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经贸英语试题及答案一、单选题（每题1分，共10分）1. The term "FOB" stands for:A. Free On BoardB. For OrderC. Forwarding OrderD. Full Overload2. In international trade, the most commonly used currency is:A. USDB. EURC. GBPD. JPY3. Which of the following is NOT a function of a letter of credit?A. Payment guaranteeB. Risk mitigationC. Currency conversionD. Settlement of trade disputes4. The "CIF" term in international trade means:A. Cost, Insurance, and FreightB. Cost, Insurance, and Freight paid toC. Cost, Insurance, and Freight to be paidD. Cost, Insurance, and Freight payable5. The abbreviation "BOP" refers to:A. Balance of PaymentsB. Business Operating PlanC. Bureau of PersonnelD. Board of Professionals6. The "T/T" payment method stands for:A. Telegraphic TransferB. Trade TransferC. Total TransferD. Time Transfer7. Which of the following is a non-tariff barrier to trade?A. Import quotaB. Customs dutyC. SubsidyD. Trade embargo8. The term "GATT" is associated with:A. General Agreement on Tariffs and TradeB. Global Alliance for Trade and TechnologyC. Global Association of Trade and TransportD. Global Agreement on Trade Terms9. The "D/P" term in trade documents refers to:A. Documents against PaymentB. Documents against PresentationC. Documents against PerformanceD. Documents against Promise10. The "L/C" is commonly understood to mean:A. Letter of CreditB. Letter of ComplaintC. Letter of ConfirmationD. Letter of Commitment答案：1-5 A A D A A6-10 A D A A A二、填空题（每题1分，共10分）1. The abbreviation "GDP" stands for ________, which is a measure of the economic performance of a country.2. In international trade, the term "EXW" means ________, indicating that the seller delivers the goods to the buyer's premises.3. A "proforma invoice" is a ________ document that outlines the details of a transaction but is not a legally binding contract.4. The "BOP" consists of two parts: the current account and the ________ account.5. The term "DAP" stands for Delivered At Place, which means the seller has fulfilled their obligations once the goods are ________ at the agreed place.6. The "UNCTAD" is an abbreviation for the United Nations Conference on Trade and Development, which focuses on promoting ________ and development.7. The "FCA" term in Incoterms means Free Carrier, where the risk of loss or damage to the goods passes from the seller to the buyer when the goods are ________ to the carrier.8. The "H.S. Code" refers to the Harmonized Commodity Description and Coding System, which is used for ________ purposes.9. The "CFR" term stands for Cost and Freight, where the seller pays for the cost and freight necessary to bring the goods to the named port of ________.10. The "TIR" system is an international customs transit system for road transport, which facilitates the movement of goods under cover of a single, internationally recognized________.答案：1. Gross Domestic Product2. Ex Works3. preliminary or non-contractual4. capital5. ready and available6. trade7. handed over8. customs classification9. destination10. customs guarantee三、简答题（每题5分，共20分）1. What are the main differences between a documentary collection and a documentary credit?2. Explain the concept of "Most Favored Nation" (MFN) in international trade.3. What are the key components of a sales contract in international trade?4. Describe the role of the International Chamber of Commerce (ICC) in the context of international trade.答案：1. A documentary collection is a method of payment where the bank acts as an intermediary to collect payment on behalf of the seller. A documentary credit, on the other hand, is a commitment by a bank at the request of the buyer to pay a specified amount to the seller under specific terms and conditions.2. The Most Favored Nation (MFN) treatment is a principle in international trade where a country grants another country the。
外贸展会常用问答英语Commonly Asked Questions at International Trade Shows.1. What are the dates and times of the trade show?2. Where is the trade show located?3. Is there a registration fee for the trade show?4. What types of products and services will be exhibited at the trade show?5. Are there any educational sessions or events being held at the trade show?6. Is there a list of exhibitors available?7. Are food and drinks available at the trade show?8. Is there a press room at the trade show?9. Are there any discounts available for group registration?10. What are the rules and regulations for exhibiting at the trade show?11. Are there any parking facilities available at the trade show?12. Is there a dress code for the trade show?13. Can children attend the trade show?14. Are there any networking opportunities at the trade show?15. Are there any promotional opportunities available at the trade show?16. What is the expected attendance at the trade show?17. What are the staff's hours of availability?18. How do I get to the trade show venue?19. Are there any special events or activities planned for the trade show?20. What is the show's website address?Additional Tips for Attending Trade Shows.Arrive early to avoid crowds and lines.Dress professionally.Bring plenty of business cards.Be prepared to talk about your company and products or services.Take advantage of networking opportunities.Attend educational sessions and events.Follow up with potential customers after the trade show.。
