Back-to-back loan: Borrowings in one currency that are marched by borrowings in another currency to overcome exchange control in aid of investment.
Cartel: An arrangement between otherwise competing producers to act in collusion with the goal of raising prices and collective profits. A cartel attempts to create monopoly-type conditions in what should be a competitive industry – with participants restraining the amount they produce in order to keep supply down and thus prices high at the expense of consumers.
Caveat emptor: Legal expression meaning ‘let the buyer beware’. Generally speaking, the law presumes that a person uses common sense when buying goods, and if that person suffers loss through his own fault he will not find the law sympathetic.
DAGMAR: An approach for setting goals and objectives for advertising. DAGMAR is an acronym that stands for ‘Defining Advertising Goals for Measured Advertising Results’, an expression coined by Russell Colley in 1961. The main thesis of the approach is that advertising goals involve a specific and measurable communications task. There are four such tasks: (a) making consumers aware of a brand (‘awareness’); (b) helping them understand what the brand is and does (‘comprehension’); (c) developing a disposition to buy the brand (‘conviction’), and (d) enabling consumers to make a purchase (‘action’).
Electronic banking: The automated facility to call up bank account details, give instructions for payments and make use of other services by means of a computer, modem and telephone line or viewdata system. Used by businesses; retail customers appear to prefer telephone banking.
Exchange control: A method by which governments seek to control the exchange rate of their national currency and to preserve the national reserves, consisting in the imposition of limitations or prohibitions on the movement of currency across national frontiers.
Financial Action Task Force on Money Laundering (FATF): An organisation instigated in 1989 by the Group of Seven countries, and based in the Organisation for Economic Co-operation and Development (OECD), to combat money laundering by persuading individual governments to take action and to offer technical assistance for this purpose.
General Insurance: Insurance against fire, accident, theft, etc. as distinct from life.
Indemnity: the sum in compensation paid by an insurance company in the event of loss or damage under the contract.
Source: Penguin Int’l Dictionary of Business & Finance
Author can be reached on: ousafrik@yahoo.com, +220 5221982/7345313
