05844 自考国际商务英语复习资料lesson 1 International Business1.International business国际贸易Transaction between parties from different countries. Sometimes business across the borders ofdifferent customs areas of the same country is also regarded as import and export.2.Visible trade有形贸易The form of commodity trade. i.e. exporting and importing goods produced or manufactured in one countryfor consumption or resale in another.3.Invisible trade无形贸易The form of service trade. i.e. transportation, communication, banking, insurance, consulting, information etc.4. Franchise特许An arrangement by which an monopoly producer or owner gives another permission for the exclusive right to manufacture or sell the products in a certain area.Franchising特许经营A special form of licensing. A firm, called the franchisee, is allowed to operate in the name of another, called the franchiser who provides the former with trademarks, brand names, logo, and operating techniques for royalty.5. Licensor 给予许可的人A person or a company granting a licenceLicensing许可经营/国际许可A firm lease the right to use its intellectual property to a firm in another country. Such as trademarks, brand names, patents, copyright or technology.6. Non-tariff barrier非关税壁垒All forms of man-made obstructions to international trade other than tariffs, including prohibitions and quotas, etc.7. Portfolio证券The entire collection of investments in the form of stocks, bonds, or certificate of deposits for purposes other than controlling.8. Turnkey contract交钥匙工程One in which one of the parties agree to supply, at the contract price, a complete product ready for use, such as a new home, factory, ship, etc.9. Contract manufacturing承包生产A firm can concentrate on their strongest part in the value chain.11. Major differences between international business and domestic business.Ans: Differences in (1) legal system (2) currencies(3) cultural background:language, customs, traditions, religion, value, behavior etc.(4) natural and economic conditions,12. Major types of international businessAns: (1) trade : A. commodity trade B. service trade(2) Investment :(difference)A. foreign direct investment (FDI外国直接投资)(is made for returns through controlling the enterprises or assets invested in in a host country.)B. portfolio investment 证券投资(refers to purchases of foreign financial assets for a purpose other than controlling.)(3) other types: A. licensing & franchising(in comparison with the relation between the licenser and licensee, franchiserhas more control over and provide more support for the franchisee.)B. management contract &contract manufacturingC. turnkey project & BOT(making profit from operating the project for a period )13. Why do firms choose licensing as a means of entering a foreign market? Ans:(1) do not have to make cash payments to start business ;(2) receive income in the form of royalty;(3) benefit from locational advantages of foreign operation without any obligations in ownership ormanagement.14. Under what condition is management contract most applicable? Ans: When a government forbids foreign ownership in certain industries it considers tobe of strategic importance but lacks the expertise for operation. A foreign companyto operate in the industry without owning the assets.Lesson 2 Income Level and the World Market1. PPP购买力平价--purchasing power parityPurchasing power购买力 of persons, the public, having the money to buy goods and services.2.Recipient接受者 a person or an organization etc. that receives something.3. Infrastructure基础设施large-scale public services, such as water and power supplies, road, rail and radio communications,etc. Needed to support economic activity, esp.industry, trade and commerce.4. GNP---refer to the market value of goods and services produced by the property andlabor owned by the resident of an economy.(国民生产总值)(focuses on ownership of the factors of production)GDP---refer to the market value of all goods and services produced within thegeographic area of an economy.(国内生产总值)(concentrates on the place where production take place),5. Countries of the world are divided by the World Bank into 3 categories:(1) high-income countries (per capita income of $9,386 and above):A. OECD (the Organization for Economic Cooperation and Development)B. Rich oil producing countries of the Middle East (Kuwait, Saudi Arabia &Arab Emirates)C. Small-industrialized countries or regions (Israel, Singapore, HK and Taiwan)(2) middle-income countries (per capita income bellow $9,386 but above $765 )A. 6 OECD members ( Czech, Greece, Hungary, Mexico and Turkey )B. -a. Some Latin American countries-b. Some Asia countries (China, Indonesia, Malaysia, the Philippines and Thailand)-c. Some South African and oil-producing countries (Libya, Nigeria, Algeria)(3) low-income countries (per capita incomes of only $765 or even less)Include: most African countries, some Asia countries and a few Latin American countries.6. High-income countries often have :(1)good infrastructure (2)high purchasing power (3)advanced technology(4)efficient management(5)favorable environment for trade and investmentA. Offer prime markets for expensive consumer goodsB. Are both attractive sources and destinations of investment7. Low-income countries should not be neglected in international business activities:(1) lower-priced staple goods (2) cheap labor(3) are often rich in resources (4)market is something to be developed8. In what way, GDP&per capita income significant in assessing(评估)the potential of aparticular market:(1)GDP is important in market assessment for durable equipment耐用设备or bulk goods大宗货物, such as grain谷物, steel, or cement水泥. (indicates the overall size of an economy)(2)Per capita income is important when marketing consumer durables.