英语经济理论学习30题1. In a market economy, the allocation of resources is mainly determined by _____.A. government planningB. market forcesC. traditional customsD. random events答案：B。
本题主要考查市场经济中资源分配的决定因素。
选项A，政府规划在计划经济中起主导作用，而市场经济主要依靠市场力量。
选项C，传统习俗对资源分配的影响较小。
选项D，随机事件不是市场经济中资源分配的主要决定因素。
市场力量，如供求关系等，在市场经济中起着关键作用。
2. The law of demand states that, other things being equal, as the price of a good rises, the quantity demanded _____.A. risesB. fallsC. remains unchangedD. increases sharply答案：B。
本题考查需求定律。
根据需求定律，在其他条件不变的情况下，商品价格上升，需求量会下降。
选项A 价格上升需求量上升不符合需求定律。
选项C 需求量保持不变也不符合。
选项D 需求量大幅增加同样不符合需求定律。
3. Supply refers to the _____.A. amount of a good that producers are willing and able to sell at a given priceB. total amount of a good that exists in the economyC. amount of a good that consumers are willing to buyD. amount of a good that the government wants to produce答案：A。
外贸英语试题一、选择题1. What does the acronym FOB stand for in international trade?A. Free on BoardB. For Our BenefitC. First Out the BayD. Future of Business2. Which of the following documents is NOT required in an export transaction?A. Proforma invoiceB. Commercial invoiceC. Bill of ladingD. Customs declaration3. What does the Incoterm "CIF" stand for?A. Cost, Insurance, and FreightB. Cash in FullC. Customs Import FeeD. Carrier's International Fleet4. In international trade, what does the term "L/C" refer to?A. Long-term contractB. Low-cost shippingC. Letter of creditD. Landing certificate5. What is the purpose of a Certificate of Origin?A. To prove the authenticity of the productB. To declare the value of the goodsC. To calculate the import dutiesD. To track the shipping process二、填空题1. The World Trade Organization (WTO) was established in ______.2. ______ is a method of payment in international trade that involves immediate transfer of funds.3. The United Nations Commission on International Trade Law (UNCITRAL) promotes harmonization and unification of ______.4. In export documentation, the ______ is a legal contract between the exporter and the freight carrier.5. The ______ is the party responsible for arranging and paying for the transportation of goods in a CIF transaction.三、简答题1. What are the main advantages of using Incoterms in international trade?2. Explain the role of a freight forwarder in an export transaction.3. What is the purpose of a Bill of Lading and what information does it contain?4. What are the risks associated with using open account as a payment method?5. Briefly explain the role of a customs broker in import/export procedures.四、案例分析题You work for an export company that specializes in selling electronic products to overseas markets. Your company has received an order from a customer in Germany for 1,000 units of your latest smartphone model. The customer wants the goods to be delivered to their warehouse in Hamburg, Germany. They have requested the Incoterm to be DAP (Delivered at Place).1. Explain the responsibilities of the seller and the buyer in a DAP transaction.2. What export documentation will be required for this transaction?3. Discuss any potential risks or challenges that may arise in this export transaction and suggest ways to mitigate them.结束语以上就是外贸英语试题的内容，希望能够帮助你了解和掌握相关知识。
Module 1I. Choose the best answer:1. She B for an advertising agency.A. workB. worksC. workingD. worked2. I ___C______all the computer systems in the office.A. checkingB. checksC. checkedD. check3. The managers ___D_____a lot of time in meetings.A. spendingB. spentC. spendsD. spend4. I ___C_____work before six o’clock most days.A. did n’t leaveB. not leaveC. don’t leaveD. doesn’t leave5. The department ____B____a full-time secretary.A. not haveB. doesn’t ha veC. didn’t haveD. don’t have6._____ A __weekends?A. Do you workB. Did you workC. Does you workD. Are you work7. We B receive telephone calls.A. neverB. rarelyC. sometimesD. still8.The bonuses are D late.A. rarelyB. sometimesC. oftenD. always9. She’s a good B .She did a great session on team-building last week.A .train B. trainer C. training D. trained10. A health and safety C is coming to see the factory tomorrow.A. operateB. operatingC. operatorD. operatedII. Translate the followings into Chinese:1. I’m responsible for checking company’s accounts.1.我负责检查财务报告2. My job also involves giving financial advice.2.我的工作还包括提供财务咨询。
