Glossary

Value Chain

A value-added process in a firm to transform raw materials and other inputs to finished goods, which creates value to customers.

Value Date

Date on which a foreign exchange contract is executed, i.e. seller delivers.

Value Stocks

Stocks with low price/book ratios or price/earnings ratios. Historically, value stocks have enjoyed higher average returns than growth stocks (stocks with high price/book or PE ratios) in a variety of countries.

Value-added Reseller

A company that purchases products from a variety of sources to produce a new finished product for sale.

Value-added Tax (VAT)

A sales tax collected at each stage of production in proportion to the value added during that stage.

Variable Costs

A cost that varies directly with volume and is zero when production is zero.

Venture Capital

An investment in a start-up business that is perceived to have excellent growth prospects but that does not have access to capital markets.

Virtual Corporation

Partnerships so close those two partners become a single firm for all operational purposes.

Voluntary Export Restraint (VER)

One country promises another country to limit its imports; this is often done when the promising country fears increased tariffs or quotas if it does not self-regulate.