International business : refer to transaction between parties from different countriesV isible trade : ex porting 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 anotherFDI( 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 iscalled a customs unionTrade terms are terms used ininternational trade to describe thegeneral information about thetrade , such as the unit priceport of shipment , port ofdestination and the kind ofcurrency .Protectionism is a trade barrier tointernational trade for thepurpose of protecting a nation’sown domestic market andindustries. It includes tariffbarriers and non-tariff barriers .A multinational enterprise is abusiness organization whichowns ,controls and managesassets , in more than one country ,through its member companiesincorporated .Per capita GNP refers to the totalvalue of the goods and servicesper man provided by all kinds ofsectors during a certain period ( ayear , a quarter , etc )Force majeure is a default of thecontract which is given rise tonot because of the contractingparties’default , but of theuncontrollable causes . One typeof the cause is the natural forceand the other is social cause .Drawer : The person who drawsthe bill of exchange is called thedrawer .Proximate cause of loss : Whenan insurance policy is made outto cover a certain risk , a claimbecomes payable only if the riskoccurred as the prox imate causeof the loss suffered . Theprox imate cause is the directcause of the loss .Shortfall means the shortage ofamount or values of certaingoods .T ariff concession list : It refers tothe list of commodities on whichthe deduced tariff rate isstipulatedCompound duty : a type of tarifflevied according both theamounts and the prices of thecommodities .Customs cleance: as to customsclearance , for ordinary importedgoods , the customs will sign onthe shipping documents torelease the goods . But for someparticular duty –free goods orbonded goods , the customs stillhave control over it after theconsignee acknowledged thereceipt of shipmentInsurance is a social device inwhich a group of individualstransfer risk and provide apayment of losses from fundscontributed by all members whotransferred risk . Insurance is arisk transfer mechanism. Thosewho transfer risk are calledinsured . T hose who assume riskare called insurers.Standby arrangements T hat’sthe standby credit arrangementgiven by IMF to its membercountries .Escape clause It’s a clause ofcontemporary canceling of thepreferential tariff when somedomestic industries are damagedbecause in bilateral andmultilateral negotiations andagreements there are excessiveimporting commodities thatenjoy the deduction of tariff andother trade allowance for thecontracting parties .Non-trade settlement mainlymeans the settlement whichoccurs not because of tradebetween the trading parties , butof the other reasons such as thegovernment agreement .Intermediate products areproducts which are not the sameas the raw materials or as thefinished goods . They can calledsemi-finished products .Counter trade is the generic termsto describe a set of cross bordercontracts which link a seller’sexports to imports from thebuyer .Intra-MNE transfer refers to thetransfer among the different unitswithin the range and under thecontrol of MNCFair trade refers to the tradeconducted by two parties on theequal treatment.Beneficiary : The exporter inwhose favour the credit is openedConsular visa is a visa signed byone country’s consul in anothercountry when the visaed subjectis about to go through thecustoms between these twocountries .Incoterms are short for theinternational rules forinterpretation of trade terms , thepurpose of it is to provide a set ofinternational rules for theinterpretation of the mostcommonly used trade terms inforeign trade . Thus , theuncertainties of differentinterpretation of such terms indifferent countries can beavoided 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 preservationroup of 77 : 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 hasexpanded to include more than100 countries and regionsIDA refers to the internationalDevelopment associationestablished in 1960 to providefinancial assistance primarily inthe poorer developing countriesand on terms that would bear lessheavily on their balance ofpayments.Documents against payment atsight require s immediatepayment by the importer to gethold of the documentsTransportation deregulation hasremoved the shackles of control ,both shippers and carriers arefree to negotiate the best rate andservice packages to meet theneeds of both parties .Clearing system is a governmentagreement where the tradebalance is finalized byaccounting and offsetting thedebts and credits between twocountriesComparative advantage: Even ifa country is less efficient thananother in the production of bothcommodities, there is still a basisfor mutually beneficial trade.Clean credit , credits that onlyrequire clean draft , i.e. draft notaccompanied with shippingdocuments for payment are cleancredit .Known premium is the cost theinsured should have to pay theinsurance company for theinsured goods .Hyperinflation is a kind ofinflation in which the marketprices are soaring quickly. T hedevaluation rate of the currencyis astronomical. The normaleconomic activities are out of theorder, and finally lead to thecollapse of the whole monetarysystem .Parent MNC is the originalinvesting multinationalcorporation . It is also theinternational headquarters of theMNE .Letter of credit is a letter issuedby a bank at the request of theimporter in which the bankpromises to pay uponpresentation of the relevantdocuments .Legal holder is an owner of aproperty who is entitled to it bylawTrading practices arewidely-acknowledged customarydeeds ex perienced from actualtrade .Secondary capital market is themarket where the issued securitesare traded , it includes the stockexchange and the over-the–counter market .World Bank group, it is acomplex institutions composedof IBRD, IDA, IFC and MIGA,with the main purpose of helpingraise standards of living indeveloping countries bychanneling financial resources tothem from developed countries.Opening bank : the bank thatissues the letter of credit is calledthe opening bank .Freight transportation is definedas the economic movement ofcommodities and products andthe effect of such movement asthe development andadvancement of businessClaims are activities for theinsured to get compensation fromthe insurer according to theinsurance policy for the insured ,also damaged subject .Balance of payments : it is astatement of the total paymentsto the total receipts from foreitncountriesTransfer technology : it meansthe activity that technologysuppliers transfer thetechnologies of production,management and marketing tothe receivers in any proper way .The pure export of goods is notwithin this range .。