大学英语国际贸易简答题Lecture 11. Difference Between International Trade & Domestic trade1)Motivation and Behavior of parties involved in a trade does not change fundamentallydepending on whether trade is across a border or not2)International trade is typically more costly than domestic trade for additional costs suchas tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system, or a different culture3)Factors of production such as capital and labor are typically more mobile within acountry than across countries2. Importance of International Trade1)Giving rise to the economy of the world2)Providing countries and consumers the chance to be exposed to those services and goodsthat are not available in their own country3)Making the developed countries use their resources effectively like technology, capitaland labor4)Becoming very important for every country of the world - be it big or small, developingnation or developed nation3. Risks in International TradeEconomic risks: Risk of insolvency(无力偿还，破产)of the buyerRisk of protracted default(拖延不履行义务) - the failure of thebuyer topay the amount due within six months after the due dateRisk of non-acceptance(拒绝接受支票或承兑)Surrendering economic sovereignty（主权）Risk of exchange ratePolitical risks: Risk of cancellation（取消）or non-renewal of export or import licensesWar risksRisk of expropriation(征用) or confiscation(没收) of the importer'scompanyRisk of the imposition(强迫接受) of an import ban（禁令）after theshipment（装船）of the goodsTransfer risk - imposition of exchange controls by the importer's countryor foreign currency shortagesSurrendering political sovereigntyInfluence of political parties in importer's company4. Reasons for International Trade1)Uneven distribution of natural resources in the world2)Different countries with different land, climate, and general conditions foragriculture, forestry, husbandry（畜牧业）, etc3)Certain industrial products better received by the customers in other nations withthe development of manufacturing and technology4)Trade between nations can be profitable for all, even if one of the nations canproduce every commodity more cheaply.5)Invisible trade involves the exchange of services between countries.5. Problems in International Trade1)Cultural problem2)Monetary conversion3)Trade barriers6. Reasons for Trade Barriers1)To correct a balance-of-payments deficit(改善国际收支逆差)2)To protect the national security3)To protect the infant industries against the competition of foreign goods7. Classification of Trade Barriersi.Tariff Barriers: Revenue（税收）tariffProtective tariffi.Non-Tariff Barriers: Government participation in tradeCustoms and entry proceduresStandardsSpecific limitationsImport chargesLecture 21. Forms of International TradeExporting （出口）; Importing （进口）;Trading Companies （贸易公司）; Licensing （许可证贸易）; Contract Manufacturing （合同制造）; Joint Ventures （合资企业）; Direct Investment （直接投资）2. Procedures of Export Transaction1)Preparing for Exporting or Importing2)Business Negotiation（商务谈判）3)Implementing the Contract（合同履行）4)Settlement of Disputes (if any) （解决纠纷）3. Implementation of Contract（合同履行1)Preparing Goods for Shipment2)Inspection Application3)Reminding, Examining and Modifying L/C4)Chartering and Booking Shipping Space（租船订舱）5)Customs Formalities6)Insurance7)Documents Preparation for Bank NegotiationLecture 31. Organizations Involved1)Exporters2)Shipping Agents at the port or airport of loading3)Railways in the exporter’s and importer’s countries4)Road Hauler（陆路承运人）in the exporter’s and export’s countries5)Port Authorities6)Shipping Company ( for sea freight )7)Airline ( air freight )8)Insurance Company or Brokers9)Exporter s’ and Importers’ Banks10)Importers2. Documents Needed1)Bill of Lading2)Commercial Invoice3)Proforma Invoice4)Consular Invoice5)Packing List6)Weight Memo7)Certificate of Inspection8)Certificate of Origin9)Insurance Policy ( Certificate)10)Sales Contract11)Sales ConfirmationLecture 41. Preparation for Export Transaction1)Market Research2)Marketing and Promotion3)Investigation of Credit-worthiness (信誉) of Customers 2. Information for Market Research1)Political and economic conditions2)Physical and climate conditions3)Social conditions4)Traditions and customs5)Existing products and structure of trade6)Geography and communications7)Legal aspects, etc.3. Sources for Market Research(5-6个)1)Governmental departments concerned2)Customs offices3)Trade, professional, and business associations4)Private business firms5)Trade journals and directories6)Advertising media7)Libraries8)University research organizations9)Banks10)Foundations11)Interviewing12)Other business people13)Internet4. Marketing Mix—Product；Price；Place；Promotion5. AIDA Principle in PromotingA -- Attention I -- Interest D -- Desire A -- Action6. Twelve Ways in Promotion1)Sales literature(促销印刷品) -brochures, catalogues and leaflets2)Point of sale advertising (售货点广告)3)Packaging-labels and presentation increase the impact4)Sponsorship(赞助)5)Showrooms6)Trade fairs and exhibitions(商品交易会和展览会)7)Publicity (公共宣传)8)Public relations9)Word of mouth(口头宣传)10)Telephone selling11)Personal selling-representatives visit customers12)Marketing a