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Glossary and Acronyms - from J to K


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Japan Corporate Program
The Japan Corporate Program was initiated (by the U.S. Department of Commerce) to help increase U.S. exports to Japan. The program was initiated in January 1991, following selection of 20 companies to participate in a five-year pilot project to improve U.S. knowledge of, and access to, the Japanese market. As part of the five-year commitment to the program, the companies arrange four visits a year to Japan, including two by their chief executives; publish their product literature in Japanese; participate in at least one trade promotion event in Japan each year; and modify products to enhance consumer acceptance and promote sales in Japan. Commerce supports the 20 firms with market data, arranges introductory meetings with prospective Japanese buyers, and recommends market development strategies.

Japan Development Bank

The Japan Development Bank was founded in 1951 to aid in developing and diversifying the Japanese economy. The JDB is a non-profit organization owned entirely by the Japanese Government. U.S. companies may participate in JDB funding activity under the Bank's Loan Division in the International Department. The International Department disburses loans to foreign companies under two primary loan programs: Promotion of Foreign Direct Investment in Japan and Facilities for Import Products. The other loan programs of JDB are also available to foreign-owned companies under the principle of equal treatment of clients regardless of nationality.

Japan Export Information Center

The Japan Export Information Center (JEIC) provides information on doing business in Japan, market entry alternatives, market information and research, product standards and testing requirements, tariffs and non-tariff barriers. The Center maintains a commercial library and participates in private- and government-sponsored seminars on doing business in Japan. JEIC is operated by the International Trade Administration of the Department of Commerce. (202-482-2425 and 202-482-4524; fax: 202-482-0469)

Japan External Trade Organization

Although legally under the aegis of the Ministry of International Trade and Industry (MITI), JETRO administers the export programs of the Japanese Government independently. MITI subsidizes about 60 percent of JETRO's total annual expenditures and, technically, has final decision-making authority over JETRO management and programs. Originally established to help Japanese firms export, JETRO also assists American companies seeking to export to Japan and promotes Japanese direct investment in the United States and U.S. direct investment in Japan.

Japan International Cooperation Agency

JICA administers the bilateral grant portion of Japan's Official Development Assistance (ODA). JICA covers both: (a) grant aid cooperation (offered without the obligation of repayment) and (b) technical cooperation (offering trainees, experts, equipment, project-type technical cooperation, and development studies). The Agency was established in August 1974; headquarters are in Tokyo, Japan. See: Export-Import Bank of Japan Overseas Economic Cooperation Fund.

JCCT

The U.S.-China Joint Commission on Commerce and Trade.

"J" Curve and Real Exchange Rates

The current account may initially worsen before improving in response to real depreciation in exchange rates, because it takes time for the growth of import volumes to decline in response to higher import prices. This phenomenon is known as the "J-curve effect," because the downward movement followed by an upward movement in the current account resembles the letter "J."

JEXIM
Japan Export Import Bank.

Joint Committee for Investment and Trade

The JCIT, was established in October 1990 to demonstrate U.S. and Mexican commitment to greater economic cooperation. The Committee identifies trade and investment opportunities and coordinates trade promotion events.

Joint Technical Committee 1 (JTC1).
A technical committee set up jointly by ISO and IEC to oversee all international standardization activities in the field of information technology.

Joint Venture
An international business collaboration between foreign interests and private parties from the host country (or the host government in some cases) in which two or more parties establish a new business enterprise to which each contributes, and in which ownership and control are shared.

Populated or unpopulated joint ventures. A legally independent entity joint venture is populated when it has its own management and staff personnel, and is unpopulated or a "shell company" when partner companies loan the temporary services of their own management and staff to share in the work of the venture.

Juridiction.
Offshore Jurisdiction. Offshore Jurisdiction/Location is a country, or special area within a country, in which the legislation applicable to the formation, management and taxation of companies is geared towards international business rather than the governance of domestic business within the country. Such countries are competing for this international business and, as a result, the legislation and taxation are often 'favourable' to companies incorporated in these countries.
Onshore Jurisdiction. This refers to a country in which the legislation applicable to the formation, management and taxation of companies is geared towards the regulation of the domestic economy and the control of companies trading and investing within it. Such jurisdictions are, in general, less favourable to a company and its owners than offshore jurisdictions, whose legislation and taxation is geared more to attracting international business which does not have specific location requirements.

 

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