1 Unit 1 A brief introduction to international tradeKeyI. Answer my questions1. International trade is business which involved the crossing of national borders 2. Sales expansion, resource acquisition and diversification of sales and supplies. 3. To gain profit. 4. To seej out foreign markets and procurement. 5. There are four major forms which are the following: Merchandise exports and Imports, Service Exports and Imports, Investment and and Multinational Multinational Enterprise. 6. It is the account which is a summary statement of the flow of all international economic and financial transactions between one nation (eg.the United States ) and the rest of the world over some period of time, usually one year. 7. Merchandise Exporting and Importing. 8. Yes. There are great differences between them. 1) 1) direct direct direct investment investment investment takes takes takes place place place when when when control control control follows follows follows the the the investment. investment. investment. It It It usually usually usually means means means high high commitment of capital, personnel, and technology abroad. It aims at gaining of foreign resources and foreign markets. Direct investment may often get higher foreign sales than exporting. And sometimes it involves two or more parties. 2) 2) While While While portfolio portfolio portfolio investments investments investments are are are not not not under under under control. control. control. And And And they they they are are are used used used primarily primarily primarily for for for financial financial purposes. Treasures of companies, for example, routinely more funds from one country to another to get a higher yield on short term investments. 9. MNE is the abbreviation of the multinational enterprise. Its synonyms are NNC (the multinational corporation) and TNC (transnational corporation). 10. Examples are travel, transport, fee, royalties, dividends and interest. 11. 11. The The The choice choice choice of of of forms forms forms is is is influenced influenced influenced by by by the the the objective objective objective being being being pursued pursued pursued and and and the the the environments environments environments in in which the company must operate. 12. 12. It It It is is is limited limited limited by by by the the the number number number of of of people people people intere intere interested sted sted in in in a a a firm‟s firm‟s products products and and and services services services and and and by by customers‟ capacity to make purchase.13. This is because at an early stage of international involvement these operations usually take the least commitment and least risk of a firm‟s resources.14. 14. Royalties Royalties Royalties means means means the the the payment payment payment for for for use use use of of of assets assets assets from from from abroad, abroad, abroad, such such such as as as for for for trademarks trademarks trademarks patens, patens, copyrights, copyrights, or other expertise under or other expertise under contract contract known as licencing agreements.Royalties are also paid known as licencing agreements.Royalties are also paid franchising. 15. It is a way of doing business in which one party (the franchiser) the use of a trademark that is an essential asset for the franchisers‟ business.II Match each one on the left with its correct meaning on the right1. J 2.A 3.E 4.B 5.C 6.D 7.I 8.G 9.F 10.H III Translate the following terms and phrases into Chinese1 购买力11经济复苏；恢复2潜在销售量12 经济衰退3加价，涨价13间接投资4国内市场14有形货物5制成品15有形进出口6边际利润边际利润 16收入及支出；岁入及岁出收入及支出；岁入及岁出7市场占有率市场占有率 17超额能力超额能力 8贸易歧视贸易歧视 18贸易中间人（商）；经纪人；经纪人9时机选择时机选择 19全部包建的工程承包方式全部包建的工程承包方式10经销周期经销周期 20许可证协定许可证协定IV Case Study 1 [Answer]：Batteries Batteries called called called "white "white "white elephant" elephant" elephant" exported exported exported from from from China China China were were were very very very popular popular popular in in in Southeast Southeast Southeast Asia, Asia, because "white elephant" was a lucky thing in Southeast Asia, but no one was interested in it in the market of Europe and the United States. The boss of the company was very strange that the quality of the the battery battery battery or or or the the the price price price of of of reasons, reasons, reasons, so so so he he he asked asked asked his his his staff staff staff to to to investigate. investigate. investigate. Finally Finally Finally he he he found found found that that that is is is the the brand "white elephant" to be blame. The brand's name translated into English was "white elephant" which which meant meant meant something something something were were were no no no use use use but but but cumbersome cumbersome cumbersome in in in Western Western Western countries. countries. countries. It It It was was was really really really a a a bad bad translation from culture information perspective. The meaning derived from a legend. According to the legend, legend, there there there was was was a a a king king king who who who hated hated hated a a a minister, minister, minister, so so so he he he gave gave gave a a a white white white elephant elephant elephant to to to the the the minister minister minister for for punishment. The minister has to take care of the white elephant, he couldn't give it to others or kill it because it's the king gave it to him. However, the appetite of the white elephant was so great, and the minister became poorer. So it showed people in western countries would not buy the battery for the consumers have no willing to buy something useless but cumbersome. V . OpenVI.Translate the following into English 1. Trade is often the …engine‟ of growth. However oversimplified this metaphor may be, it does serve to underline the importance of foreign trade in the process of growth. A healthy expansion of exports may not always be sufficient condition for rapid and sustained growth, but a strong positive association between the two is clearly undeniable. Trade expansion contributes to economic growth in many many ways. ways. ways. Among Among Among them them them are are are the the the benefits benefits benefits of of of specialization; specialization; specialization; the the the favorable favorable favorable effects effects effects of of of international international competition on domestic economic efficiency; the increased capacity to pay for the imports required in development and more generally the stimulus to investment. 