Trading Company

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Trading Company

Summary of Trading Company

A firm engaged in the purchase, distribution, and marketing of products in international trade. Generally, the trading company deals with products of unrelated firms as well as the manufacturers of joint ventures in which it is involved.

(Main Author: William J. Miller)

Trading Company and International Trade Economy

Trading Company in International Trade

Meaning of Trading Company, according to the Dictionary of International Trade (Global Negotiator): Trading companies are specialists that cover all export and import operations and procedures. A trading company buy products in one country and sold them in different countries where it has its own distribution network. This kind of companies mostly work with high production volumes of products such as raw materials, chemicals, generic pharmaceuticals, etc. The activities of a trading company include:

Identification of suppliers in different countries with capacity to supply large volumes of generic products at competitive prices.

Negotiating the terms of sale and delivery of products.

Financing and assurance of payment to the supplier-exporter.

Managing logistics and transport.

Managing customs and barriers of international trade.

Distribution and sale of the products through its retail network.

At present, trading companies specialize in emerging countries in areas of Asia, Africa or Latin America. Its function is to identify competitive suppliers, negotiate and purchase their products and sell them through a distribution network in its country or neighbouring countries. From a contractual point of view a trading company can act in four different ways:

Sales agent for those exporters that are domestic. The trading company establishes the marketing presence in foreign markets soliciting orders from foreign customers in the name of the manufacturer. Invoicing is done on the name of the manufacturer and helps the exporter with all details of the export transaction. The trading company may suggest the export price, but this principal has the final say on even whether to accept the order. The relationship with its clients is established through a International Commercial Agency Contract.

Buying agent for importers that want to buy a specific kind of products within a specific territory that can be a country or multiple countries well known by the trading company. The responsibilities of the trading company may include, among others: identifying manufacturers and suppliers of products within the described territory; negotiating prices, terms of delivery and payment; and managing the international transport of documents which comply with export and import procedures. The relationship with its clients is established through a International Buying Agent Contract.

Exclusive distributor on a buy-sell basis. The trading company buys a manufacturer at a set price and resells to foreign customers at a price established by itself. When the trading company is acting as a distributor, the manufacturer may have no control over the export price and not even know the foreign clients are. The relationship with its clients is established through an International Distribution Contract.

Intermediary in specific trade operations in which does not act as a buyer or seller but as an intermediary that charges a commission on export and import operations. The relationships with its clients (usually the exporter/sellers) are established through an Intermediary Contract for Trade Operations.

There are thousands of companies and professionals doing this international trading activity. In the GlobalTrade Directory there are over 3.500 international trade intermediaries classified by country and sector. See agent; distributor; export management company.

Resources

See Also

Export trading company, Transfer Pricing, Arm's length pricing

Related Entries of the International Encyclopedia:

