Term
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Definition
| the possibility of loss or gain caused by economic variables, such as product demand and market competition |
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Term
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Definition
| the trade advantage that a country has when it specializes in goods or services it produces more efficiently and trades them for the goods and services it produces less efficiently |
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Term
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Definition
| the trade advantage that a country has when it gains from trading with other countries, even when it is more efficient in production of all the traded goods and services |
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Term
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Definition
| in international trade, the permission granted by one company to another to manufacture its product or to use its distribution facilities or technology |
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Definition
| one company’s assignment to another company of the right to supply its products within a market |
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Term
| Foreign direct investment |
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Definition
| a company’s acquisition of control over assets located in another country |
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Term
| Foreign portfolio investment |
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Definition
| a company’s purchase of foreign stocks, bonds or other financial instruments |
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Term
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Definition
| a company owned or controlled by another company |
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Term
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Definition
| in the context of international trade, a country that enters a foreign market seeking that country’s resources |
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Term
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Definition
| in the context of international trade, a company that seeks new markets outside its own boundaries |
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Term
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Definition
| in the context of international trade, a company that follows its customers into foreign countries |
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Term
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Definition
| a form of government by the people through elected representatives |
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Term
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Definition
| a form of government in which elected representatives have no political party affiliation |
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Term
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Definition
| a form of government involving rule by a prime minister and elected parliament |
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Term
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Definition
| a form of government in which the citizens directly elect a president |
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Term
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Definition
| a form of government in which representatives may be elected from several or many political parties |
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Definition
| a form of government by a group of military officers governing a country after seizing power |
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Term
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Definition
| the assumption of control of a country by the military |
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Term
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Definition
| a form of government led by a hereditary chief of state with powers varying from absolute to ceremonial |
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Term
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Definition
| a form of government led by a single ruler who selects advisers for assistance |
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Term
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Definition
| a form of government with a parliament, or a democratic legislative body but with a monarch as a formal or ceremonial head of state |
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Term
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Definition
| a form of government that constitutionally permits only one specific political party |
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Definition
| a form of government based on a religious doctrine and often led by religious leaders |
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Term
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Definition
| a temporary form of government used when a country is rebuilding its government, usually as a result of war |
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Term
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Definition
| the body of legal principles governing relationships among nations |
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Term
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Definition
| a law that concerns the interrelation of nation states and that is governed by treaties and other international agreements |
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Term
| Private international law |
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Definition
| a law that involves disputes between individuals or corporations in different countries |
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Term
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Definition
| the courtesy by which one country recognizes, within its own territory or in its courts, another country’s institutions |
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Term
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Definition
| a currency based on the fixed exchange rate of another country’s currency |
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Term
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Definition
| a government’s lawful acquisition of property without the owner’s consent |
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Term
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Definition
| a revenue collection scheme that taxes all companies only on the economic activity that occurs within the country’s geographic boundaries, regardless of the location of the company’s incorporation or operations |
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Term
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Definition
| a revenue collection scheme that taxes domestically incorporated companies on their total earnings from both domestic and international activities |
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Term
| Border tax adjustment (BTA |
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Definition
| tax rebates on exported goods and taxes on imported goods, used by a government to establish a “tax-neutral” setting for international trade and investment |
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Term
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Definition
| a process by which a company reduces its overall tax liability by moving earnings from one taxing jurisdiction, typically a high-tax jurisdiction, to another jurisdiction, typically a low-tax jurisdiction |
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Term
| Inversion, or expatriation, or reincorporation |
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Definition
| the process by which a corporate entity established in a low-tax country purchases the shares and/or assets of a domestic corporation |
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Term
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Definition
| the price one part of a company charges for products and services it provides to another part of the same company |
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Term
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Definition
| a country whose regulations offer financial and business incentives encouraging organizations from other countries to do business there |
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Term
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Definition
| a corporate share that is owned by the holder of the share certificate and is not registered; therefore, ownership remains private |
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Term
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Definition
| a corporate share on which records are kept indicating the share’s owner and its selling and buying price |
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Term
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Definition
| the process by which a U.S. parent company moves earnings from its foreign-based affiliates back to the U.S. to the parent company or to its stockholders |
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Term
| Foreign sales corporation (FSC) |
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Definition
| an organization that U.S. law permits export-intensive corporations to create in order to reap tax benefits from exports |
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Term
| Extraterritorial income (ETI |
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Definition
| a mechanism to subsidize U.S. exporters unable to take advantage or border tax adjustments because the U.S. has an income tax rather than consumption tax like Europe’s value-added tax (VAT) |
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Term
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Definition
| the act of selling a large quantity of goods at less than fair value, including selling goods abroad at less than the market price at home |
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Definition
| the European Union’s member countries’ single, unified market in which goods, services, people, and capital can move freely across borders |
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Term
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Definition
| a single European currency managed by the European Central Bank |
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