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Business Reading Room
Glossary and Acronyms - An to B
A An
B C Con D E F G H I J
K L M N O P Q R S Sp T U VWXYZ
Andean Development Corporation.
See Andean Group.
Andean Group.
The Andean Group (Spanish: Grupo Andino; sometimes referred to as
Pacto Andino or C¢rporation Adino de Fomento; formal reference is Acuerdo de Cartegana in
recognition of the Group's establishment in Cartegena in October 1969) is an association
of Latin American countries which promotes regional economic integration and political
cooperation among themselves. Members include Bolivia, Colombia, Ecuador, Peru, and
Venezuela; Chile withdrew in January 1976. Headquarters are in Lima, Peru.
The Corporaci¢n Andina de Foment¢, CAF (English: Andean
Development Corporation) supports economic integration among members of the Andean Group
by encouraging specialization, distribution of investments and by providing financial and
technical help. The CAF was founded in 1968, began operations in 1970; headquarters are in
Caracas, Venezuela.
Andean Pact
The Andean Pact was established in 1969 when Bolivia, Colombia,
Ecuador and Peru signed the Cartagena Agreement. Chile was an original member but exited
in 1976 to pursue an independent economic program. Venezuela joined in 1973. The original
goal of the Cartagena Agreement was to promote economic self-sufficiency within the
region. Members were never able to fully implement the Cartagena Agreement and viutually
abandoned multilateral discussions as Latin America's economic conditions worsened
during the 1980s.
Broadly, the Andean Pact of the 1990s is to encourage the growth of
international competitive industries and to promote increased integration of the
Andean region with the global economy.
Andean Reserve Fund.
The Andean Reserve Fund (Spanish: Fondo Andina de Reservas),
associated with the Andean Group, was established to strengthen the balance of payments
positions of member countries by offering credit, guarantee loans, and promoting
compatibility among members' monetary policies. Headquarters are in Bogota, Colombia.
Andean Trade Initiative.
The ATI is the trade element in U.S. drug policy.
See Andean Trade Preference Act.
Andean Trade Preference Act (ATPA)
Andean Trade Preference Act
The ATPA is a unilateral trade benefit program designed to promote
economic development through private sector initiative in the four Andean countries of
Bolivia, Colombia, Ecuador, and Peru. The ATPA encourages alternatives to coca cultivation
and production by offering broader access to the U.S. market. The Act also seeks to
stimulate investment in nontraditional sectors and to diversify the Andean countries'
export base. The primary provision of the program is expanded duty-free entry into the
United States. The Administration must determine each country's eligibility based on
criteria set forth in the Act. Bolivia, Colombia, Ecuador, and Peru have been designated
as beneficiaries. The ATPA became effective in December 1991 and is due to expire in
December 2001. The Act requires periodic assessments of the impact of the trade
preferences by the U.S. International Trade Commission and the U.S. Department of Labor.
Annex.
See International Agreements.
Annual Return.
This is a document, required by the government of many countries,
providing certain details about the company. It often includes details of members,
directors, the address of the company and sometimes some financial information.
Anticipatory Countertrade.
Advance purchases of goods and services from a customer's country
that a supplier undertakes, or causes, in expectation of a future sale linked to
countertrade requirements. Such proactive purchases may not receive countertrade credit at
the time of the export sale unless prior approval by the host country authorities is
secured, tying the two import/export transactions.
Antidumping.
Antidumping, as a reference to the system of laws to remedy
dumping, is defined as a converse of dumping.
See Dumping.
Antidumping/Countervailing Duty System.
The Antidumping/Countervailing Duty System, a part of Customs'
Automated Commercial System, contains a case reference database and a statistical
reporting system to capture data for International Trade Commission reports on antidumping
and countervailing duties assessed and paid.
Antidumping Duty.
A duty assessed on imported merchandise which is subject to an
antidumping duty order. The antidumping duty is assessed on an entry-by-entry basis in an
amount equal to the difference between the United States price of that entry and the
foreign market value of such or similar merchandise at the time the merchandise was sold
to the United States.
