CITS COPA (AICET) flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Absolute advantage

A country has an absolute advantage when it can produce a unit of a good using fewer resources (less labour) than another country. It explains specialisation but not necessarily mutually beneficial trade.

Comparative advantage

A country has a comparative advantage in a good when its opportunity cost of producing that good is lower than its trading partner's. Specialising accordingly raises total world output.

Opportunity cost ratio

The amount of one good sacrificed to produce one more unit of another. If 1 unit of X costs 2 units of Y, the opportunity cost of X is 2Y; the lower-cost country exports X.

Terms of trade

The rate at which exports exchange for imports. It lies between the two countries' domestic opportunity-cost ratios; the exact position depends on relative demand and bargaining strength.

Heckscher-Ohlin theorem

A country exports the good that intensively uses its abundant factor of production and imports the good that intensively uses its scarce factor, so trade reflects factor endowments.

Tariff deadweight loss

The welfare loss from a tariff equals the production distortion plus the consumption distortion. It excludes the tariff revenue transferred to government and the gain to domestic producers.

Marshall-Lerner condition

A currency depreciation improves the trade balance only when the sum of the absolute export and import demand elasticities exceeds one. If the sum is below one, the balance worsens.

Most-favoured-nation principle

A WTO principle requiring a member to grant any trade advantage given to one member immediately and unconditionally to all other members, unless a permitted exception applies.

National treatment

A WTO principle that imported goods, once they have cleared customs, must be treated no less favourably than like domestic goods with respect to internal taxes and regulations.

FOB Incoterm

Free On Board: the seller delivers goods on board the vessel nominated by the buyer at the named port of shipment. Risk passes at that point; the buyer pays freight and insurance.

CIF Incoterm

Cost, Insurance and Freight: the seller pays cost, minimum Institute Cargo Clauses C insurance, and freight to the named destination port, but risk passes when goods are on board at origin.

FCA Incoterm

Free Carrier: the seller delivers goods cleared for export to the carrier nominated by the buyer at the named place. Risk passes at delivery to the carrier, not at the ship's rail.

DDP Incoterm

Delivered Duty Paid: the seller bears all costs and risks, including import duty and clearance, until goods are placed at the buyer's disposal at the named destination. Maximum seller obligation.

Clean on-board bill of lading

A bill of lading stating that goods were received in apparent good order and condition and loaded on board the vessel. Banks under a letter of credit normally require this document.

Letter of credit

A bank undertaking to pay the beneficiary against presentation of complying documents. Banks deal in documents, not goods, so strict compliance with the credit terms is essential.

Certificate of origin

A document certifying the country in which goods were produced. It supports preferential tariff claims under trade agreements and is often required by customs authorities.

HS code

Harmonised System classification: a six-digit international code identifying traded goods. The first six digits are common across members; countries add further digits for national duty rates.

TEU

Twenty-foot Equivalent Unit: the standard measure of container capacity equal to one 20-foot container, roughly 33 cubic metres and about 28 tonnes payload.

IEC code

Importer-Exporter Code: a ten-digit identification number issued by India's DGFT. It is mandatory for most import and export transactions and for availing export promotion schemes.

Taper half-angle formula

For a taper of larger diameter D and smaller diameter d over length L, the half-angle α satisfies tan α = (D − d) / (2L). The included angle is twice this value.

Cutting speed formula

Cutting speed V = πDN/1000, where D is workpiece diameter in millimetres and N is spindle speed in revolutions per minute, giving V in metres per minute.

Turning time calculation

Machining time T = L / (f × N), where L is the total tool travel in millimetres (job length plus approach), f is feed in mm per revolution, and N is spindle speed in rpm.

Gear train ratio

For a gear train, the speed ratio equals the product of driven gear teeth divided by the product of driver gear teeth. An idler changes direction but not the overall ratio.

Young's modulus

Young's modulus E = stress / strain = (F/A) / (ΔL/L). It measures a material's stiffness in the elastic region and is expressed in pascals or N/mm².

Factor of safety

Factor of safety = ultimate (or yield) stress divided by allowable working stress. A value greater than one provides a margin against failure from unexpected loads or material defects.

Three-phase power formula

For a balanced three-phase load, power P = √3 × V_L × I_L × cos φ, where V_L and I_L are line voltage and current and cos φ is the power factor.

Screw thread pitch

Pitch is the axial distance between corresponding points on adjacent threads. For imperial threads pitch = 1 / threads per inch; lead equals pitch multiplied by the number of starts.

Communication process

Sender encodes a message, transmits it through a channel, and the receiver decodes it; feedback confirms understanding. Noise at any stage can distort the intended meaning.

Active listening

A listening style involving full attention, paraphrasing to confirm understanding, asking clarifying questions, and using appropriate non-verbal cues such as eye contact and nodding.

SMART goals

A goal-setting framework: Specific, Measurable, Achievable, Relevant, and Time-bound. It converts vague intentions into verifiable targets with a deadline.

Hierarchy of controls

Workplace risk-control order: elimination, substitution, engineering controls, administrative controls, then personal protective equipment. PPE is the last line of defence, not the first.

Business plan

A written document covering market analysis, product or service description, operations, marketing strategy, financial projections, and risk assessment, used to guide and fund a new venture.