IB Terms H-O 작성중

Harmonized Tariff Schedule (HTS)

A method of classification used by many countries to determine tariffs on imports.

 

Heavily Indebted Poor Countries Initiative

A major international response to the burdensome external debt held by the world's poorest, most indebted countries. It originated in 1996 as a joint undertaking of the World Bank and the International Monetary Fund (IMF). Also known as the HIPC Initiative.

 

Hedge Funds / 헤지펀드

Speculative funds managing investments for private investors (in the US, such funds are unregulated if the number of investors does not exceed one hundred).

 

Hedge Portfolio

The country-specific hedge portfolio in the International Asset Pricing Model serves as a store of value (like the risk-free asset in the CAPM) as well as a hedge against the currency risk of the market portfolio.

 

High-withholding-tax Interest Income

In the U.S. tax code, interest income that has been subject to a foreign gross withholding tax of five percent or more.

 

Home Asset Bias

The tendency of investors to overinvest in assets based in their own country.
투자자들이 자국 내에 기반을 둔 자산에 과잉 투자하는 경향.
 

Homogeneous Expectations

Idea that all individuals have the same beliefs concerning future investments, profits, and dividends.

 

Horizontal Foreign Direct Investment

Foreign direct investment in the same industry abroad as a firm operates in at home.

 

Hot Money

1 Large quantities of money that move quickly in international currency exchanges due to speculative activity.

2 Foreign funds temporarily transferred to a financial centre and subject to withdrawal at any moment.

 

Hybrid Companies

A hybrid company is a company having various classes of membership which typically can comprise registered stock, guaranteed membership and unlimited membership. The guarantor member being liable to contribute to the company a stated sum in the event of insolvency or liquidations, whilst an unlimited member, as the name implies, has no limit on his liability relating to the debts of the company in the event of an insolvency.

 

Hyperinflation

An extremely high rate of inflation, often exceeding several hundred or several thousand percent, that causes a country's money to become practically worthless.

 

Hysteresis

The behavior of firms that fail to enter markets that appear attractive and, once invested, persist in operating at a loss. This behavior is characteristic of situations with high entry and exit costs along with high uncertainty.

 

Implicit Tax / 내재적 조세

Lower (higher) before-tax required returns on assets that are subject to lower (higher) tax rates.

 

Import License / 수입승인

A document required and issued by some national government authorizing the importation of goods into their individual countries.

 

Income Baskets

In the U.S. tax code, income is allocated to one of a number of separate income categories. Losses in one basket may not be used to offset gains in another basket.

 

INCOTERMS

Trade terms used worldwide to specify seller and buyer obligations in shipments against international sales contracts. Proposed, updated and copyrighted by the International Chamber of Commerce (ICC), they serve as global standards for uniform interpretation of common contract clauses in international trade.

 

Indirect Diversification Benefits

Diversification benefits provided by the multinational corporation that are not available to investors through their portfolio investment.

 

Indirect Exporting

Export products to foreign markets by using an intermediary, usually export trading company based in the exporter’s country.

 

Indirect Terms

The price of a unit of domestic currency in foreign currency terms such as DM1.5272/$ for a U.S. resident (contrast with direct terms).

 

Infant Industry Argument

The infant industry argument is a rationale for the “temporary protection” of a new industry or firm in order to help it become established domestically and later become competitive worldwide. These protections consist of tariff and non-tariff barriers to imports, preventing global competition from entering the market.

 

Inflation Rate / 인플레이션율

The general increase in the price level herein measured by the growth rate in the GNP Implicit Price Index or the general price deflator.

 

Insider Dealing / 내부자 거래

A criminal offence involving the purchase or sale of shares by someone who possesses 'inside' information about a company's performance and prospects which is not yet available to the market as a whole, and which if available might affect the share price.
범죄 행위. 특정 기업의 관계자가 아직 시장에 공개되지 않은 그 기업의 성과, 전망 등 내부 정보를 이용하여 주식을 거래한 행위. 

 

Integrated Financial Market

A market in which there are no barriers to financial flows and purchasing power parity holds across equivalent assets.

 

Intellectual Property Rights / 지적재산권

Patents, copyrights, and proprietary technologies and processes that are the basis of the multinational corporation’s competitive advantage over local firms.

