Forward Market: A forward contract (also called an outright forward) is one where the parties to the transaction agree to buy or sell a commodity…

Spot Market: The spot market involves almost the immediate or sale of foreign exchange. Typically cash settlements are made within one/two days.

Foreign Debt Crisis: Situation in which a country cannot service its foreign debt obligations, whether private sector or government debt.

Banking Crisis: A loss of confidence in the banking system that leads a run on banks, as individuals and companies withdraw their deposits.

Currency Crisis: Occurs when a speculative attack on the exchange value of a currency results in a sharp depreciation in the value of the currency…

Gold Standard: The practice of pegging currencies to gold and guaranteeing convertibility.

International Monetary System: International Monetary System institutional arrangements countries adopt to govern exchange rates.

Dirty Float System: A system under which a country's currency is nominally allowed to float freely against other currencies, but in which the government will…

Floating Exchange Rate: A system under which the exchange rate for converting one currency into another is continuously adjusted depending on the laws of supply…

Fixed Exchange Rate System: A system under which the exchange rate for converting one currency to another currency is fixed.

World Trade Organization (WTO): The organization that succeeded the General Agreement on Tariffs and Trade (GATT) as a result of the successful completion of the…

General Agreements on Tariffs and Trade (GATT): International treaty that committed signatories to lowering barriers to the free flow of goods across national borders and…

Quota restrictions: Quota restrictions mean explicit limit (usually measured by volume or sometime by value0 on the amount of a particular product that can be…

Non-tariff barriers: Non-tariff barriers are restrictions arising from measures such as licensing, product testing, certifications, procedural hurdles, etc.

Tariff barriers: Tariffs were originally intended to raise revenues for the government. However, they are now commonly used as a form of protectionism-to restrict imports…