service visible7. Channels of Obtaining Credit Infor1)References given by the buyer2)Banks3)Various trade associations4)Enquiry agenciesLecture 51. Procedures of Business NegotiationEnquiry Reply to Enquiry↓Offer Counter-offer↓Acceptance↓Sales Contract2. Contents of First Enquiry Letter1) A brief mention of how you obtained your potential supplier’s name (embassy, consulate,chamber of commerce, an exhibition or trade fair, recommendation, advertisements).2)Some indication of the demand in your area for the goods which the supplier deals in3)Details of what you would like your prospective suppliers to send you (catalogue, a pricelist, discounts, methods of payment, delivery times, or samples)4) A closing sentence to round off (end satisfactorily) the enquiry3. Contents of Reply Letter1)Thank the writer of the letter of enquiry for the letter in question2)Supply all the information requested, and refer both to enclosures(附件）and to samples,catalogues and other items being sent by separate post.3)Provide additional information, not specially requested by the customer, so long as it isrelevant.4)Conclude with one or two lines encouraging the customer to place orders and assuringthem of good serviceLecture 51. Methods of Expressing Quality1)Sale by DescriptionA.Sale by Specification, Grade, and StandardB.Sale by Brand Name or Trade MarkC.Sale by Name of Place of OriginD.Sale by Description and Illustration2)Sale by SampleA.Sale by Seller’s S ampleB.S ale by Buyer’s Sample2. Calculation of Weight1)By Gross Weight Gross weight is the sum of the commodity itself and the tare (thepacking weight).2)By Net Weight Net weight is the actual weight of commodity without the addition of thetare. Four ways to calculate tareA. By actual tareB. By average tareC. By customary tare（习惯皮重）D. By computed tare（约定皮重）3. Functions of Packing1)Protect the product2)Make the product look appealing to the buyer3)Provide information about inside4)Make easy to carry5)Provide convenience for using4. Types of Packing1)Transport Packing (Outer Packing)2)Sales Packing (Inner Packing)3)Neutral Packing5. Classification of Marks1)Shipping Marks2)Supplementary (Additional) Marks3)Indicative & Warning Marksa. Indicative Marksb. Warning Marks。
外贸英语考试题和答案一、选择题（每题2分，共20分）1. Which of the following is the most appropriate way to address a business letter in English?A. Dear SirB. Dear MadamC. To Whom It May ConcernD. Hello答案：A2. What is the meaning of the term "FOB" in international trade?A. Free on BoardB. Freight on BoardC. Factory on BoardD. Full on Board答案：A3. In which of the following payment terms does the seller bear the least risk?A. Ex Works (EXW)B. Free Carrier (FCA)C. Cost, Insurance, and Freight (CIF)D. Delivered Duty Paid (DDP)答案：D4. What is the abbreviation for "Letter of Credit"?A. LCB. LOC. COD. LOF答案：A5. Which of the following is not a type of insurance coverage for international trade?A. All RisksB. Free from Particular Average (FP)C. With AverageD. Comprehensive答案：D6. What does "T/T" stand for in international trade transactions?A. Telegraphic TransferB. Trust TransferC. Time TransferD. Trade Transfer答案：A7. In international trade, what does "CFR" stand for?A. Cost and FreightB. Cost, Freight, and InsuranceC. Cost, Freight, and RiskD. Cost, Freight, and Revenue答案：A8. What is the meaning of "proforma invoice" in international trade?A. An invoice that is not legally bindingB. An invoice that is used for customs purposesC. An invoice that is used for payment purposesD. An invoice that is used for tax purposes答案：A9. Which of the following is not a document required for exporting goods?A. Commercial InvoiceB. Packing ListC. Certificate of OriginD. Passport答案：D10. What is the term used to describe a situation where a buyer anda seller agree to exchange goods or services without using money?A. BarterB. Trade CreditC. CountertradeD. Factoring答案：A二、填空题（每题2分，共20分）1. The ________ of a product refers to the price at which it is sold to the consumer, including any taxes.答案：retail price2. In international trade, a ________ is a document that provides a detailed description of the goods being shipped.答案：commercial invoice3. The ________ is a document that proves the origin of the goods and is often required by customs authorities.答案：certificate of origin4. A ________ is a type of insurance coverage that covers all risks except those specifically excluded.答案：all risks5. The ________ is a document that lists the contents and quantities of the goods being shipped.答案：packing list6. In international trade, a ________ is a document that guarantees payment to the seller upon presentation of specified documents.答案：letter of credit7. The ________ is a payment term where the buyer takes on all costs and risks involved in bringing the goods to their destination.答案：DDP (Delivered Duty Paid)8. A ________ is a document that provides proof of the quality, quantity, and condition of the goods at the time of shipment.答案：inspection certificate9. The ________ is a payment term where the seller is responsible for all costs and risks until the goods are delivered to the buyer's door.答案：DAP (Delivered at Place)10. A ________ is a document that shows the terms and conditions agreed upon by the buyer and seller for the sale of goods.答案：sales contract三、阅读理解题（每题5分，共20分）阅读以下短文，回答问题。