(reveals the average incomelevel of consumers)9. China with a per capita income of over $1,100 is a middle-income countriesthough is was a low income countries just a few years ago.10. The best policy for China to develop business opportunities iswherever advantageous while keeping in mind the key markets.11. Triad ---refers to the 3 richest region of the world ( the United States, the EU and Japan).Quad- --extend the scope of Triad to include Canada and name the broadenedgrouping Quad.12.OECD (the Organization for Economic Cooperation and Development)经济合作发展组织headquarters in Paris, established in 1963, have 29members (23members are high-income countries& 6 middle-income countries).Lesson 3 Regional Economic Intergration1. Major objective of regional integrationTo better enjoy the benefit of free flow of goods, services, capital, labor and other resources, countries have signed various agreement to liberalize trade among themselves while putting up barriers toeconomic activities with non-members.,2. The characteristics of a common market(1)Free trade area自由贸易区members of a free trade removes barriers to the flow of goods and services among themselves while each member still adopts its own policy as regards to trade with outsiders.(different members may have different tariff rates or quota restrictions.)The most notable(largest market)free trade area is NAFTA (the North American Free Trade Agreement), formed by the United Stated, Canada, Mexico in 1991.(2)Customs union 关税同盟by adopting(采取)the same trade policy for all members toward countries outside their organization in addition to abolishing(废除)trade barriers among themselves.(It's impossible for non-members to get into the market of the customs union in a detour(以迂回方式)as they possibly do in the case of trade with a free trade area.)(3)Common market共同市场the European Community remained a common market for some years in the pastA. Free movement of goods and servicesB. Adoption of common external trade policyC. Free movement of the factor of production (such as labor, capital, and technology)It's hard to say individual members will always benefit, still less to expect them to enjoy the advantage of factor mobility to the same degree.(4)Economic union 经济同盟A. is characterized by integration of the domestic policies of its members in respect of economy,finance etc. in addition to absence of trade barriers, practice of common external policy and freeproduction factor mobility.(not only to harmonize their taxation, government expenditure, industry policies,etc.but also use the same currency. )B. the member countries are require to surrender some of their national sovereignty, which is erodingthe tradition of the world political system based on the autonomy and supreme power of sovereign states.3. The development of EU(the European Union)欧盟:1952---ECSC (the European Coal and Steel Community)For more ambitious integration efforts.1957---EEC (the European Economic Community)Treaty of Rome ---signedAim to realizing the free movement of goods, services, labor and capital as well asharmonization of economic policies of the member countries.1967---EC (the European community)became a ture common market as evisaged by --the Single European Actformed by emrging EEC, ECSC and EURATOM(the European Atomic Energy Community)1994---EU--the strength of the Maastricht Treaty---12members(6signatories of the Treaty of Rome :France, Germany, Italy, Belgium, Netherlands and Luxemburg +1973. Britain, Island and Denmark + 1981. Greece + 1986.Spain and Portugal)1995---15members (+Austria, Finland and Sweden)1999---use the common European currency for accounting and settlement2002---euro banknotes and coin were put into circulation.,4. The EU is a full-fledged(齐全的) entity.---composed of 20commissioners overseeing 23departments in charge of different affairs.---the commissioners appointed by member governments, but the commissioners are responsible tothe Union instead of their home country.(1)The Council of Ministers is the most powerful institution.A. has the final say on all important mattersB. has the power to pass legislationC. decision are made by votes allocated to member countries on the basis of their size.D. different ministers attend the council meetings depending on the matters discussed.(2)The European Parliament is an advisory body with limited power.A. vote EU membership application and trade agreements with non-members.B. believed that will be more powerful in the future.5. APEC(the Asia-Pacific Economic Cooperation) 亚太经合组织set up at the Ministerial Meeting held in Australian capital Canberra. 1991,attended by 12members.(1) 21members:all the major Pacific Rim countries and regions.