An advising bank is the bank that receives the Letter of Credit (L/C) from the issuing bank and informs the beneficiary. This bank plays a crucial role in international trade by verifying the authenticity of the L/C and facilitating communication between parties.
A balance-of-payments crisis occurs when a country’s foreign exchange reserves are rapidly depleting or maintained only through excessive foreign borrowing. Solutions may include policy changes, devaluation, or obtaining foreign loans.
An economic policy aimed at benefiting one country at the expense of others, often through measures like tariffs, quotas, or currency devaluation. Known as 'beggar-thy-neighbour' as well.
The Beneficiary Bank is integral in the context of letters of credit, serving as the bank where the payment is directed. It plays a crucial role in ensuring the proper execution of international trade transactions.
Bilateral Transfer involves a reciprocal exchange where both parties provide something of value. This term is commonly seen in trade agreements between countries.
An in-depth analysis of the Blair House Agreement concluded between the European Community (EC) and the United States in November 1992 to liberalize international trade in agricultural products and reduce subsidized food exports.
A detailed overview of Buyer Credit, a financial arrangement where the bank finances the overseas buyer to pay the exporter upfront.
A detailed exploration of the C.I.F. term used in international trade, including historical context, key components, examples, and related terms.
An in-depth look at the movement of capital between countries, encompassing foreign direct investment, shares, and loans, and its relevance to the balance of payments.
The Central European Free Trade Agreement (CEFTA 2006) aims to promote trade and investment in the Western Balkans through predictable rules and the elimination of trade barriers. Current signatories include Albania, Bosnia and Herzegovina, Croatia, Macedonia, Moldova, Montenegro, Serbia, and UNMIK/Kosovo.
A Certificate of Origin is a crucial document in international trade, stating the country from which goods originated and often impacting import duties and tariffs. It is typically issued by a chamber of commerce.
A comprehensive guide to understanding the Certificate of Origin, its importance, historical context, types, key events, and practical applications in international trade.
CFR (Cost and Freight) is an international trade term used in shipping contracts where the seller must cover the costs and freight necessary to bring goods to a specified port of destination, but without insurance coverage included.
Comprehensive overview of CIF (Cost, Insurance, and Freight) – a common term in international shipping and trade indicating that the seller pays for the cost, insurance, and freight charges to transport goods to the buyer's port.
An in-depth exploration of commodity agreements, their historical context, types, and their role in improving the functioning of global markets.
Explore the concept of a Common Market, its historical context, types, key events, detailed explanations, and more.
A comprehensive overview of Common Market, detailing its historical context, key events, types, importance, and implications. Examples include the European Union.
Exploration of Community Indifference Curve in International Trade Theory, its history, applications, and significance.
An exploration of Comparative Advantage, its historical context, types, significance, and implications in the realm of international trade.
An in-depth exploration of comparative costs, a concept pivotal in international trade economics, expressing comparative advantage through costs.
Exploring the concept of Competitive Devaluation, where nations engage in devaluing their currencies to improve their trade competitiveness. Delving into historical context, key events, economic models, and implications.
An in-depth look at Confirmed Credit, its historical context, types, key events, detailed explanations, importance, applicability, examples, related terms, interesting facts, famous quotes, FAQs, references, and a summary.
A confirmed irrevocable letter of credit provides an additional layer of security to international transactions by ensuring payment from both the issuing bank and a confirming bank.
An organization that purchases goods from local exporters on behalf of overseas buyers, managing negotiation, shipment, and insurance.
The cost to an economy of adopting protectionist trade policies, including immediate consumer costs and longer-term economic inefficiencies.
Counter-Trade is a form of international trade involving the exchange of goods and services between countries without the use of money. Examples include barter, counter-purchase, and buyback. It is particularly used in military sales and with countries lacking hard currency.
A detailed examination of countervailing duties, tariffs imposed to neutralize foreign subsidies to exporters.
Currency Appreciation refers to a rise in the price of a country's currency in terms of foreign currency, affecting trade balance, inflation, and economic dynamics.
An in-depth look at the components and significance of the Current Account Balance (CAB), including net exports, net primary income, net transfers, and the impact of Net Factor Friend Income (NFFI).
A comprehensive look at what a current account surplus is, its historical context, types, key events, explanations, models, importance, and applicability.
The United States-Mexico-Canada Agreement (USMCA), also known as the Canada-United States-Mexico Agreement (CUSMA), is a trade agreement that replaced NAFTA in 2020, addressing prior criticisms and introducing new provisions.
A customs bond is a crucial requirement in international trade to guarantee that importers adhere to regulations and pay the necessary duties. Learn about its historical context, types, key events, mathematical models, and much more.
