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AC KET HER RAD Rie, CER S785 PRE 2010 fi CIncoterms 2010) ) EF 2010 #21 1 ARTES, Ak, AAA UIT; FEU, PEATE 1. 2 WCRI SORE, TRAE AAAS WTS ROR HH OPE HE ABA ES EA AY BWA RR, (eM ABUT TB, BT ARR PHBA, to VERTED. UE SOP OTE: RP MRS), HES — Bi, RUE ARB. ZC REM THR. ARR a, BAA, BUS, ‘82% (Incoterms 2010) , ALHEHE ER 13 AGE 11 AE, JEPEVEAISTA, [IBY (Incoterms 2010) 45 (Incoterms 2000) ET T LBA, WOE: TRON “sepa A RATT” BATT ECA, MAMI “HTL BER AAA BRA” BA: BN RY HDR AK” EA AMET ANTE SME, ERT BET TOA, TH WL RICR NE MA” 5 AR NE ORETT TER. Bi FOB SrHent CIF rae tt BRAS BA, ILRI TAN ET HL. Eh, TRE LAR AE SAAT PRR 2G Ke, RAL, MARAT TT. BT MAA BERET AREAS A AS NIA, BEMIS AME IE. 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GATE SREP Si T SA ASE EAD, ZED PAROS! DF RAAE AAA, MERLE. RT, BEA AHIE. me 2006 4F 4 AContents Chapter One . Part AText A Brief Introduction to International Trad Section One Reasons for International Trade Section Two Problems Concerning International Trade. Section Three Forms of International Trade Section Four Cross-border E-Commerce... Part B Terminology Practice Part C Terms Part D Exercise .. Chapter Two .. Part A Text General Procedures of Export and Import Transaction .. Section One Procedures of Export and Import Transaction .. Section Two Business Negotiation... Section Three Basic Qualities for Good Negotiators .. Section Four Procedures of Cross-border E-commerce Section Five Policy Defects of Cross-border E-commerce... Part B Terminology Practice. Part C Terms Part D Exerc Chapter Three... a Part AText Contracts for the Sale and Purchase of International Commodity Section One Definition of Contract. Section Two Formation of Contract. Section Three Performance of Contract. Section Four Components of a Typical Successful Cross —border E-commerce Transaction. Part B Terminology Practic Part C Terms Part D Exercise Chapter Four... Part A Text Trade Terms... Section One Components of Trade Terms.LW Sears minee 84 Section Two Incoterms........... Section Three Six Main Trade Terms in Incoterms 2010... Section Four EXW and FAS in Incoterms 2010 Section Five D Group in Incoterms 2010 Section Six Clauses Commonly Used about the Trade Terms in Contract Section Seven Terminology Relating to International Trade and International Practices.. Section Eight Declaration No. 56 on Cross-border E-commerce Goods Supervision by General Administration of Customs of the People’s Republic of China. Part B Terminology Practice. Part C Terms .. Part D Exercise ... Chapter Five Part A Text Quality of Commodity Section One Methods of Stipulating Quality of ‘Commodity. Section Two Quality Latitude & Quality Tolerance.. Section Three Examples of Quality Clauses in Contract Section Four General Catalog of E-commerce Platform . Part B Terminology Practice Part C Terms Part D Exercise Chapter Six... Part A Text Quantity of Goods. Section One Calculating Units of the Goods Quantity Section Two Methods of Calculating Weight. Section Three Quantity Terms in the Contract Part B Terminology Practice Part C Terms . Part D Exercise .. Chapter Seven Part AText Packing and Marking of Goods. Section One The Function of Packing . Section Two Kinds of Packing Section Three Marking of Package Section Four Factors Influencing Types of Cargo Packing, Section Five Elements Concerning Cross-border E-commodity Packaging.Part B Terminology Practice... Part C Terms . Part D Exercise Chapter Eight... PartA Text Price of Goods... Section One Contents of Price Term... Section Two Pricing Methods Part B Terminology Practice... Part C Terms Part D Exercise Chapter Nine.... PartA Text Delivery of Goods Section One Methods of the Delivery... Section Two Delivery Conditions . Section Three Shipping Documents..... i Section Four Logistics Mode of Cross-border E-commerce... Part B Terminology Practice Part C Terms . Part D Exercise .... Chapter Ten . Part A Text Cargo Transportation Insurance Section One Marine Insurance... Section Two Risks, Losses and Expenses... Section Three Marine Insurance Coverage .. Section Four Insurance Value.. Section Five Insurance Premium .. Section Six Forms of Marine Insurance Contract Section Seven Endorsement of the Insurance Policy Section Eight Insurance Practice in China... Part B Terminology Practice... Part C Terms .. Part D Exercise Chapter Eleven... Part A Text Payment of Goods Section One Instruments of Payment in International Trade Section Two Modes of Payment in International TradeMW BLS WBBI (FB 4 MD) Section Three Cross-border Payments and Process. Part B Terminology Practice. Part C Terms .. Part D Exercise Chapter Twelve Part AText Disputes, Claim and Arbitration Section One Disputes and Claim... Section Two Force Majeure... Section Three Arbitration. Part B Terminology Practice Part C Terms Part D Exercist Chapter Thirteen... Part A Text A Brief Introduction to Cross-border E-commerce... Section One Features of Cross-border E-commerce... Section Two Features of China’s Cross-border E-commerce Development Section Three Regulations on Cross-border E-commerce .. Section Four Pattern of Trade . a Section Five Policy Defects of Cross-border E-commerce. Section Six Payment Business Defects of Cross-border E-commerce. Section Seven Local Implementation Plan: Part B Terminology Practice... Part C Terms ... Part D Exercise ... Appendix Model Tes| Model Test 1 Model Test 2 Model Test 3 Model Test 4 Model Test 5 Model Test 6 Model Test 7 Model Test 8 ...a... A RX AGH DiS... RAF MTORR AAAM RAP AAORRSZOHAM R27 BRR AHUA HAG FRET HS. B Sb RM FAP RHR. 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MAA 8 .....Chapter One Part A Text A Brief Introduction to International Trade Trading is one of the most basic activities of mankind. It exists in every society, every part of the world, and in fact every day since the caveman came into being. International trade is a business which involves the crossing of national borders. It includes not only international trade and foreign manufacturing, but also encompasses the growing services industry in areas such as transportation, tourism, banking, advertising, construction, retailing, wholesaling and mass communications. It includes all business transactions that involve two or more countries. Such business relationship may be private or governmental. In the case of private firms the transactions are for profit. Government-sponsored activities in international business may or may not have a profit orientation, In order to pursue any of these objectives, a company must establish international operational forms, some of which may be quite different from those used domestically. The choice of forms is influenced not only by the objectives being pursued, but also by the environment in which the forms must operate, These environmental conditions also affect the means of carrying out business functions such as marketing. At the same time, the company operating internationally will affect to a lesser degree, the environment in which it is operating. HARA ARAN L —. EMR WAI, IRE PIRAS, Boe, WMWIAC ATER LEAT