  1. Export Entry Modes Export Entry Modes in International Trade Meaning of Export Entry Modes, according to the Dictionary of International Trade (Global Negotiator): In establishing export channels a company has to decide which functions will be the responsibility of external agents and which will be handled by [...]...
  2. Bank Export Services Act A 1982 act of Congress that amends Federal banking laws to permit banks to acquire equity, up to 100 percent, in Export Trading Companies. The act forms Title II of the Export Trading Company Act. See export TRADING COMPANY ACT.......
  3. Free Trade Zone Spanish Translation of free trade zoneThis is the legal translation of English to Spanish in relation to free trade zone and / or a definition of this topic: Zona de Libre Comercio (in Spanish, without translation of the dictionary entry)....
  4. Free Trade Area Summary of Free Trade Area An association of states that seeks to overcome impediments to trade among members by reducing or eliminating tariffs among the participants. The members of a free trade area do not maintain a common external tariff nor do they (usually) provide for the free flow [...]...
  5. Foreign Spanish Translation of foreignThis is the legal translation of English to Spanish in relation to foreign and / or a definition of this topic: Extranjero (in Spanish, without translation of the dictionary entry)....
  6. Export Manager Export Manager in International Trade Meaning of Export Manager, according to the Dictionary of International Trade (Global Negotiator): An export manager serves as intermediary between foreign buyers and domestic sellers. Unlike trading companies who buy the products before selling directly [...]...
  7. Export Diversification Summary of Export Diversification The movement of a nation away from the export of a single or limited number of products as the principal source of foreign exchange earnings. Export diversification programs are usually the priority objectives of small or underdeveloped nations, [...]...
  8. Export Companies In the United States For information about Export Companies in the context of international trade, click here...
  9. Premium Spanish Translation of premiumThis is the legal translation of English to Spanish in relation to premium and / or a definition of this topic: Prima (in Spanish, without translation of the dictionary entry)....
  10. Sogo Shosha A Japanese general trading company. Customarily, the term is used in connection with the largest of such companies. According to the Trade Business Statistics report for 1981 issued by the Japanese Ministry of International Trade and Industry, there are over 8,500 trading companies operating in [...]...
  11. Export Trading Company Export Trading Company and International Trade Economy In relation to international trade economy, Christopher Mark (1993) provided the following definition of Export Trading Company: (Also known as an export management company.) A private firm that provides related-related services to other [...]...
  12. Industrial Property Summary of Industrial Property Intangible property such as patents and trademarks.(Main Author: William J. Miller) Spanish Translation of industrial property This is the legal translation of English to Spanish in relation to industrial property and / or a definition of this [...]...
  13. Foreign Trade Antitrust Improvements Act A 1982 act of Congress, constituting Title IV of the export trading company act (read this and related legal terms for further details), which amends the Sherman Act and Federal Trade Commission Act to clarify their inap......
  14. Export Subsidy Summary of Export Subsidy A direct payment, tax relief, or other incentive provided by a government to encourage export sales. The use of such devices is apt to be regarded as undesirable by the importing nation and may result in the imposition of Countervailing Duties (read this legal term [...]...
  15. Liquidity Summary of Liquidity The quality of being convertible into monetary wealth; as relates to a given nation's economic condition, liquidity consists of that country's supply of gold, foreign exchange holdings, and Special drawing Rights (read this and related legal terms for further [...]...
  16. Confirming House A commercial institution engaged in nonrecourse financing of foreign trade. The confirming house may confirm a foreign buyer's order, acting as guarantor of payment to the seller; in some cases, the confirming house may actually take title to the goods as agent for the foreign purchaser, [...]...
  17. Insured Spanish Translation of insuredThis is the legal translation of English to Spanish in relation to insured and / or a definition of this topic: Asegurado (in Spanish, without translation of the dictionary entry)....
  18. Export Processing Zone Summary of Export Processing Zone A special type of Foreign Trade Zone (read this and related legal terms for further details) within which certain exemptions from duties, taxes, and regulations are granted as an inducement to export-oriented manufacturing. Customarily a manufacturer within [...]...
  19. Subrogation Spanish Translation of subrogation This is the legal translation of English to Spanish in relation to subrogation and / or a definition of this topic: Subrogación (in Spanish, without translation of the dictionary entry). Subrogation in International Trade Meaning of Subrogation, [...]...
