A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The popular name for the European treaty for economic union. Named for the Dutch city in which it was signed. See European Community. Maatschappij (Mij.) (Netherlands) Designation for a combination of two or more persons who enter into a joint arrangement to conduct certain business activities. macroeconomics (economics) (a) The study of statistics (e.g., total consumption, total employment) of the economy as a whole rather than as single economic units. (b) Synonymous with aggregate economics. See also microeconomics. mail entry (U.S. Customs) A means of shipping and entering goods into the Customs Territory of the United States. Mail entry has several advantages as well as several limitations. (1) Duties on parcels valued at US$1,200 or less are collected by the letter carrier delivering the parcel to the addressee. (2) No formal entry paperwork is required on duty-free merchandise not exceeding US$1,200 in value. (3) There is no need to clear shipments personally if under US$1,200 in value. Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Maatschappij (Mij.)
(Netherlands) Designation for a combination of two or more persons who enter into a joint arrangement to conduct certain business activities. macroeconomics (economics) (a) The study of statistics (e.g., total consumption, total employment) of the economy as a whole rather than as single economic units. (b) Synonymous with aggregate economics. See also microeconomics. mail entry (U.S. Customs) A means of shipping and entering goods into the Customs Territory of the United States. Mail entry has several advantages as well as several limitations. (1) Duties on parcels valued at US$1,200 or less are collected by the letter carrier delivering the parcel to the addressee. (2) No formal entry paperwork is required on duty-free merchandise not exceeding US$1,200 in value. (3) There is no need to clear shipments personally if under US$1,200 in value. Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
macroeconomics
(economics) (a) The study of statistics (e.g., total consumption, total employment) of the economy as a whole rather than as single economic units. (b) Synonymous with aggregate economics. See also microeconomics. mail entry (U.S. Customs) A means of shipping and entering goods into the Customs Territory of the United States. Mail entry has several advantages as well as several limitations. (1) Duties on parcels valued at US$1,200 or less are collected by the letter carrier delivering the parcel to the addressee. (2) No formal entry paperwork is required on duty-free merchandise not exceeding US$1,200 in value. (3) There is no need to clear shipments personally if under US$1,200 in value. Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mail entry
(U.S. Customs) A means of shipping and entering goods into the Customs Territory of the United States. Mail entry has several advantages as well as several limitations. (1) Duties on parcels valued at US$1,200 or less are collected by the letter carrier delivering the parcel to the addressee. (2) No formal entry paperwork is required on duty-free merchandise not exceeding US$1,200 in value. (3) There is no need to clear shipments personally if under US$1,200 in value. Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(1) Duties on parcels valued at US$1,200 or less are collected by the letter carrier delivering the parcel to the addressee. (2) No formal entry paperwork is required on duty-free merchandise not exceeding US$1,200 in value. (3) There is no need to clear shipments personally if under US$1,200 in value. Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(2) No formal entry paperwork is required on duty-free merchandise not exceeding US$1,200 in value. (3) There is no need to clear shipments personally if under US$1,200 in value. Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(3) There is no need to clear shipments personally if under US$1,200 in value. Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Joint Customs and postal regulations provide that all international parcel post packages must have a Customs declaration securely attached giving an accurate description and the value of the contents. This declaration is obtained at post offices. Commercial shipments must also be accompanied by a commercial invoice enclosed in the parcel bearing the declaration. Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Parcels and packages not labeled or endorsed properly and found to contain merchandise subject to duty or taxes are subject to forfeiture. If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
If the value of a mail importation exceeds US$1,250, the addressee is notified to prepare and file a formal Customs entry (consumption entry) for it at the nearest Customs port. A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A mail entry limit of US$250 has been set for a number of articles classified in sub-chapters III and IV, chapter 99, of the Harmonized Tariff Schedule of the U.S. as an exception to the above US$1,250 limit. Items on this list include billfolds, feathers, flowers, footwear, fur, gloves, handbags, headwear, leather, luggage, millinery, pillows, plastics, skins, rubber, textiles, toys, games, sports equipment and trimmings. Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Unaccompanied shipments of made-to-measure suits from Hong Kong require a formal entry regardless of value. See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
See entry; consumption entry. mala fide (law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mala fide