英语国内经济英语50题1. The ______ of this product has increased greatly in recent years.A. demandB. supplyC. priceD. quality答案：A。
本题考查经济词汇的含义。
选项A“demand”意为“需求”；选项B“supply”指“供应”；选项C“price”是“价格”；选项D“quality”表示“质量”。
近年来产品需求大幅增加，所以选A。
2. The government is trying to control the ______ rate.A. inflationB. interestC. exchangeD. growth答案：A。
“inflation”是“通货膨胀”；“interest”是“利息”；“exchange”是“兑换，交换”；“growth”是“增长”。
政府试图控制通货膨胀率，选A。
3. In the domestic economy, ______ plays a crucial role.A. industryB. agricultureC. serviceD. education答案：A。
“industry”是“工业”；“agriculture”是“农业”；“service”是“服务业”；“education”是“教育”。
在国内经济中，工业起着关键作用，故选A。
4. The ______ of a company can affect its stock price.A. profitB. lossC. debtD. revenue答案：D。
“profit”意思是“利润”；“loss”是“损失”；“debt”是“债务”；“revenue”指“收入”。
公司的收入会影响其股票价格，选D。
5. The domestic economy depends on ______ from various sectors.A. incomeB. outputC. investmentD. consumption答案：D。
外贸英语试题及答案1. 根据语境，选择正确的单词填空。
A company that specializes in importing and exporting goods is known as an _______.A. exporterB. importerC. traderD. distributor答案：C. trader2. 将下列句子翻译成英文。
我们很高兴地通知您，我们已收到贵公司的信用证。
答案：We are pleased to inform you that we have received your company's letter of credit.3. 选择正确的短语填空。
We are looking forward to _______ with your company.A. cooperateB. cooperatingC. to cooperateD. cooperated答案：B. cooperating4. 阅读下列段落，回答问题。
The company has been in the business for over 20 years and has established a strong reputation for quality and service. They offer a wide range of products, including electronics, home appliances, and automotive parts. The company iscommitted to providing the best customer experience and has a dedicated after-sales support team.Question: What is the company committed to?答案：The company is committed to providing the best customer experience.5. 将下列句子翻译成中文。
贸易英语考试题及答案一、选择题（每题2分，共20分）1. The term "FOB" in international trade refers to:A. Free on BoardB. Freight on BoardC. Factory or BoatD. Full of Benefits答案：A2. What does "CIF" stand for in trade terms?A. Cost, Insurance, and FreightB. Cost, Insurance, and FreightingC. Cost, Insurance, FreightD. Cost, Insurance, and Free答案：A3. The abbreviation "L/C" commonly used in trade documents is:A. Letter of CreditB. Loan CertificateC. License CertificateD. Legal Certificate答案：A4. Which of the following is NOT a type of trade agreement?A. FranchiseB. Joint VentureC. Exclusive DistributionD. Fixed Deposit答案：D5. The term "D/P" in trade finance refers to:A. Document against PaymentB. Direct PaymentC. Deferred PaymentD. Discounted Payment答案：A6. What is the meaning of "T/T" in international trade?A. Transfer of TitleB. Trade TermsC. Telegraphic TransferD. Total Transport答案：C7. The "B/L" in shipping is known as:A. Bill of LadingB. Bill of LoadingC. Bill of LandingD. Bill of Loading Terms答案：A8. "EXW" in trade terms means:A. Ex WorksB. Exclusive WorksC. Export WorksD. Extended Warranty答案：A9. In trade, "CFR" stands for:A. Cost and FreightB. Cost for RepairC. Cost for RepaymentD. Cost for Replacement答案：A10. The term "D/A" in trade finance is:A. Document against AcceptanceB. Direct against AcceptanceC. Deferred against AcceptanceD. Discount against Acceptance答案：A二、填空题（每空1分，共10分）11. The international trade term "DDP" stands for ________.答案：Delivered Duty Paid12. When a company says it offers "DAP", it means the goods are delivered at place, ________.答案：at the seller's risk13. A "B/O" in shipping documents refers to a ________.答案：Bill of Origin14. The term "EU" in international trade refers to the________.答案：European Union15. The abbreviation "FCA" stands for Free Carrier, which isa term used in ________.答案：Incoterms16. When a seller offers "FAS", it means the goods are free alongside ship at the ________.答案：port of shipment17. "CIP" stands for Carriage and Insurance Paid to, and it is a term used in ________.答案：international trade18. A "P/O" in trade documents is a reference to a ________.答案：Purchase Order19. The term "GSP" refers to the Generalized System of________.答案：Preferences20. "MOQ" stands for Minimum Order Quantity, which is important in ________.答案：order negotiations三、简答题（每题5分，共30分）21. Explain the difference between "FOB" and "CIF" in international trade terms.答案：FOB (Free on Board) means that the seller's responsibility and risk end once the goods are loaded onto the ship, while the buyer is responsible for the freight and insurance from that point. CIF (Cost, Insurance, and Freight) includes the seller's responsibility for the cost, insurance, and freight of the goods to the port of destination.22. What is the purpose of a Letter of Credit (L/C) in international trade?答案：A Letter of Credit (L/C) is a financial instrument used in international trade to provide a secure payment mechanism. It guarantees the seller that they will receive payment as long as the terms and conditions of the L/C are met, thus reducing the risk of non-payment.23. Describe the role of a Bill of Lading (B/L) in shipping.答案：A Bill of Lading (B/L) serves as a receipt of shipment, a contract of carriage, and a document of title. It provides evidence that the goods have been received。