 

Inter-American Development Bank

A regional development bank designed to promote sustainable economic development in the Western Hemisphere. Its headquarters are located in Washington, D.C.

 

Interest Rate Risk / 이자율위험

The risk of unexpected changes in an interest rate.

 

Interest Rate Swap

An agreement to exchange interest payments for a specific period of time on a given principal amount. The most common interest rate swap is a fixed-for-floating coupon swap. The notional principal is typically not exchanged.

 

Intermediated Market / 중개시장

A financial market in which a financial institution (usually a commercial bank) that stands between borrowers and savers.

 

Intermodal

The use of two or more modes of transportation to complete a cargo move; truck/rail/ship, or truck/air, for example.

 

Internal Market

A market for financial securities denominated in the currency of a host country and placed within that country.

 

International Accounting Standards Board (IASB)

The International Accounting Standards Board (IASB) is an independent, privately funded organization that sets international accounting standards. The IASB is committed to developing a single set of high quality, understandable and enforceable global accounting standards that require transparent and comparable information in general purpose financial statements.

 

International Asset Pricing Model (IAPM)

The international version of the Capital Asset Pricing Model in which investors in each country share the same consumption basket and purchasing power parity holds.

 

International Bank for Reconstruction and Development

Also called the World Bank, an international organization created at Breton Woods in 1944 to help in the reconstruction and development of its member nations.

 

International Bonds

Bonds that are traded outside the country of the issuer. International bonds are either foreign bonds trading in a foreign national market or Eurobonds trading in the international market.

 

International Business Company (IBC)

A term used to define a variety of offshore corporate structures. Common to all IBCs are its dedication to business use outside the incorporating jurisdiction, rapid formation, secrecy, broad powers, low cost, low to zero taxation and minimal filing and reporting requirements. An increasing number of offshore jurisdictions are permitting the use of bearer shares, nominee shareholders, directors and officers.

 

International Chamber of Commerce (ICC)

International non-governmental body concerned with promotion of trade and harmonization of trading practice. Responsible for drafting and publishing.

 

International Energy Agency (IEA)

An autonomous agency linked with the Organization for Economic Cooperation and Development (OECD). It is the authoritative source for energy statistics worldwide and an energy policy advisor for 28 member countries. It was founded during the oil crisis of 1973-74 and was initially focused on coordinating efforts between member countries in times of oil supply emergencies. Since then it has expanded its role to encompass climate change policies, market reform, energy technology collaboration, and outreach to the rest of the world.

 

International Labour Organization (ILO)/ 국제노동기구

The International Labour Organization is the UN specialized agency which seeks the promotion of social justice and internationally recognized human and labour rights. The ILO formulates international labour standards in the form of conventions and recommendations setting minimum standards of basic labour rights.

 

International Monetary Fund (IMF) /국제통화기금

An international organization designed to promote global economic stability and development. It compiles statistics on cross-border transactions and publishes a monthly summary of each country’s balance of payments.

 

International Monetary System

The global network of governmental and commercial institutions within which currency exchange rates are determined.

 

International Organization for Standardization (ISO)

ISO is a worldwide federation of national standardization bodies of more than 159 countries. Established as a non-government organization in 1947, it develops international standards and publishes them. All branches other than electrical engineering standards are within the scope of ISO.

 

International Strategy

Attempting to create value by transferring core competencies to foreign markets where indigenous competitors lack those competencies.

 

Intervention

The efforts undertaken by a country or its central bank to affect the price of the country’s currency on the exchange market. This can be done either through the government buying or selling large quantities of the currency to affect total supply, or by the central bank changing interest rates to affect the cash flow into the country.

 

Investment Agreement

An agreement specifying the rights and responsibilities of a host government and a corporation in the structure and operation of an investment project.

 

Invisible Barriers to Trade

Government regulations that do not directly restrict trade but have a hindering effect on through the use of excessive and obscure requirements on goods before they can be sold, especially imported goods. While known to local business people, foreign investors are not aware of these conditions, making them “invisible.” Labeling requirements or other sorts of measurement or sanitary standards would be an example of this.