See: Tariff act of 1930.
Antidumping Investigation Notice.
The notice published in the Federal Register announcing the
initiation of an antidumping investigation. An investigation must be initiated within 20
days of the filing of a valid petition.
See Tariff Act of 1930.
Antidumping Duty Order.
A notice issued following final determination of sales at less than
fair value and material injury, or threat of material injury, providing for the imposition
of antidumping duties.
See Tariff Act of 1930.
Antidumping Duty
A charge levied on imported goods sold on the U.S. market to offset
the difference between the sale price on the U.S. market and the exporter's home market or
between the U.S. sale price and the cost of producing the goods. (See Dumping.)
Antidumping Petition.
A petition filed on behalf of an affected United States industry,
alleging that foreign merchandise is being sold in the United States at "less than
fair value" and that such sales are causing or threatening material injury to, or
materially retarding the establishment of a United States industry. Commerce regulations
(19 CFR 353) and International Trade Commission regulations (19CFR 207) specify the
information a petition should contain.
See: Tariff Act of 1930.
Antitrust law.
Any law that encourages competition by limiting unfair business
practices and curbing monopolies' power.
Apparent Consumption
An estimate of domestic consumption calculated as product shipments
plus imports minus exports.
Arab-African International Bank.
The AAIB is a pan-Arab consortium incorporated in 1964 as a
self-governing autonomous entity between the Ministry of Finance of Kuwait and the Central
Bank of Egypt; each of which as co-founders hold 49.37% of the Bank's shares. A New York
branch of the AAIB was established in 1981 to facilitate the financing of trade between
North America and the Middle East. AAIB headquarters are in Cairo.
Arab Bank for Economic Development in Africa.
The ABEDA (French: Banque Arabe pour le Développement Economique
en Afrique -- BADEA) was created by the League of Arab States in November 1973 (began
operations in March 1975) to promote economic and technical cooperation between Arab and
African states. Members include: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon,
Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Sudan, Syria, Tunesia, the United
Arab Emirates, and the Palestine Liberation Organization. Bank headquarters are in
Khartoum, Sudan.
Arab Cooperation Council.
The ACC was created in 1989 to promote economic cooperation and
integration. Members include Egypt, Iraq, Jordan, and North Yemen. The ACC, partly
intended as a counterpart to Gulf Cooperation Council, was created one day subsequent to
the establishment of the Arab Maghreb Union.
Arab Fund for Economic and Social Development.
AFESD promotes regional economic integration and social development
in Arab states. Members include: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait,
Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Somalia, Sudan, Syria,
Tunisia, the United Arab Emirates, Yemen, and the Palestine Liberation Organization. The
Fund, associated with the League of Arab States, started operations in February 1972;
headquarters are in Safat, Kuwait.
Arab International Bank.
The AIB provides financing to support development of foreign trade
among member nations and other Arab states. The Bank was established in October 1971;
headquarters are in Cairo, Egypt. Member include: the governments of Oman, Qatar, and
United Arab Emirates, as well as the Central Bank of Egypt, and the Libyan Arab Foreign
Bank.
Arab League.
See League of Arab States.
Arab Maghreb Union.
The AMU (French: Union du Maghreb Arabe, UMA) encompasses Algeria,
Libya, Mauritania, Morocco, and Tunisia. The Union was established in February 1989 to
foster integration of the Maghreb economy. The Union also seeks to join the AMU and the
Gulf Cooperation Council states in a common market.
Arab Monetary Fund.
The AMF, originally aimed at correcting chronic deficits in the
balance of payments in most member states, promotes Arab integration in monetary and
economic affairs. The Fund's priorities have included: (a) addressing payments imbalances,
(b) creating capital markets, (c) stabilizing exchange rates, and (d) eliminating payments
and trade restrictions. Members include: Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait,
Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Somalia, Sudan, Syria,
Tunisia, the United Arab Emirates, Yemen, and the Palestine Liberation Organization. The
Fund was created in 1976 (began operating in April 1977); headquarters are in Abu Dhabi,
United Arab Emirates.