(2) has a five-layer organization structureA. the Informal Meeting of Economic leaders---held annuallyB. the Dual-Ministerial Meeting ---attended by foreign ministers and ministers in chargeof foreign trade (excluding Chinese Taipei and HK)C.the Meeting for Ministers Responsible for TradeD.the Senior Officials Meetings(SOM)--attended by vice ministers, departmental directors or ambassadors to implement(执行) decisions by economicleaders and ministerial meeting.E.four subordinate committees under SOMmittee of Trade and Investmentb.Economic Committeec.Economic and Technical Cooperation Subcommittee of SOMd.Budget Management Committee(3)the tenet and objectives---(by the Seoul Declaration)" inter-dependence, mutual benefits, adhering to an open and multilateral trading system andreduction of regional trade barriers."(4)"the two wheels of APEC"(APEC co-operation concentrates on)A. trade and investment liberation and facilitation (TILF)B. economic and technical cooperation (ECOTECH)6.OPEC(the Organization of Petroleum Exporting Countries)欧佩克--the most influential commodity cartel(account for 40%of the global oil production)(1)composed of 13members established in 1960 with headquarters at Vienna.(2)tried to limit the overall crude oil supply(原油供应) of the world for the purpose of maintaining higher oil prices.,Lesson 4 Economic Globalization1. Economic Globalization经济全球化 as a objective trend(1)The basic featurefree flow of commodity, capital, technology, service, :and information in the context for optimized allocation优化配置Major role:A. Giving new impetus动力 and providing opportunities to world economic development.B. Making the various economies more and more interdependent相互依赖and interactive相互影响.(2)The pros and cons: different countries and peoples do not enjoy balanced benefitsA. enables countries benefit from the boom of other countriesB. makes them more vulnerable to the adverse events across the globe.the best policy for us isto follow the trend closely, availing 利用the opportunities it offer todevelop ourselves and avoiding its possible impacts.2. Multinational enterprise (MNE)跨国企业A business organization which owns (whether wholly or partly), controls and manages assets, oftenincluding productive resources, in more that one country, through its member companies incorporated 有限公司separately in each of these countries.Each member company is known as a multinational corporation(MNC)跨国公司.(1)If the MNC is established as a result of investments by the MNE, whether through the parent or through another of its already established MNC, it is an affiliate MNC.(2)If the MNC is the original investment corporation,it is known as the parent MNC, normally alsothe international headquarters of the MNE.(3)An MNE may also have various regional or operational headquarters, in addition to itsinternational headquarters.3. The characteristics of MNE(1)enormous size(2)wide geographical spread (play an important role and why?)A. have a wide range of option in terms of decisions in areasB.take advantage of changes in the international economic environmentC.engage in worldwide integrated production and market giving rise to extensive intra-MNE transactions Bcs: in order to the security of its profits, assets, organization and operations.(3) longevity and rapid growth4. Commonly objective of MNE(needs, goals, and roles)(1) profit ---the profits goal represents the basic needs of the MNEs' shareholders(2) securityA.the security in the short-and-long-runB.the security of the MNE's assets and investmentC.the security of other organizational needsa. a favorable business environmentb. supplies of raw materials and other resource inputsc. effective organizational control and managementd. transportation and communicatione. technical improvementsf. employees including managers(3)as vehicles for cross-border transfer of resources,5. The relationship between MNEs &their host countriesHost government can and do wield power over MNCs located within their territories. MNCs areunder the legal jurisdiction of their host governments which can impose various rules, regulations and laws on the MNCs to the extent of nationalizing all their assets.6. 4 types of MNCs---according to their organization and way of operation(1)multi-domestic corporations a group of relatively independent subsidiaries. ---i(2)the global corporations-iews the world market as an integrated whole. --vPower and responsibility are concentrated at the headquarters that manage production and marketing to achieve theeconomies of scale as much as possible.(3)the transnational corporation--aim to achieve both efficiency and flexibility, the activities and resources are integrated in an interdependent network of affiliates.(4)world company--as their national identities are blurred to a large extent. -Very few companies reached this level of internationalization.When such companies increasing and become dominating, the possibility of conflicts among sovereign states may begreatly reduced. Possibly they will be instrumental to the realization of complete globalization.Lesson 5 --6 International Trade1. International trade国际贸易Is defined as the exchange of goods and service produced in one country with those produced inanother.2. Other reasons for international trade:(1)the uneven distribution of natural resources among countries(2)International specialization国际生产专门化A.absolute advantage绝对利益/绝对优势(理论)---holds that a commodity will be produced in the country where it costs least in terms ofresources(capital, land, and labor.)