英语经贸知识问答题Questions and Answers Lesson 1 International Trade (I) 1. How would you define international trade? It can be defined as the exchange of goods and services produced in one country with those produced in another. 2. Why did international trade first begin? The distribution of natural resources is uneven. Some countries are abundant in resources, while elsewhere reserves are scarce or even nonexistent. And a country may be rich in some resources but poor in others. The country that is rich will export some of its resources to the country that is in need. The opposite is also true. That is the reason why international trade first began.3. What is the new incentive for trade that arose with the development of manufacturing and technology? With the development of manufacturing and technology, international specialization occurs. One country produces more of commodity than it uses itself and sells the remainder to other countries.4. Explain the theory of absolute advantage and its application in international trade. It holds that a commodity will be produced in the country where it costs least in terms of resources (capital, land, and labor). This theory is illustrated in the following table. To be more illustrative, let us assume there are only two countries producing two commodities under perfect competition. Output per man-year of labour Country A Country B Computers 50 10 Cars 20 40 From the above table, we can see that a man in Country A can produce 50 computers in a year but only 10 in Country B. On the other hand, one man in Country B can produce 40 cars in a year but only 20 in Country A. So Country A is more efficient in producing computers than Country B, and we say the former has an absolute advantage over the latter in producingcomputers. Similarly, Country B has an advantage over Country A in producing cars. As a result, Country A would specialize in producing computers and trade some of them for Country B’s cars, and Country B would specialize in producing cars and exchange some of them for Country A’s computers. Both countries will gain benefits through specialization and trade. 5. Who introduced the theory of comparative advantage? Which theory makes more sense, absolute advantage or comparative advantage? The English economist David Ricardo introduced the theory of comparative advantage. His theory of comparative advantage makes more sense. 6. Explain briefly why trade to exploit comparative advantage promote efficiency among countries. Where comparative advantage exists, two trading partners are both able to share the gains from the trade. The trade to exploit comparative advantage makes one country better off without making the other worse off. So trade to exploit comparative advantage promotes efficiency among countries. 7. Is comparative advantage something static? Is it purely decided by the endowments of nature? Give examples to show the development of comparative advantage by certain countries.Comparative advantage is not something static. It is not purely decided by the endowments of nature. A country can develop a particular comparative advantage through its own actions, independent of its endowment of nature. Switzerland’s comparative advantage in making watches is a typical example. Similarly, the U.S. has developed comparative advantage in many lines that use the most up-to-datetechnology.Lesson 2 International Trade (II) 1. Are there other bases for trade when there are no differences among countries inproduction conditions? Mention some of the bases. Yes, there are some bases for trade. a. pattern of demand Trade will be based not on differences in the production capabilities of the two countries but on different consumption preferences, that is, patterns of demand. They may differ among nations. For example, most consumers in one country may consider dog meat a delicacy, while in another country the consumption of dog meat is abhorrent. In this case the second country may sell its dog meat to the first country. b. economy of scale Trade may occur out of economies of scale, that is, the cost advantages of large-scale production. For example, Country A and Country B may have the same capability in producing cars and computers, but the cost for the production of both commodities will decrease if the goods are produced on a larger scale. Both countries might find it advantageous if each