(law) In bad faith. A seller's representation that goods are usable for a particular purpose when in fact the seller knows that the goods are not is a representation made mala fide. manifest (shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
manifest
(shipping) A document giving the description of a ship's cargo or the contents of a car or truck. Manufactured Imports Promotion Organization (MIPRO) (Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Manufactured Imports Promotion Organization (MIPRO)
(Japan) A non-profit organization, established in 1978 by the joint efforts of the Japanese Government and the private sector to promote imports of foreign manufactured products by hosting exhibitions and providing a wide range of market information. MIPRO's activities are broadly classified into three categories: (1) holding imported product trade exhibitions for buyers and the general public; (2) disseminating information regarding imported products and the Japanese market; and (3) promoting sales of foreign products to Japanese consumers to promote recognition of the quality of imported goods. Address: Manufactured Imports Promotion Organization, 1-3, Higashi Ikebukuro 3-chome, Toshima-ku, Tokyo 170, Japan; Tel: [81] (3) 3988-2791; Fax: [81] (3) 3988-1629. maquiladora (Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
maquiladora
(Mexico) A program which allows foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent reexport. Industry established under the maquiladora program is Mexico's second largest source of foreign revenue (following oil exports). In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
In December 1989, the Mexican government liberalized the maquiladora program to make it a more attractive and dynamic sector of the economy. As a result, maquiladora operations may import, duty and import license free, products not directly involved in production, but that support production, including computers and other administrative materials and transportation equipment. The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The maquiladora program may decline in importance over time as provisions of the North American Free Trade Agreement take effect. See North American Free Trade Agreement. margin (general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
margin
(general) The difference between the cost of sold items and the total net sales income. (finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(finance) The difference between the market value of collateral pledged to secure a loan and the face value of the loan itself. (investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(investments--U.S.) The amount paid by the customer when he or she uses a broker credit to buy a security under Federal Reserve regulations, the initial margin required in past decades has ranged from 50 to 100 percent of the purchase price. (finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(finance) The spread between bid and asked rates (foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(foreign exchange) The good faith deposit which the writer of an option or the buyer of a forward or futures contract has to put up to cover the risk of adverse price movements. marginal cost (economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
marginal cost
(economics) The increase in the total cost of production that results from manufacturing one more unit output. marine cargo insurance (insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
marine cargo insurance
(insurance) Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. See special marine policy; all risk. Marine Extension Clause 1943 & 1952 (insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Marine Extension Clause 1943 & 1952
(insurance) An insurance extension which broadens warehouse-to-warehouse insurance coverage by eliminating the requirement that ordinary course of transit be maintained as well as the 15- or 30-day time limit at destination. Moreover, continuation of coverage is provided when certain conditions necessitate discharge of goods from vessel at a port other than the original destination. The most recent form of Marine Extension Clause was developed in 1952. It too provides for extensions as does the 1943 version, and adds that the assured will act with reasonable dispatch. The Warehouse-to-Warehouse Clause is now found in practically all open cargo policies. See also warehouse-to-warehouse. marine insurance See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
marine insurance
See marine cargo insurance. marine protection and indemnity insurance (insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
marine protection and indemnity insurance
(insurance) Insurance against legal liability of the insured for loss, damage, or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury or death, and for loss of or damage to the property of another person. maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
maritime
Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty have jurisdiction over, concurrently with the courts of common law. mark The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mark
The currency of Germany. 1DM=100 pfennig. market access (economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
market access
(economics) The openness of a national market to foreign products. Market access reflects a government's willingness to permit imports to compete relatively unimpeded with similar domestically produced goods. Market Access Program (MAP) (U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Market Access Program (MAP)