 

Jeito

The way of somehow getting things done in Brazil; the jeito can help conquer seemingly insurmountable tasks (Portuguese).

 

Kanban System

A Japanese just-in-time inventory system that makes use of cards to signal the need for more raw materials or supplies.

 

Keiretsu / 계열(일본)

Collaborative groups of vertically and horizontally integrated firms with extensive share cross-holdings and with a major Japanese bank or corporation at the center.

 

Kyoto Protocol / 교토 의정서(프로토콜)

A multilateral environmental agreement; its goal is to control global warming by reducing greenhouse gases emitted into the Earth's atmosphere.

 

Laissez-faire

A term associated with the free enterprise economic system which calls for minimal government intervention or regulation, except in maintenance of this economic freedom.

 

Landed Cost

The quoted or invoiced cost of a commodity, plus any inbound transportation charges.

 

Latin American Integration Association (LAIA)

A trade integration association of Latin American countries dedicated to the improvement of member economic well-being through free trade.

 

Laundering

Laundering is the process of cleaning illicitly gained money so that it appears to either have come from or to be going to a legitimate source.

 

Law of One Price

The principle that equivalent assets sell for the same price. The law of one price is enforced in the currency markets by financial market arbitrage. Also known as purchasing price parity (PPP).

 

Leading and Lagging

Reduction of transaction exposure through timing of cash flows within the corporation.

 

Least Developed Country (LDC) /

A country, according to United Nations, characterized as having low gross national income per capita, a weakness in human resources, and economic vulnerability. Note: Many sources prefer LLDC to denote Least Developed Countries and LDC for Less Developed Countries.

 

Letter of Credit (L/C)

A letter issued by an importer’s bank guaranteeing payment upon presentation of specified trade documents (invoice, bill of lading, inspection and insurance certificates, etc.).

 

Letter of Intent

A document describing the preliminary understanding between parties intending to join together in some sort of action or engage in a contract.

 

Letter of Wishes/Memorandum of Wishes

A document prepared by the settlor of grantor of a trust providing guidance on how trustees should exercise their discretions.

 

Liberalization / 자유화

The process by which certain business activities become more market driven.

 

License

Here you sell a person or company the right to use either a copyright or patent for a specific length of time, or in a restricted area.

 

License Agreement

A sales agreement in which a domestic company (the licensor) allows a foreign company (the licensee) to market its products in a foreign country in return for royalties, fees, or other forms of compensation.

 

Licensing

One firm gives another firm a permission, which allows the latter to engage in an activity otherwise legally forbidden to it. Such activities usually involve the transfer of intellectual and proprietary knowledge in return for royalty as revenue.

 

Limited Flexibility Exchange Rate System

The International Monetary Fund’s name for an exchange rate system with a managed float.

 

Limited Partnership

A limited partnership is a partnership with at least one general partner who is fully liable for the engagements of the partnership, whilst the limited partners are only liable to the extent of their unpaid partnership capital. Limited partners may not be involved in the management of the partnership without jeopardising their limited status.

 

Limited Liability Partnership

A limited liability partnership is a vehicle intended for professional firms in which all partners may be involved in management but the partnership as a whole has a stated paid up capital, against which creditors may mount an action. It should be noted that in a limited liability partnership there is no limit in respect of claims of negligence against individual partnership members but the claim against the whole partnership would ipso facto be of a defined maximum amount.

 

Limited Liability Limited Partnership

This is a limited partnership which has been re-registered as a limited liability partnership. A limited liability limited partnership designation however indicates to third parties that the partnership commenced its activities as a limited partnership before converting to a limited liability partnership.

 

Local Content Requirement

A requirement that some specific fraction of a good be produced domestically.

 

Location-specific Advantages

Advantages (natural and created) that are available only or primarily in a single location.

 

Lombard Rate

The rate of interest changed by the Bundesbank, Germany’s central bank, to loans backed by moveable, easily-sold assets.

 

London Interbank Bid Rate (LIBID)

The bid rate that a Euromarket bank is willing to pay to attract a deposit from another Euromarket bank in London.

 

London Interbank Offer Rate (LIBOR)

The offer rate that a Euromarket bank demands in order to place a deposit at or make a loan to another Euromarket bank in London.

