Category: Glossary

A glossary of Global Business terms.

Tariff

The most common way to protect one’s economy from import competition is to implement a tariff: a tax on imports. Generally speaking, a tariff is any tax or fee collected by a government. Sometimes the term “tariff” is used in a nontrade context, as in railroad tariffs. However, the term is much more commonly used to refer to a tax on imported goods. Read more 

Source:Policy and Theory of International Trade from http://2012books.lardbucket.org

Agency Costs

The costs incurred to ensure that agents and managers act in the best interest of the principal. For example, reward to managers as a percentage of profit.

Source” Global Edge glossary of terms. Available on http://globaledge.msu.edu/reference-desk/glossary

African, Caribbean, and Pacific Countries (ACP) –

The African, Caribbean and Pacific Group of States (ACP) is an organization created by the Georgetown Agreement in 1975. It is composed of 79 African, Caribbean and Pacific States. All 79 states are signatories to the Cotonou Agreement (a partnership agreement between the ACP and the European Union).

Source” Global Edge glossary of terms. Available on http://globaledge.msu.edu/reference-desk/glossary

African Union (AU)

The African Union is an organization for regional, social and economic cooperation. It consists of 53 member nations in Africa and was derived from the OAU (Organisation of African Unity). Its goal is to unify Africa and promote peace, security, and stability on the continent through social and economic cooperation.

Source” Global Edge glossary of terms. Available on http://globaledge.msu.edu/reference-desk/glossary

Absolute Advantage

An absolute advantage exists when a nation or economic region is able to produce a good or service more efficiently (using the same amount of resources) than a second nation or region.

Source” Global Edge glossary of terms. Available on http://globaledge.msu.edu/reference-desk/glossary

Export licensing decisions

Licence applications are submitted to and processed by the Export Control Organisation (ECO), part of the Department for Business, Innovation and Skills, through a purpose-built online licensing system called Spire. The ECO issues licences for controlling the export of strategic goods.

Whether or not an export licence is required is determined by four factors, the:

– nature of the goods due to be exported
– destination concerned
– ultimate end use of the goods
– licensability of trade activities of the goods due to be exported

Broadly there are two types of licence, individual and general. Licences can be standard or open.

Each licence names the goods that can be exported and specifies the destinations to which they can be exported, along with other details and restrictions. General licences are pre-published and can be used by all eligible exporters whereas individual licences are issued following a successful application and allow only those named on the application to export certain goods. Those exporting under general licences must adhere to the terms and conditions of the licence under which they wish to export. Exporters must register with the ECO to use a general licence and are subject to regular audits to ensure the licence terms and conditions are being adhered to. Those requiring an individual licence must submit an application to the ECO where they wish to make exports not covered by the terms and conditions of a general licence.

Generally, open licences can be used with fewer restrictions than standard licences. Standard licences tend to name a specific quantity of specific goods that can be exported to a specific destination whereas open licences may include a wider range of goods or destinations and generally do not limit the quantity of goods that can be exported.

OER Source: Strategic Export control country pivot⊕ – BIS

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