TFA ZEEE BD TRL TE Sh BAL AAT ae RIF TE ATG HN. J SUH, CARA ARH RAMEM, FIBERS TL, Wee. fe Welk. WRATUL. Pk, AG, SA. MRM KALE. ES RARACUER. RBBB, WARM ATINKA, WARES M A. A Ae MATRA AEE BATE ABN 5 TT AFA Ae 2 4 tT ANA Ag A. MORE RA, QAR OM RH DBR, SPP eER SBA HK BIB AAA. EPROM AL RE EU AR AY pe. FDS te SE dM i EH. aE PRS IR tH CO Ae HL aC, GOAL. TDN, 25 EAN va SS, FR FETA. A BERT 5 GEO SPE TA Zo Section One Reasons for International Trade ( #HIEMNRABVADN ) International trade, also called foreign trade, or overseas trade, in essence, is the fair and deliberate exchange of commodity and service across national boundaries. It includes import and export trade operations. It arises for many reasons. FRI BY Sh PRT Sh BL Ts ES Sy Eh HAR LE, REPRE, ALWW See ascsminse 4 mD USE TB EBL AS EAT a5“ LAH A 9 A 5 BL Wie SF A. 1. Resources Acquisition (Fim) Manufacturers and distributors seek out products and services as well as components and finished goods produced in foreign countries. The different distributions of the world’s resources determine the pattems of world trade. Some countries or regions are abundant in natural resources; elsewhere, reserves are scarce or nonexistent. For example, the United States is a major consumer of coffee, yet it does not have the climate to grow any fits own, So it has to import coffee from other countries that are rich in coffee, like Brazil, Colombia and so on. Britain possesses large reserves of coal but lacks many minerals such as copper and aluminum, The world’s raw materials are unevenly distributed, and both modem manufacturing and agriculture require many different resources. Thus, to obtain these through trading is an absolute necessity. Climate and soil affect the cultivation of some agricultural products, which a nation can produce and trade internationally. Some South American countries, for instance, enjoy a favorable climate for growing coffee. However, the United States almost does not grow coffee, and has to import it. On the other hand, the climate and soil of some states of America are ideal for raising wheat. The wheat grown in the United States is so large that it is often exported to other countries. A A 2 SR 7 IN SSP RA ATTN REACT VAD RAS. BRUTE HL FP A SM IAS TA] Sp AAR ISL Se A LE SE A RD HD BARR, MMAR, RRR IR. Plo, SME PR, (Ee URI, EAE ARE POE, Blk, AA SAA Pm Ee, DG BME EH ME OME, PEAT ACRES VE. AO RS RA. FRA PER. I SULA BRAY PAs ANID TA SA AR Me a EPPS TA BE. At, SE SOE WGK LEE UE TSP BE. PARA Ae SH BE AR Fl YAAK | NE De 7 A ee A 7 ANSE A Bas So i, Fri], ASPB ARAEIE SEA Ke, Se LRA OE, AE; AA, RBA AURA ARIES DAAC, FUL, SERRA Be RAR. 22 We th BSE Hh SE. 2. Benefits Acquisition GEA Fiz) With the development of manufacturing and technology, there has been another reason, i.c., economic benefit, for nations to trade. It is found that a country benefits more by producing goods it can make most cheaply and buying those goods that other countries can make at lower costs than by producing everything it needs within its own border. This is often explained by the theory of comparative advantage, also called the comparative cost theory, which was developed by David Ricardo, John Stuart Mill, and other economists in the 19th century. The theory emphasizes that different countries or regions have different production possibilities. Trade between countries can besm amRain profitable for both, even if one of the countries can prodiice every commodity more cheaply. As long as there are minor, relative differences in the efficiency of producing a commodity, even the poor country can have a comparative advantage in producing it. Comparative advantage has directed countries to specialize in particular products and to mass-produce. For example, the United States is relatively more efficient than Europe in producing food (using one third of the labor) and clothing (using half of the labor). Thus, while the United States has an absolute advantage in both forms of production, its efficiency in food production is greater. Consequently, a great deal of clothing is imported from Europe to the United States. Bi 2 iE AR A BR, PET HE AR DEAT ER, BU Ra. AN AV BRIR WRAP ERR AE PAIK RAS ON i» TAA ft EB FS Se AT A As Oy WAI AM A AP PTH a I. REP A, ATT A A APR EB HED PLE BRAG, FACE + EP. RAE + KARAM 19 THEA th Be PEER RTE AN © HEAR SA BE i BABE Dees AS Ed eS SEG AR AE EE} PRL A HE a HRT PAA BUD ES 8 TF ER RAS AF * 5 SEE E E A RE i EARL PEPE RG ORS EADAED RE 2 BOB Ft Fg AP A EI EE ABIL BAS US A FR U1 ATR AF AS EP 0 PY, he BAS ah ae we Whe FR DRAG Be ih At a 57 ON 771 TT i SF BN A 1/3, ERAT TSN AI OT BY 1/2. AY L, CE PE AME ARR Ty, SERA AT HR AE Ae FO ih PRR CH PS FRR ET, PTL, SEERA AC EAA AA CE 3. Diversification (SMBH) Companies usually prefer to-avoid wild swings in their sales and profits, so they seek out foreign markets as means to this end. Some film companies have to smooth their yearlong sales somewhat because the summer vacation period (the main season for children’s film attendance) varies between the northern and southern hemispheres. These companies have also been able to make large television contracts during different years for different countries. Many other firms take advantage of the fact that the timing of business cycles differs among countries. Thus while sales decrease in one country that is experiencing recession, they increase in another that is undergoing recovery. Finally, by depending on supplies of the same product or component from different countries, a company may be able to avoid the full impact of price swings or shortages in any country that might be brought about, for example, by a strike. a FS BRE Se 5 A Pd Ue ZS SAG Se HS TH PE Pi AE IH AEE ENP ERE BET ELEMENT TAS A] CIS rR Le HEE BET], LA Jy DS AH RY SE DBE AE PEA hE) 5 I Mel Hr ZS a EAS Eh 5 A 0 ET TE PLIN ATA]. HES 2 A AS A, Ye ETE. GE, 4 FE AR TT 1 AE IRD OS, EF — FR A TT I. HS AR SRK AAS EB ATTA) — 7 RI, ZB TIRE ea > — FD a EYNW EUR RAS MBB (FB 4 MD) god FBT iid a1 det Liste. 4. Sales Expansion (i A488) Sales are limited by the number of people interested in a firm’s products and services and by the customers” capacity of purchase. Since the number of people and the degree of their purchasing power are higher for the world as a whole than for a single country, firms may increase their sales potentials by defining markets in international terms. Ordinarily, higher sales mean higher profits. BP sd 9 $5 ak 5S tl PB LEM SC PF BY SHE LT BA SE HD 5 UE RTS BMA Be SE SK PTE EA LEE — AES, deb RT DCE eR TB A oa fT. DS EH. GAS, PARR MARR There still are some other reasons for international trade. Some nations are unable to produce enough products of a certain item. Thus they have to import some to satisfy a large domestic demand. Moreover, the preference for innovation or style also leads to international trade, which makes available a greater variety of products and offers a wider range of consumer choice of a certain product. Finally, some nations of the world trade with others mainly for political reasons. In that case, more considerations are given to political objectives rather than economic motivation. SRE HE fh — SHE EB Bn BY 5h YR. AP ERI A REAP SERRE, BLL, BUNA FE At ACE I ATG, GALERIE GOR. Hh, FB a BY Sa OY ee AT ta BALAI » PA Ay RR DY 5a HE HE BE TE A, SELES I TE AARC. A, AME UE TT EB Be A. GI, BG A A SE RU TARAR. 