Glossary

AB
Appellate Body of WTO consisting of seven persons that hears appeals from reports issued by panels in disputes brought by WTO Members.

Absolute Advantage
The ability of a company/individual/firm to produce more of a good or service than competitors using the same amount of resources/cost.

Acceptance
The agreement written on a draft and signed by the drawee who becomes the acceptor to pay the specified amount on the due date. The term is also appli

Acceptance
Agreement written and signed by two parties so signify acceptance of a terms or conditions.

Accounting Translation Exposure
The risk that a company's assets, equities, liabilities or income will change in value due to fluctuation in exchange rates. Applicable for firms with

ACP
African, Caribbean, and Pacific countries.

Acquisition of Assets
A buyout strategy in which key assets of the target company is acquired instead of its shares.

Acquisition of Stock
A buyout strategy in which the stocks of the target company is acquired.

Acquisition Premium
The difference in the actual cost of the target company and the actual amount paid to acquire the target company.

Active Fund Management
The managing of a mutual fund by making judgments about market movements instead of relying on automatic adjustment such as indexation.

Active Income
In the U.S. tax code, income from an active business as opposed to passive investment income.

Activity-Based-Cost (ABC)
An accounting method that allocates costs to specific products based on breakdowns of cost drivers.

Ad Valorem
A duty assessed as a percentage rate of the value of the imported merchandise.

Ad valorem Tariff
A tariff assessed as a percentage of the value of an import.

Adjusted Present Value(APV)
An APV is a valuation method  to calculate the NPV of the project as if it is all-equity financed , then the base-case NPV is adjusted for the benefi

Advance Against Documents
A loan secured by the documents covering the shipments, which remain in control of the creditor.

Advance Against Documents
An amount secured by documents covering the shipment which remain in control of the lender

Advance Licence
Granted for importation without payment of custom duties. Issued in accordance with the policy and procedure in force and subject to fulfillment of ti

Advance Payment
An amount paid before it is earned or incurred, for example, a prepayment by an importer to an exporter before goods are shipped, or a cash advance fo

Adventure
Adventure is the term used in marine insurance business. It refers to all insured cargo owners and every shipper on that vessel.