| Glossary of Export Import Trade Terms Starting with - R |
| Words |
Description |
| R-Square (the Coefficient of Determination) |
The percent of the variation in a dependent variable (a y-variable) that is explained by variation in an independent variable (an x-variable). |
| Random Walk |
A process in which instantaneous changes in exchange rates are normally distributed with a zero mean and constant variance. |
| Re-Invoicing Centers |
An offshore financial affiliate that is used to channel funds to and from the multinational’s foreign operations. |
| Reactivation |
A resumption of the activated status of an entire area that was previously deactivated without any change in the operator or the area boundaries. |
| Real Appreciation/Depreciation |
A change in the purchasing power of a currency. |
| Real Cash Flow(RCF) |
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash flow is given. |
| Real Exchange Rate (RER) |
A measure of the nominal exchange rate that has been adjusted for inflation differentials since an arbitrarily defined base period. |
| Real Interest Rate (RIR) |
Interest rate expressed in terms of real goods; that is, the nominal interest rate minus the expected inflation rate. |
| Real Options (RO) |
An option or option-like feature embedded in a real investment opportunity. |
| Reciprocal Marketing Agreement |
A strategic alliance in which two companies agree to co market each other’s products in their home market. Production rights may or may not be transferred. |
| Recourse |
The right to demand return of money paid. In negotiation of a letter of credit, payment by the negotiating bank will normally be with recourse. |
| Regional Commissioner |
The Regional Commissioner of Customs for the Customs Region in which the zone is located. |
| Regional Development Banks |
Banks that are owned and operated by member nations; they are designed to extend development loans and provide other assistance to member nations. The world's four regional development banks are the African Development Bank Group. |
| Registered Bonds (RB) |
Bonds for which each issuer maintains a record of the owners of its bonds. Countries requiring that bonds be issued in registered form include the United States and Japan. (Contrast with bearer bonds.) |
| Registration Statement (RS) |
In the United States, a statement filed with the Securities and Exchange Commission on securities issues that discloses relevant information to the public. |
| Remitting Bank |
Bank that sends the draft to overseas bank for collection. |
| Repatriation |
The act of remitting cash flows from a foreign affiliate to the parent firm. |
| Reservation Price |
The price below (above) which a seller (purchaser) is unwilling to go. |
| Residual Value |
The value of an asset at the conclusion of a lease. |
| Restrictive Endorsement |
Endorsement transferring title or right to a named party. |
| Retail Trade |
Generally, sales or offers to sell goods or services to individuals for personal use. |
| Retention Ratio |
Retained earnings divided by net income. |
| Return on Equity (ROE) |
Net income after interest and taxes divided by average common stockholder's equity. |
| Revaluation |
An increase in a currency value relative to other currencies in a fixed exchange rate system. |
| Revocable Letter of Credit |
A letter of credit that can be canceled or altered by the drawee (buyer) after it has been issued by the drawee's bank. |
| Right of Priority (ROP) |
"The right of a patent holder of a patent issued in one country to intellectual property rights in a foreign market for one year, without filing for a local patent, even if someone from the foreign market files a local patent for the same process. |
| Rights of Set-Off |
An agreement defining each party’s rights should one party default on its obligation. Rights of set-off were common in parallel loan arrangements. |
| Risk Averse |
Seeking stability rather than risk. |
| Risk Premium |
The excess return on the risky asset that is the difference between expected return on risky assets and the return of risk-free assets. |
| Risk Profile |
A graph with the value of an underlying asset on the x-axis and the value of a position exposed to risk in the underlying asset on the y-axis. Also used with changes in value. (Contrast with payoff profile.) |
| Roll’s Critique |
The CAPM holds by construction when performance is measured against a mean-variance efficient index. Otherwise, it holds not at all. |
| Royalty |
Payment made for the use of a person or business’s property based on an agreed percentage of the income arising from its use. |
| Rule #1 |
Always keep track of your currency units. |
| Rule #2 |
Always think of buying and selling the currency in the denominator of a foreign exchange quote. |
| Rules of Origin |
Rules used to determine in what country a good will be considered as actually made for tariff and other trade purposes. |
