting with - E
Words	Description
Economic Freedom	Economic freedom occurs when individuals and businesses make most of the economic decisions in an economy.
"EXW"- Ex Works	Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation. Seller : In EXW shipment terms the Seller (Exporter) provides the goods for collection by the Buyer (Importer) on the seller or exporter's promise. Responsibility for the seller is to put the goods, in a good package which is adaptable and disposable by the transport. Buyer : The buyer or Importer arranges insurance for damage transit goods. The Buyer or importer has to bear all costs and risks involved in shipment transactions. (However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale.)
E-Commerce	Refers to electronic commerce. In the context of Foreign Trade Policy, e-commerce relates to electronic filing and processing of applications etc.
EPCG	EPCG refers to the Export Promotion Capital Goods (EPCG) Scheme, which gives the manufacturer facility for import of capital goods for export production at concessional rate of duty (5 per cent) against certain level of export.
EPZs/EOUs	EPZs means Export Processing Zones which are special enclaves, separated from the Domestic Tariff Area (DTA), to provide an internationally competitive duty-free environment for export production. EOU means Export Oriented Units.
Earnings Response Coefficient	The relation of stock returns to earnings surprises around the time of corporate earnings announcements.
Eclectic Paradigm	A theory of the multinational firm that posits three types of advantage benefiting the multinational corporation: ownership-specific, location-specific, and market internalisation advantages.
Economic Exposure	Change in the value of a corporation's assets or liabilities as a result of changes in currency values.
Economic Integration	The integration of commercial and financial activities among countries through the abolishment of economic discrimination.
Economic Union	A group that combines the economic characteristics of a common market with some degree of harmonization of monetary and fiscal policies.
Economic Value Added	A method of performance evaluation that adjusts accounting performance with a charge reflecting investors' required return on investment.
Economies of Scale	Achieving lower average cost per unit through a larger scale of production.
Economies of Vertical Integration	Achieving lower operating costs by bringing the entire production chain within the firm rather than contracting through the marketplace.
Effective Annual Interest Rate	the interest rate as if it were compounded once per time period rather than several times per period.
Effective Annual Yield	Calculated as (1+i/n)n, where i is the stated annual interest rate and n is the number of compounding periods per year. (Contrast with bond equivalent yield and money market yield.)
Efficient Frontier	The mean-variance efficient portion of the investment opportunity set.
Efficient Market	A market in which prices reflect all relevant information.
Embargo	A type of economic sanction that totally disallows the imports of a specific product or all products from a specific country.
Emerging Market	An emerging market has a very high growth rate, which yields enormous market potential. It is distinguished by the recent progress it has made in economic liberalization.
Emerging Stock Markets	The stock markets of emerging economies. These markets typically have higher expected returns than established markets but also higher risk.
Employment Rate	The ratio, in percent, of the number of employed persons to total labor force.
Endogenous Uncertainty	Price or input cost uncertainty that is within the control of the firm, such as when the act of investing reveals information about price or input cost.
Engagement	The assumption of payment responsibility in respect of a letter of credit
Equity-Linked Eurobonds	A Eurobond with a convertibility option or warrant attached. Eurobonds: Fixed rate Eurocurrency deposits and loans and Eurocurrencies with longer maturities than five years.
Erosion	Cash-flow amount transferred to a new project from customers and sales of other products of the firm.
Euro	The single currency of the European Economic and Monetary Union (EMU) introduced in January 1999. EMU members are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain.
Eurobond	A bond that is denominated in a currency other than that of the country of issue.
Eurocurrencies	Deposits and loans denominated in one currency and traded in a market outside the borders of the country issuing that currency (like : Eurodollars).
Eurocurrency Market	A money market for currencies held in the form of deposits in countries other than that where the currency is issued.
Eurodollars	Dollar-denominated deposits held in a country other than the United States.
European Bank for Reconstruction and Development (EBRD)	One of four major regional development banks currently operating in the global economy.
European Currency Unit (ECU)	A trade-weighted basket of currencies in the European Exchange Rate Mechanism (ERM) of the European Union.
European Exchange ate Mechanism (ERM)	The exchange rate system used by countries in the European Union in which exchange rates are pegged within bands around an ERM central value.
European Monetary System (EMS)	An exchange rate system based on cooperation between European Union central banks.