2. International trade is the exchange of goods and services produced in one country for goods and services produced in another country. In addition to visible trade, which involves the import and export of goods and merchandise, there is also invisible trade, which involves the exchange of services between between nations. nations. nations. Nations Nations Nations such such such as as as Greece Greece Greece and and and Norway Norway Norway have have have large large large maritime maritime maritime fleets fleets fleets and and and provide provide transportation transportation service. service. service. This This This is is is a kind a kind of invisible trade. I nvisible trade Invisible trade can be as important to to some some nations as the export of raw materials or commodities is to others. In both cases, the nations earn the money to buy necessities. 3. There exist different ways of conducting international business. Exclusive sale means the seller gives the overseas client the exclusive right of selling a particular product in a designated area within a specified period of time. In this kind of business transaction, the product is bought by the exclusive seller and therefore he should sell the product by himself, assuming sole responsibilities for his profit and loss. Exclusive sale is different from agency where only commission is involved. And difference exists between general contract and exclusive sales because the exclusive seller enjoys exclusive right in a particular area. 4. There is no country in the world that can produce all the products it needs. Thus countries join in international division of labor for effective production and reproduction. Sometimes a country can buy buy goods goods goods and and and services services services from from from abroad abroad abroad on on on a a a barter barter barter basis. basis. basis. Barter Barter Barter means means means doing doing doing business business business by by by exchanging exchanging goods of one sort for goods of another sort without using money. Barter trade itself is not enough to meat a cou n try‟s import needs. But as a form of international trade, it is still attractive in developing ntry‟s import needs. But as a form of international trade, it is still attractive in developing countries where foreign exchange is in short supply and inflow of foreign funds is far from sufficient to meet their obligations in external trade. Unit 2 General Procedures of Export and Import TransactionI. Answer the following questions(Omited) II. Filling the blanks with the suitable words in the text:1.meeting/satisfying; 2.agent, foreign/overseas; mission; 4.own; 5.setting; 6.patent; 7.profits; 8.outlets; 9.joint, venture; 10.subsidiary III. J udge the following statement, mark True (T) or False(F)1F 2. T 3. F 4. F 5.F 6.F 7.T 8.F 9.F 10. T IV . Explain the meaning of the words or phrases below as requested 1. Offer: An offer is a proposal made by sellers to buyers in order to enter into the contract. 2. 2. Withdrawal: Withdrawal: It It means means means an an an offer offer offer by by by the the the offerer offerer offerer has has has been been been withdrawn withdrawn withdrawn before before before it it it is is is reached reached reached to to to the the offeree in order to prevent its entry into force. 3. Enquiry: An enquiry is a request for business information, such as price lists, catalogue, samples, and details of the goods or trade terms. It can be made either by the importer or the exporter. 4. Acceptance: Acceptance is a statement made by other conduct of the offerees indicating unconditional consent to an offer. 5. Shipping agent: Shipping agent(船代）is a ship owner's representative whose job is to find the ships to carry.V . Compose a letter of enquiry with the following particulars:KeysMessrs. Arthur Grey & Son, 19 Cheapside, London, E.C.2 Dear Sirs, We have obtained y our name and address from China Council for Promotion of International Trade your name and address from China Council for Promotion of International Trade and learned that you are one of the leading exporters of Ice Box in your district. We are now interested in 100 sets of the said article and should be pleased if you would let us know whether you can supply us with the quantity and quality we desire. Please quote us your best price on CIF Guangzhou basis. When offering, please state clearly terms of payment, time of delivery, packing conditions together with illustrated catalogue for our consideration. We are looking forward to your early reply. Yours faithfully, VI. Please make your offer according to the following particulars: KeyDear Sirs, Thank you for your letter of 5th May. We are glad to learn of the inquiries you have had from your your customers customers customers for for for our our our raincoats. raincoats. raincoats. Our Our Our "D.D." "D.D." "D.D." range range range is is is particularly particularly particularly suitable suitable suitable for for for warm warm warm climates, climates, climates, and and during the past years we have supplied this range to dealers in several tropical countries, from many of whom we have already