5. International Balance of Payments (EIBRICS Fi) A nation’s balance-of-payment account is the statistical record of all economic transactions taking place between its residents and the rest of the world. A balance of payments (BOP) sheet is an accounting record of all monetary transactions between a country and the rest of the world, It is not concerned with movement of money inside the country. It relates to the difference between the amount of money that has come into the country and the amount of money that has gone out of it. Trade in goods is known as visible imports and exports while in services, invisible. If imports and exports are not balanced, it is the job of the government to correct a deficit or adjust the trade policies. Sooner or later, all nations are compelled to remedy deficits in their balance of payments, whether through market adjustment or controls. When a nation’s reserves are low and its balance of payments is weak, the objective of payments equilibrium may come to dominate other objectives of its foreign economic policy and even of its domestic policy. In the decade following the World War II, the elimination of the dollar shortage occupied first place among the foreign economic policy objectives of Western European countries. In the 1960s and again in the 1980s, the US balance of payments problem overshadowed other foreign economic issues. AERIS TMK RE ARP PETE He EAS Bt BR A IP ft OR ET‘e BGI 65h» FABRICS VG CBOP ) 26 FE — 7 EB aS tHE a Dy ITS AN ADO THe HM eth, RR CHAAR MMM AK. FARES AL — APIA AS HF EE A ANA HS, TSH OME HS. WAGE ACE, BBO EYL ROR SOS iY TE TE BCR AT ER AC As GR HT SS, SM CSP rE LANA. SARE RD, CSP OTHE AISI, SERNA, 2EAE A BOSE SE BRE CSP BE TEAR AR ea, RSE 7 lB DR BK ERT SPST BE Al bs. 20 THEE 60 FEAR RIEL aE 80 SEAN, Fe FMC SCY iy te aL SEA, RY SASF [a ll. Section Two Problems Concerning International Trade (AXE RAND ) When dealing in international trade (exporting and importing), a businessman has to face a variety of conditions which differ from those to which he has grown accustomed in the domestic trade. The fact that the transactions are across national borders highlights the differences between domestic and international trade. Generally, there are certain differences which justify the separate treatment of international trade and domestic trade. In particular, these differences include cultural differences, monetary conversion, and trade barriers. Foreign traders must be aware of these differences because they often bring about trade conflicts in international trade. AK SBE EB Bas 5 Sa GUE AAT HAA LBS, ASFA TT 01) GD FD PB 3 AS APE 5 Se as EFI PB Si A a 5 HAG a J a ESAT RFR. ABR, ALL ASHES BER BAI BART Bl A 5 FAB Ba SPURT AG TEES LHR HTS PANT SRE. METRE Ra VG AT PTR EE, LE ATR SSR 1. Cultural Differences (3c2251412) There are many cultures as there are peoples on earth. When companies do business overseas, they come in contact with people from different cultures. They often speak different languages and have their own particular customs and manners. The people of all cultures are ethnocentric. This means that they judge the world from their own ways of looking at things. Therefore, in international trade, business people should be on alert against different local customs and business norms. HOIRE AGC A EIR — BARS © A LEME IEE SEAT A AN TOP AGT SEI. BEA HATA AE a, AAT RAT. SA SOPRA AA PR OM, REL, AT ae RA AE CE ERB Ss LA S22 SAS Ud SP HED 2. Monetary Conversion (#7 se#&(] 20) Monetary conversion is another major problem in international trade. If every country in the world use the same currency, the world trade would be much easier. But this is not the case: a Canadian beer producer wants to be paid in Euro dollar. Currencies, like other commodities such asWY Secs minne n aD beer, have a certain value. The only difference is that each currency’s value is stated in terms of other currencies. Euro dollars have value in US dollars, which have a value in Britain pounds, or a value in Japanese yen. These exchange rates change every day and are constantly updated in banks and foreign exchange offices around the world. Importing and exporting firms to whom the payment is made in foreign currency can be involved in significant foreign exchange risks because of the fluctuation in exchange rates. An importer, for example, does not receive a shipment immediately after ordering it, and is often given a short period of commercial credit. Suppose a Canadian importer must pay a certain amount of Canadian dollar in 60 days to a German exporter for the import of some equipment. This transaction leaves the Canadian firm open to substantial exchange rate risk because during those 60 days, the Canadian dollar may depreciate relatively to the Euro dollar, forcing the Canadian firm to spend a large amount of Canadian dollars to satisfy its import commitment. Fv — APH BE AY BL AL BG eA VE RAR: RE AS de TPE TH HH RR DEES E ABS . AAMSIEAS MIE, ASME OP TAHA BER FD TE HE SZ A HEAR = Ge, UPR RPT HE, Fe SE — BD Sn J TO OTL Sb BODE TT OOP HH RA. BARTERIA S870. FRESE. ACR. Hee BE TAY SEAR AB AE A AB TE SEL, EA FRY LAT AL SHI AE Se Bt EAS TH EE A175 FASC ASE IA ea, BR, SETI AYN ee. falta, ECM, AES LOB, he aE — Be A. BR KSEE FG 60 Fev At — 5 AC Fo PAE SE He IE KAA, ATE 60 RY, MRATEM CTC ASW, IAIN AA Hl STAIR TCR BAT SEE ARE 3. Trade Barriers (RAB) The third problem is trade barriers. It is generally assumed, as the famous economist David Ricardo stated in the 19th century, that the free flow of intemational trade benefits all who participate in, In actual practice, however, the world has never had a completely free trading system. This is because every individual country puts controls on trade for the reasons. (1) To correct a balanced-of-payment deficit Such a deficit occurs when the total payments leaving a country are greater than money in receipt entering from abroad. The country then tries to limit imports and increase exports. (2) In view of national security Nations sometimes restrict exports of critical raw materials, high technology, or equipment when such export might harm its own security. (3) To protect their own industries against the competition of foreign goods This is generally on the grounds that infant industries need to be shielded from foreign competition during their start-up periods. A country usually offers protection to its domestic industries by taxing imports of similar foreign goods. The tax may be levied as a percentage of theam Bmasman ff value of the imports, which is called an ad valorem tariff. When a tariff is added to the price of a foreign product coming into a county, it raises the price of the item to the consumer. Although tariffs have been lowered substantially by international agreements, countries continue to use other devices to limit imports or to increase exports. FET ABLHARSZ AG. EMBCARLRA LE + SAE 19 ECT: Ae 2A) EY) FBI Ba BL 5 TY A AE 5 LTT BP A HRT, FEAST, AOR BRIA IE XM EAD FA EB 0 CHEB yf — 4 EBC Se Ya CD eT Bc EB Bais iti ae AAA AS TRIE MASE UIT, BREE. GI, ARE Lt SE A tH (2) ABBR LA He RRC AT IY Ze PRR HF RR ae, a OS HWRE. 3) RAP AS EBL 7* Mb Ge 5 DS BAD BE JE MP METER BER, ERR TSR SE. — SEE ERT BECUZ R ADL ah HEBER PRD ER Pee. BE BT A fe UE CO a EL — 5 YP EAE, BARB BAB AED OT PI, ee RY SK a A RSE, EYRE AL DR a, RAISE BE, EA FB A a FS tS EB SHH. There still exist other problems, but the above three are the most common problems in international trade. 