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Business Reading Room
Glossary and Acronyms - from O to
P
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
Ocean Bill of Lading
A receipt for the cargo and a contract for transportation between a
shipper and the ocean carrier. It may also be used as an instrument of ownership which can
be bought, sold, or traded while the goods are in transit. To be used in this manner, it
must be a negotiable "Order" Bill-of-Lading.
- A Clean Bill-of-Lading is issued when the
shipment is received in good order. If damaged or a shortage is noted, a clean
bill-of-lading will not be issued.
- An On Board Bill-of-Lading certifies thaat the cargo has been placed aboard the named
vessel and is signed by the master of the vessel or his representative. On letter of
credit transactions, an On Board Bill-of-Lading is usually necessary for the shipper to
obtain payment from the bank. When all Bills-of-Lading are processed a ship's manifest is
prepared by the steamship line. This summarizes all cargo aboard the vessel by port of
loading and discharge.
- An Inland Bill-of-Lading (a waybill on rrail or the "pro forma" bill-of-lading
in trucking) is used to document the transportation of the goods between the port and the
point of origin or destination. It should contain information such as marks, numbers,
steamship line, and similar information to match with a dock receipt.
Ocean Freight Differential
OFD is the amount by which the cost of the ocean freight bill for
the portion of commodities required to be carried on U.S. flag vessels exceeds the cost of
carrying the same amount on foreign flag vessels. When applied to agricultural commodities
shipped under Food for Peace, OFD is the amount paid by the Commodity Credit Corporation.
O.E.C.D.
See Organization for Economic Cooperation and Development.
OECF
Japan's Overseas Economic Cooperation Fund.
Offene Handelsgesellschaft - OHG
German, meaning: "general partnership": is characterized
by the unlimited and direct liability of all partners who are jointly and severally
liable. Their liability cannot be restricted. The partnership must carry the family name
of at least one partner with reference to the kind of partnership (such as "&
Co.").
Office of International Cooperation and
Development
The Department of Agriculture's OICD is responsible for cooperative
international research, scientific and technical exchanges, and liaison with international
agricultural organizations. OICD also directs training and technical assistance in efforts
in approximately 80 development countries.
Office of Munitions Control
See: Defense Trade Controls.
Official Development Assistance
Financial flows to developing countries and multilateral
institutions provided by official agencies of national, state, or local governments. Each
transaction must be:
- administered with the promotion of the economic development and
welfare of developing countries as its main objective; and
- concessional in character and contain a grant element of at least
25 percent.
Offsets.
The term offsets is an umbrella label for a broad range of
industrial and commercial compensation practices required as a condition of purchase in
commercial or government-to-government sales of either military or high-cost civilian
hardware. Whether commercial or military, offsets involve overseas production that results
in the creation or expansion of industrial capacity in the importer's country. The
compensatory forms of offset include coproduction, licensed production, subcontractor
production, overseas investment, and technology transfer.
Coproduction permits a foreign government or
producer to acquire the technical information to manufacture all or part of a U.S.-origin
article.
Licensed production of a U.S.-origin article involves transfer of technical information
under direct commercial arrangements between a U.S. manufacturer and a foreign government
or producer.
Subcontractor production of a U.S.-origin article usually involves a direct commercial
arrangement between the U.S. manufacturer and a foreign producer but does not necessarily
involve license of technical information.
Overseas investment arising from an offset agreement involves capital contribution toward
the establishment or expansion of a subsidiary or joint venture in a foreign country.
Technology transfer arises from agreement to conduct research and development abroad, to
provide technical assistance to a subsidiary or joint venture of overseas investment, or
to perform other activities under direct commercial arrangement between a U.S.
manufacturer and a foreign entity.
Countries require offsets for a variety of
reasons: to ease (or "offset") the burden of large defense purchases on their
economies, to increase domestic employment, to obtain desired technology, or to promote
targeted industrial sectors. Governments sometimes impose offset requirements on foreign
exporters, as a condition for approval of major sales agreements in an effort to either
reduce the adverse trade impact of a major sale or to gain specified industrial benefits
for the importing country. In these circumstances, offset requirements may be direct or
indirect, depending on whether the goods and services are integral parts of the product.
In a direct offset, a U.S. manufacturer selling a product uses a component that is made in
the purchasing country. In an indirect offset, the exporter would buy products that are
peripheral to the manufacture of its product.
See: Countertrade.
Offshore Banking Center
See: Offshore Banking Unit.
Offshore Banking Unit
An OBU is normally a foreign bank which conducts domestic
moneymarket, Eurocurrency, and foreign exchange settlements. OBUs cannot accept domestic
depostis but their activities are unrestricted by domestic authorities. OBUs are located
in major financial centers (known as offshore banking centers) with liberal reserve, tax,
and capital market requirements.
Offshore Dollars
See: Eurodollars.
Offshore Manufacturing
Offshore manufacturing is the foreign manufacture of goods by a
domestic firm primarily for import into its home country.