had repeated orders. This range is popular not only because it is light in weight, but also because the material used has been specially treated to prevent excessive condensation on the inside surface. For the quantities you mention we are pleased to quote as follows: "D.D." Raincoats 100 men's medium @ US$14.50 US$ 1,450 100 men's small 14.0 1,400 100 women's medium 13.2 1,320 100 women's small 12.7 1,270 US$ 5,440 Payment: by irrevocable L/C at sight Shipment: Shipment will be effected within three or four weeks after receiving the L/C. This This offer offer offer is is is subject subject subject to to to our our our final final final confirmation. confirmation. confirmation. We We We feel feel feel you you you may may may be be be interested interested interested in in in our our our other other products and enclose some pamphlets for your reference. We are awaiting your early orders. Yours sincerely, VII. Write a counter-offer according to the following particulars:Keys: Dear Sirs, We thank you for your quotation May 10 for 1,000 sets of Hair IceBox. We find your price as well as delivery date satisfactory, however, we would give our suggestions of an alternation of your payment terms. Our past purchase of other household electrical appliances from you has been paid as a rule by confirmed, irrevocable letter of credit at sight. On the basis, it has indeed cost us a great deal. From the moment to open credit till the time our buyers pay us, the tie-up of our funds lasts about four months. Under the present circumstances, this question is particular taxing owing to the tight money condition and unprecedentedly high bank interests. In view of our long business relations and our amicable cooperation prospects, we suggest that you accept either “cash against documents on arrival of goods ” or “drawing on us at 60 day ‟s sight ”. Your first priority to the consideration of the above request and an early favorable reply will be highly appreciated. Yours sincerely,VIII. Translate the followings into English1). Economic activity began with the cavemen, who was economically self-sufficient. He did his own hunting, found his own shelter, and provided for his own needs. As primitive populations grew and developed, the principle of division of labor evolved. One person was more able to perform some activity than another, and therefore each person concentrated on what he did best. While one hunted, another fished. The hunter then traded his surplus to the fisherman, and each benefited from the variety of diet. In today‟s complex economic world, neither individuals nor nations are self -sufficient nations are self-sufficient. self-sufficient. Nations Nations Nations have have have utilized utilized utilized different different different economic economic economic resources; resources; resources; people people people have have have developed developed developed different different skills. This is the foundation of international trade and economic activities. Foreign trade, the exchange of goods between nations, takes place for many reasons. The first, as mentioned mentioned above, above, above, is is is that that that no no no nation nation nation has has has all all all of of of the the the commodities commodities commodities than than than it it it needs. needs. needs. Raw Raw Raw materials materials materials are are scattered around the world. Large deposits of copper are mined in Peru and Zaire, diamonds are mined in South Africa, and petroleum is recovered in Middle East. Countries that do not have these resources within their own boundaries must buy from countries that export them. Foreign trade also occurs because a country often does not have enough of a particular item to meet its needs. Although the United States is a major producer of sugar, it consumes more than it can produce internally and thus must import sugar. Third, one nation can sell some items at a lower cost than other countries. Japan has been able to export large quantities of radios and television sets because it can produce them more efficiently than other other countries. countries. countries. It It It is is is cheaper cheaper cheaper for for for the the the United United United States States States to to to buy buy buy these these these from from from Japan Japan Japan than than than to to to produce produce produce them them domestically. Finally, foreign trade takes place because of innovation or style. Even though the United States produces produces more more more automobiles automobiles automobiles than than than any any any other other other country, country, country, it it it still still still imports imports imports large large large quantities quantities quantities of of of autos autos autos from from Germany, Japan and Sweden, primarily because there is a market for them in the United States.2). The different kinds of trade nations engaged in are varied and complex, a mixture of visible and invisible trade. Most nations are more dependent on exports than on any other activity. The earnings from exports pay for the imports that they need and want. A nation‟s balance of payment is a record of these complex transactions. By reflecting all of these transactions in monetary terms , a nation is able to to combine combine combine the the the income income income it it it receives, receives, receives, for for for example, example, example, from from from exports, exports, exports, tourists tourists tourists expenditures, expenditures, expenditures, and and and immigrant immigrant remittances. This combined incomes is t hen spent then spent on such items as manufactured goods from o ther other countries, travel for its citizens to other countries, and the hiring of construction engineers. IX. Case Study [Answer]: A 公司与B 公司的第一封信函可视为发盘，在该发盘中A 公司对包装做出了要求。