(U.S.) A U.S. government program authorized by the U.S. Food, Agriculture, Conservation, and Trade Act of 1990 and administered by the U.S. Department of Agriculture's Foreign Agricultural Service. Under the MPP, surplus stocks or funds from the Commodity Credit Corporation are used to partially reimburse agricultural organizations conducting specific foreign market development projects for eligible products in specified countries. Proposals for MPP programs are developed by trade organizations and private firms. Activities financed by the programs vary from commodity to commodity, and include activities such as market research, construction of a three-story wood demonstration building, construction of a model feed mill, and consumer promotion activities. (MPP is similar to the Targeted Export Assistance (TEA) program which was repealed by the 1990 Farm Bill.) Contact: U.S. Department of Agriculture, Foreign Agriculture Service, Marketing Operations Staff, Stop 1042, Washington DC 20250; Tel: [14] (202) 720-4327; Fax: [14] (202) 720-9361. market economy (economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
market economy
(economics) An economic system where resources are allocated and production of products determined by market forces rather than by government decree. market disruption (economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
market disruption
(economics) The situation created when a surge of imports in a given product area causes sales of domestically produced goods in a particular country to decline to such an extent that the domestic producers and their employees suffer major economic hardship. Market-Oriented Cooperation Plan (U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Market-Oriented Cooperation Plan
(U.S./Japan) A U.S. Japan trade agreement aimed at improving long-term business relations between Japan's automotive manufacturers and U.S. auto parts suppliers. Market-Oriented Sector-Selective (U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Market-Oriented Sector-Selective
(U.S./Japan) Bilateral trade discussions between the U.S. and Japan begun in January 1985 in an effort to remove many trade barriers at once in a given sector. MOSS talks have focused on five sectors: (1) telecommunications, (2) medical equipment and pharmaceuticals, (3) electronics, (4) forest products, and (5) auto parts. Overall, the talks focus high-level attention on reducing certain market obstacles opening communication channels to resolve follow-up disputes. market price (economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
market price
(economics) (a) The price established in the market where buyers and sellers meet to buy and sell similar products. (b) The price determined by factors of supply and demand rather than by decisions made by management. marking: country of origin The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
marking: country of origin
The physical markings on a product that indicate the country of origin where the article was produced. (U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(U.S. Customs) U.S. Customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the United States the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted from individual marking are an exception to this rule. See United States Customs Service. markka The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
markka
The currency of Finland. 1Fmk=100 pennia. marks (shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
marks
(shipping) Information placed on outer surface of shipping containers or packages such as address labels, identifying numbers, box specifications, caution, or directional warnings. markup See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
markup
See premium. master's protest See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
master's protest
See captain's protest. matador bond (banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
matador bond
(banking/finance) Bond issued on the Spanish market, denominated in currencies other than the peseta. Matchmaker Program (U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Matchmaker Program
(U.S.) Matchmaker trade delegations are organized and led by the U.S. International Trade Administration to help new-to-export and new-to-market firms meet prescreened prospects who are interested in their products or services in overseas markets. Matchmaker delegations usually target two major country markets in two countries and limit trips to a week or less. This approach is designed to permit U.S. firms to interview a maximum number of prospective overseas business partners with a minimum of time away from their home office. The program includes U.S. embassy support, briefings on market requirements and business practices, and interpreters' services. Matchmaker events, based on specific product themes and end-users, are scheduled for a limited number of countries each year. Contact: International Trade Administration, Department of Commerce, 14th and Constitution Ave. NW, Room 2012, Washington, DC 20230; Tel: [14] (202) 482-2000. See new-to-export; new-to-market. material contract terms (law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
material contract terms
(law) Terms that are necessary to the agreement. Clauses that describe the goods, fix the price, and set the delivery date are examples of material contract terms. mate's receipt (shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mate's receipt
