Unit 1 international trade

Unit 1: International Trade Words Absolute advantage Acceptance Advising (confirming) bank Example/Usage in English The United States produces 700 million The ability of a gallons of wine per country, individual, year, while Italy company or region produces billion to produce a good or Italy has an absolute service at a advantage because it lower cost per produces many more unit than the cost at gallons of wine (the which any other output) in the same entity produces that amount of time (the good or service input) as the United States International trade is A contractual facilitated by banks agreement on a time enacting banker's draft or sight draft to acceptances, thereby pay the amount due guaranteeing the at a specified date payment for goods A bank, operating in the exporter's country, which handles L/C for a The advising bank foreign bank by authenticates the L/C notifying the and sends the exporter that the beneficiary the detail credit has been opened in his or her favor Definition Vietnamese meaning Ưu truyệt dối Sự nhận toán trả chậm Ngân hàng xác nhận Amendment Antidumping Applicant (for L/C) At sight Arbitrage Authenticate A common type of amendment is to extend the term of a Proposed change to a contract An letter of credit amendment also change pricing, deadlines or ownership rights To selling goods Vietnam is imposed abroad at below cost antidumping tariff on price shrimp In the documentary credit process, normally the buyer The applicant(the or importer, who buyer) completes a applies for a letter of contract with the credit in favor of the seller beneficiary, the seller Phrase indicating The sight draft is that payment on a presented to the draft or other importer with the negotiable shipping document, instrument is due and the importer pays upon presentation or immediately or ‘at demand sight’ The process of buying FOREIGN EXCHANGE, A person buys one stocks, bonds and dollar at the price of other commodities in 20.000 VND and sell one market and it at 22.000 VND immediately selling 2.000 is the profit them in another from arbitrage market at higher prices To prove that The terms on the something is contract were genuine, real or true authenticated Sự sửa đổi bổ sung Chống phá giá Người yêu cầu mở thư tín dụng Ngay trình Kinh doanh chênh lệch giá Xác minh Balance of payments The accounts setting out a country’s transactions with the rest of the world BOP accounting serv es to highlight a country's competitiv e strengths and weaknesses, and helps in achieving balanced economicgrowth If you want to know how much your company has spent through the year you will need to look through your balance of payments Các cân toán Balance of trade The accounts setting out a country’s total imports and exports Balance of Trade in Vietnam averaged -430.19 USD Million from 1990 until 2015 Cán cân thương mại 12 Bank An establishment aut horized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in fi nancial transactions, and provide other fin ancial services to its customers I didn't have any money to hang out with my friends, so I went to the bank to take some money out of my account Ngân hàng 13 Barter Trade in which merchandise is exchanged directly for other merchandise without use of money He didn't have enough money to buy a new bike so he Hàng đổi created an ad in the hàng newspaper offering to barter his couch for one 10 11 14 Beneficiary 15 Bill of exchange 16 Bill of lading 17 Binding contract The advising bank The person in whose authenticates the favor a LETTER OF letter of credit and CREDIT is issued or sends the beneficiary a DRAFT is drawn (the seller) the details A written, unconditional order by one party (the drawer) to another The value of a bill of (the drawee) to pay a exchange is certain sum, either guaranteed if it is immediately (a sight accepted by a wellbill) or on a fixed known bank date (a termbill),for paym ent of goods and/or s ervices received A document issued by a carrier, or its agent, to the shipper as We were required to a contract of use a bill of lading in carriage of goods It our commerce is also transactions with the a receipt for cargo ac international shipper cepted in our business for transportation, dealings and must be presented for taking delivery at the destination An agreement in writ You need to make ing between two or sure that you get more individuals or e a binding contract if ntities in which you are doing a court can business with impose penalties in someone who has a the event one party a bad reputation ttempts to negate on Người thụ hưởng Hối phiếu Vận đơn hàng hóa Hợp đồng hủy ngang his or her promise as set forth in the signed document Warehouse authorized by a customs authority for storage of goods on which payment of duties is deferred until the goods are removed for entry into the commerce of the country or exported from the country You need to make sure that everything is always up to code in Kho lưu your bonded hải quan warehouse so that no disasters happen 19 Boycott A refusal to deal commercially with a person, firm or country The Treasury Department has published its quarterly list of countries that require or may require participation in, or cooperation with, an international boycott Tẩy chay Capital 20 outflow The movement of assets out of a country It occurs when foreign and domestic investors s ell off their assets in a particular country because they no longer perceive it as a safe investment Money is leaving China faster than ever, according to a Bloomberg gauge tracking capital flows Sự chảy vốn nước 18 Bonded warehouse Cash in advance Payment for goods in which the price is paid in full before shipment is made Certificate of 22 inspection