A professional who assists importers and exporters in meeting regulatory requirements and navigating the customs clearance process.
A comprehensive guide to Customs Invoices, detailing their purpose, components, and importance in international trade.
An in-depth look at the DAP (Delivered at Place) Incoterm, covering its definition, historical context, types, key events, mathematical models, importance, applicability, examples, considerations, and related terms.
A detailed explanation of Delivery Duty Paid (DDP), a common shipping arrangement in which the seller assumes most of the costs and responsibilities related to the shipping of goods, including customs clearance and payment of duties and taxes.
A comprehensive guide to Documentary Letters of Credit, ensuring secure international trade by requiring documentation before payment.
Dumping refers to the practice of selling goods in a foreign country at a price considered unfairly low by local producers, often leading to anti-dumping duties.
Duty-Free Zones are designated areas where goods can be imported, stored, and sometimes processed without immediate duty payment. These zones are instrumental in facilitating international trade and economic development.
While both EPZs (Export Processing Zones) and Maquiladoras aim to stimulate industrial activity through favorable economic policies, maquiladoras are specifically tied to trade relationships between Mexico and the U.S.
An Export Broker acts as an intermediary who facilitates transactions between domestic sellers and foreign buyers without taking title to the goods, aiding in the ease of international trade.
Export Concentration refers to the concentration of a country's exports on a narrow range of goods, services, or countries. It impacts trade balance and economic stability.
Comprehensive overview of Export Credit, its types, benefits, and relevance in international trade.
A comprehensive guide on export credit, exploring its historical context, types, mechanisms, importance, examples, related terms, and more.
Export Credit Insurance safeguards exporters from the risk of non-payment by foreign buyers, ensuring secure international trade.
An Export Processing Zone (EPZ) is a designated area that incentivizes export-oriented manufacturing through tax and regulatory exemptions.
A comprehensive exploration of export promotion strategies, historical context, key events, and their role in economic development.
Export Quotas involve the direct limitation on the quantity of goods that can be exported to another country, imposed by the exporting country to regulate trade balance, domestic supply, or international agreements.
Export-Led Growth (ELG) is a strategy where a country's economic growth is driven primarily by exporting goods and services. This strategy leverages competitive advantages and increases foreign income, fostering national economic expansion.
Detailed exploration of exportables including their types, importance, and impact on global trade.
EXW (Ex Works) is a shipping term used in international trade where the seller's responsibility ends once the goods are made available for pickup at their premises. It places the maximum responsibility on the buyer.
An in-depth exploration of Factor Endowment, its historical context, types, key events, mathematical models, and its importance in international economics.
A comprehensive look at the Factor Price Equalization theorem within the Heckscher–Ohlin model, detailing how international trade impacts factor prices across countries and aiming for an equalization in an ideal scenario.
FCA (Free Carrier) is an Incoterm where the seller delivers the goods to a carrier appointed by the buyer at a named place. This term involves key responsibilities for both parties and is widely used in international trade.
An in-depth exploration of the shipping term Free on Board (FOB), where the seller’s obligation ends once goods are placed on a vessel chosen by the buyer. This guide covers the definition, types, special considerations, examples, historical context, and applicability.
Free On Board (FOB) denotes that the seller fulfills their obligation to deliver when the goods have passed over the ship's rail at the named port of shipment.
An in-depth exploration of foreign trade, encompassing historical context, key events, trade theories, models, importance, and practical examples.
The term Free Carrier (FCA) is an International Commercial Term (Incoterm) where the seller delivers goods to a terminal or another named place, covering initial transportation risks and costs.
An in-depth look at the concept of free trade, its historical context, types, key events, implications, and more.
An in-depth exploration of Free Trade Agreements (FTAs), including their historical context, types, key events, importance, applicability, examples, related terms, comparisons, and more.
An in-depth exploration of Free Trade Areas, their historical context, key events, benefits, examples, and much more.
A Free Trade Zone (FTZ) is a specific geographical area within a country where goods can be imported, stored, handled, manufactured, or re-exported without the intervention of customs authorities.
A Free Trade Zone (FTZ) is a designated area where goods can be imported, stored, and processed with reduced customs regulations to encourage economic activity.
Areas where goods may be imported, stored, and exported with reduced customs regulations. Goods may be handled, manufactured, or reconfigured, and re-exported without customs intervention.
A detailed exploration of Free-Trade Agreements, their historical context, types, key events, detailed explanations, and much more.
A comprehensive overview of Free-Trade Areas, covering historical context, types, key events, economic models, importance, applicability, examples, related terms, comparisons, and more.
A Free-Trade Zone (FTZ) is a specific region within a country where national tariffs and regulatory measures are reduced or eliminated to encourage export-driven industries by leveraging duty-free imports.