European Option	An option that can be exercised only at expiration. (Contrast with American option.)
European Terms	A foreign exchange quotation that states the foreign currency price of one U.S. dollar. (Contrast with American terms.)
European Union (EU)	An intergovernmental organization which coordinates foreign, economic, and judicial policy among its 25 member nations.
Exchange Permit	A government permit sometimes required by the importer's government to enable the importer to convert his or her own country's currency into foreign currency with which to pay a seller in another country.
Exchange Rate	The price of one currency in terms of another, i.e., the number of units of one currency that may be exchanged for one unit of another currency.
Exchange Risk	The risk that losses may result from the changes in the relative values of different currencies.
Exercise Price	The price at which an option can be exercised (also called the striking price).
Exhibition	The showing of merchandise within a zone, usually to prospective buyers.
Exim Bank	Export-Import Bank of the India. Provides guarantees of working capital loans for Indian exporters, guarantees the repayment of loans or makes loans to foreign purchasers of Indian goods and services.
Exim Policy	Refers to Export and Import (Exim) Policy. Exim Policy has got incorporated into the comprehensive Foreign Trade Policy, which was announced by the Commerce & Industry Minister on 31st August, 2004.
Exogenous Uncertainty	Price or input cost uncertainty that is outside the control of the firm.
Expiry Date	The date when a letter of credit is no longer valid - i.e. the date beyond which it cannot be used.
Explicit Tax	A tax that is explicitly collected by a government; includes income, withholding, property, sales, and value-added taxes and tariffs.
Export	Any resource, intermediate good, or final good or service that producers in one country sell to buyers in another country.
Export Broker	An individual or firm that helps to locate and introduce buyers and seller in international business for a commission but does not take part in actual sales transaction.
Export Commission House	An organization which, for a commission, acts as a purchasing agent for a foreign buyer.
Export License	A general export license covers the exportation of goods not restricted under the terms of a validated export license. No formal application or written authorization is needed to ship exports under a general export license.
Export Management Company	A private firm that transacts export business on behalf of its client companies in return for a commission, salary, or retainer.
Export Restraints	Quantitative restrictions imposed by exporting countries to limit exports to specified foreign markets, usually as a follow-up to formal or informal agreements reached with importing countries.
Export Subsidies	Any form of government payment that helps an exporter or manufacturing concern to lower its export costs.
Export Trading Company (ETC)	A company that facilitates the export of goods and services. An ETC can either act as the export department for producers or take title to the product and export for its own account.
Expropriation	A specific type of political risk in which a government seizes foreign assets.
External Market	A market for financial securities that are placed outside the borders of the country issuing that currency.
Extraterritoriality	A government practice which applies its laws outside its territorial boundaries.
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Glossary of Export Import Trade Terms Starting with - F
Words	Description
"FAS"- Free Alongside Ship	FAS- Free Alongside ship: Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller. In FAS has price includes all the costs incurred in delivering the goods alongside the vessel at the port or nominated place of the buyer but there is not applicable charges to the seller for loading the goods on board of vessel and no ocean freight charges and marine insurance. Seller: The responsibility of the seller are fulfilled when the goods are placed cleared along the ship. Buyer: Buyer or Importer bear all the expenses and risks of loss or damage of transit goods which are delivered along the ship.
"FCA"- Free Carrier named point	"FCA"- Free Carrier named point: Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier. Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to receive the Seller's arriving vehicle unloaded. Seller : The Seller's responsibility is to deliver the goods into the custody of the transporters at defined points. It is important for the chosen place of delivery to have an impact on the obligations of loading and unloading the goods. Buyer : The Buyer nominates the means of transport or shipping mode and pays the shipment charges. The seller and the buyer agree upon the place for delivery of goods. If the buyer nominates a person other than a carrier or transporter to receive the goods, the seller is deemed to fulfill his obligation to deliver the goods when they are delivered to that person.
"FOB" - Free On Board	The FOB (Free on Board) price is inclusive of Ex-Works price, packing charges, transportation charges upto the place of shipment., Seller also responsible for o clear customs dues, quality inspection charges, weight measurement charges and other export related dues. It is important that the shipment term in the Bill of Lading must carry the wording "Shipped on Board' it must bear with signature of transporter or carrier or his authorized representative with the date on which goods were "Boarded". Seller: Seller responsible for clear customs dues, quality inspection charges, weight measurement charges and other export related dues. It is important that the shipment term in the Bill of Lading must carry the wording "Shipped on Board' it must bear with signature of transporter or carrier or his authorized representative with the date on which goods were "Boarded". Buyer: The buyer indicates the ship and pays freight, transfer expenses and risks is done when the goods passes or forwarding to the buyers warehouse by rail or ship.