1 FA a 3 BER ES A, (= A OY fa Section Three Forms of International Trade ( EIGER AAV ) Since there are tremendous differences between international trade and domestic trade, some special difficulties a company has to be confronted with when it plans to go into foreign markets. Although the same marketing concepts and strategies are utilized, cultural, political and economic differences make the task of entering an overseas market more risky. Thus, most companies proceed cautiously once they have decided to engage in international trade. They usually do some researches to have specific knowledge about foreign country’s economic, political, cultural, and social background as well as tariffs, quotas and foreign currencies, etc. Such researches will help the company choose the best form for dealing in international trade. Companies must choose among different operational forms. In making their choices, the ‘companies’ own objectives and resources as well as the environment in which the firms operate should be considered. The following discussion introduces the major operating forms, which also correspond closely to the categories in which countries keep records of aggregate international transactions. EF Ba 5 A BS FEE AE, RA AERTS, ELW ERRARS MIB (FB 4 HR) THEY ARPA PE. BE RL AR I A a AS, AE. BORA Eze FEE ATES SA EINE. IT, KERMA] — AEE ARTIST, BEANO, ACT SE. AA SL AKT RPE. BR. ALS RU RKB AC BAUS PAG TR KE TCA AS BE ZS a SO A 5 OAT SK AACEVER RAM, LACES AON NBER. CREAM, Ae Dae BARS, PEPER SHARAN. ED PR, BUTE HBA BIER, KUTCH ZS HR. 1. Merchandise Exports and Imports (jaai#ttH 0) Merchandise exports are goods sent out of a country, whereas merchandise imports are goods brought in. Since these are tangible goods that visibly leave and enter countries, they are sometimes referred as visible exports and imports. The terms exports and imports are used frequently, yet, in reality the reference is only to the merchandise exports and imports. jo HF a ELS Aad MU ah A 5 A a Fa DASE FE RFE BD FPA dE HAR SSDP EA EE ES BRAT tH ‘SUFI a, Schr, UM Hen A ea EL. (1) Exporting (dit A) Merchandise exports are goods sent out of a country. Exporting is an extension of trading with customers living in another country. This extension of the trade’s domain is highly important, since it enables the vendee to make a choice between alternative goods in satisfying his needs. The need to acquire natural resources and capital equipment is vital to the well-being of all nations. Exporting is likely to be the simplest way to enter the international market. There are two types of exporting: direct exporting and indirect exporting. Gt HE OS AR 3 Th A I — 4S Re PO — TSK, EEL FIP BL 5 Sh SAE A i AL SE Se a A GR SEE BES REA A ADEE — 7 FB AR eA gE HY EP BB TH ETE. ELBE FA BE. ©® Direct exporting (HBEH 1) Direct exporting involves establishing an export department or even an overseas sales branch. It provides a continuous presence and easier control for the exporter in the buyer’s country but obviously means more expenses. PBEM VG 2 MEE HH BE RS SLAY. EE TB Sy a fo, SEP Hath, (ELSE AR ts RR AE BES HA BL 1 BA @ Indirect exporting (i]t H1) A company can also sell its products abroad indirectly through middlemen, commonly called export agents. Export agents seldom produce goods themselves. Their purpose is to bring together buyers and sellers and help them handle international transactions. They make their money from commission of the sale of price. Many agents specialize in specific kinds of products. The principal2-8 ne Bo YY], advantage of using an export agent is that the company does not deal with foreign currencies or the red-tape of international marketing. The major disadvantage is that because the export agent must make a profit, the price of the product must be increased or the domestic company must provide a larger discount than it would in domestic transaction, Indirect exporting involves less investment and is therefore less risky, which enables small firms with limited capital and product diversification can export very easily. SY ES WY DRG SE iS GR HT PEE SP TH. HAR SEMA A AP th, ATTY Bl ARLE SE UR AB — a, HPA AAD es 3 Fey AAT Re. SET RB TF ols SMB ik HH 14 IR PR LIE ZAG Yb TSE, Se FR a ORE. RCE i ee PH PEGE, Pe ARTO BE aK, ERD A Za] BE CE AE PE ST AE BEAT aT TE HAY BER A RTT FELLER s ESET AT BRR FA PASH Ys 2S a AAS SH HH (2) Importing (iis§h WEF) Merchandise imports are goods brought in. One nation’s imports are another nation’s exports. Importing, opposite to exporting, is the process of purchasing goods and services from other nations. Like exporting, importing can be either indirect or direct. Indirect importing is the purchase of foreign goods through domestic middlemen, while direct importing is the direct purchase of goods from overseas market. Indirect importing is convenient but limited in selection of goods and less profit. Direct importing is economical but more complicated than buying from importing middlemen. TAME ER MAA. A Eb RA. HAR SUE EASE ft Bl Ae SP AAR 5 AE RR, SRE a A Et TEE 5 BE SHAE SS ES we SR oh» TRG OY AE MAE Sh TH SSK I SL Ta] PEO ERA, (AR EP ABR. EBERT. (bE GE he a FAW SE BES 8. 2. Service Exports and Imports (AR3Si##tH 21) Service exports and imports refer to international earnings other than those from goods sent to another country, Receipt of these earnings is considered as a service export, whereas payment is considered as a service import. Services are also referred as invisible. International business comprises many different types of services. FG HUE A A RS EL 1 ASP PB CS RUT EARS HL, SCH SUT SPEARS HE: ARB, TBAT LACIE th. A HRSA ARS (1) Tourism and Transportation (fei, 2230132840.) Earnings from transportation and from foreign travel can be an important source of revenue for international airlines, shipping companies, reservations agencies, and hotels. On a national level, such countries as Greece and Norway depend heavily on revenue collected from carrying foreignRARB WIRE (FF 4 hi cargo on their ships. The Bahamas eas much more from foreign tourists than it earns from exporting merchandise. BESTE Ha MAH IEA), SAS], LY NR AA i PP a OY Se EO PRATT. RATA, WARCRY SE ROBIE i, EO AE AA BSR AMINE, MATIC HO. (2) Performance of activities abroad (548i 92) ) Fees are payments for the performance of certain activities abroad, such services as banking, insurance, rentals, engineering and management. Engineering services are often handled through turn-key operations, contracts for the construction of operating facilities that are transferred to the owner