國際經(jīng)濟與貿(mào)易英語：chapter 1 Introduction

1、國際貿(mào)易實務國際貿(mào)易實務Practice of Intl Trade東北財經(jīng)大學國際商務外語學院東北財經(jīng)大學國際商務外語學院2015.9 Why do we learn the subject? The Features of the Textbook?forwardWhy do we learn the subject? With the development of Chinas Economy, Chinese Enterprises need more interdisciplinary talents in business. So, students in English Majo

2、r hope they can not only master English, but also more knowledge and skills about business or trade. Meanwhile, students in non-English major hope, by bilingual teaching mode, to improve their expression ability in professional English. Why do we learn the subject? The aim of the subject is to help

3、students learn Practice of Intl Trade directly and systematically in a specific English environment, strengthen the students skills in business English and master the terms and features of the economic and trade fields. After learning the subject, student should : Be more skilled at the Intl Trade T

4、erms Be better to grasp the actual negotiation skills Have greater ability to solve problems in business or trade Be more skillful in the use of professional English Be given an opportunity to get a career in Intl Trade Have the fastest route up the corporate ladderbackThe Features of the Textbook T

5、ext Book International Trade Practices (Second Edition) Shuai Jianlin (帥建林帥建林), who is the professor of Southwestern University of Finance and Economics University of Intl Business and Economics Press The book has four parts: Part 1 Overview Part 2 Terms of Intl Trade Part 3 Intl Trade Procedure Par

6、t 4 Trade Forms The Features of the Textbook Learning Features The book incorporates a number of special learning features that will maintain your interest in the presentation and help you master its lessons. Case Studies Theoretical discussions are often accompanied case studies toreinforce your un

7、derstanding. ProblemsEach chapter is followed by problems intended to test and solidify your comprehension. backChapter 1: Introduction Learning OutcomesAfter learning the chapter you should be able to: define intl trade explain the reasons for countries to engage in intl trade tell the difference b

8、etween domestic and intl trade know the major categories of intl trade learn how to measure Intl tradeWhats Intl Trade? Intl Trade, also known as world trade, foreign trade or overseas trade, is the exchange of goods and/or services between countries. It concerns trade operations（貿(mào)易業(yè)務）（貿(mào)易業(yè)務） of both

9、 import and export, and also includes the purchase（購買）（購買） and sale of both visible and invisible goods. backWhy do countries engage in Intl Trade? In todays complex economic world, countries trade for two basic reasons: (many?) First, Countries trade because they are different from each other. Then

10、, trade can benefit from their differences.Nations, like individuals（個體）（個體）, can benefit from their differences by reaching an arrangement（安排）（安排） in which each does the things it does relatively well. Second, Countries trade to achieve economies of scale（規(guī)模經(jīng)濟）規(guī)模經(jīng)濟） in production.That is, if each c

11、ountry produces only a limited range of goods, it can produce each of these goods at a larger scale and hence more efficiently than if it tried to produce everything. back Economy of Scale The decrease in unit cost of a product or service resulting from large-scale operations, as in mass production.

12、back Classification of International Trade While learning the differences between intl trade and domestic trade may get traders(貿(mào)易商） better prepared for a future trade, knowing which type of trade they are entering into will help them shape the particular steps they need to follow in order to fulfil

13、l a trade activity. The forms of intl trade can be classified into various categories according to a number of different criteria. 1. Export trade, Import Trade and Transit Trade From the direction of cargo flow, intl trade can be classified into export, import and transit trade. Export trade means

14、to transport the goods which are produced and processed in domestic market to intl market for sale. Classification of International Trade- And on the other hand import trade is made in the reverse direction, it refers to the transaction to transport the goods from foreign countries to domestic marke

15、t for sale. - It is known as transit trade if goods are transported from the producing country to the consuming country via a third countrys border. 2. Direct Trade, Indirect Trade and Entrepot TradeFrom the number of participants involved, intl trade can be classified into direct, indirect and entr

16、epot trade. - Direct trade means that goods are transported directly from the producing country to the consuming country. In the case, only two parties are involved in the transaction, named the exporter and the importer. Classification of International Trade- Indirect trade, or trade through interm

17、ediate countries, on the other hand occurs when goods pass through an intermediate country other than the producing or consuming country, remaining in that country for some length of time before shipment to the destination. Three parties are involved in indirect trade: the exporter, the importer and

18、 the intermediate party. - Entrepot trade refers to the transaction which involves importing goods from overseas for further processing or assembling and then re-exporting the goods abroad. Entrepot trade involves only one party, who is the importer, the processor and at the same time also the expor