 

Lump of Labor Fallacy

The fallacious argument which, working on the assumption that there is only a fixed amount of work in the world, says that an increasing population will inevitably lead to increasing unemployment. This argument is often used by governments as reasoning behind reducing the workweek to reduce unemployment.

 

Maastricht Treaty

The treaty, formally known as the Treaty on European Union, signed in 1992, that led to the unification of many European countries. The treaty changed the name of the European Community (EC) to the European Union (EU) and led to the creation of a monetary union with a European Central bank, political and military integration, common foreign policy, and common citizenship among member countries.

 

Macro Country Risks

Country (or political) risks that affect all foreign firms in a host country.

 

Managed Bank

An offshore bank also known as a Class "B" or cubicle bank. The managed bank is not required to maintain a physical presence in the licensing jurisdiction. Its presence in the licensing jurisdiction is passive with nominee directors and officers provided by a managing trust company with a physical presence. The managed bank is not permitted to transact business within the licensing jurisdiction but may maintain its books, records, etc there to assure secrecy of operations.

 

Maquiladoras

Duty-free assembly plants located mainly in the developing world. Maquiladoras are one type of foreign direct investment.

 

Market Access

The extent to which a domestic industry can penetrate a related market in a foreign country. Access can be limited by tariffs or other non-trade barriers.

 

Market Economy / 시장 경제

An economy in which resource allocations, prices and other marketing decisions are primarily determined by the free market.

 

Market Failure

A failure of arms-length markets to efficiently complete the production of a good or service. In the eclectic paradigm, the multinational corporation’s market internalization advantages take advantage of market failure.

 

Market Internalization Advantages

Advantages that allow the multinational corporation to internalize or exploit the failure of an arms-length market to efficiently accomplish a task.

 

Market Maker

A financial institution that quotes bid (buy) and offer (sell) prices.

 

Market-based Corporate Governance System

A system of corporate governance in which the supervisory board represents a dispersed set of largely equity shareholders.

 

Matchmaker Program

A service organized by the United States International Trade Administration, this program aids firms that are new to exporting or new to the market to meet prescreened business prospects in foreign markets who are interested in their products or services.

 

Memorandum of Association

The charter of a company which indicates nationality, the nature of its business and the share capital it is authorised to issue. It is a statutory document which effectively governs the company's relations with the outside world.

 

Melanesian Spearhead Group (MSG)

A regional trade treaty involving the states of Vanuatu, Solomon Islands, Papua New Guinea and Fiji created to foster and accelerate economic development through trade relations and provide a political framework for regular consultation and review on the status of the Agreement.

 

Mercantalism

An economic philosophy advocating that countries should simultaneously encourage exports and discourage imports.

 

MERCOSUR

The “common market of the South,” a customs union which includes Argentina, Brazil, Paraguay, Uruguay, and Venezuela in a regional trade pact that reduces tariffs on intrapact trade by up to 90 percent. Bolivia, Chile, Colombia, Ecuador and Peru are associate members.

 

Method of Payment

The way in which a merger or acquisition is financed.

 

Micro Country Risks

Country risks that are specific to an industry, company, or project within a host country.

 

Microcredit

Small loans, perhaps $50 or $100, that are extended to small businesses to finance a business start-up or other business activity.

 

Middle Market

A market segment generally represented by financing under $2 million. In leasing, this sector is dominated by single investor leases.

 

Miller and Modigliani’s Irrelevance Proposition

Theory that if financial markets are perfect, then corporate financial policy (including hedging policy) is irrelevant.

 

Mixed Economy

An economy in which certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant government ownership and government planning.

 

Mixed Tariff

A combination of specific and ad valorem tariffs.

 

Monetary Assets and Liabilities

Assets and liabilities with contractual payoffs.

 

Money Market Hedge

A hedge that replicates a currency forward contract through the spot currency and Eurocurrency markets.

 

Money Market Yield

A bond quotation convention based on a 360-day year and semiannual coupons (contrast with bond equivalent yield).

 

Money Markets

Financial markets for debt securities that pay off in the short term (usually less than one year).

 

Money Supply

The total amount of currency in circulation and peso deposits subject to check of the monetary system.

