《國際貿(mào)易實務與操作》Chapter 1

國際貿(mào)易實務與操作InternationalTradePracticeandOperation1Chapter1IntroductiontoInternationalTradePracticeTeachingObjectives1．Introducethreeinternationalbusinessforms:trade,licensing,andforeigndirectinvestment.2.Discusstypicalrisksassociatedwithinternationalbusinesstransactions.3.Explainparticipantsandproceduresofinternationaltrade.2Section1FormsofInternationalBusiness

Basedonthemethodsofenteringaforeignmarket,internationalbusinesscanbeclassifiedintothreebroadcategories:trade,intellectualpropertyrightsandinternationallicensingagreements,andforeigndirectinvestment.3Section1FormsofInternationalBusiness1.TradeTradeconsistsoftheimportandexportofgoodsandservices.

Exportingistheshipmentofgoodsortherenderingofservicestoaforeignbuyerlocatedinaforeigncountry．Everyexportentailsanimport,andviceversa.4Section1FormsofInternationalBusinessExportingisgenerallydividedintotwotypes.

Directexportingisoftendonethroughforeignagents

whoworkoncommission,orbysellingdirectlyto

foreigndistributors.Indirectexportingisusedbycompaniesseekingtominimizetheirinvolvementabroad.Thereareseveraldifferenttypesofindirectexporting:exporttradingcompanies,exportagents,andexportmanagementcompany(EMC).5Section1FormsofInternationalBusinessGovernmentControlsoverTradeTariffsareimportdutiesortaxesimposedongoodsenteringthecustomsterritoryofanation.Nontariffbarriersareallbarrierstoimportingorexportingotherthantariffs.Oneformofnontariffbarrieristhetechnicalbarriertotrade,orproductstandard．Anothertypeisexportcontrol.

6Section1FormsofInternationalBusinessTradeliberalization

referstotheeffortsofgovernmentstoreducetariffsandnontariffbarrierstotrade.AllWTOnationsareentitledtonormaltraderelationswithoneanother.ThisisreferredtoasMostFavoredNationtradingstatus.

7Section1FormsofInternationalBusiness2.IntellectualPropertyRightsandInternationalLicensingAgreementsIntellectualpropertyrightsareagrantfromagovernmenttoanindividualorfirmoftheexclusivelegalrighttouseacopyright,patent,ortrademarkforaspecifiedtime.Internationallicensingagreements

arecontractsbywhichtheholderofintellectualpropertywillgrantcertainrightsinthatpropertytoaforeignfirmunderspecifiedconditionsandforaspecifiedtime.8Section1FormsofInternationalBusinessTheexchangeoftechnologyandmanufacturingknow-howbetweenfirmsindifferentcountriesthroughlicensingagreementsisknownastechnologytransfer.Franchisingisapopularformoflicensing.Thefranchiseeisallowedtouseatradenameortrademarkinofferinggoodsorservicestothepublicinreturnforaroyaltybasedonapercentageofsalesorotherfeestructure.9Section1FormsofInternationalBusinessCase1-1(Dayanv.McDonald’sCorp.)

DayaninParishadanexclusivefranchiseagreementwithMcDonald’sin1971.TheagreementrequiredthatDayanmeetallquality,serviceandcleanliness(QSC)standardsetbyMcDonald's.Dayanviolatedthequalityandcleanlinessstandardsforalongtime.CouldMcDonaldterminatethecontract?10Section1FormsofInternationalBusiness3.ForeignDirectInvestmentForeigninvestmentorforeigndirectinvestmentreferstotheownershipandactivecontrolofongoingbusinessconcerns,includinginvestmentinmanufacturing,mining,farming,assemblyoperations,andotherfacilitiesofproduction.Adistinctionismadebetweenthehomeandhostcountriesofthefirmsinvolved．Thehomecountryreferstothatcountryunderwhoselawstheinvestingcorporationwascreatedorishead-quartered．