when the facilities are ready to begin operations. Fees for management services are often the result of management contracts, arrangements through which one firm provides management personnel to perform general or specialized management functions for another firm. MLE AIH PEAT KM HHS TRS A, MRS LIHAT. ORB. ALR. PEAVUE SEG TALIA FS HE AE A 30 TAR Aa HE A ARCA FT LSE TR SERUM, EAS MBH SETAE LER PE. RS ETE SCE a RR FA), FOIA] ART A SEA ET (3) Use of assets from abroad. (FRYH Es #12 FH) Royalties are the payment for using assets from abroad, such as for trademarks, patents, copyrights, or other expertise under contracts known as licensing agreements. Royalties are also paid for franchising, a way of doing business in which one party (the franchisor) sells an independent party (the franchisee) the use of a trademark that is an essential asset for the franchisees business. In addition, the franchisor assists on a continuing basis in the operation of the business, such as by providing components, managerial services, or technology. Firms often move to foreign licensing or franchising after successfully building exports to a market. This move usually involves a greater international commitment than in the early stages of exporting. The greater involvement occurs because the firm commonly has to send technicians to the foreign country to assist the licensee or franchisee in establishing and adapting its production facilities for the new product. REF RLF BREA UB EP TC AB BA, RR. A. ARSE ASO FTE Hib WRN AAA FOP WAA. SR ORAS. ERMA A, Oe SA CTR) HSC PT A ORR AD» OE FEBLBN ORE BLRAT ATE AS HEP Sh, RRR TTP A A EAE, A HALA, PTAA MEAG. eM Cy SH ES EH SZ es EEL RA BB SAP IESE 3 OES CAH SEAS EA He SLI 2 HB A HB 0) ERR SC 5 Rg a GS A RH A BAAR WET A BAER A AM a PT BES-S ERRABS WW 3. Licensing (FATTER A) Licensing refers to the business agreement in which the manufacturer (the licenser) of a product (ora firm with proprietary rights over certain technology trademarks, etc.) grants permission to some other group or individuals to manufacture that product (or make use of that proprietary material, trademark, manufacturing process, patent, etc.) in return for specified royalties or other payment for the firm granting the license. Licensing is a simple way for a manufacturer to become involved in market abroad. It can gain entry to a market at little risk. Under licensing, a producer(licensor) in one country enter into an agreement with a manufacturer(licensee) in another country offering the right to use the company’s name, products, patents, brands and trademarks, as well as its raw material and manufacturing processes. In return, the licensee agrees to pay the licensor a flat fee or a royalty. Such fee, known as royalties, may consist of a lump sum loyalty, a running royalty (royalty based on volume of production), or a combination of both. Companies frequently license their patents, trademarks, copyrights, and know-how to a foreign company that then manufacturers and sells products on the technology in a country or group of countries authorized by the licensing agreement. License agreements may be either exclusive or non-exclusive. An exclusive license forbids the licensor to sell the license to any other firm in some specific geographic areas. The main disadvantages of licensing are that the company may lose control of the manufacturer fits products and right to sell them itself, Moreover, a new competitor may be created after the agreement ending. PE PTE Sa $5 WAL — PP Me, Ph ATR PA BE AAT A YA GFA , PMA AEP A Ch CEA AMM. Bib. AEP RE. ERIE), HST A CAE He A RIE he A. PF BY EB Sy Ae AP FH A — OT EAB I PEA TH. EE TER a, — PA CATE GE) 45 i — AE APE) EAT AL, HR RERABAMMNAM, Pik, SA. MARR RRA TS. HAZE, PEAT MEARE SE Ta FAL AT Sa AF AYE Ey — EB A PA RF RA, SURREAL KR, BA -UAAR. PR AP EES OTA RAL) . Bea ASAT MR. HAIER De. AA CMTE ME He Al, BbR. WL. TER GAR FAL YES aM, FF SE HE SH ite Fd eH A i eh AS Ph IRS. PEAT UERT DE SR, HRT DARA TE SN PY ESS FY EEE aE Ses — BS eH DR AA ft ZS) APY THE 5 HY AE BE We Hi ZS a] AY fe Zz HY SP AP Heel AA. IFA, ZETIA, LEME RTE. When we consider adopting the licensing agreement, it is very important to remember that foreign licensee may attempt to use the licensed technology to manufacture products that are marketed in the exporters’ market or the third country in direct competition with the licenser or its other licensee. In many instances, licensers may wish to impose territorial restrictions on their foreign licensees, depending on antitrust laws and the licensing laws of the host country. Also, patent, trademarks laws can often be used to bar unauthorized sales by foreign licensee, provided that theWW Sears mins Ge 4D licenser has valid patent, trademark, or copyright protection. The prospective licenser must always take into account the host country’s foreign patent, trademark, and copyright laws; exchange controls; product liability laws: possible counter trade or barter requirements; antitrust and tax laws; and attitudes toward repatriation of royalty and dividends. The existence of a tax treaty or bilateral investment treaty between the licensers” country and the prospective host country is an important indicator of the overall commercial relationship. Because of the potential complexity of international technology licensing agreements, enterprises should seek professional legal advice before entering into such an agreement. In many instances licensers should also retain qualified legal counsel in the host country in order to obtain advice on applicable local laws and to receive assistance in securing the foreign government's approval of the agreement. Sound legal advice and thorough investigation of the prospective licensee and the host country increase the likelihood that the licensing agreement will be a profitable transaction and help decrease or avoid potential problems. TERA AL ER AM, PBC EN, SHEA A Fy RETR LARA, Ay HnSP EH ORG AY Ta = SC, SHER] AAS A BSE. TERE TLE BEL A As ER TBD Sa AF A eS A il, ON ED J A FY APTS. DENY EA, PR. ACARI FFP RP ET A AR, RE AT AAS HORA, ARRAS PR HAL AURAL EAS BBR I RT he A PR, SAA, Pe aE TEE, WIRE FRCEIR EH A RE, RETAIL, DRO REE BAA PRLS AAS SE | AR A BRN Be AUS BD A pH ZY IT A He HU HB HA REABVARP REC. ATA AER DORE, EST I, BL GIRS MAES HH. KE BAF, VERT AY TERA OR a A LA, Gi ATT APS HATA, ZEA SBS RF Ao Dd Ey TR EB. TAT, A BERS ARAB AE A A SE TAS RAFT HIE WN A BM SA SH TR A Ee CE Fa] LY AT AE. 4. Trading Companies (252a]) Trading companies are large international wholesalers, frequently larger and more powerful than the manufacturers they represent. They serve as a link between buyers and sellers in different countries to facilitate trade. They purchase goods at the best price they can obtain in one country and sell them to buyers in another. They handle all the details required to move goods from one country to another. They offer consulting, market research, advertising, insurance, product research and design, warehousing, and foreign exchange services to interested companies. A ZS REA AY 9 nt, RES SAH LE ATTA Ze ER SHE ARMA MAN LEMAR, HHA AT