---In reality, it is not rare that one country has no absolute advantage in any commodity.parative advantage比较优势(理论)---holds that even if a country is less efficient than another in the production of both commodity, there is still a basis for mutually beneficial trade.---it can make one country better off好转 without making another worse off恶化.The first country should specialize in the production, and export of the commodity in which its absolute disadvantageis smaller, and import the commodity in which its absolute disadvantage is greater.a.introduced by the English economist David Ricardo.b.not a static静止的 concept.(a)Switzerland--watchmaking (b)the United States--the most up-to-date technology.c.the cornerstone基石 of modern thinking on international trade.3. Primary commodities初级货物those commodities not processed, not only slightly processed, usually farm produce or raw material.3. Other bases for trade among countries(1)patterns of demand(2)economy of scale(i.e. The cost advantage of large-scale production)The cost for the production will decrease if the goods are produced on a larger scale.(3)innovation or style,4. The theory of international specialization and other bases for trade seeks to answer thequestion:Which countries will produce what goods, with what trade patterns among them.5. The reasons for complete specialization may never occur(1)for strategic or domestic reasons.a country may continue to produce goods for which does not have an advantage.(2)affected by transport cost.( the cost of transport reduces the benefit of trade,like bulky or perishable goods)(3)protectionist measures which are often taken by governments.6.Tariff barriers关税壁垒---are the most common form of trade restriction.7.Tariff关税---is a tax levied on a commodity when it crosses the boundary of a customs area.8.customs area关税区---usually coincides with the area of a country.9.customs union关税同盟---is a customs area extending beyond national boundaries to include two or more independent nations.10.Import duties进口税--are tariffs levied on goods entering an area.(more common) (1)specificduty--duties levied on the basis of quantity, weight, size etc. of the goods.(2)ad valorem duty--duties levied on the basis of the price of the goods.(3)compound duty--the combination of specific duty&ad valorem duty.11.Export duties出口税--are tariffs levied on goods leaving an area.Coz. Most nations want to expand exports and increasing their foreign exchange earnings.12.drawback退税refers to duties paid on imported goods that are refunded if the goods are reexported.13.MFN(the most-favoured-nation)treatment最惠国待遇refers to a tariff treatment under which a country is required to extend to all signatories any tariffconcessions granted to any participating country.It is not really special but is just normal trading status. It gives a country the lowest tariffs only within the tariff'sschedule, is still possible to have lower tariffs.14.Quotas配额or quantitative restrictions数量限制the most common form of non-tariff barriers.A quota limits the imports or exports of a commodity during a given period of time.The limits may be in quantity or value terms, and quotas may be on a country basis or global, without reference to countries.15.Visible trade--involves the import and export of goods.16.Invisible trade--involves the exchange of services between countries.(1)transportation service运输服务(2)insurance保险(Lloyd's of London is a leading exporter of this service)(3)tourism旅游(4)immigrant remittance移民汇款 ---refers to the money sent back to home countries by people working in a foreign land.,Lesson 7 Incoterms 2000《2000通则》1. The necessity and purpose of having Incoterms(1)eliminate any possibility of misunderstanding and subsequent dispute.(2)to provide a set of international rules for the interpretation of the most commonly used trade termsin foreign trade.2. The revision of Incoterms took account of changes in transportation techniques.3. The 1990 revision of Incoterms was the desire to adapt terms to the increasing use of electronicdata interchange(EDI).It is of vital importance, when using EDI messages, to ensure that the buyer has the same legal position as he wouldhave obtained if he had received a bill of lading from the seller.4. The reasons for the 2000 revision of Incoterms(1)the spread of customs-free zones(2)changes in transportation practices(3)increasing use of electronic communication5.Incoterms 2000E terms---the seller makes the goods available to the buyer at the seller's own premises.(1)EXW---Ex work工厂交货F terms---the seller is called upon to deliver the goods to a carrier appointed by the buyer.(2)FCA---Free Carrier货交承运人(3)FAS---Free Alongside Ship装运港船边交货(4)FOB---Free On Board装运港船上交货C terms--the seller has to contract for carriage, but without assuming the risk of loss of or damage tothe goods or additional costs due to events occurring after shipment and dispatch.(5)CFR---Cost and Freight成本加运费(6)CIF--- Cost, Insurance and Freight成本、保险加运费(7)CPT---Cost Paid To 运费付至(8)CIP---Carriage and Insurance Paid To运费、保险费付至D terms---the seller has bear all costs and risk needed to bring the goods to the country ofdestination.(9)DAF---Delivered At Frontier边境交货(10)DES---Delivered Ex Ship目的港船上交货(11)DEQ---Delivered Ex Quay目的港码头交货(12)DDU---Delivered Duty Unpaid未完税交货(13)DDP---Delivered Duty Paid完税后交货6. The substantive实质性的changes made with Incoterms 2000:(1)the customs clearance and payment of duty obligations under FAS and DEQ.