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Foreign exchange market

The market in which currencies are bought and sold and in which currency prices are determined

Currency hedging

The practice of insuring against potential losses that result from adverse changes in exchange rates

Currency arbitrage

The instantaneous purchase and sale of a currency in different markets for profit

Currency speculation

The purchase or sale of a currency with the expectation that its value will change and generate a profit

Quoted currency

In a quoted exchange rate, the currency with which another currency is to be purchased

Base currency

In a quoted exchange rate, the currency that is to be purchased with another currency

Spot rate

The exchange rate requiring delivery of the traded currency within two business days

Forward rate

The exchange rate at which two parties agree to exchange currencies on a specified future date

Forward contract

A contract requiring the exchange of an agreed-upon amount of a currency on an agreed-upon date at a specific exchange rate

Currency swap

The simultaneous purchase and sale of foreign exchange for two different dates

Convertible currency / Hard currency

Currency that trades freely in the foreign exchange market, with its price determined by the forces of supply and demand

Gold standard

An international monetary system in which nations linked the value of their paper currencies to specific values of gold

Fixed exchange rate system

A system in which the exchange rate for converting one currency into another is fixed by governments

Bretton Woods Agreement

An accord among nations to create a new international monetary system based on the value of the U.S. dollar

World Bank

The agency created by the Bretton Woods Agreement to provide funding for national economic development efforts

The IMF

The agency created by the Bretton Woods Agreement to regulate fixed exchange rates and enforce the rules of the international monetary system

Managed float system

An exchange-rate system in which currencies float against one another with governments intervening to stabilize currencies at a particular target exchange rate

Free float system

An exchange-rate system in which currencies float freely against one another, without governments intervening in currency markets

Buy rate

The exchange rate at which the bank will buy a currency

Ask rate

The exchange rate at which the bank will sell a currency

Currency option

A right, or option, to exchange a specific amount of a currency on a specific date at a specific rate

Currency Futures contract

A contract requiring exchange of a specific amount of currency on a specific date at a specific exchange rate with all of these conditions fixed and not adjustable

Documentary collection

The mode of payment in which a bank acts as an intermediary without accepting financial risk

Draft (Bill of exchange)

A document ordering an importer to pay an exporter a specified sum or money at a specified time

Letter of Credit (L/C)

The mode of payment in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document

Bill of Lading

A contract between the exporter and carrier that specifies destination and shipping costs of the merchandise

Open account

The mode of payment in which an exporter ships merchandise and later bills the importer for its value

Advance Payment

The mode of payment in which an importer pays an exporter for merchandise before it is shipped

Revolving letter of credit

A letter of credit calling for renewed credit to be made available when the issuing bank informs the beneficiary that the buyer has reimbursed the issuing bank for the drafts already drawn

Back to back letter of credit

Two letters of credit with identical documentary requirements, except for the difference in the price as shown by the invoice and draft

Standby letter of credit

A letter of credit that can be drawn against, but only if another business transaction is not performed

Advised letter of credit

A letter of credit issued by a bank and forwarded to the beneficiary by a second bank in his area, validating signatures and attesting to its legitimacy

Confirmed letter of credit

A letter of credit issued by one bank to which a second bank adds its commitment to pay

Revocable letter of credit

A letter of credit that may be canceled at any moment without prior notice to the beneficiary

Irrevocable letter of credit

A letter of credit that cannot be canceled nor amended without agreement of all parties

Deferred payment letter of credit

A letter of credit under which the documents are forwarded to the importer's bank, while sight draft is presented at a later future date

Red clause letter of credit

A letter of credit permitting the beneficiary to receive a sum prior to shipment

Transferable letter of credit

A letter of credit that can be utilized by someone designated by the original beneficiary

Distribution channel

All the companies or individuals involved in moving a particular good or service from the producer to the consumer

Product concept

An idea for a new product, which is tested with target consumers before the actual product is developed

Product features

Attributes or characteristics of a product: quality, price, reliability, etc.

Market segmentation

Dividing a market into instinct group of buyers who have different requirements or buying habit

Point of sale

Places where goods are sold to the public - shops, stores, kiosks, market, stalls, etc.