11Section1FormsofInternationalBusinessMultinationalcorporations

arefirmswithsignificantforeigndirectinvestmentassets.Throughdirectinvestment,theycanstartanewforeignsubsidiarycompany,formajointventurewithanexistingforeigncompanyoracquireanexistingforeigncompanybystockpurchase.Multinationalcorporationsareusuallynotasinglelegalentity．12Section1FormsofInternationalBusinessOfthethreeformsofinternationalbusiness,foreigninvestmentprovidesthefirmwiththemostinvolvement,andperhapsthegreatestriskabroad．Investmentinaforeignplantisoftenaresultofhavinghadsuccessfulexperiencesinexportingorlicensing,andofthesearchforwaystoovercomethedisadvantagesofthoseotherentrymethods.13Section2ManagingRisks

ofInternationalBusinessTransactions

Thelevelofriskrisesupfromtradetolicensing,andtoforeigndirectinvestment.Theriskswillalsovarydependingonwhatcountriesthebusinesspartiesarelocatedinorwhatcountrythetransactionistobeperformedin.14Section2ManagingRisks1.PoliticalRiskPoliticalriskisgenerallydefinedastherisktoafirm’sbusinessinterestsresultingfrompoliticalinstabilityorpoliticalchangeinacountryinwhichthefirmisdoingbusiness．Handlingpoliticalriskrequiresplanningandvigilance.

15Section2ManagingRisks2.LanguageandCulturalDifferencesEventhoughEnglishiswidelyusedinbusinessallovertheworld,thelanguageofagiventransactionstilldependsonthetypeofbusinessoneisdoingandontheregionoftheworld．Onedevicetoovercomelanguagedifferencesistohavethecontractdrawninthelanguageofbothparties.

16Section2ManagingRisksCase1-2(Gaskinv.StummHandelGMBH):

Gaskin(Americancitizen)couldnotspeakorreadGerman,butheenteredintoanemploymentcontractwrittenentirelyinGermanwiththeGermanfirmofStummHandeloperatedinNewYork.Whenhesignedthecontract,thetermsofthecontractwereexplainedtohiminEnglish,includingthe“forumselectionclause”ofsettlinganydisputesinthecourtsofGermany.Later,thetwopartieshadadisagreement.CouldGaskinsettlethedisputeintheUnitedStates?17Section2ManagingRisks3.CurrencyandExchangeRateRisks

Threeseparaterisksrelatetocurrencyandinternationalbusinesstransactions:convertibility,repatriation,andcurrencyratefluctuation.18Section2ManagingRisksHedgingCurrencyRisk

Ahedgeisapositionestablishedinonemarketinanattempttooffsetexposuretopricefluctuationsinsomeoppositepositioninanothermarket.Hedgingallowstheinvestortotransferthecurrencyrisktosomeoneelsewhowantstotakeupapositioninthecurrency.Examplesofhedgingincludeforwardexchangecontract,currencyfuturecontracts,etc..19Section2ManagingRisksCase1-3(BerninaDistributors,Inc.v.BerninaSewingMach.)BerninaSewingMachineCo.(Importer)hadaseven-yearcontracttoimportandsupplyBerninasewingmachinestoBerninaDistributorinUS.TheImporterwasrequiredtopayinSwissfrancs．WiththesharpdeclineofdollartoSwissfranc,Importer’scostsdoubledandthushalveditsrateofreturnperdollarinvested.CouldtheImportercancelthecontractwiththeDistributor?20Section2ManagingRisks4.LegalRiskBecauseofdifferencesinlanguage,culture,andlegalsystems,theintentionsofpartiesinaninternationaltransactionmaynotbeeasilydiscernablefromtheircontract.Thepartiesshouldexpresscarefullyintendedrightsandobligationsinawrittencontract.

21Section2ManagingRisks5.SpecialTransactionRisksinContractsforSaleofGoodsTheriskthatabuyerwilldefaultonasalescontractandfailtopayforthegoodsisknownaspaymentrisk,orcreditrisk．Theriskthatabuyerwillnotreceivethegoodsunderacontractiscalleddeliveryrisk.Thiscoursewillfocusonthespecialrisksinherentininternationaltransactionsforsaleofgoods.

22Exercises–SpecialTerms國際貿(mào)易直接出口非關稅壁壘貿(mào)易自由化跨國公司知識產(chǎn)權最惠國貿(mào)易地位貨物轉運商承運人海關報關行提單信用證保險公司技術轉讓23Exercises–SpecialTermstransactionlicensingagreementforeigndirectinvestmentcommissionmerchandiseglobalsourcingcountryoforiginknow-howbusinessoperationsfranchisedefendantplaintiffhostcountries

24Exercises–Explanation1.Whataretariffs?

2.Whatareinternationallicensingagreements?3.Whichformofinternationalbusinesshasthehighestlevelofrisk?Why?25Section3Participants