(shipping) A declaration issued by an officer of a vessel in the name of the shipping company stating that certain goods have been received on board his vessel. A mate's receipt is not a title document. Used as an interim document until the bill of lading is issued. measurement cargo (shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
measurement cargo
(shipping) A cargo on which the transportation charge is assessed on the basis of measurement. measurement ton (shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
measurement ton
(shipping) Also known as a cargo or freight ton. A space measurement usually 40 cubic feet or one cubic meter. The cargo is assessed a certain rate for every 40 cubic feet of space it occupies. medium of exchange (economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
medium of exchange
(economics) Any commodity (commonly money) which is widely accepted in payment for goods and services and in settlement of debts, and is accepted without reference to the standing of the person who offers it in payment. memorandum bill of lading (shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
memorandum bill of lading
(shipping) The duplicate copy of a bill of lading. See bill of lading. memorandum of understanding (MOU) (general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
memorandum of understanding (MOU)
(general) An informal record, document or instrument that serves as the basis of a future contact. (U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(U.S.) A very detailed document devised by executive branch agencies of the government in areas such as aviation and fisheries that serve as agreements between nations. memorandum tariff (shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
memorandum tariff
(shipping) Publications which contain rule and rate information extracted from official tariffs. Memorandum tariffs are published by many carriers and are available from these carriers upon request. See tariff. mercantilism (economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mercantilism
(economics) A prominent economic philosophy in the 16th and 17th centuries that equated the accumulation and possession of gold and other international monetary assets, such as foreign currency reserves, with national wealth. Although this point of view is generally discredited among 20th century economists and trade policy experts, some contemporary politicians still favor policies designed to create trade "surpluses," such as import substitution and tariff protection for domestic industries, as essential to national economic strength. merchandise trade balance See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
merchandise trade balance
See balance of payments. merchant bank (banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
merchant bank
(banking) A term used in Great Britain for an organization that underwrites securities for corporations, advises such clients on mergers, and is involved in the ownership of commercial ventures. merchant's credit (banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
merchant's credit
(banking) A letter of credit issued by the buyer himself. Contains no commitment whatever on the part of a bank. See letter of credit. merchant's haulage (shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
merchant's haulage
(shipping) The inland move from or to a port that has all arrangements made by the cargo interests (seller/exporter). Mercosur (regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Mercosur
(regional trade alliance) Mercosur (Spanish; Mercosul in Portuguese) or Southern Common Market, is comprised of Argentina, Brazil, Paraguay, and Uruguay. Mercosur is scheduled to enter into force in December 1994 for Argentina and Brazil and to enter into force in December 1995 for Paraguay and Uruguay. Mercosur, modeled similarly to the European Community's Treaty of Rome, will establish a common external tariff and eliminate barriers to trade in services. Chile has not sought entry to Mercosur, but does have an agreement with Argentina which will provide for some similar benefits. merry-go-round (banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
merry-go-round
(banking/finance/foreign exchange) The circulation of money through various sources, ending up where it started. For instance the German Central Bank recycles excess capital by selling U.S. dollars to banks under a repurchase agreement and the banks place the U.S. dollars in the Euromarket. As the financial institutions could run up a U.S. dollar debt on the Euromarket, the Central Bank must buy back the U.S. dollars and sell domestic currency to avoid an excessive increase in the mark. meter (measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
meter
(measure) A unit of linear measure equal to 39.37 inches (approximately). See Weights and Measures in the Appendix. metical The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
metical
The currency of Mozambique. 1Mt=100 centavos. metric system (measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
metric system
(measurement) A decimal system of weights and measures based on the meter of approximately 39.37 inches and the kilogram of approximately 2.2046 pounds. See Weights and Measures in the Appendix. metric ton (measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
metric ton
(measure) A unit of mass or weight measure equal to 2,204.6 pounds or 1,000 kilograms preferably called kiloton. microbridge (shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
microbridge
