Term
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Definition
| Political, Economic, and Legal systems of a country |
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Term
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| the governmental and societal actions and policies, originating either within or outside the host country, and negatively affecting either a select group of, or the majority of foreign business operations and investments |
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| specific political risk in which gov't seizes foreign assets |
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Definition
| process where privately owned companies are taken under state ownership and control |
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| Local Content Requirement |
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Definition
| requirement where some percent of good must be produced locally |
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Definition
| quantity of goods a specific country permits imported without restriction or additional duties |
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| Voluntary Export Restraint |
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Definition
| one country promises to limit it's imports to a certain country, out of fear of tariffs or restrictions |
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Definition
| sales tax added at each specific stage of production, depending on how much value is added |
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Term
| Index of Economic Freedom |
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Definition
| Heritage Foundation index measuring freedom of country's economic system (includes business freedom, trade freedom, fiscal freedom, and gov't size) |
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Definition
| process where publicly owned enterprises are sold to private investors |
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Definition
| removal of various gov't controls on an economy |
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| Export Substition vs. Complement |
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Definition
| concept that outward FDI can either substitute or complement exports |
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| Balance of payment accounts |
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Definition
| summary of a countries foreign transactions, (includes balance of payments on and current and financial accounts) |
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Term
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Definition
| state owned investment fund consisting of stocks, bonds, property, metals, etc. |
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Term
| Committee on Foreign Investments in the U.S. (CFIUS) |
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Definition
| An inter-agency committee authorized to review transactions that could result in control of a U.S. business by a foreign person (“covered transactions”), in order to determine the effect of such transactions on the national security of the United States. Representatives are from 9 different agencies including the Defense, State, and Commerce departments |
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Term
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Definition
| debt financing used by U.S. Government, includes: (bills, notes, bonds, and treasury inflation protected securities (TIPS) |
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Term
| International Labor Organization |
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Definition
| specialized UN agency dealing with labor issues |
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Term
| Universal Declaration of Human Rights |
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Definition
| declaration of UN General Assembly which consists of 30 articles about (civil, basic, religious, and socio-economic rights of individual) |
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Definition
| post-WWII agreement to have increase free trade, replaced by WTO in 1994 |
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Term
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Definition
| multilateral organization that promotes free trade among nations, founded by 121 countries at Uruguay round |
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Definition
| international org. created 1944 Breton Woods, to promote sustainable economic development to improve impoverished people's quality of life |
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| international org. promoting economic stability; compiles statistics on inter-border transactions in a monthly report |
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Definition
| country has no less favorable treatment to imported goods vs. domestic goods |
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Term
| Most Favoured Nation (MFN) |
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Definition
| granted to a country from another, and gives recipient equal imports and exports of other MFN's |
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Term
| General Agreement in Trade and Services (GATS) |
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Definition
| treaty of WTO extending multilateral trading system to service sector |
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| TRIPS (Trade-Related Aspects of Intellectual Property Rights) |
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Definition
| WTO treaty setting minimum standards for many forms of intellectual property (IP) rights |
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Term
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Definition
| tariff assessed as percentage of the import's value |
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Definition
| rationale of temporary protection (via tariff/non-tariff barriers to imports) for new companies so they can establish internationally |
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Definition
| intergovernmental organizations coordinating foreign, economic, and judicial policy among 27 members |
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Term
| European Coal and Steel Community (ECSC) |
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Definition
| international org. which sought to unify western Europe, lead to EU |
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Term
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Definition
| exchange rate system based on co-op between European central banks |
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| rules and regs. that all EU countries must meet |
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Term
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Definition
| exchange rate today for settlement in two days |
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Term
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Definition
| agreement to purchase or sell defined currency amt. in future at a fixed price |
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Definition
| increase in country's currency value compared to another's in floating system |
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Definition
| decrease in country's currency value compared to another country's in floating exchange system |
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Definition
| changes in value of contractual cash flows as result of change in currency values |
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Definition
| changes in corporations financial statements 'cuz currency value changes (a.k.a. accounting exposure) |
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Term
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Definition
| changes in value of assets/liabilities because of change in currency value |
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| Extraterritorial Application of Laws |
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Definition
| countries attempts to apply laws and regulations to countries, residents, acts outside it's borders |
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Term
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Definition
| an agreement outside of court in which mutual person makes binding decision |
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Definition
| purposes such as: redistributing income, discouraging alcohol/tobacco consumption, and domestic > foreign |
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Definition
| allowances by U.S. taxpayers who pay taxes in another country, and credit that amount to U.S. tax requirement |
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Definition
| treaties between countries binding info about taxpayers and corporations for tax law enforcement |
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Term
| National Tax Jurisdiction |
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Definition
| for foreigners of a country whereby country taxes them on basis of nationality even though they live/work abroad |
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Term
| Territorial Tax Jurisdiction |
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Definition
| tax system in which individual expatriate who neither lives/works in country is exempt from taxes becasue they are not using the country's services |
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| Foreign Corrupt Practices Act (FCPA) |
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Definition
| U.S. law against making payments to foreign officials for special treatment |
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Term
| Floating Exchange Rate System |
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Definition
| system in which gov't does not declare what it's currency will be exchanged at with other countries, set by market forces |
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Term
| Fixed Exchange Rate System |
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Definition
| exchange rate system in which gov't buys and sells currency to keep it at a certain rate |
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