| Glossary of Export Import Trade Terms Starting with - P |
| Words |
Description |
| Packing List |
A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes. |
| Parallel Loan |
A loan arrangement in which a company borrows in its home currency and then trades this debt for the foreign currency debt of a foreign counterpart. |
| Partnership |
Form of business organization in which two or more co-owners form a business. In a general partnership each partner is liable for the debts of the partnership. Limited partnership permits some partners to have limited liability. |
| Passive Income |
In the U.S. tax code, income (such as investment income) that does not come from active participation in a business. |
| Patent |
A government grant that gives inventors exclusive right of making, using, or selling the invention. |
| Payback Period Rule |
An investment decision rule which states that all investment projects that have payback periods equal to or less than a particular cutoff period are accepted, and all those that pay off in more than the particular cutoff period are rejected. |
| Payoff Profile |
A graph with the value of an underlying asset on the x-axis and the value of a position taken to hedge against risk exposure on the y-axis. Also used with changes in value. (Contrast with risk profile.) |
| Payout Ratio |
Proportion of net income paid out in cash dividends. |
| Pegged Exchange Rate System |
The International Monetary Fund’s name for a fixed exchange rate system. |
| Pension Liabilities |
A recognition of future liabilities resulting from pension commitments made by the corporation. Accounting for pension liabilities varies widely by country. |
| Perfect Market Assumptions |
A set of assumptions under which the law of one price holds. These assumptions include frictionless markets, rational investors, and equal access to market prices and information. |
| Perils of the Sea |
A marine insurance term used to designate heavy weather, stranding, lightning, collision, and seawater damage. |
| Periodic Call Auction |
A trading system in which stocks are auctioned at intervals throughout the day. |
| Perpetuity |
A constant stream of cash flows without end. A British consol is an example. |
| Phytosanitary Inspection Certificate |
A certificate, issued by the Indian Government Department of Agriculture to satisfy import regulations for foreign countries, indicating that a India shipment has been inspected and is free from harmful pests and plant diseases. |
| Phytosanitary Measure |
A piece of legislation, regulation, or procedure with the purpose of preventing the introduction or spread of pests. Phytosanitary procedures often include the performance of inspections, tests, surveillance, or other treatments. |
| Points Quote |
An abbreviated form of the outright quote used by traders in the interbank market. |
| Political Risk |
In export financing the risk of loss due to such causes as currency, inconvertibility, government action preventing entry of goods, expropriation or confiscation, war, etc. |
| Portfolio |
Combined holding of more than one stock, bond, real estate asset, or other asset by an investor. |
| Postal Parcel Receipt |
The postal authorities' signed acknowledgment of delivery to receiver of a shipment made by parcel post. |
| Power Distance |
The extent to which a society accepts hierarchical differences. |
| Predatory Pricing |
It is a form of price discrimination that requires selling below cost with the intention of destroying competition. However, predatory pricing is against law. |
| Premium |
If a bond is selling above its face value, it is said to sell at a premium. |
| Present Value |
The value of a future cash stream discounted at the appropriate market interest rate. |
| Present Value Factor |
Factor used to calculate an estimate of the present value of an amount to be received in a future period. |
| Price Elasticity of Demand |
The sensitivity of quantity sold to a percentage change in price; -%changeQ/%changeP. |
| Price Uncertainty |
Uncertainty regarding the future price of an asset. |
| Private Export Funding Corporation(PEFCO) |
Lends to foreign buyers to finance exports from U.S. |
| Private Placement |
A securities issue privately placed with a small group of investors rather than through a public offering. |
| Privatization |
A process whereby publicly owned enterprises are sold to private investors. (Contrast with nationalization.) |
| Privileged Foreign (PF) |
Foreign merchandise or non-tax paid domestic merchandise upon which the duty and applicable taxes have been determined at the time this status is approved. |
| Product Cycle Theory |
Product cycle theory views the products of the successful firm as evolving through four stages: (1) infancy, (2) growth, (3) maturity, and (4) decline. |
| Product Life Cycle (PLC) |
The complete life of a product, from early planning through sales build-up, maximum sales, declining sales, and withdrawal of the product. Product life cycle lengths and types can vary depending on the type of product, the frequency of replacement. |
| Production Possibilities Schedule |
The maximum amount of goods (for example, food and clothing) that a country is able to produce given its labor supply. |
| Production Sharing |
Production sharing occurs when a producer chooses to make a product in stages - and in different countries - so that the firm can employ the lowest-cost resources in the production process. |
| Profitability Index |
A method used to evaluate projects. It is the ratio of the present value of expected future cash flows after initial investment divided by the amount of the initial investment. |
| Proforma Invoice |
An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent their value and important specifications. |
| Progressive Taxation |
A convex tax schedule that results in a higher effective tax rate on high income levels than on low-income levels. |
| Project Financing |
A way to raise nonrecourse financing for a specific project characterized by the following: (1) the project is a separate legal entity and relies heavily on debt financing and (2) the debt is contractually linked to the cash flow generated by the project. |
| Promissory Note |
Financial document in which the buyer agrees to make payment to the seller at a specified time. |
| Proprietary Knowledge |
Private or exclusive knowledge that cannot be legally used or duplicated by competitors. |
| Prospectus |
A brochure that describes a mutual fund’s investment objectives, strategies, and position limits. |
| Protectionism |
Protection of local industries through tariffs, quotas, and regulations that discriminate against foreign businesses. |
| Psychic Distance |
The similarities or lack thereof between country markets. This concept takes into account geographic distance, cultural similarities, linguistic aspects, legal systems and methods of conducting business. |
| Public Relations |
A variety of programs designed to promote and/or protect a company's image or its individual products. |
| Public Securities Offering |
A securities issue placed with the public through an investment or commercial bank. |
| Purchasing Agent |
An agent who purchases goods in his or her own country on behalf of foreign importers such as government agencies and large private concerns. |
| Purchasing Power Parity (PPP) |
The principle that equivalent assets sell for the same price. Purchasing power parity is a measurement of a currency's value based on the buying power within its own domestic economy. |
| Pure Discount Bond |
Bonds that pay no coupons and only pay back the face value at maturity. Also referred to as "bullets" and "zeros." |
| Put Option |
The right to sell the underlying asset at a specified price and on a specified date. |
| Put-Call Parity |
The relation of the value of a long call, a short put, the exercise price, and the forward price at expiration; CallTd/f - PutTd/f + Kd/f = FTd/f. |