19、ter. 3. Visible Goods Trade and Invisible Goods TradeAccording to the form of goods, intl trade can be classified into visible goods and invisible good trade. Classification of International Trade Visible goods trade, also known as tangible goods trade, refers to the exchange of physically tangible

20、goods such as cars, wines, shoes between countries. Invisible goods trade, also know as intangible goods trade, refers to the exchange of intangible items such as service and technology (e.g. shipping, transporting, banking, insurance, education, tourism, patent) As most of the trade in the world re

21、fers to the exchange of visible goods , many rules, regulations and conventions concerning trade in the world such as Incoterms國際貿(mào)易術語解釋通則國際貿(mào)易術語解釋通則, United Nations Convention on Contracts for Intl Sale of Goods (CISG) 聯(lián)合國國際貨物銷售合同公約聯(lián)合國國際貨物銷售合同公約, Uniform Customs and Practice for Documentary Credits (

22、UCP)跟單信用證統(tǒng)一慣例跟單信用證統(tǒng)一慣例 , etc. are all made to deal with visible goods trade.Classification of International Trade4. Barter and Free-liquidation TradeAccording to the settlement instrument involved, intl trade can be classified into barter trade and free-liquidation trade. - Barter trade means the di

23、rect exchange of goods or service - without an intervening medium of exchange or money either according to established rates of exchange or by bargaining. It is considered the oldest form of trade. - Free-liquidation trade, refers to the exchange of goods or services with an intervening medium of ex

24、change or money according to rates of exchange. Cash trade is one form of free-liquidation trade. Also, according to the mode of transportation, intl trade can be classified into Trade by Roadway, Trade by Seaway, Trade by Airway and Trade b Mail Order. In addition, Classification of International T

25、rade based on one countrys resources, trade can be classified into labour-intensive , capital-intensive, technology-intensive and land-intensive. backDifferences between Intl and Domestic Trade The fundamental characteristic that makes intl trade different from domestic trade is that intl trade invo

26、lves activities that take place across national borders. Thus when trade is executed beyond national frontiers, it is invariably subject to the political, social, economic and environmental policies of nations. Such policies have either encouraged or hampered the free flow of merchandise in intl tra

27、de. Special problems that are not normally experienced when trading at home may arise in intl trade. In particular: Differences between Intl and Domestic Trade1. Intl trade brings together people with different language and culture. So when trading with other nations, one must take into consideratio

28、n different language habits, meaning and cultural differences so as to avoid unnecessary disputes. 2. In intl trade, deals might have to be transacted under foreign laws, customs and regulations or subject to intl rules. As these rules and regulations are largely different from country to country an

29、d intl rules adopted by some countries may not be accepted by other countries, so it is wise for businessmen to be aware of these laws, customs or rules with a view to facilitating trading. Differences between Intl and Domestic Trade3. Unlike domestic transactions in which only domestic currency is

30、needed, intl transactions might involve foreign currencies. As exchange rage fluctuations can be very great, this will create many problems and risks for intl trade. A wise trader should have a good prediction of the fluctuation of exchange rate as well as a sound interpretation of its relation to c

31、urrencies used for pricing and settlement. 4. Risk levels might be higher in foreign market than in domestic market. The risks include political risks (of imposition of restrictions on imports, etc.); commercial risks (of market failure, products not appealing to foreign customers, etc.) ; financial

32、Differences between Intl and Domestic Trade risks (of adverse movements in exchange rates, high rates of inflation reducing the real value of a companys working capital); and transportation risks. To be a good trader, one needs to be sensitive to various risks and learn the way to minimize the negat

33、ive impacts on his business. 5. Compared to domestic trade, it is more difficult for dealers in intl trade to get the necessary information of a particular firm in a foreign country. Control and communication systems are normally complex for foreign than for domestic operations. Therefore, a busines

34、sman needs a broader range of management skills than those involved only in domestic trade. backHow is Intl Trade measured? In measuring the effectiveness of global trade, nations carefully follow two key indicators: balance of trade and balance of payments. 1. Balance of Trade The balance of trade

35、is a nations relationship of exports to imports. - A favorable balance of trade, or trade surplus, occurs when the value of the countrys exports exceeds that of it imports. - An unfavorable balance of trade, or trade deficit, occurs, when the value of the countrys imports exceeds that of its exports

36、. How is Intl Trade measured? 2. Balance of PaymentThe balance of payments is the difference between money coming into a country (from exports) and money going out of the country (for imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investment. The goal is always to have more money flowing into the country than flowing out of the country. - A favorable balance of payments means more money is fl