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Old 08-05-2011, 06:36 PM   #11
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Default Top financial news in Pembroke

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sovereign loan (GO)<br />A commercial loan to a sovereign state. Collateral is not offered with such loans and so there is little redress in the case of default. Much of the large foreign debts of Third World countries today are of this nature. The only way of enforcing repayment of capital and interest is by negotiation and by refusing further credit facilities.<br /><em>See also:</em> senior debt; world debt problem

books or accounts of a firm or other organization. Often this valuation is made at the time that assets are originally purchased with the consequence that changes in value caused by inflation are ignored.<br /><em>See also:</em> inflation accounting
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<strong>Unconsummated loan</strong> – Loan proceeds that the school returned to the lender prior to the borrower' s having cashed the check or the school having applied the proceeds to the student' s account.

optimum tariff (Fl, F3)<br />1 The tariff that will maximize the economic welfare of a country. Providing it is a large economy and the elasticity of supply is less than infinite, through changing the TERMS OF TRADE by imposing a ta riff it is possible to have increased revenue from trade despite its lower volume.<br /> 2 A TARIFF that increases a country's welfare by maximizing the return to its potential MONOPOLY or MONOPSONY power. This ta riff must be set at that rate which equalizes the social benefit and social cost of the marginal import. Optimum ta riffs have been recommended for less developed countries with a substantial monopoly in their export trade. If the optimum tariff is zero, then there is a strong case for FREE TRADE. Corden refers to an 'orthodox optimum tariff' as an export tax which changes the TERMS OF TRADE as the tax rest ricts exports and raises their prices.<br /> <br /><em>Reference</em><br />Corden, W.M. (1974) Trade Policy and Economic Welfare, Oxford: Clarendon Press.

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