were to specialize completely in the production of one commodity and import the other. c. innovation or style Trade takes place because of innovation or style. Even though Country A produces enough cars at reasonable costs to meet its own demand and even to export some, it may still import cars from other countries for innovation or variety of style.2. What is economies of scale? What is the relation between economy of scale and trade? It means that an enterprise produces some goods on a large-scale in order to seek cost advantage. Trade may occur out of economies of scale. For example, Country A and Country B may have the same capacity in producing cars and computers, but the cost for producing both commodities will decrease if the goods are produced on a larger scale. Both countries might find it advantageous if they were to specialize in producing one commodity and import the other.3. What does the theory of international specialization seekto answer? It seeks to answer the question which countries will produce what goods, with what trade patterns among them. Differences in production conditions, the element highlighted by the theory of comparative advantage, provide the most important part of the answer. But a complete answer must also take into account other factors such as patterns of demand, economies of scale and innovation or style. 4. Will complete specialization occur in reality? Why? Complete specialization may never occur. There are three reasons. a. For strategic or domestic reasons, a country may continue to produce goods for which it does not have an advantage. b. The benefits of specialization may also be affected by transport cost. Goods and raw materials have to be transported around the world and the cost of the transport reduces the benefit of trade. The case will be more serious with transporting bulky or perishable goods.c. Protectionist measures which are often taken by governments are also barriers to trade, and typical examples are tariffs and quotas. 5. What are tariff barriers? What is a customs area and what is a customs union? Tariff barriers are the most common forms of trade restriction. A tariff is a tax levied on a commodity when its crosses the boundary of a customs area. A customs area usually coincides with the area of a country. A customs area extending beyond national boundaries to include two or more independent nations is called a customs area. 6. What ismost-favored-nation treatment? Is it a special treatment? Why? The term most-favored-nation (MFN) treatment refers to a tariff treatment under which a country is required to extend to all signatories any tariff concessions granted to any participating country. It is not a special treatment. Because it give a countrythe lowest tariffs only within the tariff’s schedule, but it is still possible to have lower tariffs. 7. What is the most common form of non-tariff barriers? Explain it in a few words. Quotas or quantitative restrictions are 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, or quotas may be on a country basis or global, without reference to countries. They may be imposed unilaterally and can also be negotiated on a so-called voluntary basis. Obviously, exporting countries do not readily agree to limit their sales. Thus, the “voluntary” label generally means that the importing country has threatened to impose even worse restrictions if voluntary cooperation is not possible. 8. What are the differences between visible trade and invisible trade? Give a few examples of invisible trade. Visible trade can be defined as the import and export of goods between countries. Invisible trade refers to the exchange of services between countries. Transportation services across national boundaries, insurance, tourism, and immigrant remittance are typical example of invisible trade.Lesson 3 International Payment 1. Why is it difficult to effect payment in a straight-forward manner in international trade? It is difficult to effect payment in a straight-forward manner in international trade, say by remittance or by debitingthe debtor’s account because things are far more complicated in international trade. Purchase and sale of goods and services are carried out beyond national boundaries, which makes it rather difficult for the parties concerned in the transaction to get adequate information about each other’s financial standing and creditworthiness. Therefore, mutual trustis hard to build. Both the exporter and the importer face risks, as there is always the possibility that the other party may not fulfill the contract. 2. Mention some of the risks the exporter and the importer face in trade. For the exporter there is the risk of buyer default. The importer might fail to pay in full for the goods for some reason or other. It is even possible that the buyer is not reliable and simply refuses to pay the agreed amount on various excuses. On the part of the importer, there is the risk that the shipment will be delayed, and such delays may lead to loss of business. There is also a risk that wrong goods might be sent as a result of negligence of the exporter or simple because of his lack of integrity. 