AD VALOREM TAX
An indirect tax that is expressed as
a percentage of the selling price. An example of an ad valorem tax would be the
Value Added Tax (VAT).
CASH FLOW
A record of an organization's liquidity,
i.e. the flow of money payments (cash income and cash payments).
DEPRECIATION
The decline in value of an asset due to
wear, age or technological obsolescence over its economic life span.
Depreciation applies both to tangible assets, such as inventory or machinery, as
well as intangible assets, e.g. copyrights, licences or leases. For accounting
and tax purposes, standardized methodologies for calculating annual depreciation
costs are often used that do not necessarily reflect the true economic
depreciation.
DIRECT FOREIGN INVESTMENT
Acquisition or
construction of physical capital by a firm from one country in another
country.
EXCHANGE RATE
Rate at which one currency may be
converted into another. Also called rate of exchange or foreign exchange rate or
currency exchange rate.
EXTERNALITIES
Externalities - or spillover effects -
are costs and benefits imposed by firms or people on others outside the market
place. These costs and benefits are not accounted for in the price and market
system. For example, people living near a polluting factory are not - as a third
party - compensated for the reduction in their welfare the pollution causes
them.
FISHERIES INDUSTRY (AS OPPOSED TO PUBLIC
ADMINISTRATION)
All productive sub-sectors of the fisheries and
aquaculture sector comprising recreational, subsistence and commercial fishing,
and including the harvesting, processing, and marketing sectors.
FIXED ASSET
A long-term asset that is not expected
to be converted into cash in the current or upcoming fiscal year. Fixed assets
can be both tangible assets, such as fishing vessels, processing plants and real
estate, as well as intangible assets, e.g. goodwill, patents and share
holdings.
FIXED COSTS
Production costs that do not vary with
the output quantity. Fixed costs could include building or office rent and
marketing costs.
EQUITY CAPITAL
The equity of a company is the
residual value of its assets after all outside liabilities (other than to
shareholders) have been allowed for. Ordinary shares in a company are popularly
called equities. Government equity capital occurs when the government is the
investor.
GROSS MARGIN
Gross margin is a financial ratio
describing the gross profit. It is expressed as a percentage and is calculated
as the gross income (operating income before depreciation) divided by total
sales.
INTER-BANK OFFERED RATE (IBOR)
The interest rate at
which first-class international banks are offered loans.
ITQ (INDIVIDUAL TRANSFERABLE QUOTA)
A type of quota
(a part of a Total Allowable Catch) allocated to individual fishermen or vessel
owners and which can be sold to others.
MARKET PRICES
In economic terms, the market price is
the price at which the market is in equilibrium, i.e. at which supply and demand
converge. In more general terms, the market price is the price at which products
and services are generally available to consumers in a market economy.
OPPORTUNITY COSTS
The benefit foregone by using a
scarce resource for one purpose instead for its next best alternative.
OVERHEAD (COSTS)
Another term used for fixed costs
but generally also including costs such as electricity and postage that may vary
with output.
PROFIT MARGIN
Profit margin is a profit ratio
expressing the profit as a percentage of total sales. It is calculated by
dividing income before extraordinary items and interest expenses by total
sales.
RESOURCE RENT
In the fisheries context, the resource
rent is the value to fishers of the fish in the water before they are caught.
This value is the difference between the total revenues obtained from the
fishery resource and the total costs of production, including a reasonable
profit. The rent is hence often considered a "surplus" profit.
SHADOW PRICES
The opportunity cost to society in
engaging in an economic activity. The concept is used when actual prices cannot
be charged or when the actual price does not reflect the real scarcity value of
a good or a service.
USURY RATE
An illegally high interest rate on a
loan.
VALUE-ADDED
The value that has been added to a good
through production or processing, i.e., the value of the final good minus the
costs for buying raw materials and intermediate goods.
VARIABLE COSTS
Production costs that vary with the
quantity of output. If output increases, then the variable costs will
increase.