  20. Without Prejudice Spanish Translation of without prejudiceThis is the legal translation of English to Spanish in relation to without prejudice and / or a definition of this topic: Reserva de Derechos (in Spanish, without translation of the dictionary entry)....
  21. Barratry An act committed by a master or mariners contrary to their duties to the ship, including, inter alia, mutiny, sabotage, and theft of cargo.......
  22. European Union Regulation Spanish Translation of European Union regulationThis is the legal translation of English to Spanish in relation to European Union regulation and / or a definition of this topic: Reglamento Comunitario (in Spanish, without translation of the dictionary entry)....
  23. State-Controlled Trading Company An instrumentality of a foreign government charged with the exclusive importation or exportation of a specific group of products. Such entities are most common in communist or centrally planned economies.......
  24. Export Value Summary of Export Value The price at which a foreign manufacturer customarily freely offers for sale a given product for export to the United States in the usual wholesale quantities, less export discounts, packing, and costs of preparing the goods for export. The use of this value [...]...
  25. To Deduct Tax Spanish Translation of to deduct taxThis is the legal translation of English to Spanish in relation to to deduct tax and / or a definition of this topic: Desgravar (in Spanish, without translation of the dictionary entry)....
  26. Demand Spanish Translation of demand and claim This is the legal translation of English to Spanish in relation to demand or claim and / or a definition of this topic: Demanda (in Spanish, without translation of the dictionary entry). Resources See Also Trade International Trade Commerce Commercial Law...
  27. Piggyback Distribution Piggyback Distribution in International Trade Meaning of Piggyback Distribution, according to the Dictionary of International Trade (Global Negotiator): Piggyback is a form of distribution in foreign markets in which a SME company (the "rider"), deals with a larger company (the [...]...
  28. Delivered Ex Quay Spanish Translation of delivered ex-quayThis is the legal translation of English to Spanish in relation to delivered ex-quay and / or a definition of this topic: D.E.Q. (in Spanish, without translation of the dictionary entry)....
  29. European Union Law Sources Spanish Translation of sources for European Union LawThis is the legal translation of English to Spanish in relation to sources for European Union Law and / or a definition of this topic: Fuentes del Derecho de la Unión Europea (in Spanish, without translation of the dictionary entry)....
  30. Exclusive Distribution Spanish Translation of exclusive distributionThis is the legal translation of English to Spanish in relation to exclusive distribution and / or a definition of this topic: Distribución Exclusiva (in Spanish, without translation of the dictionary entry)....
  31. Countertrade A commercial arrangement in which the buyer pays for his purchases, wholly or partly, with something other than money. Very often countertrade deals include some cash, but a significant portion of the transaction is settled with commodities or services. Countertrade has been employed heavily [...]...
  32. Trade Opportunities Program An export promotion service of the U.S. Department of Commerce, International Trade Administration. U.S. firms interested in marketing abroad may list their products with the International Trade Administration; this data will be retained in IT A computers and matched with inquiries received by [...]...
  33. Takeover Spanish Translation of takeoverThis is the legal translation of English to Spanish in relation to takeover and / or a definition of this topic: Absorción (in Spanish, without translation of the dictionary entry)....
  34. Export Trading Company Act A 1982 act of Congress designed to promote American exports by modifying the application of antitrust laws and reducing restrictions on export financing on certain export transactions. The legislation is divided into four parts. Title I directs the Department of Commerce to encourage the formation o......
  35. Offshore Trading Company Synonymous with foreign base trading company. See subpart f.......
  36. Payment Spanish Translation of payment and benefitsThis is the legal translation of English to Spanish in relation to payment or benefits and / or a definition of this topic: Prestación (in Spanish, without translation of the dictionary entry)....
  37. Transference of Lease Fees Spanish Translation of transference of lease feesThis is the legal translation of English to Spanish in relation to transference of lease fees and / or a definition of this topic: Derechos de Traspaso (in Spanish, without translation of the dictionary entry)....
  38. Final List A listing of products upon which a unique standard of valuation was applied for duty purposes. Prior to 1958 duties were applicable on virtually all imports on the basis of foreign value or export value, whichever was higher. The foreign value was the price at which goods were freely offered for con......