3. Explain briefly the following methods of payment: cash in advance; open account; consignment transactions. a. cash in advance: In this case, the importer pays the exporter before the former gets the latter’s goods. It is in the exporter’s favour. b. open account: To trade on open account means that no documents are involved and that legally the importer can pay the exporter anytime. Obviously the exporter must have sufficient financial strength carry the cost of the goods until receiving payment. c. consignment transactions: It means the exporter has to send his goods abroad and will not get payment until the goods are sold. If not sold, the goods can be shipped back. This arrangement should only be made with full understanding of the risks involved. 4. What is draft? Does it have another name? What are the relevant parties in relation to a draft?A draft is an unconditional order to a bank or a customer to pay a sum of money to someone on demand or at a fixed time in the future. It has another name “bill of exchange”. The pers on who draws the draft, usually the exporter, is called the drawer, and the person to whom the draft is drawn is called the drawee. There isyet another party the payee, that is, the person receiving the payment, who and the drawer are generally but not necessarily the same person. 5. What is the difference between a sight draft and a usance draft and what is the difference between a clean draft and a documentary draft? A sight draft calls for immediate payment on the presentation to the drawee.A usance d r aft doesn’t call for immediate payment on the presentation to the drawee. He may pay at a later date e.g.30, 45, 60, or 90 days after sight or date. A documentary draft is accompanied by the relevant documents such as the bill of lading, the invoice, the insurance policy etc. A clean draft is not accompanied by any document mentionedabove. 6. What are documents against payment? What are D/P at sight and D/P after sight? Which is more favourable for the exporter? When does the importer get the shipping documents in the case of D/P after sight? In the case of documents against payment (D/P), documents will not be released to the importer until payment is effected. There are D/P at sight and D/P after sight. D/P at sight requires immediate payment by the importer to get hold of the documents. D/P after sight gives the importer a certain period after presentation of the documents, but the documents are not released to him until he actually pays for the goods. D/P at sight is more favourable for the exporter. The importer will not get the sipping documents until he actually pays for the goods in the case of D/P after sight.7. What is the difference between D/A and D/P after sight? Which is safer for the exporter? In the case of documents against acceptance (D/A), documents are handed over to the importer upon his acceptance of the draft drawn by the exporter. Payment will not be made until a later date. D/A is always after sight. D/Pafter sight gives the importer a certain period after presentation of the documents, but the documents are not released to him until he actually pays for the goods. D/P after sight is safer for the exporter. 8. Is payment by collection very common in international trade? Mention some cases when payment by collection is used. Payment by collection is not very common in international trade. It should be accepted with discretion. It is usually used when the financial standing of the importer is sound, or when the exporter whishes to push the sale of his goods, or when the transaction involves only a smallquantity.Lesson 4 The Letter of Credit (I) 1. What constitutes conflicting problems for international trade in respect of payment? Why? T o match payment with physical delivery f the goods constitutes conflicting problems for international trade in respect of payment, since the exporter prefers to get paid before releasing the goods and the importer prefers to gain control over the goods and the importer prefers to gain control over the goods before paying the money. 2. What is the unique feature of the letter of credit? How does it offer security to the buyer and the seller? The bilateral security is the unique feature of the letter of credit. The seller has the security to get paid provided he presents impeccable documents while the buyer has the security to get the goods required through the documents he stipulates in the credit. 3. When was the modern letter of credit introduced and when did it have substantial development? What are the other names of the letter of credit? Modern credits were introduced in the second half of the 19th century and had。