(2)the loading and unloading obligation under FCA.,Lesson 8 Business Contract1.Contract合同is an agreement which sets forth binding obligations of the relevant parties.It is enforceable by law, and any party that fails to fulfill his contractual obligations may be sued andforced to make compensation, though most contract do not give rise to disputes.2.Business negotiation交易磋商: A legitimate contract can be either in written or oral form. (1)Oral---refers to direct discussion conducted:A.at trade affairsB.by sending trade groups abroadC.by inviting foreign customers(2)WrittenA. Enquiry询盘 ---is made without engagement on the part of the enquirer.a. made by the buyers to get information about the goods to be ordered such as quantity,specifications, prices, time of shipment and other terms.b. a first enquiry should be given, so as to facilitate the exporter's work:(a)how the name& address of the exporter have been obtained,(b)the business line and usual practice of the importer.B. Quotation报价---may be sent by the exporter which should include all the necessary informationrequired by the enquiry. Sometimes, the exporter may make an offer to an importer voluntarily. C.Offer and acceptance发盘与接受a firm offer---is a promise to sell goods at a stated price.The validity period is indispensable必不可少的.is open untill a stipulated time or it's accepted or rejected.made of :a. the time of shipmentb.the mode of payment desiredc.an exact description of the goods: quantity, quality, specifications, packing etc. D.Counter-offer还盘---is a refusal of the offer, the offeree may find part of the offer unacceptable and may raise for further discussions his own proposals. (the price, terms of payment, time of shipment, or otherterms and conditions of the offer.)Trade is considered concluded once an offer or a counter-offer is accepted.3. The necessity of the written contractis prepared and signed as the proof of the agreement and as the basis for its execution.4. The types of contracts(1)sales contract--the contract is made by the seller(2)purchase contract--the contract is made by the buyer(3)sales/purchase confirmation--is less detailed than a contact, covering only the essential terms of the transaction. Usually used for smaller deals or between familiar trade partners.5. The setting of a contract(1)the title(2)the contract proper合同正文&address of the buyer and the sellerB.details of the commodity transactionC.terms and conditions mutually agreedD. Indication of the number of original copies, languages used, and the validity. (3)The signatures of the contracting parties(4)the stipulations规定on the back of the contractA.the shipping documents requiredB.force majeureC.arbitration仲裁D.claims理赔,,Lesson 9 Modes of Trade1.counter trade对销贸易--is a peculiar form of transaction allegedly popular in less developed countries and in centrally planned economies. It has become the generic term of describe a set of cross-border contracts that link a seller's exports to imports from the buyer.original:the pre-World War ? years the Reichsbank agreed to establish a clearing system that permitted traditional trade flows between Germany and the Balkans to continue.development:during the World War ?Britain use bilateral arrangements, West Europe setting up the European Payment Union. Subsequently,the countries of centrally planned economies(like Finland)trade credit accounts between familiar trading partners exchanged unrelated goods.In the 1970s and 1980s, counter trade partner are not necessarily familiar partner and goods exchanged are sometimes vertically related.2.The 3forms of counter trade(1)Barter易货贸易The direct exchange of goods and services which is completed in a short period of time.(2)Counter purchase互购贸易An intertemporal不同时的direct exchange of goods and services. Usually stipulated to be fulfilled within a given period of time.(3)Buyback回购贸易/补偿贸易An arrangement by an exporter or plant and equipment to take back in the future part of the output product by these goods as full or partial payment.3.The 2difference between counter purchase and buyback(1)in buyback the goods and services taken back are tied to the original goods exportedbut not in counter purchase.(2)a buyback deal usually stretches over a longer period of time than counter purchase.4.The features common to the 3forms of counter trade is bundling互相捆绑.Bundling--means the exchanges of goods and services are bundled together. (the exchanges are implemented either concurrently同时地or intertemporally不同时地)Unbundling greatly facilitates transaction and allow more efficient economic exchanges.5.The 5advantages in counter trade:(1)helps a country to deal with foreign exchange shortages; (2)promote exports;(3)reduce uncertainty regarding export receipts;(4)bypass an international price agreement(5)helps countries with debt problems to import goods.6.The drawbacks of counter trade:(1)concealing the real prices and costs of transactions . (2)company may suffer losses bcz they could not get rid of products of poor quality. (3)be considered as a form of protectionism.7.Other modes of trade:(1)processing trade加工贸易(2)consignment寄售(3)leasing trade租赁贸易(4)agency代理,,Lesson 10 International Payment1.Mutual trust is hard to build. purchase and sale of goods and service are carried out beyond national boundaries, which makes it rather difficult for the parities concerned in the transaction to。