A document certifying that merchandise was in good condition immediately prior to its shipment 21 Certificate of 23 origin 24 Commission A document, certifying the country of origin of specified goods Mutually agreed upon, or fixed by custom or law, fe e accruing to an agent, broker, or salesperson for facilitating, initiating, and/or executing a c ommercial transaction Cash in advance is used where there is political unrest or new familiar customer Exporters are advised that shipments of regulated products will require a Certificate of Inspection for clearance through Egypt Customs at all Egypt ports and border entry points Ứng trước tiền măt Giấy chứng nhận kiểm tra When looking at certificate of origin, they saw Japan Giấy chứng nhận xuất xứ You get a 10% commission on everything you sell Tiền hoa hồng 25 26 Comparative advantage Common market Concept in economic s that a country should specialize in producing and exp orting only those goods and services which it can produce more efficiently (at lower opportunity cost) than other goods and services (which it should import) An economic association in which there are no tariffs on intra-group trade, a common external tariff, and free mobility of capital and labor The rain forest nation specializes in rope products, which it exports, and relies on imports for more technical products which I cannot produce, thus gaining comparative advantage in the economic marketplace Ưu cạnh tranh Sometimes countries will try and form a common market so Khối thị that their businesses tường can flourish selling to chung each other in an easier fashion The woman went to a furniture consignment shop and gave up An arrangement possession of her old whereby goods are living room set, Ký gửi 27 Consignment left in the possession earning enough hàng hóa of another party to money from the sell transaction to put a down payment on a new one The accounting princ The cost principle has iple that goods and been useful if for no services purchased other reason than should be recorded Nguyên tắc 28 Cost principle consistency to ensure at their historical giá maximum cost and not at meaningfulness and their current market usefulness of our data value When you send a package via FedEx to Priced list of goods a foreign country, you shipped, identifying must include Commercial 29 seller and buyer, and a commercial invoice including sales and invoice that payment terms accurately describes the contents for customs inspection While Dinero Bank had its headquarters in the heart of Mexico City, it did A bank that, in its have a correspondent Corresponden own country, handles 30 bank in Tijuana so t bank the business of a that it could provide foreign bank personalized service and data analysis in that part of the country The sale of goods or You may want to services that are paid offer a countertrade if in whole or in part you think someone 31 Countertrade by the transfer of may be interested in goods or services getting a resource you from a foreign don't need anymore country 32 Credit A contractual She didn't have agreement in which enough money to pay a borrower receives cash for the car of her something of value dreams, so she now and agrees to decided to take out a repay the lender at loan and buy it on some date in the credit future, generally with interest The term also refers to the borrowing capacity of an individual or Thương phiếu Ngân hàng đại lý Thương mại đối lưu Thỏa thuận tín dụng company An accounting entry that either decreases assets or increases liabilities and equity on the company's balance sheet On the company's income statement, a debit will reduce net income, while a credit will increase net income Authorities designated to collect duties levied by a country on imports 33 Customs and exports The term also applies to the procedures involved in such collection A foreign agent who sells for a supplier directly and 34 Distributor maintains an inventory of the supplier's products 35 Documentary International credit trade procedure in which the credit worthiness of an importer is substituted by His credit amount on his credit card had been increased by his bank and that’s why Tài he was going to the khoản có electronics store and buying that computer he had been looking at the week before In August of 2015, trade statistics compiled by Vietnam Customs recorded a Hải quan 1.6% downwards in total external merchandise turnover of Vietnam Japan is the largest software distributor Nhà phân phối Documentary credit is the most popular method of payment due to its advantages Chứng từ tín dụng (thư tín dụng) the guaranty of a bank for a specific transaction Documents A term of payment against 36 where there is a acceptance(D credit period /A) Documents against 37 payment (D/P) 38 Direct exporting 39 Discount 40 Draft A term of payment where there is no credit period Sale by an exporter directly to a buyer located in another country Purchase by a bank or finance house of a bill of exchange at face value less interest An unconditional order in writing from one person (the drawer) to another (the drawee), directing the drawee to pay a specified amount to a named drawer at a fixed or determinable future date A tenor bill or time bill is used in a Documents against Acceptance transaction In a documents against payment transaction, the sight draft is presented to the importer with the shipping document Direct exporting could be from New Zealand through the internet and regular trade visits, or by setting up a branch, office or company in the target country Điều khoản trả chậm Điều khoản trả Xuất trực tiếp The exporters may obtain their money by Khấu hao selling the bill on the discount market Payment must be