(shipping) A landbridge movement in which cargo originating/destined to an inland point is railed or trucked to/from the water port for a shipment to/from a foreign country. Carrier is responsible for cargo and costs from origin to destination. microeconomics (economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
microeconomics
(economics) The examination of the economic behavior of individual units in the economy, such as households or corporations. See also macroeconomics. Military Critical Technologies List (U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Military Critical Technologies List
(U.S.) A document listing technologies that the U.S. Defense Department considers to have current or future utility in military systems. The MCTL describes arrays of design and manufacturing know-how; keystone manufacturing, inspection, and test equipment; and goods accompanied by sophisticated operation, application, and maintenance know-how. Military justification for each entry is included in a classified version of the list. See United States Department of Defense. minibridge (shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
minibridge
(shipping) Movement of cargo from a port over water, then over land to a port on an opposite coast. minimum bill of lading (shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
minimum bill of lading
(shipping) Ocean bills of lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo. See bill of lading. minimum charge (shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
minimum charge
(shipping) The lowest rate applicable on each type of cargo service no matter how small the shipment. Ministry of Foreign Economic Relations and Trade (MOFERT) Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Ministry of Foreign Economic Relations and Trade (MOFERT)
Renamed Ministry of Foreign Economic Trade and Economic Cooperation. See Ministry of Foreign Economic Trade and Economic Cooperation. Ministry of Foreign Economic Trade and Economic Cooperation (China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Ministry of Foreign Economic Trade and Economic Cooperation
(China) The People's Republic of China (PRC) Ministry of Foreign Economic Trade and Economic Cooperation implements national trade policies through administrative actions, drafting laws and issuing foreign trade regulations. It does not engage in foreign trade transactions but facilitates the foreign trading corporations (FTCs) which do. Address: Ministry of Foreign Trade & Economic Cooperation (MOFTEC), 2 Dongchangan Jie, Dongcheng Qu, Beijing 100731, PRC; Tel: [86] (10) 519-8114; Fax: [86] (10) 512-9568 (general) or (1) 519-8834 (American and Oceanian Bureau). Ministry of Health and Welfare (MHW) (Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Ministry of Health and Welfare (MHW)
(Japan) Under the Pharmaceutical Affairs Law, MHW is Japan's agency responsible for regulating medical products. The Ministry also is charged with determining Japanese healthcare expenditures. Address: Ministry of Health and Welfare, 2-1, Kasumigaseki 1-chome, Chiyoda-ku, Tokyo 100; Tel: [81] (3) 3502-7111 or [81] (3) 3502-1711. Ministry of International Trade and Industry (MITI) (Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Ministry of International Trade and Industry (MITI)
(Japan) MITI occupies a central position in Japan's "economic bureaucracy" and is regarded as one of the three most powerful and prestigious ministries of the central government (along with the Ministry of Finance and the Ministry of Foreign Affairs). In formulating and implementing Japan's trade and industrial policies, MITI is responsible for funding most of Japan's export promotion programs (although operation of these programs is left to JETRO). The Ministry also supervises the export financing programs of Japan's Export-Import Bank, operates several types of export insurance programs, supports research organizations, and facilitates various types of overseas technical and cooperation training programs. Lately, MITI has assumed a role in encouraging imports of foreign products into Japan. Address: Ministry of International Trade and Industry, 3-1, Kasumiguseki 1-chome, Chuyodee-ku, Tokyo 100, Japan; Tel: [81] (3) 3501-1511. Ministry of Posts and Telecommunications (MPT) (Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Ministry of Posts
(Japan) MPT is Japan's telecommunications regulatory agency. The Ministry is authorized to adjust supply and demand among service providers to ensure that there is not excessive competition in a given market. To do so, MPT issues "administrative guidance" to the industry and recommends "unification" when there appears to be excessive competition in a given market. Missile Technology Control Regime An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Missile Technology Control Regime
An international agreement to limit the proliferation of missiles "capable of delivering nuclear weapons," to increase regional stability, and to convey publicly the firm resolve of the partners to address this issue. In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