ERD EEA. EAE Du Hea BAT A I SP hs» AR Yea SSE A — ERA SAE 5 ANT A — 3S 5 — BI — DAT. EMAAR NA APE, IAAT. PR. PART. eHsa emmamn BANC IMI « 5. Joint Ventures (@#izbulk) Joint venture is a form of business relation which involves pooling of assets, joint management and a sharing of profits and risks according to a commonly-agreed formula, Legally, the joint venture is a form of partnership, a pattern of business organization which can be adopted by every type of industrial cooperation; in other words, joint marketing, servicing, production, etc., separately or in combination, may be legally organized as a joint venture. It may be of either an equity or non-equity type. If the former, a separate body is established whereby local interests purchase a share in the equity capital. If the latter, no additional body is set up; association is based entirely on a contract: Both equity and non-equity joint ventures are subject to risks and profits sharing: their common dominator. Joint ventures are more stable than exporting, importing, or licensing. Moreover, they are less expensive than wholly owned operations. However, joint ventures also encounter some problems such as controlling problems which arise because joint ventures require coordination across national boundaries, and problems concerning percentage of ownership, amount of investment, how much of the product will be exported, and how to evenly distribute the reward, ete. RAMEE RAD ARMM TELA HUKR, CHRP NIRS, Ie BETH, PRAHA. ME LIE, ARAN -RAKAKR, ATURE PME RIG LR; PALE, BLUR AUR TSN, FESS AY ARS. AEP TBA EEA RTA. ARENT WE BALA ek, tay DUAR BORA Eth, WEN, HREM A ESC, “SHA ERA EE ANT BAL. WAIE IG, RAPE Oh ESE, WR A ree MIZE Pe AE RE. ACR RLAA HL, BAA OE SE RIS, SRA. ARE Ae be HOB Sa. EO RE ATE So Ae, HE ER PR, ABE bt Ui aE, RS i YL, FC eT BE RES AE, ALB, HE BEBE RM RS AD, tent] AF 5p A TS Va. 6. Investment (383%) According to the definition of economics, investment refers to the economic activity, in which the value that can be now used has been sacrificed or given up for future greater value. That is to say investment is putting money into something with the expectation of profit. Investment can be divided into direct investment and indirect investment. HAR LETT A LA Ey BEE ALTE BEBE TF A BR A OE AOR HELA PBT. Se RAATTERL Ais ERAT, ELVES — Ay Tat ATT EAT PEP, ST DAIL A. BEAM ELMAR oe AR. ARE, ECE RR AP ED BAR FOP. BEE BY LA 5) Hy A AEA FTA] BEA TE (1) Direct Investment (FL PEL ¥E) Direct investment takes place when control follows the investment. This can amount to a smallRADARS WIGS (FB 4 hh) percentage of the equity of the company being acquired, perhaps even as little as 10 commitments to foreign operations in the given country. Not only does it imply the ownership of an interest abroad, but also means the transfer of more personnel and technology abroad than when there is no controlling interest in the foreign facility. Because of the high level of commitment, direct investment usually (but not always) comes after a firm has experience in exporting or importing. Direct investment operations may be set up in order to gain access to certain resources or access to a market for the firm’s product. Kenner, for example, uses its Mexican direct investment to assemble the Chewbacca Bandolier Strap because this gives access to a resource, cheap labor, for the product’s manufacture. Kenner also has direct investments in Europe, which has been made as a means of gaining markets in the countries where the production occurs. When two or more organizations share the ownership of a direct investment, the operation is known as a joint venture. In a special type of joint venture, a mixed venture, a government is in partnership with a private company. SUPT RE MeN MCAT He BUI, A See BREA. ERO Fe PA = IASI, RADA AT 100%. CERESRSS BE HA BAA AT A ALLE eS ARCA AAR SH 6 CARO RB AT LS eR IATL, SRR RE dD BUY, BBS MAA AAA GE Yh. A BER RG MS, dl BE EA, SEM OB RA RAB EAR ARN. BAA TAB, A TPR FR He BER AY (EF EASE ih A TSH. PL, AAAS He A HE AT HE, AA Chewbacca FH i, Ae ea FALE BURT Hh DL REISS 5h 79; EAN ZS a] CE TS EAT 1 BLE AE FI FE A SIL A TT SPATE Db A a TEI, BREE. BES AIK BL BERt, WW ae Be EA — EATER ARG fh. (2) Portfolio Investment (Jel BERBE, SPREE LI) Portfolio investment can be either debt or equity, but the factor that distinguishes portfolio from direct investment is that control does not follow this kind of investment. For US firms as a whole, sales from output produced abroad are many times greater than sales from US production that is sent abroad as merchandise exports. Today most of the world’s largest firms have substantial foreign direct investment encompassing every type of products or components, selling of output, and handling of various services. Foreign portfolio investment is also important for nearly all firms operating extensively internationally. They are used primarily for financial purposes. Treasurers of companies, for example, routinely move funds from one country to another to get a higher yield on short-term investments. They also borrow funds in different countries. TBE BR HE AT AA RUA ET RTE, (ESE AK BN, EAT PAE ATE HAL 5 BET DR A A SAIS a» i CE Dh A 7 He AF 3 7 ih DA at tH OF ie BES, Re St ER Sb A RB FER, BPR. PED. AEP RRA. ANP MES RSB—-R BMRA Wi FR) tT] BEASLEY EH DB a OR BE A EA A ‘AL, ite Bes LAR Be Se A ION EF SMA — AS Rd A 3 — PS ROB NC oD BE, CAT Ss MSE ft AAA BE LS 6 For most nations exports and imports are the most important international activities. Each country has to import the articles and commodities it does not produce itself, and it has to earn foreign exchanges to pay for them. It does this by exporting its own manufactured articles and surplus raw materials. Thus the import and export trades are two sides of the same coin, and both can have beneficial effects on the home market. Imports create competition for home-produced goods; exporting gives a manufacturer a larger market for his products, so helping to reduce the unit cost. In each case the effect is to keep prices in the home market down. But there may be factors that compel governments to place restrictions on foreign trade. Imports may be controlled or subjected to a customs duty to protect a home industry, or because the available foreign exchange had to be channeled into buying more essential goods and exports. Also may be restricted, to conserve a particular raw material required by a developing home industry. ‘These factors mean that importing and exporting are subject to a lot of formalities, such as customs entry and exchange control approval, from which the home retail and wholesale trades are free. They also mean that the procedures of foreign trade are much more complicated than that of domestic trade, the latter involves specialized knowledge and highly trained personnel. WAG BU FORGE, EH Se Sa A ME A. ES A AE AS FEA IE AE 7B Bey PE ts» SAOSIN A Rh PR 2s SO. Pat, SEH 1s AE — A Pe, ET A TT ABET A A. ET BD ERA AT ES, TA A RE TE RES, A iA Fie AEH EE HH, SHE PD Ae EL TTA (EE, WTAE PELE, BURASEAS RY RT SE BL Ss HPAP Hi. aT PRP BB A AE Ph CE HAF FG ESN FW Se Ey