FOB Endorsement	Used with FOB, FAS, C&F, or CFR (but not CIF) quotations, FOB sales endorsement to an open marine policy can cover transit risk from the point of origin until title transfers. In these instances, the exporter relies on the importer to insure.
FTP	Refers to Foreign Trade Policy, announced by the Commerce & Industry Minister on 31st August, 2004. It is a 5-year Policy (September 2004 -- March 2009), which takes effect from September 1, 2004.
FTWZ	Free Trade and Warehousing Zone, a new scheme announced in the Foreign Trade Policy 2004-2009.
Face Value	The value of a bond that appears on its face. Also referred to as par value or principal.
Factor Model	A model that assumes a linear relation between an asset's expected return and one or more systematic risk factors.
Factoring	Sale of an accounts receivable balance to buyers (factors) that are willing and able to bear the costs and risks of credit and collections.
Financial (Capital) Structure	The proportion of debt and equity and the particular forms of debt and equity chosen to finance the assets of the firm.
Financial Contagion	The spread of a financial crisis from one country or region to other countries or regions.
Financial Engineering	The process of innovation by which new financial products are created.
Financial Innovation	The process of designing new financial products, such as exotic currency options and swaps.
Financial Markets	Markets for financial assets and liabilities.
Financial Policy	The corporation's choices regarding the debt-equity mix, currencies of denomination, maturity structure, method of financing investment projects, and hedging decisions with a goal of maximizing the value of the firm to some set of stakeholders.
Financial Price Risk	The risk of unexpected changes in a financial price, including currency (foreign exchange) risk, interest rate risk, and commodity price risk.
Financial Risk	Financial risk refers to unexpected events in a country's financial, economic, or business life.
Financial Strategy	The way in which the firm pursues its financial objectives.
First in-First Out (FIFO)	An accounting method based on an assumption regarding the flow of goods that older stock is disposed of first, in accordance with good merchandising policy.
First-to-Market Advantage	Also know as "first-mover advantage." The idea of first-mover advantage is that the initial occupant of a strategic position or niche (market segment) gains access to resources and capabilities that a follower cannot match.
Fixed Cost	A cost that is fixed in total for a given period of time and for given volume levels. It is not dependent on the amount of goods or services produced during the period.
Fixed Exchange Rate System	An exchange rate system in which governments stand ready to buy and sell currency at official exchange rates.
Fixed Forward Contract	Currency is bought or sold at a given future date.
Floating Currency System	An exchange rate system under which a government is not obligated to declare that its currency is convertible into a fixed amount of another currency.
Floating Exchange Rate	An exchange rate system in which currency values are allowed to fluctuate according to supply and demand forces in the market without direct interference by government authorities.
Fob	Fob means Free on Board - i.e., when an exporter delivers goods "free on board", he pays all charges involved in getting them actually onto the ship.
Force Majeure	The title of a standard clause in marine contracts exempting the parties for no fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war.
Foreign -Trade Zones Act	The Foreign-Trade Zones Act of June 18, 1934, (48 Stat. 998-1003; 19 U.S.C. 81a-81u) as amended.
Foreign Aid	A grant of money, technical assistance, capital equipment, or other assistance typically extended by richer nations to poorer nations.
Foreign Bonds	Bonds that are issued in a domestic market by a foreign borrower, denominated in domestic currency, marketed to domestic residents, and regulated by the domestic authorities.
Foreign Branch	A foreign affiliate that is legally a part of the parent firm. In the U.S. tax code, foreign branch income is taxed as it is earned in the foreign country.
Foreign Debt	Money owed by a nation to foreign investors, banks, or governments.
Foreign Direct investment (FDI)	The act of building productive capacity directly in a foreign country.
Foreign Equity Requirements	Investment rules that limit foreign ownership to a minority holding is a company.
Foreign Exchange	The currency or credit instruments of a foreign country.
Foreign Exchange (Currency) Risk	he risk of unexpected changes in foreign currency exchange rates.