In April 1987, Canada, France, Germany, Japan, the U.K., and the U.S. agreed to establish the MTCR. The regime expanded to include Australia, Austria, Belgium, Denmark, Luxembourg, the Netherlands, New Zealand, Norway, and Spain. The MTCR does not have permanent organizations, but convenes regular meetings to exchange information and coordinate member country stands. Under the MTCR, each member administers missile-related export controls independently. After the MTCR agrees that certain goods and technologies should be controlled for missile proliferation reasons, each member must implement the controls in its own domestic legislation. There is no international entity that oversees the implementation and enforcement of MTCR controls. Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Items and technology agreed by the MTCR partners to be controlled are listed in the MTCR Annex. The Annex is divided into two groups: Category I (consisting of complete rocket and unmanned air vehicle systems and subsystems) and Category II (encompassing components, equipment, technology, materials used in missile design, development, production or use). mitigation of damages (law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mitigation of damages
(law/insurance) A legal doctrine that charges a party who suffers contract damages with a duty to use reasonable diligence and ordinary care in attempting to minimize damages or avoid aggravating the injury. If a seller of oranges, for example, is entitled to prepayment before shipment and the buyer fails to pay, the seller should make a reasonable attempt to sell the oranges to another buyer before they spoil so as to mitigate the seller's damages. The seller may then recover from the breaching buyer the difference between the contract price and the price at which the oranges were sold to the other buyer. The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The concept also applies to insurance where the insured has the responsibility to minimize damages to an insured cargo shipment. mixed credit (banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mixed credit
(banking) The combining of concessional (liberal) and market-rate export credit as an export promotion mechanism. monetary instrument See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
monetary instrument
See financial instrument. monetary system (banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
monetary system
(banking) The authority of the state in matters of establishing monetary policy, including determining the monetary unit, the monetary authorities, and the ways in which money is issued and the way the money supply is controlled. money (banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
money
(banking) Any denomination of coin or paper currency of legal tender that passes freely as a medium of exchange; anything that is accepted in exchange for other things (e.g., precious metals). Major characteristics of money include easy recognition, uniformity in quality, easy divisibility, and a relatively high value within a small area. money creation (banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
money creation
(banking) The increase in money supply by the central or commercial banks. money market (banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
money market
(banking/finance) The market for short-term financial instruments, such as certificates of deposit, commercial paper, banker's acceptances, Treasury bills, discount notes and others. These instruments are all liquid and tend to be safe. See capital market, financial market. money market operations (banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
money market operations
(banking) Comprises the acceptance and re-lending of deposits (see time deposits) on the money market. money supply (economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
money supply
(economics/banking) The amount of domestic cash and deposit money available in an economy. moor (shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
moor
(shipping) To secure a vessel to an anchor, buoy or pier. moorage (shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
moorage
(shipping) Charges assessed for mooring a vessel to a pier or wharf. Most Favored Nation (MFN) A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Most Favored Nation (MFN)
A non-discriminatory trade policy commitment on the part of one country to extend to another country the lowest tariff rates it applies to any other country. (GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(GATT) All contracting parties to the General Agreement on Tariffs and Trade (GATT) undertake to apply such treatment to one another under Article I of the treaty. Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Under MFN principles, when a country agrees to cut tariffs on a particular product imported from one country, the tariff reduction automatically applies to imports of this product from any other country eligible for most-favored nation treatment. This principle of nondiscriminatory treatment of imports appeared in numerous bilateral trade agreements prior to establishment of the GATT. A country is under no obligation to extend MFN treatment to another country unless both are bilateral contracting parties of the General Agreement on Tariffs and Trade or MFN treatment is specified in a bilateral agreement. (U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
(U.S.) The most favored nation principle was a feature of U.S. trade policy as early as 1778. Since 1923 the United States has incorporated an "unconditional" Most Favored Nation clause in its trade agreements, binding the contracting governments to confer upon each other all the most favorable trade concessions that either may grant to any other country subsequent to the signing of the agreement. The United States now applies this provision to its trade with all of its trading partners except for those specifically excluded by law. See also Harmonized Tariff Schedule of the United States. motor carrier's terminal (shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