EH BE, BA AY Be EHS HE BR Be AOE. DRE, YT RR FRE OF PG BELA SBE OSL, HH 1 tts Se Se RH HEAR RRA HE OA BS PHA, WRAL ate: Ae a BMF ARSC IER A A PRES, RRS AYR LAD SE it BF MRA A. 7. Visible and Invisible Trade (ABRAM RA) International trade transactions can relate to the importation and exportation of goods or services from one country to another. Visible trade involves the importing and exporting of tangible goods, whereas invisible trade involves the services exchange between countries. For instance, Brazilian coffee is often transported by ocean vessels because these steamships are the cheapest method of transportation. Nations such as Greece and Norway have large maritime fleets and provide transportation service. When an exporter arranges for this kind of transportation, he rents space in the cargo compartment of a ship for one voyage. The prudent exporter buys insurance for his cargo’s voyage. While at sea, every shipment hasW RALBMIBME (B 4 hi) to run the risk of a long list of dangers: fire, storm, collision, theft, leakage, explosion, ete. To prevent these risks, the marine cargo insurance is provided to protect the exporter or importer from the financial loss. Thus, insurance is another service in which some nations specialize. Britain, because of the development of Lloyd’s of London, is a leading exporter of this service, earning fees for insuring other nations’ foreign trade. (i a 5 L4H AE BR A ATE A SG EAT BE PH AMEN, TACTIC EAB RS BL IE PL, LP AH AES AE GRAHAM, GHG UF SRR «(RA HEALS RA PIN AS A RBA EB LT Wy PSS. NORA, fet ADIT AG. ‘EEC ots PE: Ay A DS Re, Ay HL ALT ONE DD Ze HI A EI WAAR, EAL. HA. PBI. MEE. MED PROT DA Be, RH SCHORR. J, PRR EIA AR. PE TR ER Vie 2S MAY Be RAL A, BERD He at 79 TH Me HBA A SAL At EADY HI Berit EAR A 5 Some nations possess little exportable commodities or manufactured goods, but they have a mild and sunny climate. During the winter, the Bahamas attract large numbers of tourists, who spend money for hotel accommodations, meals, taxis, and so on. Tourism, therefore, is another form of invisible trade. The United States has been described as a nation of immigrants. Many Americans send money back to families and relatives in the old country. Millions of workers from the countries of southern Europe have gone to work in Germany, Switzerland, France, the Benelux nations and Scandinavia. The workers send money home to support their families. These are called immigrant remittances. This is an extremely important kind of invisible trade for some countries, both imports and exports. Invisible trade can be as important to some nations as the export of raw materials or commodities is to others. In both cases, the nations ear money to buy necessities. BRL EA wT PEt Oe AH, CIA. PEFR. EM EAR AE SI AREA Uae, HATES a HT. OAR A ALE ETE RR. TUL, HREM SF HEE RS. PEM FE— PAS RAK 5 RS EER) A HE a tT HA AAR UGK POA A ARF bh GEER Let eA FBR OA Pe HE AE TE AT AF R, VAR, RAAB RICK. WEAF, Pe AUEN OH, BRAY A BEY FETE HS © FFE HA HAF Ay eB ea HE I eA AMTECH Dy FINI, DA SED i Section Four Cross-border E-Commerce ( BFS ) 1. Definition of Cross-border E-commerce (3th HF SAVE ML) Cross-border e-commerce is developed based on the network; the network space is a new space,8-H BMRA Wi relatively speaking, to the physical space. Network space is a virtual reality of net address and password. Cyberspace’s unique values and behavior pattems profoundly affects cross-border e-commerce, making it different from the traditional way to trade and showing its own characteristics. PE HLTH DH BPRS, WL 5 TH I — a a, A> EE POU A 2 SOLER PE AEE RP 2 EL aE A 4 SR SRC PSE HS, MESEAS AIT FE BENE Hy TT A A NH Cross-border e-commerce is a new-type mode of trade that the digitalization and electronization of exhibition, negotiation and conclusion of a business of the traditional trade by Chinese production and trade enterprises through e-commerce means to finally realize the import and export of products and at the same time also an effective way to broaden overseas marketing channel, promote China's, brand competitiveness and realize the transformation and upgrading of China's foreign trade. PE SRG EL HH RU A Sh Nk HF FB Pa. RA BETES AME HT ks PRIN, tH SEL, BEATA TAL a PSE G77, SMR Sh Be TT A BE Eo 2. Pattern of Trade (RAR) Buy-Ship-Pay Reference Model (See Fig.1-1) In order to understand the complexity of international trade, this simple model can make a clear view of the key elements of a trade transaction, and consequently to properly compile the necessary trade facilitation measures. UN/CEFACT has set out this to model the international supply chain using an internationally accepted modeling technique to provide reference model, which gives a view of the international supply chain in its entirety. A simple view of the international supply chain based on BSP model includes three main categories of processes which are buy, ship and pay, plus four types of roles such as customer, authority, intermediary and supplier. Buy-Ship-Pay 847807 CIA 1-1) Ay TBE Fl a BB He TB Sh OSE A SLL ST TP FARBER, MATT TE Se tl Ds BE IB 3s EACH Tite. UN/CEFACT $i 4029 4 (E—7 AQUA MOPS HE HF Ti HE Ban EE EB OA, FS iitte— AT SEF BSP ERB REA — 7 1 A A = TE: WS. MAT, MEA A, EP BORE. SPA HE RY As discussed above, the recommended measures, grouped into four categories, relate to the processes in this model. + BUY—Covering all commercial activities related to the ordering of goods. + SHIP—Covering all of the activities involved in the physical transfer of the goods, including official controls.WN Bee axa mina Ges mD + PAY—Covering all of the activities involved in the payment for the goods. After classifying the main categories of roles and processes in a cross-border supply chain, it is needed to have a closer view at different types that each of these categories can support. JEM LRAT CI, HEATER HE STEP AIS + BUY — Fh 5 rl a ME A A HTT + SHIP— faa DS 5 MEE M,C TEE. + PAY— tia ESE RNa BRL SG, ERAGE AL ARE— PS EE, BEE AG RE AK BT ARIA TRAD SCF. Authority “ae = » » — Intermediary Identify mate ees Invoicer_ a : ie Cm) = Intermediary Authority Bank Sustoms Freight forwarder| Credit agency Fig.I-1_ Intemational supply chain (fl LIZ) 3. Features of Cross-border E-commerce (#516FEF 135 A0+#1E) (1) Global Forum (4:2RHE) Network is a medium body with no boundary, sharing the characteristics of globalization and decentralization, Cross-border e-commerce, attached to the network, also has the characteristics of the globalization and decentralization. E-commerce, compared with the traditional way to trade, boasts its important feature: a borderless trade, losing the geographical factors brought by thes-e amnann /f traditional exchanges. Internet users do convey products, especially high value-added products, and services to the market without crossing borders. The positive effect brought by features of network is the greatest sharing degree of information, whilst its negative impact is that the users confront risks due to different cultural, political and legal factors. Anyone, who has a certain technical means, can make information into the