Old-To-Market
As defined by the International Trade Administration, old-to-market
is a term which refers to committed/experienced larger-scale firms. A significant portion
of manufacturing capability may be foreign sourced. Export sales volume is often in excess
of 15 percent of total sales.
On Board Bill Of Lading.
A bill of lading in which a carrier certifies that goods have been
placed on board a certain vessel.
OPEC
See Organization of Petroleum Exporting Countries.
Open Account
A trade arrangement in which goods are shipped to a foreign buyer
without guarantee of payment. The obvious risk this method poses to the supplier makes it
essential that the buyer's integrity be unquestionable.
Open-End Contract
An open purchase order with a definite amount of money limit for
specific material that remains open over a stated contract period such as three, six or
twelve months. Vendor to be selected by public bid and material to be ordered in writing
or by phone as needed.
Open Insurance Policy.
A marine insurance policy that applies to all shipments made by an
exporter over a period of time rather than to one shipment only.
Open Policy.
A cargo policy with no expiration date that provides automatic
coverage of cargo to or from an Assured in a specified trade at agreed rates, terms, and
conditions. Usually consists of separate Marine and War policies.
Operating Committee
The Operating Committee (chaired by the Commerce Department) is the
first step in resolving interagency disputes over the disposition of license applications
for dual-use items not reviewed by one of the other interagency working groups. The other
working groups include: (a) the Subgroup on Nuclear Export Coordination (SNEC), chaired by
State for applications involving nuclear concerns; (b) the Missile Technology Export
Control Group (MTEC), chaired by State for applications involving missile technology
concerns; and (c) the "Shield," chaired by State for applications involving
chemical or biological warfare concerns. These committees review applications and
participate in the dispute resolution. Prior to any escalation to the Advisory Committee
on Export Policy (ACEP), all applications must be reviewed by one of these working groups.
See: Advisory Committee on Export Policy.
Operating Differential Subsidy
ODS is a payment which the U.S. government makes to vessels
carrying the American flag to offset the difference in operating costs between U.S. and
foreign carriers.
Operation Exodus
Operation Exodus is a U.S. Customs Service export enforcement
program that was developed in 1981 to help stem the flow of the illegal export of
U.S.-sourced arms and technology to the Soviet bloc and other prohibited destinations.
Order Bill Of Lading.
A negotiable bill of lading made out to the order of the shipper.
Orderly Marketing Agreement
A bilateral agreement between governments by which one government
limits exports to the other. Similar to a voluntary export restriction agreement or a
voluntary restraint agreement. Used to address injury to a domestic industry.
Contracts negotiated between two or more governments, in
which the exporting nation undertakes to ensure that international trade in specified
"sensitive" products will not disrupt, threaten, or impair competitive
industries or workers in importing countries.
Organizacion de los Estados Americanos
See: Organization of American States.
Organization for Economic Cooperation and
Development (OECD)
The OECD is a group of 25 industrialized countries whose objectives
are to promote members' economic and social welfare and to stimulate and harmonize
members' economic development efforts in developing countries. The OECD was established in
1961 and its headquarters are in Paris.
Organization of Petroleum Exporting Countries
(OPEC)
An association of 12 oil-exporting countries: Algeria, Gabon,
Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, SAudi Arabia, the United Arab
Emirates, and Venezuela. Formed in 1960, its major purpose is to coordinate the petroleum
production and pricing policies of its members.
Organisation Mondiale de la Propriete
Intellectuelle
See: World Intellectual Property Organization.
Organisation pour la Mise en Valeur du Fleuve
Gambie
See: Gambia River Basin Development Organization.
Organisation pour la Mise en Valeur du Fleuve
Sénégal
See: Organization for the Development of the Senegal River.
Organization for Economic Cooperation and
Development
OECD provides a forum for discussion of common economic and social
issues facing the United States, Canada, Western Europe, Japan, Australia, and New
Zealand. OECD was founded in September 1960 as successor to the Organization for European
Economic Cooperation (OEEC) which had administered European participation in the Marshall
Plan. OECD seeks "to achieve the highest sustainable economic growth and employment
and a rising standard of living in member countries while maintaining financial stability
and thus contribute to the world economy." Members include: Australia, Austria,
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy,
Luxembourg, Japan, the Netherlands, New Zealand, Norway, Portugal, Spain, Sweden,
Switzerland, Turkey, the United Kingdom, and the United States. OECD headquarters are in
Paris, France.
See: Arrangement on Guidelines for Officially Supported Export
Credits.
Organization of African Trade Union Unity
OATUU is recognized as the sole representative of African organized
labor by the Organization of African Unity (OAU) and the International Labor Organization
(ILO). OATUU is formally non-aligned and independent of all international trade union
organizations, but maintains relations with trade unions worldwide. OATUU headquarters are
in Accra, Ghana.