  39. Delivered Duty Unpaid Spanish Translation of delivered duty unpaidThis is the legal translation of English to Spanish in relation to delivered duty unpaid and / or a definition of this topic: D.D.U. (in Spanish, without translation of the dictionary entry)....
  40. Insurance Policy Spanish Translation of insurance policyThis is the legal translation of English to Spanish in relation to insurance policy and / or a definition of this topic: Póliza de Seguro (in Spanish, without translation of the dictionary entry)....
  41. Protective Tariff Spanish Translation of protective tariffThis is the legal translation of English to Spanish in relation to protective tariff and / or a definition of this topic: Bonificación Arancelaria (in Spanish, without translation of the dictionary entry)....
  42. Assignee Spanish Translation of assignee This is the legal translation of English to Spanish in relation to assignee and / or a definition of this topic: Causa Habiente (in Spanish, without translation of the dictionary entry). Assignee in E.U. Patent System The person(s) or corporate body to whom all [...]...
  43. Directive Spanish Translation of directive This is the legal translation of English to Spanish in relation to directive and / or a definition of this topic: Directiva (in Spanish, without translation of the dictionary entry). Directive and Europe There is an entry on directive in the European legal [...]...
  44. Put Option Spanish Translation of put optionThis is the legal translation of English to Spanish in relation to put option and / or a definition of this topic: Opción de Venta (in Spanish, without translation of the dictionary entry)....
  45. Right to Use Spanish Translation of right to useThis is the legal translation of English to Spanish in relation to right to use and / or a definition of this topic: Derecho de Usufructo (in Spanish, without translation of the dictionary entry)....
  46. Run Over Spanish Translation of to knock down and run overThis is the legal translation of English to Spanish in relation to to knock down or run over and / or a definition of this topic: Atropellar (in Spanish, without translation of the dictionary entry)....
  47. Specialization Agreement Also known as a rationalization agreement, an arrangement among competing manufacturers of like products that each will sell only certain products, thereby providing each participant in the agreement a dominant position for a given product.......
  48. Amount Due Spanish Translation of amount dueThis is the legal translation of English to Spanish in relation to amount due and / or a definition of this topic: Devengo (in Spanish, without translation of the dictionary entry)....
  49. Assertiveness Spanish Translation of assertivenessThis is the legal translation of English to Spanish in relation to assertiveness and / or a definition of this topic: Asertividad (in Spanish, without translation of the dictionary entry)....
  50. Beacon Spanish Translation of to beaconThis is the legal translation of English to Spanish in relation to to beacon and / or a definition of this topic: Balizar (in Spanish, without translation of the dictionary entry)....
  51. Beneficiaries Spanish Translation of beneficiariesThis is the legal translation of English to Spanish in relation to beneficiaries and / or a definition of this topic: Derechohabientes (in Spanish, without translation of the dictionary entry)....
  52. Co-owner Spanish Translation of co-ownerThis is the legal translation of English to Spanish in relation to co-owner and / or a definition of this topic: Comunero (in Spanish, without translation of the dictionary entry)....
  53. Conclusions Spanish Translation of conclusionsThis is the legal translation of English to Spanish in relation to conclusions and / or a definition of this topic: Conclusiones (in Spanish, without translation of the dictionary entry)....
  54. Congruity Spanish Translation of congruityThis is the legal translation of English to Spanish in relation to congruity and / or a definition of this topic: Congruencia (in Spanish, without translation of the dictionary entry)....
  55. Coupon Spanish Translation of couponThis is the legal translation of English to Spanish in relation to coupon and / or a definition of this topic: Cupón (in Spanish, without translation of the dictionary entry)....
  56. Gaps in the Law Spanish Translation of gaps in the lawThis is the legal translation of English to Spanish in relation to gaps in the law and / or a definition of this topic: Lagunas de la Ley (in Spanish, without translation of the dictionary entry)....
  57. In Force Spanish Translation of in forceThis is the legal translation of English to Spanish in relation to in force and / or a definition of this topic: En Vigor (in Spanish, without translation of the dictionary entry)....
  58. Inaccuracy Spanish Translation of inaccuracyThis is the legal translation of English to Spanish in relation to inaccuracy and / or a definition of this topic: Inexactitud (in Spanish, without translation of the dictionary entry)....
  59. Interrogatories Spanish Translation of interrogatoriesThis is the legal translation of English to Spanish in relation to interrogatories and / or a definition of this topic: Posiciones (in Spanish, without translation of the dictionary entry)....
  60. Knock Down Spanish Translation of to knock down and run overThis is the legal translation of English to Spanish in relation to to knock down or run over and / or a definition of this topic: Atropellar (in Spanish, without translation of the dictionary entry)....
