Definition of OECD

OECD

Organization for Economic Cooperation and Development, consisting of most of the world's developed economies.

economic components model

Abrams’ model for calculating DLOM based on the interaction of discounts from four Economic components.
This model consists of four components: the measure of the Economic impact of the delay-to-sale, monopsony power to buyers, and incremental transactions costs to both buyers and sellers.

Economic assumptions

Economic environment in which the firm expects to reside over the life of the
financial plan.

Economic defeasance

See: in-substance defeasance.

Economic dependence

Exists when the costs and/or revenues of one project depend on those of another.

Economic earnings

The real flow of cash that a firm could pay out forever in the absence of any change in
the firm's productive capacity.

Economic exposure

The extent to which the value of the firm will change because of an exchange rate change.

Economic income

Cash flow plus change in present value.

Economic order quantity (EOQ)

The order quantity that minimizes total inventory costs.

Economic rents

Profits in excess of the competitive level.

Economic risk

In project financing, the risk that the project's output will not be salable at a price that will
cover the project's operating and maintenance costs and its debt service requirements.

Economic surplus

For any entity, the difference between the market value of all its assets and the market
value of its liabilities.

Economic union

An agreement between two or more countries that allows the free movement of capital,
labor, all goods and services, and involves the harmonization and unification of social, fiscal, and monetary
policies.

Economies of scale

The decrease in the marginal cost of production as a plant's scale of operations increases.

Economies of scope

Scope economies exist whenever the same investment can support multiple profitable
activities less expensively in combination than separately.

Import-substitution development strategy

A Development strategy followed by many Latin American
countries and other LDCs that emphasized import substitution - accomplished through protectionism - as the
route to Economic growth.

International Bank for Reconstruction and Development - IBRD or World Bank

International Bank for Reconstruction and Development makes loans at nearly conventional terms to countries for projects of high
Economic priority.

Leading economic indicators

Economic series that tend to rise or fall in advance of the rest of the economy.

Most distant futures contract

When several futures contracts are considered, the contract settling last.
Related: nearby futures contract

OPEC (Organization of Petroleum Exporting Countries)

A cartel of oil-producing countries.

Plan for reorganization

A plan for reorganizing a firm during the Chapter 11 bankruptcy process.

Reorganization

Creating a plan to restructure a debtor's business and restore its financial health.

Society for Worldwide Interbank Financial Telecommunications (SWIFT)

A dedicated computer network to support funds transfer messages internationally between over 900 member banks worldwide.

World Bank

A multilateral Development finance agency created by the 1944 Bretton Woods, New
Hampshire negotiations. It makes loans to developing countries for social overhead capital projects, which are
guaranteed by the recipient country. See: International Bank for Reconstruction and Development.

World investible

wealth The part of world wealth that is traded and is therefore accessible to investors.

Economic Value Added (EVA)

Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge
to cover the cost of capital invested in the business.

economic integration

the creation of multi-country markets
by developing transnational rules that reduce the fiscal and
physical barriers to trade as well as encourage greater Economic
Cooperation among countries

economic order quantity (EOQ)

an estimate of the number
of units per order that will be the least costly and provide
the optimal balance between the costs of ordering
and the costs of carrying inventory

economic production run (EPR)

an estimate of the number
of units to produce at one time that minimizes the total
costs of setting up production runs and carrying inventory

economically reworked

when the incremental revenue from the sale of reworked defective units is greater than
the incremental cost of the rework

economic value added (EVA)

a measure of the extent to which income exceeds the dollar cost of capital; calculated
as income minus (invested capital times the cost of capital percentage)

network organization

a flexible Organization structure that
establishes a working relationship among multiple entities,
usually to pursue a single function

organizational culture

the set of basic assumptions about
the Organization and its goals and ways of doing business;
a system of shared values about what is important and
beliefs about how things get accomplished; it provides a
framework that organizes and directs employee behavior
at work; it describes an Organization’s norms in internal
and external, as well as formal and informal, transactions

organizational-level cost

a cost incurred to support the ongoing
facility or operations

organizational structure

the manner in which authority and
responsibility for decision making is distributed in an entity

organization chart

a depiction of the functions, divisions,
and positions of the people/jobs in a company and how
they are related; it also indicates the lines of authority and
responsibility

organizational form

an entity’s legal nature (for example,
sole proprietorship, partnership, corporation)

World Trade Organization (WTO)

the arbiter of global trade that was created in 1995 under the General Agreement on Tariffs and Trade; each signatory country has one
vote in trade disputes

Economic life

The period over which a company expects to be able to use an asset.

economic order quantity

Order size that minimizes total inventory costs.

economic value added (EVA)

Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost
of the capital employed.

reorganization

Restructuring of financial claims on failing firm to allow it to keep operating.

Classical Macroeconomics

The school of macroEconomic thought prior to the rise of Keynesianism.

Economics

The study of the allocation and distribution of scare resources among competing wants.

Macroeconomics

The study of the determination of Economic aggregates such as total output and the price level.

Microeconomics

The study of firm and individual decisions insofar as they affect the allocation and distribution of goods and services.

Supply-Side Economics

View that incentives to work, save, and invest play an important role in determining Economic activity by affecting the supply side of the economy.

World Bank

The International Bank for Reconstruction and Development, an international Organization that provides long-term loans to developing countries to improve their infrastructure.

Purchased In-Process Research and Development

Unfinished research and Development that is acquired from another firm.

Research and Development Incentives

Government programs to promote research and Development.

Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.