Foreign Exchange Broker	Brokers serving as matchmakers in the foreign exchange market that do not put their own money at risk.
Foreign Exchange Dealer	A financial institution making a market in foreign exchange.
Foreign Exchange Markets	Networks of commercial banks, investment banks, and other financial institutions that convert, buy, and sell currencies in the global economy.
Foreign First (FOFI)	An accounting method based on an assumption regarding the flow of goods that foreign status merchandise is disposed of first.
Foreign Sales Agent	An individual or firm that serves as the foreign representative of a domestic supplier and seeks sales abroad for the supplier.
Foreign Trade Zone	A physical area in which the government allows firms to delay or avoid paying tariffs on imports.
Foreign-Source Income	Income earned from foreign operations.
Foreign-Trade Zone/Free Trade Zone	A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, or used for manufacturing, etc., within the zone and re-exported without duties being paid.
Forfaiting	A form of factoring in which large, medium- to long-term receivables are sold to buyers (forfaiters) that are willing and able to bear the costs and risks of credit and collections.
Forward Contract	A commitment to exchange a specified amount of one currency for a specified amount of another currency on a specified future date.
Forward Discount	A currency whose nominal value in the forward market is lower than in the spot market. (Contrast with forward premium.)
Forward Market	A market for forward contracts in which trades are made for future delivery according to an agreed-upon delivery date, exchange rate, and amount.
Forward Parity	When the forward rate is an unbiased predictor of future spot exchange rates.
Forward Premium	A currency whose nominal value in the forward market is higher than in the spot market. (Contrast with forward discount.)
Foul Bill of Lading	A receipt of goods issued by a carrier with an indication that the goods were damaged when received.
Franchise Agreement	An agreement in which a domestic company (the franchiser) licenses its trade name and or business system to an independent company (the franchisee) in a foreign market.
Franchising	A parent company grants another independent entity the privilege to do business in a pre-specified manner, including manufacturing, selling products, marketing technology and other business approach.
Free Alongside(F.A.S.)	A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.
Free Cash Flow	Cash flow after all positive-NPV projects have been exhausted in the firm's main line of business.
Free Port	An area such as a port city into which merchandise may legally be moved without payment of duties.
Free Trade Area of the Americas (FTAA)	A proposed hemispheric trade zone that would cover all of the countries in North, South, and Latin America. The FTAA is highly controversial.
Free Trade Zone	An area designated by the government to which goods may be imported for processing and subsequent export on duty-free basis. Merchandise may be stored, used or manufactured in the zone and re-exported without duties being paid.
Freely Floating Exchange Rate System	An exchange rate system in which currency values are allowed to fluctuate according to supply and demand forces in the market without direct interference by government authorities.
Freight Forwarder	An independent business that handles export shipment on behalf of the shipper without vested interest in the products. A freight forwarder is a good source of information and assistance on export regulations and documentation.
Freight Shippers (Freight Forwarders)	Agents used to coordinate the logistics of transportation.
Frequency Distribution	The organization of data to show how often certain values or ranges of values occur.
Full Payout Lease	A lease in which the lesser recovers, through the lease payments, all costs incurred in the lease plus an acceptable rate of return, without any reliance upon the leased equipment's future residual value.
Fundamental Analysis	A method of predicting exchange rates using the relationships of exchange rates to fundamental economic variables such as GNP growth, money supply, and trade balances.
Future Value	Value of a sum after investing it over one or more periods. Also called compound value.
Futures Commission Merchant	A brokerage house that is authorized by a futures exchange to trade with retail clients.
Futures Contract	A commitment to exchange a specified amount of one currency for a specified amount of another currency at a specified time in the future. Futures contracts are periodically marked-to-market.
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Glossary of Export Import Trade Terms Starting with - G
Words	Description
G-7	A formal organization of seven highly industrialized democracies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
G-8	The G-7 countries plus Russia.
General Agreement on Tariffs and Trade (GATT)	A post-World War II agreement designed to promote freer international trade among the nations of the world. The GATT was replaced by the World Trade Organization (WTO) in 1994.
Generally Accepted Accounting Principles (GAAP)	A common set of accounting concepts, standards, and procedures by which financial statements are prepared.
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Glossary of Export Import Trade Terms Starting with - L
Words	Description
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.
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