  61. Precarious Spanish Translation of precariousThis is the legal translation of English to Spanish in relation to precarious and / or a definition of this topic: Precario (in Spanish, without translation of the dictionary entry)....
  62. Right of Redemption Spanish Translation of right of redemptionThis is the legal translation of English to Spanish in relation to right of redemption and / or a definition of this topic: Retracto (in Spanish, without translation of the dictionary entry)....
  63. Side Spanish Translation of sideThis is the legal translation of English to Spanish in relation to side and / or a definition of this topic: Costado (in Spanish, without translation of the dictionary entry)....
  64. Starboard Spanish Translation of starboardThis is the legal translation of English to Spanish in relation to starboard and / or a definition of this topic: Estribor (in Spanish, without translation of the dictionary entry)....
  65. The Nonretroactive Nature of Law Spanish Translation of the nonretroactive nature of lawThis is the legal translation of English to Spanish in relation to the nonretroactive nature of law and / or a definition of this topic: Irretroactividad de las Leyes (in Spanish, without translation of the dictionary entry)....
  66. Transfer of Insured Object Spanish Translation of transfer of insured objectThis is the legal translation of English to Spanish in relation to transfer of insured object and / or a definition of this topic: Transmisión del Objeto Asegurado (in Spanish, without translation of the dictionary entry)....
  67. Trading With The Enemy Act An act of Congress, originally enacted in 1917 and amended in 1941, that grants to the president, during times of war or national emergency, the authority to prohibit or regulate trade, investments, remittances, travel, and virtually any economic transactions with any designated country or its natio......
  68. Export Management Company A private company that serves as the export department of other firms, usually small- and medium-size manufacturers. An EMC will provide a variety of services for its clients, to include locating customers abroad, arranging transportation and financing for the merchandise, developing foreign [...]...
  69. Trading With the Enemy Embracing mainstream international law, this section on trading with the enemy explores the context, history and effect of the area of the law covered here. Resources Further Reading The entry "trading with the enemy" in the Parry and Grant Encyclopaedic Dictionary of International [...]...
  70. Outline of International trading of goods agreements Contents Outline of International trading of goods agreements Introduction I. Factors to Consider-how are international commercial transactions different from domestic ... Read more...
  71. Trade Barrier Summary of Trade Barrier Constraints upon the exchange of goods among nations imposed by governments; such constraints are manifested in the form of tariffs, quotas, exchange controls, and a variety of so-called nontariff barriers. Barriers usually arise to protect domestic industries, [...]...
  72. Trademark A device, symbol, or word used by a firm to distinguish its products from those of other manufacturers. The object of trademarks is to permit brand identification of products, which may permit a more ready market acceptance of current and new products. Trademarks are protected in the United [...]...
  73. Switch Trading Switch Trading and International Trade Resources See Also Countertrade...
  74. Export Trading In the United States For information about Export Trading in the context of international trade, click here...
  75. Matimak Trading Co. v. Khalily Contents Matimak Trading Co. v. Khalily United States Court of Appeals for the Second Circuit Federal Reporter, Third Series, vol. ... Read more...
  76. Allied Company Arrangement Synonymous with COMPLEMENTARY EXPORTING (for more details visit the resource).......
  77. Headquarters Company A company organized in a foreign country for the purpose of providing administrative support to affiliate companies. It does not normally take title to products or provide financing.......
  78. Period And Trading Limits A provision in a charter party that specifies limitations on the use of a chartered vessel, e.g., restrictions on the carriage of certain cargoes.......
  79. State Trading Nations State Trading Nations and the GATT Policy Negotiations In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of State Trading Nations: Countries that rely on government entities instead of private corporations to conduct their [...]...
  80. State Trading Enterprises State Trading Enterprises and the GATT Policy Negotiations In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of State Trading Enterprises: Entities established by governments to import, export, or produce certain products. [...]...
  81. Western Hemisphere Trading Corporation A domestic U.S. corporation which was entitled to certain tax advantages under Sections 921-22 of the Internal Revenue Code. To qualify, a U.S.- chartered corporation must (1) derive at least 95 percent of its gross income for the three-year period immediately preceding the taxable year (or througho......