 

Monopoly / 독점

Exclusive control or possession by one group of the means of producing or selling goods or services.

 

More Flexible Exchange Rate System

The International Monetary Fund’s name for a floating exchange rate system.

 

Most Favored Nation (MFN)

A status granted to one country by another; the granting country then accords the recipient's imports and exports the most favorable treatment that it accords any country.

 

Multidomestic strategy

A strategy emphasizing the need to be responsive to the unique conditions prevailing in different national markets.

 

Multilateral Environmntal Agreements (MEAs)

Environmental agreements negotiated by a number of countries.

 

Multilateral Investment Guarantee Agency (MIGA)

One of the five institutions comprising the World Bank Group; MIGA’s purpose is to help encourage equity investment and other kinds of direct investment flow into developing countries.

 

Multinational Corporation (MNC) / 다국적기업

A corporation with operations in more than one country.

 

Multinational Netting

Elimination of offsetting cash flows within the multinational corporation.

 

Mutually Exclusive Investment Decisions

Investment decisions in which the acceptance of a project precludes the acceptance of one or more alternative projects.

 

Naamloze Vennootschap (NV)

In Dutch Company Law, the NV is the form of incorporation favoured by larger companies. It can be compared to the American corporation.

 

National Tax Policy

The way in which a nation chooses to allocate the burdens of tax collections across its residents.

 

National Trade Data Bank (NTDB)

The U.S. Government's most comprehensive source of international trade data and export promotion information. Types of information on the NTDB include: international market research, export opportunities; indices of foreign and domestic companies; how-to market guides; reports on demographic, political, and socio-economic conditions for hundreds of countries; and much more.

 

National Treatment

A country accords no less favorable treatment to imported goods than it does to domestic goods.

 

Nationalization / 국유화

A process whereby privately owned companies are brought under state ownership and control (contrast with privatization).

 

Natural Advantage

Theory in economics that certain countries have a competitive advantage in certain products due to their access to specific natural resources, their climactic conditions, or their transportation system.

 

Negative-NPV Tie-in Project

A negative net present value infrastructure development project that a local government requires of a company pursuing a positive-NPV investment project elsewhere in the economy.

 

Net Position

A currency position after aggregating and canceling all offsetting transactions in each currency, maturity, and security.

 

New Protectionism / 신보호주의

Recent efforts to pressure national governments to exercise greater control over foreign trade and foreign direct investment.

 

New-to-export (NTE)

The name of the circumstances of a company that either engages in export activities for the first time, engages in exportation for first time in twenty-four months, or has only exported to because of prior unsolicited orders. Export assistance is available to companies with this classification.

 

New-to-market (NTM)

The name of the circumstances under which a company exports to a foreign market in which it has either never exported to, has not exported to for the past twenty-four months, or has only exported to because of prior unsolicited orders. Assistance is available to companies with this classification.

 

Newly Industrializing Countries (NIC)

A group of former developing countries who, due to high levels of economic growth, have grown rapidly in recent years.

 

Nominal Cash Flow

A cash flow expressed in nominal terms if the actual dollars to be received (or paid out) are given.

 

Nominal Interest Rate

Interest rate unadjusted for inflation.

 

Nominee

Company or private individual used to act as owner or director of a company on behalf of another party. This is who you say owns or runs the company.

 

Nominee Company

A company formed for the express purpose of holding securities and other assets in its name or to provide nominee directors and/or officers on behalf of clients of its parent bank or trust company.

 

Nominee Director

A director whose function is passive in nature. The director receives a fee for lending his or her name to the organisation. Nominee directors are subject to director responsibilities.

 

Nominee Name

Name in which security is registered and held in trust on behalf of the beneficial owner.

 

Non-governmental Organizations (NGOs)

Legally constituted, special interest groups created by natural or legal persons with no participation or representation of any government.

 

Non-market Economy

An economy in which the government, through the use of central planning, makes most economic decisions to control economic activity.

 

Non-tariff Barrier / 비관세 장벽

An indirect measure used to discriminate against foreign manufacturers, for example, extensive inspection procedures for foreign imports that create barriers to entering the market.

