The African, Caribbean and Pacific Group of States (ACP) is an organization created by the Georgetown Agreement in 1975. It is composed of African, Caribbean and Pacific States signatories to the Georgetown Agreement or the Partnership Agreement between the ACP and the European Union, officially called the Cotonou Agreement.

Certificate of Origin

(Often abbreviated to CO or COO) is a document used in international trade. It traditionally states from what country the shipped goods originate, but "originate" in a CO does not mean the country the goods are shipped from, but the country where the goods are actually made. This raises a definition problem in cases where less than 100% of the raw materials and processes and added value are not all from one country. An often used practice is that if more than 50% of the cost of producing the goods originate from one country, that country is acceptable as the country of origin (then the "national content" is more than 50%). In various international agreements, other percentages of national content are acceptable.

Company

An association of individuals for carrying on a commercial or industrial enterprise.

Corporation

An association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities which are distinct from those of its members.

Emigration

Migration from a place (especially migration from your native country in order to settle in another).

Finance Company

A specialized financial instituition that supplies credit for the purchase of consumer, government, and business goods and services. Finance companies purchase unpaid customer accounts at a discount from merchants and coillect payments due from customers. They also grant small loans directly to consumers at a relatively high rate of interest.

Growth company

A company that grows at a greater rate than the economy as a whole and that usually directs a relatively high proportion of income back into the business.

Holding company

A company whose sole function is to own and control other companies.

Immigration

The action of coming to live permanently in a foreign country.

International Bank for Reconstruction and Development (I.B.R.D.)

One of five institutions that comprise the World Bank Group. It is a United Nations affiliated institution that assists in the development of its poorer members by facilitating private investments, and by making and guaranteeing loans. I.B.R.D. was created to assist developing nations by loans guaranteed by member governments.

International Centre for Settlement of Investment Disputes

ICSID helps encourage foreign investment by providing international facilities for conciliation and arbitration of investment disputes, thereby helping foster an atmosphere of mutual confidence between states and foreign investors. Many international agreements concerning investment refer to ICSID's arbitration facilities. ICSID also issues publications on dispute settlement and foreign investment law. One of five institutions that comprise the World Bank Group.

International Development Association (I.D.A.)

Part of the World Bank Group, which makes loans to countries at concessional rates (i.e. below market rates) of interest. I.D.A. was created in 1959 (began operations in November 1990) to lend money to developing countries at low and, often, no interest.

International Finance Corporation

IFC promotes economic development through the private sector. Working with business partners, it invests in sustainable private enterprises in developing countries without accepting government guarantees. It provides equity, long-term loans, structured finance and risk management products, and advisory services to its clients. IFC seeks to reach businesses in regions and countries that have limited access to capital. It provides finance in markets deemed too risky by commercial investors in the absence of IFC participation and adds value to the projects it finances through its corporate governance, environmental, and social expertise. One of five institutions that comprise the World Bank Group.

Investment company

A company that earns income solely or primarily by holding and investing in securities issued by other companies or by government agencies.

Joint–stock company

A business organization whose capital is represented by sharesowned by stockholders each of whom is personally liable for the company's debts.

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.

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

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.

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.

Mercantilism

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

Terms stating the acceptable forms of remittance for a given sales transaction. The party selling the product or service declares the acceptable method of payment.

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

Money Supply

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

Monopoly

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.

More Flexible Exchange Rate System

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

Most Favored Nation Treatment (MFN)

1.) A commitment that a country will extend to another country the lowest tariff rates it applies to any other country. All contracting parties undertake to apply such treatment to one another under Article I of GATT. When a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement.
2.) When one country accords another most-favored-nation status, it agrees to extend that country the same trade concessions it grants to any other MFN recipients. For example, in the tariff area, goods from a country accorded MFN status by the U.S. would be assessed the lower column 1 duties in the U.S. tariff schedule. This concept may apply to non-tariff measures as well. GATT members have agreed to accord each other MFN status. Preferential treatment accorded to developing countries, customs unions, and free trade areas all represent allowable exceptions to the MFN concept.

Multilateral Investment Guarantee Agency

MIGA helps promote foreign direct investment in developing countries by providing guarantees to investors against noncommercial risks, such as expropriation, currency inconvertibility and transfer restrictions, war and civil disturbance, and breach of contract. MIGA's capacity to serve as an objective intermediary and to influence the resolution of potential disputes enhances investors' confidence that they will be protected against these risks. In addition, MIGA provides technical assistance and advisory services to help countries attract and retain foreign investment and to disseminate information on investment opportunities to the international business community. One of five institutions that comprise the World Bank Group.

Multinational

1.) A large corporation with operations and subsidiaries in several countries.
2.) (adj.) of, pertaining to, or involving several nations

Multidomestic strategy

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

Multilateral Environmental Agents (MEA's)

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)

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.

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 Statements 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 Financial Centers (OFC)

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.

Oligopily

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)

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 American States (OAS)

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

Organization of Petroleum Exporting Countries (OPEC)

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

Outsourcing

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

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.

Shelf company

A shelf company, shelf corporation, or aged corporation, is a company or corporation that has had no activity. It was created and left with no activity - metaphorically put on the "shelf" to "age". The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one

Shelf Corporation

A shelf corporation, shelf company, or aged corporation, is a company or corporation that has had no activity. It was created and left with no activity - metaphorically put on the "shelf" to "age". The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.

World Trade Organization

International body founded in 1995 to promote international trade and economic development by reducing tariffs and other restrictions.