made by bank draft drawn on a UK bank Payment must be made by bank draft drawn on a UK bank Hối phiếu an extent by another company, and the two companies may share management positions to promote uniformity of policies and practices backdoor listing A technique used by a company which failed to get listed on an exchange, whereby the company acquires and merges with a company already listed on that exchange In some cases, companies conduct back door listings Niêm yết because they cửa sau not meet the criteria for being listed on a stock exchange 10 backward integration Acquiring ownership of one's supply chain, usually in the hope of reducing supplier power and thus reducing input costs buyout The purchase of controlling interest in one corporation by another corporation, in order to take over assets and/or operations backward integration allows Company XYZ to acquire punched plastic much more cheaply, and it also prevents other companies from buying punched plastic from Plastic Company ABC, thereby hindering competition The buyout process usually begins when an interested purchaser or group of purchasers makes a formal buyout offer to a company's board of directors, who are the representatives of the company's shareholders Regardless, the purchaser usually pays a premium for shares that give it controlling interest in a company Sáp nhập lùi Sự thu mua toàn 11 conglomerate merger 12 consolidation Subsidiary Company – a company whose parent company is a majority shareholder For example, the Walt Disney Corporation owns 100 A merger of percent of the two Disney Channel, companies making the which are Sáp nhập network a involved in tập đoàn “wholly owned different subsidiary types of company.” By business contract, the Walt Disney Corporation owns only 40 percent of the History Channel, making it an “affiliate company.” The Perhaps one of Hợp combining of the most separate obvious companies, examples of functional industry areas, or consolidation product lines, can be seen in into a single the evolution of one Differs public from a accounting over merger in that the twenty a new entity years In 1986, is created in nine large 13 14 corporate finance creeping tender offer accounting firms dominated the industry But in 1987, Klynveld Main Goerdeler (KMG) merged the with Peat consolidation Marwick Mitchell to create KPMG Peat Marwick, reducing the number of toptier players to the "Big Eight." Financial activities may include buying and selling of products or The division assets, of a company organizing and that is maintaining concerned accounts, with the issuing stocks or financial bonds, arranging operation of loans, or other the company business activities with specific monetary objectives A strategy in The Williams which a Act is relevant group of to the practice of individuals buying and gradually selling of shares acquires in any market target that operates company within the Tài doanh nghiệp Chào giá mua 15 dawn raid shares in the open market, in order to circumvent Williams Act provisions United States of America For many years after the addition of this act in 1968, the provisions of this act helped to minimize the potential for the use of a creeping tender offer One of the key elements of the Williams Act is that shareholders must be offered the same price for their available shares A term (commonly used in Britain) describing a raider's instruction to one or more brokers to purchase as many available shares as possible in a target company as soon as the market opens for the day dawn raids are often used to acquire substantial minority interests and are thus a tip-off that the acquirer might make a tender offer or takeover offer later Cuộc công phủ đầu 16 17 deal date dividendsreceived deduction The date at which a particular acquisition was settled Deal date is often associated with mergers and acquisitions Two financial institutions agreed to conduct a EUR/USD transaction on July 14 July 14 is thereby the deal date A deduction on dividends received due to a company's ownership in another company The purpose of this deduction is to soften the consequences of triple taxation Triple taxation occurs because the company paying the dividend does so with after-tax money and the receiving Cổ tức company is nhận subject to khấu trừ income tax on the dividends Therefore, if the company that receives the dividends decides to pay out its shareholders, the money will have been taxed three times Ngày giao dịch 18 19 et's assume Company XYZ has the following characteristics: Shares Outstanding: 1,000,000 Current Share A measure of Price: $5 what the Total Debt: market $1,000,000 enterprise believes a Total Cash: value company's $500,000 ongoing Based on the operations are formula above, worth we can calculate Company XYZ's enterprise value as follows: ($1,000,000 x $5) + $1,000,000 $500,000 = $5,500,000 equity method An ABC accounting International method used acquires a 30% to determine interest in Blue income Widgets derived from Corporation In a company's the most recent investment in reporting period, another Blue Widgets company recognizes over which it $1,000,000 of exerts net income significant Under the influence requirements of the equity Giá trị kinh doanh liên tục xí nghiệp Phương pháp vốn cổ phần method, ABC records $300,000 of this net income amount as earnings on its investment (as reported on the ABC income statement), which also increases the amount of its investment (as reported on the ABC balance sheet) 20 21 Sharp decline in the price of stock based on disappointing corporate fall out of bed news such as failed merger attempts or weak quarterly reports friendly A situation in takeover which a target company's management and board