Glossary

Umbrella Rate

In shipping, the umbrella rate is a rate system designed to protect less competitive carriers by setting artificially high minimum rates.

Unbiased Expectations Hypothesis

The hypothesis that forward exchange rates are unbiased predictors of future spot rates (see forward parity).

Uncertainty Avoidance

The extent to which a society tolerates uncertainty and ambiguity.

Unemployment Rate

The ratio of the total number of unemployed persons to the total number of persons in the labor force.

Union Economique et Monetaire Ouest Africaine (UEMOA)

UEMOA is composed of Bening, Burkina Faso, Cote d'Ivoire, Mali, Guinea-Bissau, Niger, Senegal, and Togo. Its purpose is to unite members through competition in an open market.

United Nations Conference on Trade and Development (UNCTAD)

UNCTAD was established in 1964 with the goal of promoting sustainable development while integrating developing countries into the world economy. It works to achieve this goal by acting as a forum for intergovernmental deliberations with an aim at consensus building; conducting research, policy analysis, and data collection; and by providing technical assistance tailored to the specific needs of different developing countries.

United Nations Industrial Development Organization (UNIDO)

UNIDO helps developing countries and countries with economies in transition in their fight against marginalization in today's globalized world. It mobilizes knowledge, skills, information, and technology to promote productive employment, a competitive economy, and a sound environment.

Unlevered Beta

The beta (or systematic risk) of a project as if it were financed with 100 percent equity. Also known as systematic business risk.

Unlevered Cost of Equity

The discount rate appropriate for an investment assuming it is financed with 100 percent equity.

Unsustainable Debt

A financial condition in which a country is unable to service its foreign (external) debt without decimating its economy.

Unsystematic Risk

Risk that is specific to a particular security or country and that can be eliminated through diversification.

Usury

The practice of charging or paying exorbitant interest on a loan or other transaction. Note: in Islamic societies, charging, or receiving any amount of interest is considered usury.