See: Arab Trade Financing Program.
Arab Trade Financing Program.
The ATFP promotes trade among Arab countries and exports from Arab
countries. The Program was established in 1989 by the Arab Monetary Fund; headquarters are
in Abu Dhabi, United Arab Emirates.
Arbitrage.
The buying of foreign exchange, securities, or commodities in one
market and the simultaneous selling in another market, in terms of a third market. By this
manipulation a profit is made because of the difference in the rates of exchange or in the
prices of securities or commodities involved.
Arms Control and Disarmament Agency.
ACDA is an independent agency within the State Department. ACDA
participates in interagency working groups that discuss export license applications
requiring dispute resolution. ACDA is interested in dual-use license applications from a
non-proliferation perspective -- anything that could impact on the proliferation of
missiles, chemical and biological weapons, and nuclear weapons. ACDA's positions need not
be consonant with those of State. The Agency was created in 1961, has about 200-to-250
staff, and has a fairly substantial and growing technology transfer and export control
function. The Director is the principal arms control adviser to the Secretary of State,
the President and the NSC on conventional arms transfer, commercial sales of munitions;
nuclear, missile, chemical and biological warfare; East-West military munitions issues,
CoCom, and negotiating MOUs with the 3rd world on strategic trade.
Arrangement on Guidelines for Officially Supported Export
Credits.
The Arrangement is an international agreement under Organization
for Economic Cooperation and Development auspices governing the conditions -- such as
interest rate, repayment term, and cash down payment -- of medium- and long-term official
export credit; it does not apply to strictly private credit. For example, the Arrangement
specifies how governments relate the interest rate on their export credits to market
levels. Though informal and non-enforceable, Arrangement guidelines are regularly observed
by the 22 OECD member governments that are "Participants" to the
agreement.
Articles and Memorandum of Association.
See Association.
ASEAN Free
Trade Area.
The Association of Southeast Asian Nations (ASEAN) agreed in
January 1992 to create a free trade area (ASEAN Free Trade Area, or AFTA) with use of a
common effective preferential tariff. Under the agreement ASEAN members will cut tariff
rates within 15 years of its start date of January 1994.
Manufactured goods from 15 sectors designated as "fast
track" are subject to tariff reduction to 0-5 percent within 10 years, and seven
years if the starting rates were already below 20 percent. "Fast track" sectors
include vegetable oils, cement, chemicals, pharmaceuticals, fertilizer, plastics, rubber
products, leather products, pulp, textiles, ceramic and glass products, gems and jewelry,
copper cathodes, electronics, and wooden and tartan furniture.
See: Association of Southeast Asian Nations.
Asian Clearing Union.
The ACU promotes regional trade and economic cooperation, including
arrangements to conserve foreign exhcange and encourage domestic currencies in trade.
Members include Bangladesh, India, Iran, Myanmar, Nepal, Pakistan, and Sri Lanka; Bhutan,
Malaysia, the Peoples' Republic of China, the Philippines, Thailand, and Vietnam have
expressed interest in membership. The Union was established in 1974; headquarters are in
Tehran, Iran.
Asian Development Bank.
The ADB helps finance economic development in developing countries
in the Asian and Pacific area through the provision of loans on near-market terms, with
its Ordinary Capital Resources (OCR), and on concessional terms, through the Asian
Development Fund (ADF). The ADB was established in 1965 (began operating in December
1966); headquarters are in Manila, Philippines.
See Asian Development Fund.
Asian Development Fund.
The ADF (or AsDF), an affiliate of the Asian Development Bank,
lends funds on concessionary terms to the Bank's least developed member countries.
See Asian Development Bank.
Asian Dollars.
U.S. dollars deposited in Asia and the Pacific Basin.
See Eurodollars.
Asia Pacific Economic Cooperation (APEC).