  82. Terms of Trade Summary of Terms of Trade An export-import price ratio derived by dividing indices of export prices by indices of import prices. For example, when export indices are 105 percent of a base period, and import indices are 98 percent of the same base period, then the terms of trade [...]...
  83. Trade Creation The substitution of lower- cost foreign goods for higher-cost domestic manufactures.......
  84. Trade Diversion The shift in purchases from sources outside a free-trade area (within which tariffs have been eliminated) to a union member, even though the cost of purchasing outside the union (before duty) is less than procuring from within. The absence of duty among members of the free- trade area more than [...]...
  85. Company Law The Legal History of Company Law This section provides an overview of Company Law Applied Company Law Contents of Applied Company Law Contents of this subject matter include: Introduction; Alternative Business Structures Characteristics of a Company Company's liability in Crime, Contract [...]...
  86. Exempted Company A company exempted from income taxes of the jurisdiction in which it is organized in return for a stipulation by the company that it will not trade in that country.......
  87. Offshore Finance Company Synonymous with Foreign Base Finance Company (read this and related legal terms for further details).......
  88. Offshore Holding Company Synonymous with foreign base holding company. See SUBPART F.......
  89. Shell Company A "paper" company, usually operated without employees. Normally an attorney or other local agent or management company performs the legal duties of the company on behalf of the stockholders. Shell companies often operate in tax-free or low- tax jurisdictions such as Bermuda, Liechtenstein,......
  90. Umbrella Company A local subsidiary of a multinational corporation that permits each product division to operate separately but retains at local headquarters the responsibility for cash management, advertising, and physical distribution. The object of such a company is to permit autonomy among product lines without ......
  91. Alternative Trading Systems Contents Alternative Trading Systems (ATSs) The alternative trading systems, with presence in many of the world’s main financial markets, were ... Read more...
  92. Affiliate Company Definition of Affiliate Company in International Trade The following is a concept of Affiliate Company in the context of international trade law, from the Dictionary of International Trade (Global Negotiator): A Company that is less than 50% owned by a parent company; the parents acts as [...]...
  93. Holding Company Holding Company in International Trade Meaning of Holding Company, according to the Dictionary of International Trade (Global Negotiator): Holding companies are corporations that are created for the sole purpose of obtaining and managing a controlling interest in other companies. There are [...]...
  94. Limited Company Limitada (ltda.) in International Trade Meaning of Limitada (ltda.), according to the Dictionary of International Trade (Global Negotiator): In Brazil and Portugal, designation for a private limited liability corporation with limited liability to shareholders....
  95. Limited Liability Company Gmbh (Gesellschaft Mit Beschränker Haftung) in Company Law Meaning of Gmbh (Gesellschaft Mit Beschränker Haftung), according to the Dictionary of International Trade (Global Negotiator): In German speaking countries (Austria, Germany, Switzerland) a designation for a private limited [...]...
  96. Parent Company Parent Company in International Trade Meaning of Parent Company, according to the Dictionary of International Trade (Global Negotiator): A parent company, sometimes called a holding company, is a corporation that has subsidiaries which are wholly or partially-owned separate businesses [...]...
  97. Emissions Trading Scheme European Union's Emissions Trading Scheme in 2011 United States views on international law (based on the document "Digest of U.S. Practice in International Law"): In 2011, the United States joined multilateral efforts to prevent the European Union ("EU") from including [...]...
  98. Multilateral Trading System LDCs in the Multilateral Trading System and the World Trade Organization LDCs in the Multilateral Trading System in relation to the World Trade Organization (WTO) covers several issues....
  99. MATIMAK TRADING CO. v. ALBERT KHALILY Contents MATIMAK TRADING CO. v. ALBERT KHALILY , d/b/a Unitex Mills, Inc., and D.A.Y. KIDS SPORTSWEAR INC. United States Couirt ... Read more...
  100. MATIMAK TRADING CO. v. ALBERT KHALILY 2 MATIMAK TRADING CO. v. ALBERT KHALILY 2 See previously: MATIMAK TRADING CO. v. ALBERT KHALILY C. Other Jurisprudence We are ... Read more...
  101. Foreign Base Finance Company It was a financing operation organized abroad (usually in a tax haven) that had as its main purpose the arranging of loans abroad in Eurocurrencies, almost always on behalf of its parent or affiliates.......
  102. Real Property Holding Company A foreign corporation (i.e., not chartered in the United States) in which a Domestic International Sales Corporation (read this and related legal terms for further details), or DISC, controls more than 50 percent of the ......
