Business and Economic Terms, Abbreviations, Terms List, MBA Exam Ten Tips, Exam Ten Tips round for MBA

Business and Economic Terms-India
ACP	African, Caribbean and Pacific Group (Lomé Convention and Cotonu Agreement).
Ad valorem	Value added. An example of an ad valorem tax would be VAT.
AD,A-D	Anti-dumping measures.
Advances	Loans given by financial institutions and others.
AFTA	ASEAN Free Trade Area.
Amortization	Writing down the value of an asset in a company's books to reflect its loss of value through age and use. Called depreciation in the UK. Amortization is also an accounting term to pay off a loan in gradual increments.
AMS	Aggregate measurement of support (agriculture).
APEC	Asia-Pacific Economic Cooperation
Appreciation	An increase in the value of an asset like land or stock.
Arbitrage	Movements of funds to take advantage of differences in exchange or interest rates, and this quickly eliminates any such differences.
ASEAN	Association of Southeast Asian Nations.
ATC	Agreement on Textiles and Clothing.
Average cost pricing	Setting price equal to average cost.
Average propensity to consume	The proportion of disposable income spent
Backward integration	Occurs when a company joins with a firm that is involved at an earlier stage of the production chain.
Balance of payments	Statement of a country's net financial transactions with other countries. Current account measures balance of imports and exports and payments and receipts for services such as shipping, banking and tourism. Capital account measures movements of capital (bank deposits, securities, shares, property).
Balance of trade	The difference between the value of visible exports and visible imports
Barter	The direct exchange of goods and services without the use of money.
Birth rate	The number of live births per thousand of the population in a year.
Black economy	Unrecorded wealth and production.
Black markets	Created when buyers and sellers meet to negotiate the exchange of a prohibited or illegal good. More generally any unofficial market in which prices are inordinately high.
Bonds	Certificate of debt issued to raise funds. It normally has a fixed rate of interest and is repayable at a fixed date. See also convertible bonds, mortgage-backed securities.
Break-even	When a firm's short-run total revenue equals its short-run total cost
Bretton Woods system	An arrangement of fixed exchange rates which operated between 1945 and 1971.
Bull market	Period of rising share prices; an optimistic state of affairs; the opposite of a bear market.
Buyer's market	The quantity of goods for sale exceeds the amount consumers are willing and able to buy at the current market price; characterized by low prices
Call option	The right but not the obligation to buy a security at a specified price at a specified date in the future.
Call rates	The interest rate on money loaned overnight. Also known as the overnight rate. Widely used measure of money market rates.
Capital gains	The difference between the sale and purchase price of an asset
CBD	Convention on Biological Diversity
CCC	(former) Customs Co-operation Council (now WCO)
CER	[Australia New Zealand] Closer Economic Relations [Trade Agreement] (also ANCERTA)
Ceteris paribus	All other influencing factors are held constant.
Closed economy	An economy which does not engage in international trade.
Collusion	Agreements between firms to restrict competition
COMESA	Common Market for Eastern and Southern Africa
Complementary goods	Two goods consumed at the same time, e.g. cars and petrol
Consumer surplus	This occurs when people are able to buy a good for less than they would be willing to pay. They enjoy more utility than they had to pay for.
Consumer's price index	Measure of the change in the cost of consumer goods and services. It is used as an indicator of a nation's inflation rate.
Corporation tax (Corporate Tax)	A tax on a corporate entity’s profits.
Cost benefit analysis	A method of assessing investment projects which takes into account social costs and benefits.
Cost of living	The general level of prices in the economy, usually measured by the retail price index.
Cost plus pricing	Setting prices by adding a profit margin to average cost.
Cost push inflation	When a cost of production (e.g. wages) increases and firms put up prices to maintain profits.
Credit creation	The ability of the banking sector to create money by giving advances.
Crowding out	A decline in private sector spending resulting from a rise in public sector expenditure.
CTD	Committee on Trade and Development
CTE	Committee on Trade and Environment
Current account balance	A record of a country's earnings from the sale of visible and invisible items minus its expenditure on visible and invisible items from abroad.
Current account deficit	When a country spends more on visible and invisible items from abroad than it earns from the sale of visible and invisible items.
Current account	Usually taken to mean the current account of the balance of payments.
CVD	Countervailing duty (subsidies)

(DOU 13082007)