of directors agree to a merger or acquisition by another one fall out of bed scenario was when the price of Yahoo! stock declined in Sụt giá đột 2008 after a ngột suggested merger between the company and Microsoft failed Mannesmann agrees on friendly takeover by Vodafone Tiếp quản thân thiện company 22 horizontal integration An example of horizontal integration would be McDonalds buying out Burger King The Obviously, this acquisition of has not additional happened, but is business an example of activities that what a Liên kết are at the horizontal theo chiều same level of integration ngang the value would be like chain in Another similar or example that different actually did industries happen was the Heinz and Kraft Foods merger On March 25th, 2015, Heinz and Kraft merged into one company 23 hostile bid 24 hostile takeover A specific type of takeover bid that is presented directly to the target firm's shareholders because the target's management is not in favor of the deal The acquisition of one company (called the target company) by another (called the acquirer) that is accomplished not by coming to an agreement with the target company's management, but by going directly to the company's shareholders or fighting to replace management in order to get the A bidder may initiate a hostile takeover through a tender offer, which means that the bidder proposes to purchase the target company's stock at a fixed price above the current market price One of the most prominent hostile takeovers of all time was the leveraged buyout (LBO) of RJR Nabisco by investment bank KKR in the late 1980s This takeover was welldocumented in "Barbarians at the Gate: The Fall of RJR Nabisco." RJR Nabisco was created by a record-setting merger between Nabisco and RJ Reynolds for $4.9 billion in 1985 RJR Nabisco was known for the Chào giá chống đối Tiếp quản thù địch acquisition approved 25 Leveraged Buyout lavish spending of its CEO, F Ross Johnson, who had a fleet of private jets LBO activity usually increases when interest rates are low (which reduces the cost The of borrowing) acquisition of and/or when the another economy or a company particular using a industry is significant underperforming amount of (and thus borrowed undervaluing the money target firm's (bonds or equity) loans) to However, meet the cost increased LBO of activity also acquisition means more competition for deals, which tends to bid up the premiums paid for targets Mua lại cổ phần theo kiểu vay nợ đầu 26 merger 27 mergers and acquisitions The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock A general term used to refer to the consolidation of companies A merger is a combination of two companies to form a new company, while an acquisition is the purchase of one company by another in which no new company is formed MEISSEN, a German margraviate now Sự liên kết merged in the kingdom of Saxony Disney & Pixar Sirius & XM radio Thơn tính sáp nhập 28 negative goodwill 29 poison pill When a company pays more than fair market value for an asset, it records the A gain overage as an occurring intangible asset when the (aka, goodwill) price paid for on its balance an acquisition sheet Negative is less than goodwill is the the fair value opposite of this of its net concept, so the tangible difference is assets recorded as an Negative extraordinary goodwill gain on the implies a buyer's income bargain statement purchase Negative goodwill is often a sign that an asset was purchased from a distressed buyer A strategy Some used by companies have corporations created to discourage employee stock hostile ownership plans takeovers that vest only With a poison when the pill, the target takeover is company finalized In attempts to addition to a make its dilution of the stock less stock value, attractive to such employee Bất lợi công ty Chiến lược thuốc độc 30 raider benefits may result in an employee exodus from the company leaving it the acquirer without its talented workforce (which is often one of the drivers of the acquisition) An individual or example, let's Nguời or say Company công organization XYZ is a shoe that tries to company that take over a owns several company by factories on initiating a prime pieces of hostile real estate, has takeover bid several patents in shoe technology, and owns a variety of other assets, all worth about $250 million today However, Company XYZ's "New Feet" line has been a bust and the stock is only worth $1 a share, making the company worth, say, $100 million today Accordingly, a raider might see 31 sandbag A tactic used to hide or limit expectations of a company's or individual's strength in order to produce greater than anticipated results that he or she can purchase the company for $100 million and the put the assets up for sale, making a cool $150,000,000 profit Let's say John Doe is a new employee at Company XYZ He gets invited to the annual company golf outing The other employees ask him how his Chiến thuật game is John trùng trình says, "I'm ok." John, however, has actually had golf lessons since he was a child and plays every weekend John is sandbagging ... created an ad in the hàng newspaper offering to barter his couch for one 10 11 14 Beneficiary 15 Bill of exchange 16 Bill of lading 17 Binding contract The advising bank The person in whose authenticates... toán Balance of trade The accounts setting out a country’s total imports and exports Balance of Trade in Vietnam averaged -430 .19 USD Million from 19 90 until 2 015 Cán cân thương mại 12 Bank An establishment... the day Gator Industries share price Chốt giá climbed from $9 to $13 by cổ phiếu noon but eventually closed cuối ngày at $11 11 Collateral Assets a borrower uses to secure or guarantee a loan