An in-depth exploration of FTAAP, a proposed free-trade area among APEC member economies.
An in-depth exploration of the concept of gains from trade, its historical context, types, key events, mathematical models, and more.
The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) provide a comprehensive global framework for international trade rules and regulations.
A comprehensive overview of the General Agreement on Tariffs and Trade (GATT), its history, objectives, and impact on international trade.
An in-depth exploration of the General Agreement on Trade in Services (GATS), its historical context, provisions, significance, and impact on global trade in services.
The Generalized System of Preferences (GSP) is an initiative to promote economic growth in developing countries by providing preferential duty-free entry for products from designated beneficiary countries.
An in-depth exploration of global trade, its history, types, key events, mathematical models, importance, applicability, examples, considerations, and related terms.
Comprehensive guide on the Harmonized System (HS), its historical context, categories, key events, explanations, importance, applicability, and more.
An in-depth exploration of the Heckscher-Ohlin Model, which theorizes the impact of countries' factor endowments on international trade patterns, prices, and production.
The Heckscher-Ohlin Theorem posits that countries export goods that use their abundant and cheap factors of production, and import goods that require factors in short supply. This article explores the historical context, key events, detailed explanations, models, and importance of this theorem in the context of international economics.
The Heckscher-Ohlin Theory explains international trade patterns based on a country's factor endowments, predicting that nations will export goods that utilize their abundant resources.
Immiserizing Growth is an economic phenomenon where an increase in national or regional production leads to a decrease in overall welfare. This complex and counterintuitive situation often arises due to adverse changes in terms of trade.
A comprehensive guide to understanding import quotas, including historical context, types, key events, detailed explanations, mathematical models, charts and diagrams, importance, applicability, examples, related terms, comparisons, interesting facts, famous quotes, FAQs, and references.
Detailed overview of import quotas, their economic implications, types, historical context, and related terms in international trade.
A detailed overview of import surcharges, their purpose, historical context, key events, applicability, and importance in global economics.
Import/export agents specialize in the logistics and documentation required for importing and exporting goods, distinguishing themselves from trading houses by focusing on these specific tasks.
A comprehensive guide on imports, encompassing goods and services bought by residents of a country but provided by non-residents, including visible and invisible imports, capital imports, and their importance in the global economy.
Incoterms are standardized international trade terms created by the International Chamber of Commerce (ICC) to define the responsibilities of buyers and sellers in the delivery of goods.
Incoterms, or International Commercial Terms, are a set of standardized trade terms that are used globally to define the responsibilities of buyers and sellers in the international shipment of goods.
Inter-Industry Trade involves the exchange of different types of goods between countries based on differences in factor endowments. It is characterized by the export of goods where countries have a relative advantage and the import of goods that are costly to produce domestically.
An in-depth exploration of International Competitiveness, including its definitions, historical context, types, key events, formulas, importance, examples, and related terms.
Intra-Industry Trade involves the simultaneous import and export of goods within the same classification, driven by factors like product differentiation and scale economies.
Invisibles refer to international trade in services, encompassing a broad range of non-physical goods including financial services, tourism, education, and consultancy. This term differentiates from tangible goods in global trade.
The Kennedy Round of international trade talks held under the General Agreement on Tariffs and Trade (GATT) in 1964-1967. It aimed to reduce tariffs on manufacturing goods significantly.
An observation in international trade that contradicts the Heckscher-Ohlin theory, suggesting that a country does not always export goods that use its abundant factors intensively.
The Leontief Paradox observes that the US, despite being the world's most capital-rich country, had exports that were labor-intensive rather than capital-intensive, challenging the Heckscher-Ohlin model of international trade.
A comprehensive guide to letters of credit, including historical context, types, key events, importance, and usage in international trade.
A Letter of Credit (LC) is a financial instrument primarily used in international trade to guarantee payment to the seller upon fulfillment of specific conditions stipulated in the LC.
Detailed exploration of Managed Trade, its historical context, key events, significance, types, and impact on global economies.
A criterion in international economics establishing that a currency depreciation will positively affect a country's trade balance if the sum of the price elasticities of exports and imports exceeds one.
An in-depth analysis of the Millennium Round, the latest series of trade negotiations under the World Trade Organization, initiated in 1999 in Seattle and continued in 2001 in Doha.
Most Favoured Nation (MFN) is a status granting equal treatment to imports from the partner country, ensuring no less favourable treatment than that given to similar goods from other countries. This article delves into the historical context, key features, and significance of the MFN clause in international trade agreements.
An in-depth look into the Most-Favored-Nation (MFN) principle, a key concept in international trade ensuring non-discriminatory treatment among World Trade Organization (WTO) members.