APEC, established in November 1989, is an informal grouping of Asia
Pacific countries that provides a forum for Ministerial level discussion of a broad range
of economic issues. APEC includes the six ASEAN countries (Brunei, Indonesia, Malaysia,
Philippines, Singapore, and Thailand), plus: Australia, Canada, China, Hong Kong, Japan,
New Zealand, South Korea, Taiwan, and the United States.
Asociaciòn Latinoamericana de Institutiones Financieras
de Desarrollo.
See Latin American Association of Development Financing
Institutions.
Asociación Latinoamericana de Integración.
See Latin American Integration Association.
Assessment.
The imposition of antidumping duties on imported merchandise.
See: Tariff Act of 1930.
Assets.
Everything a company or individual owns or is owed.
Associate.
One associated with another in an undertaking; closely or usually
connected with another party or organization with common interests, as if a partner.
Association.
Articles and Memorandum of Association. In common law jurisdictions
these two documents comprise the constitution of a company and govern the powers of the
company to trade, issue shares, and borrow money as well as defining the relationships
between the shareholders, directors and the officers of the company.
Association des Banques Centrales Africaines.
See Association of Central African Banks.
Association of African Development Finance Institutions.
AADFI (French: Association des Institutions Africaines de
Financement du D‚veloppement, AIAFD) promotes cooperative financing for social
development in Africa and economic integration. The Association was established in March
1975; headquarters are in Abidjan, Côte d'Ivoire.
Association of African Trade Promotion Organizations.
AATPO promotes inter-African trade, harmonization of commercial
policies, communication among African states in trade matters, and research and training.
The organization, which has about 26 members, was established in 1975 under the auspieces
of the Organization for African Unity and the African Development Bank; headquarters are
in Tangier, Morocco.
Association of Central African Banks.
ACAB (French: Association des Banques Centrales Africanines, ABCA)
promotes cooperation among monetary, banking, and financial institutions in Africa.
Members include two African regional banks and about 32 national banks. The Association
was created in 1968; headquarters are in Dakar, Senegal.
Association of Coffee Producing Countries.
See International Coffee Agreement.
Association of International Bond Dealers.
The AIBD provides a forum for over 500 members from 30 countries to
review international securities market matters. The primary objectives of the Association
are to provide a basis for examination and discussion of questions relating to the
secondary market in Eurosecurities, to issues rules governing their functions, and to
maintain a close liaison between the primary and secondary markets in Eurosecurities. IABD
was established in 1969; headquarters are in Zurich, Switzerland.
Association of South East Asian Nations (ASEAN)
ASEAN's rapid growth is a result of its economic integration into
the ASEAN Free Trade Agreement (AFTA) and world markets, strong privatization initiatives,
double digit economic growth rates, expanding purchasing power, falling market access
barriers and massive infrastructure projects.
By the year 2010 the ASEAN region will boast 686 million consumers,
a combined GDP of U.S. $1.1 trillion and the benefit of over $1 trillion in new
infrastructure projects.
Audit.
Auditing is the examination of the accounts books and records of a
company by an independent person with a view to that person expressing an opinion on the
accounts presented by the company. It is a legal requirement in many countries, although
the scope of the audit is often reduced for smaller companies.
Auditor's report.
The independent accounting firm's opinion on whether the company's
financial statements conform to ge nerally accepted accounting pronciples.
Ausfuhrkredit-Gesellschaft (AKA).
AKA (English: Export Credit Establishment) is an association of
German banks which provide medium and long-term funding for exports.
(Die) Ausstellungs- und Messe-Ausschuss der Deutschen
Wirtschaft (AUMA).
AUMA (German: the German Industry Council for Exhibitions and Trade
Fairs) promotes exports by bringing together government, semiprivate, and private
organizations in the coordination of domestic and overseas trade events. AUMA is a private
organization and receives no government funds to support its general operations. The
government may provide funds for special projects, such as research. AUMA also collects
and distributes information to German firms on trade fairs worldwide.
Australia Group.