 

Nonconvertible Currency

A currency is not convertible when both residents and nonresidents are prohibited from converting their holdings of that currency into another currency.

 

Nonintermediated Debt Market

A financial market in which borrowers (governments and large corporations) appeal directly to savers for debt capital through the securities markets without using a financial institution as intermediary.

 

Nordic Council

A regional alliance established in 1952 between Norway, Sweden, Finland, Denmark, and Iceland that is dedicated to cooperation among the Nordic countries. This has led to a common labor market, social security, and free movement of citizens across borders.

 

Normal Trade Relations (NTR)

New name for Most Favored Nation (MFN) trading status, in which the country which grants this status accords the recipient's imports and exports the most favorable treatment that it accords any country.

 

North American Free Trade Agreement (NAFTA)

A regional trade pact among the United States, Canada, and Mexico.

 

North-south Divide

A socio-economic and political division that exists between wealthy developed countries, known collectively as "the North", and poorer developing countries, or "the South."

 

Offering Statement

In the United States, a shortened registration statement required by the Securities and Exchange Commission on debt issues with less than a 9-month maturity.

 

Official Settlements Balance

An overall measure of a country’s private financial and economic transactions with the rest of the world. Also known as overall balance.

 

Offshore Company

See International Business Company.

 

Offshore Dollars

Same as Eurodollars but encompassing such deposits held in banks and branches anywhere outside the US, including Europe.

 

Offshore Financial Centers (OFCs)

Offer little or no government interference in legitimate business and financial activities. In many cases, OFCs also offer very low or zero tax rates, and provide excellent communication facilities. / A country or jurisdiction where an international attempt has been made to attract foreign business by deliberate government policy, such as the enactment of secrecy laws and tax incentives.

 

Offshore Limited Partnership

A partnership, the general partner of which is an offshore company but the limited partners may be onshore entities.

 

Offshore Profit Centres

Branches of major international banks and multinational corporations located in a low tax financial centre, which are established for the purpose of lowering taxes.

 

Offshore Trust

The quality that differentiates an offshore trust from an onshore trust is portability. The offshore trust can be transferred to alternative jurisdictions to maintain confidentiality and to advantage desirable facets of the new jurisdiction's laws.

 

Oligopoly / 과전(寡占)

A market dominated by so few sellers that action by any of them will impact both the price of the good and the competitors.

 

Open and Reform Policy

An economic policy enacted by the Chinese government combining central planning with market-oriented reforms to increase productivity, living standards, and technological quality without exacerbating inflation, unemployment, and budget deficits, with the goal of moving from a centrally-planned economy to a market-based one.

 

Operational Efficiency

Market efficiency with respect to how large an influence transactions costs and other market frictions have on the operation of a market.

 

Orderly Marketing Agreements

Agreements between two or more governments to hold back the growth of trade for certain products by limiting exports and imposing import quotas.

 

Organization for Economic Cooperation and Development (OECD) / 경제협력개발기구

A group of 30 countries that meets regularly to discuss global issues and make appropriate economic and social policies.

 

Organization of American States (OAS)

A regional organization created in 1948 promoting the economic and social development of Latin America. Members include the U.S., Mexico, most of South and Central America, and most of the Caribbean nations.

 

Organization of Petroleum Exporting Countries (OPEC) / 석유수출국기구

An organization of countries formed in 1961 to agree on a common policy for the production and sale of petroleum.

 

Outsourcing / 아웃소싱

A situation in which a firm's functions are performed or provided by a person or group from outside the company.

 

Overall FTC Limitation

In the U.S. tax code, a limitation on the FTC equal to foreign-source income times U.S. tax on worldwide income divided by worldwide income.

 

Overseas Countries and Territories (OCT)

A group of twenty-one territories which depend constitutionally on four of the European Union Member States: Denmark, France, the Netherlands, and the United Kingdom.

 

Overseas Private Investment Corporation (OPIC)

A U.S. agency that assists U.S. businesses invest overseas and promotes economic development in new and emerging markets.

 

Ownership-specific Advantages / 기업특유 우위

Property rights or intangible assets, including patents, trademarks, organizational and marketing expertise, production technology and management, and general organizational abilities, that form the basis for the multinational’s advantage over local firms.