motor carrier's terminal
(shipping) The place where loaded or empty shipping containers are received or delivered by a motor carrier and where the motor carrier maintains an equipment pool. motor vehicle (shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
motor vehicle
(shipping) Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property. multicurrency clause (banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
multicurrency clause
(banking) a clause in a loan agreement stating that more than one currency may be used in paying or redeeming the loan. Multi-Fiber Arrangement, textiles (MFA) (GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Multi-Fiber Arrangement, textiles (MFA)
(GATT) An international compact under the General Agreement on Tariffs and Trade (GATT) that allows an importing signatory country to apply quantitative restrictions on textiles imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving "orderly marketing" of such products, and of avoiding "market disruption" in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The MFA provides that such restrictions should not reduce imports to levels below those attained during the preceding year. Bilateral agreements usually allow for import growth tied to anticipated greater demand. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles-exporting countries consider it advantageous to enter into bilateral agreements with the principal textiles-importing countries. The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
The MFA went into effect on Jan. 1, 1974, was renewed in December 1977, in December 1981, and again in July 1986. It succeeded the Long-term Agreement on International Trade in Cotton Textiles ("The LTA"), which had been in effect since 1962. Whereas the LTA applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel. Note: The MFA will eventually be phased out as a result of the Uruguay Round of the General Agreement on Tariffs and Trade. See also quotas; bilateral trade agreement; Uruguay Round; General Agreement on Tariffs and Trade. multilateral agreement An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
multilateral agreement
An international compact involving three or more parties. For example, the General Agreement on Tariffs and Trade (GATT), has been, since its establishment in 1947, seeking to promote trade liberalization through multilateral negotiations. See also bilateral trade agreement. Multilateral Investment Fund Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Multilateral Investment Fund
Under the Enterprise for the Americas Initiative, the fund complements the Inter-American Development Bank. The fund provides program and project grants to advance specific, market-oriented investment policy initiatives and reforms, and encourages domestic and foreign investment in Latin America and the Caribbean. Contact: InterAmerican Development Bank, 1300 New York Avenue NW, Washington, DC 20577; Tel: [14] (202) 623-1000; http://www.iadd.org. Multilateral Investment Guarantee Agency (MIGA) A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Multilateral Investment Guarantee
A part of the World Bank Group. MIGA encourages equity investment and other direct investment flows to developing countries through the mitigation of noncommercial investment barriers. The agency offers investors guarantees against noncommercial risks; advises developing member governments on the design and implementation of policies, programs, and procedures related to foreign investments; and sponsors a dialogue between the international business community and host governments on investment issues. Address: Multilateral Investment Guarantee Agency, World Bank, 1818 H Street NW, Washington DC 20433; Tel: [14] (202) 473-6168. multilateral trade negotiations (GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
multilateral trade negotiations
(GATT) A term describing the eight multilateral rounds of negotiations held under the auspices of the General Agreement on Tariffs and Trade (GATT) since 1947. Each Round represented a discrete and lengthy series of interacting bargaining sessions among the participating Contracting Parties in search of mutually beneficial agreements looking toward the reduction of barriers to world trade. The agreements ultimately reached at the conclusion of each Round became new GATT commitments and thus amounted to an important step in the evolution of the world trading system. See General Agreement on Tariffs and Trade; rounds; Tokyo Round; Uruguay Round. multimodal transport (shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
multimodal transport
(shipping) Shipping which includes at least two modes of transport, such as shipping by rail and by sea. multinational corporation (economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
multinational corporation
(economics) A corporation having subsidiaries in more than one country. mutatis mutandis (law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
mutatis mutandis
(law) Meaning changing what needs to be changed; used when cases are nearly the same except for minor details. A statute that governs one type of transaction, for example, may also be applied to another transaction with minor exceptions, in which event the statute applies mutatis mutandis. A country may apply its trademark law mutatis mutandis to service marks, in which event the same law will apply except for changes to account for such details as the use of the mark to distinguish services instead of goods. A B C D E F G H I J K L M N O P Q R S T U V W X Y Z