The Australia Group, AG, is an informal forum through which 22
industrialized nations cooperate to curb proliferation of chemical and biological weapons
through a supply approach. The AG's first meeting, held
at the Australian Embassy in Paris in June 1986, was attended by
Australia, Canada, Japan, New Zealand, the United States, and those nations that were then
members of the European Community. Membership has expanded to include Norway, Portugal,
Spain, Switzerland, Austria, Argentina, Finland, Hungary, Iceland, and representatives of
the European Commission, the European Community's executive arm.
Authority to Pay.
A document comparable to a revocable letter of credit but under
whose terms the authority to pay the seller stems from the buyer rather than from a
bank.
Auto Pact
An agreement on automotive products between the government of the
United States and Canada that went into effect in September 1966. The pact has resulted in
a large increase in bilateral automotive trade.
Automated Broker Interface ABI).
ABI, a part of Customs' Automated Commercial System, permits
transmission of data pertaining to
merchandise being imported into the United States. Qualified
participants include brokers, importers, carriers, port authorities, and independent data
processing companies referred to as service centers.
Automated Clearinghouse ACH).
The Automated Clearinghouse (ACH) is a feature of the Automated
Broker Interface which is a part of Customs' Automated Commercial System. The ACH combines
elements of bank lock box arrangements with electronic funds transfer services to replace
cash or check for payment of estimated duties, taxes, and fees on imported merchandise.
Automated Commercial System (ACS).
The Customs Service's Automated Commercial System, ACS, is a joint
public-private sector computerized data processing and telecommunications system linking
customhouses, members of the import trade community, and other government agencies with
the Customs computer.
Trade users file import data electronically, receive needed
information on cargo status, and query Customs files to prepare submissions. Duties,
taxes, and fees may be paid by electronic statement, through a Treasury-approved
clearinghouse bank. ACS contains the import data used by Census to prepare U.S. foreign
trade statistics. ACS began operating in February 1984 and includes: (a) the Automated
Broker Interface, (b) the Census Interface System, (c) the Automated Manifest Systems, (d)
the Bond System, (e) the In-Bond System, (f) the Cargo Selectivity System, (g) the Line
Release System, (h) the Collections System, (i) the Security System, (j) the Quota System,
(k) the Entry Summary Selectivity System, (l) the Entry Summary System, (m) the Automated
Information Exchange, (n) the Antidumping/Countervailing Duty System, (o) the Firms
System, (p) the Liquidation System, (q) the Drawback System, (r) the Fines, Penalties, and
Forfeitures System, and (s) the Protest System.
Automated Export Reporting Program (AERP).
The AERP provides for electronic submission of most information
required on the Shipper's Export Declaration. The program was initiated in 1969 with the
intent of enabling large volume exporters to submit electronically and facilitate Census
Bureau data entry and analysis. AERP was expanded in 1982 to allow freight forwarders, and
again in 1985 to allow ocean carriers, to file electronically. At the beginning of fiscal
year 1994, about 220 firms -- accounting for 350,000 to 400,000 records a month -- were
participating in AERP. The program is administered by the Automated Data Reporting Branch,
Foreign Trade Division, Bureau of the Census. Telephone: 301-763-7774.
See Shipper's Export Declaration.
Automated Information Exchange (AIES).
AIES, a part of Customs' Automated Commercial System, allows for
exchange of classification and value information between field units and headquarters.
Automated Manifest Systems (AMS).
AMS, a part of Customs' Automated Commercial System (ACS) controls
imported merchandise from the time a carrier's cargo manifest is electronically
transmitted to Customs until control is relinquished to another segment of the ACS.
Automated Trade Locator Assistance Network (ATLAS).
ATLAS is a Small Business Administration-sponsored,
contractor-operated, automated system which provides market research information and
statistics on world markets by SIC code (and possibly harmonized system). Indirect access
is available for businesses, with arrangements through the local SBA district office.
ATLAS, which became operational in Spring 1993, replaced SBA's export information system
(XIS).
Autorité du Bassin du Niger.
See Niger Basin Authority.
Average.
Any loss or damage due to ins ured perils that is less than a total
loss. Two types of average occur: Particular Average and General Average.
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