Organization of African Unity
The OAU, founded in May 1963 with 32 African countries, has since
grown beyond 5 members. The Organization aims to further African unity and solidarity, to
coordinate political, economic, cultural, scientific, and defense policies; and to
eliminate colonialism in Africa. Members include: Algeria, Angola, Benin, Botswana,
Burkina Faso, Burundi, Cameroon, Cape Verde, Central Africa Republic, Chad, Comoros,
Congo, Cote d'Ivoire, Egypt, Equatorial Guinea, Ethopia, Gabon, the Gambia, Ghana, Guinea,
Guinea-Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania,
Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe,
Senegal, Seychelles, Sierra Leone, Somalia, Sudan, Swaziland, Tanzania, Togo, Tunisia,
Uganda, Zaire, Zambia, Zimbabwe. OAU headquarters are in Addis Ababa, Ethiopia.
Organization of American States
The OAS (Spanish: Organizacion de los Estados Americanos,
OEA), or the Pan American Union, is a regional organization created in Bogota, Colombia in
April 1948 (entered into force in December 1951) which promotes Latin American economic
and social development. Members include the United States, Mexico, and most Central
American, South American, and Caribbean nations. Members include: Antigua and Barbuda,
Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile, Colombia, Costa
Rica, Cuba (participation suspended), Dominica, Dominican Republic, Ecuador, El Salvador,
Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay,
Peru, St. Christopher-Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad
and Tobago, the United States, Uruguay, and Venezuela. The U.S. accredits an Ambassador to
the OAS. The OAS secretariat is located in Washington, D.C.
See: Sistema de Informacion al Comercio Exterior.
Organization of Arab Petroleum Exporting Countries
OAPEC was created in 1968; members include: Algeria, Bahrain,
Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria, and the United Arab Emirates.
Headquarters are in Cairo, Egypt.
See: Organization of Petroleum Exporting Countries.
Organization for the Development of the Senegal
River
The Organization (French: Organisation pour la Mise en Valeur du
Fleuve S‚n‚gal, OMVS) promotes hydroelectric, irrigation and navigation use of
the Senegal river. The organization was established in March 1972; headquarters are in
Dakar, Senegal. Members include: Guinea-Bissau, Mali, Mauritania, and Senegal.
Organization of Eastern Caribbean States
OECS was intended to promote territorial integrity; changing focus
includes the recent founding of an export development agency. The Organization was
established in 1981; headquarters are in St. Lucia. Members include: Antigua and Barbuda,
Dominica, Grenada, Montserrat, Saint Christopher and Nevis, Saint Lucia, Saint Vincent,
and the Grenadines.
Organization of the Islamic Conference
The OIC, established in May 1971, promotes cooperation in cultural,
economics, scientific and social areas among Islamic nations. Headquarters are located in
Jeddah, Saudi Ar abia. About half the ICO members are also members of the Organization of
African Unity. OIC members include: Afghanistan, Algeria, Bahrain, Bangladesh, Benin,
Brunei, Burkina Faso, Cameroon, Chad, Comoros, Cyprus, Djibouti, Egypt, Gabon, the Gambia,
Guinea, Guinea-Bissau, Indonesia, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Malaysia,
Maldives, Mali, Mauritania, Morocco, Niger, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia,
Senegal, Sierra Leone, Somalia, Sudan, Syria, Tunisia, Turkey, Uganda, the United Arab
Emirates, and Yemen.
Organization of Petroleum Exporting Countries
An association of the world's oil-producing countries, formed in
1960, with headquarters in Vienna, Austria. The chief purpose of OPEC is to coordinate the
petroleum policies of its members: Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
See: Organization of Arab Petroleum Exporting Countries.
Orientation Visits
See: Trade and Development Agency.
Overseas Business Reports
These are marketing studies of America's major trading partners
which provide updated export and economic outlooks, industrial trends, trade regulations,
distribution and sales channels, transportation, and credit situation in individual
countries.
Overseas Economic Cooperation Fund
The OECF, a Japanese government development financial institution,
provides developing countries and areas with grants and long-term, low-interest loans. As
a result of difficulty in distinguishing between the Fund and the Export-Import Bank of
Japan, a 1975 reorganization put OECF in charge of all direct loans to be made as official
development assistance (ODA) with the grant element of 25 percent of more. The Fund was
created in 1961; headquarters are in Tokyo, Japan.
See: Export-Import Bank of Japan; Japan International Cooperation
Agency.
Overseas investment.
(also one of the means of implementing Offsets - see under Offsets)
Investment arising from the offset agreement, taking the form of
capital invested to establish or expand a subsidiary or joint venture in the foreign
country.
Overseas Private Investment Corporation
OPIC is a government corporation which assists U.S. private
investments in less developed nations by providing direct loans and loan guarantees,
insuring against a broad range of political risks, and providing a variety of investor
services. The overseas investments may include distributorships owned by U.S.
manufacturers which are consistent with the economic interests of both the United States
and the developing country involved. OPIC was formed as a part of the Agency for
International Development in 1961 and became an independent agency 10 years later.
Telephone: 800-424-6742.
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