Market opportunities

Possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods or services

Sales representative

Someone who contacts existing and potential customers and tries to persuade them to buy goods or services

Market research

Collecting, analysing and reporting data relevant to a specific market situation (such as a proposed new product)

Packaging

Wrappers and containers in which product are sold

Conversional marketing

The difficult task of reversing negative demand

Stimulational marketing

Marketing necessary where there's no demand

Developmental marketing

Involves developing a product or service for which there is clearly a talent demand

Remarketing

Involves revitalizing falling demand

Synchromarketing

Involves altering the time pattern of irregular demand

Maintenance marketing

A matter of retaining a current (may be full) level of demand

Demarketing

The attempt (by governments rather than private businesses) to reduce overfull demand, permanently or temporarily

Countermarketing

The attempt to destroy unwholesome demand for products that are considered undesirable

Brand

A name, symbol or design (or some combination)

Trademark

A name or symbol that cannot be used another producer

Value

Reflects the sum of the perceived tangible and intangible benefits and costs to customers ("customer value triad": quality, service, price)

Satisfaction

Reflects a person’s judgements of a product’s perceived performance in relation to expectations

To launch a product

To introduce a new product onto the market

Communication channel

Deliver and receive message from target buyers and include newspaper, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs

Needs

Basic human requirements

Wants

Needs directed to specific things which might satisfy the needs

Demand

Wants for specific products backed by the ability to pay

Distributor

A business and industry which acts as a third party local representative and distribution point for a manufacturing firm

Business Logistics / Logistics

The process of planning, implementing and controlling the flow and storage of goods, ensuring the right product is in the right place at the right time in the most cost efficient way

Freight Forwarder

An organization which provides logistics services as an intermediary between the shipper and the carrier, typically on international shipments

Logistics management

That part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information

Linked distributed system

An independent computer systems, owned by independent organizations, linked in a manner to allow direct updates to be made to one system by another

Machine-to-Machine interface (M2M)

A term describing the process whereby machines are remotely monitored for status and problems reported and resolved automatically

Integrated logistics

A comprehensive, system-wide view of the entire supply chain as a single process from raw materials supply through finished goods distribution

Logistics channel

The network of supply chain participants engaged in storage, handling, transfer, transportation, and communications functions

Logistics data interchange (LDI)

A computerized system to electronically transmit logistics information

Supply Chain Management

It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities

Lead time

The total time that elapses between an order's placement and its receipt

Market-positioned warehouse

A warehouse positioned to replenish customer inventory assortments and to afford maximum inbound transport consolidation economies

Marshaller / Marshalling agent

An individual or firm that specializes in one or more of the activities preceding Main Carriage, such as consolidation, packing, marking, sorting

Order management

The planning, directing, monitoring, and controlling of the processes related to customer orders, manufacturing orders, and purchase orders

Automated guided vehicle system (AGVS)

A transportation network that automatically routes one or more material handling devices (carts, pallet trucks) without operator intervention

Common carrier

Transportation available to the public that does not provide special treatment to any one party and is regulated as to rates, liability, and service

Outbound logistics

The process related to the storage and movement of the final product and related information flows from the end of production line to the end user

Reverse Logistics

The process of moving products from end-user back to the origin to recover value or for proper disposal

Inbound Logistics

The flow, or management, of goods into a production unit or warehouse

Insurance

A contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered as a result of unforeseen events

Insurance policy

A standard form contract between the insured and the insurer, which determines the claims that the insurer is legally required to pay

Insurer (Underwriter)

The party to an insurance arrangement who undertakes to indemnity for losses

Insured (Policy holder)

The person or entity buying the insurance and receiving indemnity on happening of unforeseen events

The subject-matter insured

The person, group or property for which an insurance policy is issued

Premium

Payments to the insurance company to buy a policy and to keep it in force

General Average

Expenses and damages incurred as the result of damage to a ship/cargo or action taken to prevent common danger, paid proportionally by all interested parties

Ocean marine insurance

Covers ocean-going vessels and their cargo from loss or damage because of perils of the sea

Marine Insurance

Covers the loss or damage of ships, cargo, terminals, and any transport or property by which cargo is transferred, acquired or held

Particular average

Expenses and damages incurred as the result of damage to a ship/cargo, paid only by the owner of the part which actually suffers the loss

Cargo Insurance

Insurance underwritten on the Institutes Cargo Clauses, with coverage on an A, B, or C basis (A having the most cover)

Open cover

A flexible type of insurance, for 12 months, at agreed rates

Principle of indemnity

States that the insurer pays no more than the actual amount of the loss (the insured should not profit from a loss)

Principle of insurable interest

States that the insured must be in a position to lose financially if a covered loss occurs

Principle of subrogation

Means substitution of the insurer in place of the insured for the purpose of claiming indemnity from a third party for a loss

Principle of utmost good faith

A higher degree of honesty is imposed on both parties to an insurance contract than other contracts