Glossary

Cabotage - transport of goods or passengers between two points in the same country

Procurement - Purchasing (buying departments of a company)

FOB - Free On Board

Intermediaries - 3rd party (Agent)

Re-Export - Shipment of an US origin from one foreign country to another

Incoterms - a set of trade terms to describe their rights and liabilities with regards to the sale and transport of goods, set by The International trade of commerce

Postponement - manufacturing process starts by making a generic or family product that is later differentiated into a specific end-product

Localization - localization is the adaptation of an object to a locality

Process - Seguent of task or activities

Freight Forwarding - is an individual or company that dispatches shipments via asset based carriers and books or otherwise arranges space for those shipments. Common carrier types could include waterborne vessels, airplanes, trucks or railroads

EAR - Export Administration Regulations

Dumping - Selling merchandise in another country at a price below the price at which the same merchandise is sold in the home market or selling such merchandise below the costs incurred in production and shipment

Free Trade Zone - A port designated by the government of a country for duty-free entry of anmy nonprohibited goods. Merchandise may be stored, displayed, used for manufacturing etc., within the zone and reexported without duties being paid. Duties are imposed on the merchandise only when the goods pass from the zone into an area of the country subject to the customs authority.

Marine Insurance - Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally recovered from the carrier. Also covers air shipments.

Quota - The quantity of goods of a specific kind that a country permits to be imported without restriction or imposition of additional duties.

Liquidity - ability to buy or sell an asset quickly and in large volume without substantially affecting the asset's price. Shares in large blue-chip stocks like General Motors or General Electric are liquid, because they are actively traded and therefore the stock price will not be dramatically moved by a few buy or sell orders.

Hedging - A strategy in which investment risk and thus the volatility of a portfolio is reduced by the use of call and put options, short selling or futures contracts. The hedge can lock in existing profits

NVOCC - Non-Vessel Operating Common Carrier. A company who buys space from shipping lines and sells it to smaller shippers. The NVOCC issues bills of lading.

TEU - Ton Equivalent Unit