  103. Ldcs in the Multilateral Trading System LDCs in the Multilateral Trading System and the World Trade Organization LDCs in the Multilateral Trading System in relation to the World Trade Organization (WTO) covers several issues....
  104. Abi Jaoudi and Azar Trading Corp. V. Cigna Abi Jaoudi and Azar Trading Corp v Cigna in 2011 United States views on international law (based on the document "Digest of U.S. Practice in International Law"): On December 5, 2011, the United States filed a statement of interest, including the State Department's determination [...]...
  105. Protectionism Protectionism Definition Protectionism may be defined as government policies that favor domestic products over imported goods. The debate between protectionism and free trade has been a continuing issue in United States politics. Meanings For information on: * systematic protectionism [...]...
  106. Balance of Payments Balance Of Payments Summary of Balance Of Payments The sum owed to or by a nation as the result of its international transactions during a given time period, usually one year. The balance of payments is calculated by subtracting the nation's total payments to foreigners from total [...]...
  107. Barter Summary of Barter A direct exchange of products without cash. In some cases, a third party is brought into the transaction to dispose of some or all of the goods in a third country; this practice is known as switch trading. See Countertrade.(Main Author: William J. Miller) Barter [...]...
  108. Cabotage Summary of Cabotage Literally, coastwise navigation, generally used to denote the proscription of foreign flag vessels in a nation's coastwise trade. Since an act of Congress in 1817 (2 Stat. 351), the coastwise trade of the United States has been reserved exclusively to American [...]...
  109. Capital Account Entries in a nation's balance of payment accounts reflecting long- or shortterm loans made to other countries, or by other countries to the recording nation. See Balance of Payments.......
  110. Cartel Summary of Cartel An alliance among firms in the same line of business aimed at controlling or dominating their field on an international basis.(Main Author: William J. Miller) Definition of Cartel In accordance with the work A Dictionary of Law, this is a description of Cartel : [...]...
  111. Commodity Summary of Commodity A nondifferentiated product produced with commonly available technology.(Main Author: William J. Miller) The Legal History of Commodity in Islamic Law This section provides an overview of Commodity in Islamic Law Commodity in International Trade Meaning of [...]...
  112. Convertibility Summary of Convertibility The ability of a currency to be exchanged for other currencies in settlement of current account transactions. Currencies are convertible in varying degrees, although the ability of nonresidents freely to purchase and sell a given currency, without governmental [...]...
  113. Current Account Summary of Current Account An entry in a nation's balance of payments accounts reflecting the purchase of goods or services for consumption immediately or in the near future. See Balance of Payments.(Main Author: William J. Miller) Current Account and International Trade [...]...
  114. Devaluation Summary of Devaluation The official reduction of the value of a nation's money in relation to a standard (usually gold), special drawing rights, or the U.S. dollar. Inasmuch as all currencies are ultimately valued in terms of some standard, devaluation results in the conscious increase [...]...
  115. Import Substitution Summary of Import Substitution The act of eliminating imports of a given product by commencing production locally, often accompanied by controls such as increased duties, quotas, or outright bans to discourage or prevent continued foreign imports. This approach is fairly common on the part [...]...
  116. Joint Venture Summary of Joint Venture A business enterprise with more than one equity participant; for example, an agreement between a German firm and a U.S. firm to capitalize jointly a new factory in Venezuela. Many countries impose restrictions on joint ventures; these restrictions may take the form [...]...
  117. Oligopoly Summary of Oligopoly Literally, a market in which there are only a few sellers of a given product or service. Under oligopolistic conditions, no one seller can establish market prices, except in concert with the other suppliers; if such concerted action develops, the suppliers are operating [...]...
  118. Patent Summary of Patent A grant issued by a governmental authority to an inventor permitting, for a fixed number of years, an exclusive right to the invention. The grant includes the prerogative of preventing others from making, using, or selling the invention covered. Through various [...]...
  119. Portfolio Investment A minority interest in a foreign venture from which income is derived in the form of dividends; normally such an interest does not convey any significant control over the management or operations of the foreign firm.......
  120. Soft Currency A national currency that, because of exchange controls, is not freely convertible into gold or other currencies. Such controls are usually manifest in officially set rates of exchange that do not reflect the price of the soft currency, were it permitted to trade freely.......

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