network, connecting with each other, at any time and in any place. FE IE— IRATE RIMS, FATE ALE AC EATER BE FE HF Hi te AST ERE SE GE ES He EME Se AE, Aa BA ET FS EMA, RT ERED AAT A. TOA AS AG EE a FET AGE ih ICR RE BA EL AR HE EB TSH PAA RE ‘EAE ES A ek SA ELSE, TRA A Ps ALS A ROAST AE. FEAR ET EMRE, BERT AEE TAT IR. FEAT ALE fA SHEA, AR RWET IES « (2) Intangibility EIEtE) The development of the network promotes the transmission of digital products and services. And digital transmission is done through different types of media, such as data, voice and image in the global focus of the network environment, since the media in the network are in the form of computer data code, they are invisible. Digital products and services on the basis of the characteristics of digital transmission activities also have feature of intangibility, although traditional trade in kind is given priority to the physical objects, in the electronic commerce, intangible products can replace physical objects. A 6 FE AE 7 AA RAT 3 BE He AL AS FAR UR TT OH HE, PSETAUR SE, PEER AL A RSE TITHE AT AY, RI YE PS he Dt BL ARGO ATTEN HH BLAS, PNT AL ACTS 5 BE AGF lh AUR BF BA 8 AE aR FEFENE, PERE Sa VA SNE TA IA» MULE EP. FEIT he RT VL BER VE HY HT Re (3) Anonymity (ft) Due to the decentralization of cross-border e-commerce and global features, it is difficult to identify the e-commerce user’s identity and its geographical location. Online transactions of consumers often do not show their real identities and their geographical location, the important thing is that this doesn’t affect trade; network anonymity also allows consumers to do so. In the virtual society, the convenience of concealing the identity quickly leads to asymmetric freedom and responsibility. People here can enjoy the greatest freedom, but only bear the smallest responsibility, or even simply evading responsibility. HAP Bi BSE FH HBA AE BAO EN AR SMW dT FP 0 TE PPR HLH eH. TERE RAE or A OE A Ce, AY FETE AEA GME Sy UHEAT, PERT 2 HEHE SOR ee. CEMA, RE ht FAIR AN SB SEMA. APE AT ERK AR RE DERAL MIB (FH 4 hi) E, HRP HOURETTIE. (4) Real-time (AI RYE) For network, the transmission speed is irrelevant to geographical distance. Traditional trading patterns, information communication, such as letter, telegraph, fax, etc., between the sending and receiving of information, are with a length in different time. With regard to the information exchange in the e-commerce, regardless of the actual distance of time and space, one party sends a message to the other party who receives that information almost at the same time, just like talking face to face in life. Some digital products (such as audio and video products, software, etc.), can also get instant settlement, ordering, payment, delivery done in a flash. FMS Te. PE PEK. HEE MBL, i ATK, MR HGR FEU, CE LY TR SEMI), PEPE RT LAS Tr mY i 2 5 PH it, FCS SRR, TRS a LP, AAP TATA. SEH ih COR HN. ARSE) AYE, ERT, WHR. fT aK. EA ABAT UA EBA] EM. (5) Paperlessness (FEAL) Electronic commerce mainly takes the way of the paperless operation, which serves as the main characteristic of trade in the form of electronic commerce. In e-commerce, electronic computer communication records files instead of a series of paper trading. Users send or receive electronic information. Now that the electronic information exists in the form of bits and transmission, the whole process is realized by the paperless information. Paperlessness brings positive effect in terms of making information transferred without the limitation of paper, however, many specifications the traditional law are with the standard “paper trades” as the starting point, therefore, paperlessness brings chaos in the law, to a certain extent. FFG SS Fe ERICA RAE YG SR, ACHE UL PT ST HEAT 22 EERE. TE FBP, FH WPM ICRI T — APACS ES FP RR NC Be Hs HF AFH DALE TES AE CE APES, BEM HS EE SET A. A AE SHAD BAB OJ dA AE MBE T ATR APR, EL PES SRL “A Ze” ARI, Ak, FEAR Te PE LIAL. Part B Terminology Practice 1. Exporting: Sending goods to another country for sale or trade. 2, Importing: Bringing goods from another country for sale or trade. 3. Minerals: Commodities obtained through mining. 4. Comparative advantage: Situation that exists when a country can produce a product or provide a certain service at much lower cost than any other country. 5. Absolute advantage: Situation that exists when only one country can produce a certain item,sa emnain or can produce it much efficiently than any other country. Theory of comparative advantage: An economic theory stating that if one country can produce a product relatively more efficiently than another country, it is beneficial to both countries for the first country to export that product to the other. It is also called the comparative cost theory. 6. Visible imports and exports: The import and export of tangible goods (not services). 7. Invisible imports and exports: The import and export of services rather than actual goods, for example, banking, insurance, a professional service, etc. 8. Balance of trade: The difference between the value of merchandise exports and the value of merchandise imports for a nation during a given period of time. 9. Exchange rate: The amount of one country’s currency that must be paid in order to obtain one unit of another country’s currency. 10. Tariff: Duty or tax levied on a specific commodity when it crosses national boundaries. 11. Quota: The maximum quantity of a certain product that is allowed into a country during a given period of time. A quota is used to limit imports. 12, Export agent: An agent who tries to find new markets for products manufactured in its own country. 13, Patent: An exclusive right granted by a government to an inventor to make, use or sell a new device, process, material, or other innovation for a specified period of time. 14, Royalty: A payment made for the right to use the property of another person for gain. This may be an intellectual property, such as book (copyright) or an invention (patent). 15. Balance-of-payment deficit: The amount by which money flowing out of the country exceeds the money flowing into the country during a given period of time. 16. Infant industry: Underdeveloped industry that, in the face of competition from abroad, may not be able to survive the early years of struggle before reaching maturity. 17. Export subsidy: A payment by a government to an industry that leads to an expansion of exports by that industry. 18. Ad valorem tariff: A custom duty charged as a percentage of the value of goods rather than on a weight or quantity basis. . to do business in a moderate way fil 3#8 HE to make a deal {ii—E28 Part C Terms 1. foreign trade X} 4955 2. overseas trade H#E4h 515 3. international trade [8 fx'5t 54 4. to trade with... Filss++--id4T HA 5. 6. . to do business in a sincere way fil T.deal 225), iH, whet, 5AW Seas mine (8 4 HD 8.todealin 4H, (ER 9. to explore the possibilities of... #Rb}++ 10. trade circles 9 5) F¢ 11. to handle 267457 fh 12. to trade in AFI Ah 13. business scope/frame #224 ¥i[H 14. trading firm/house 547. Witt 15. trade by commodities jh 3 54 16. visible trade 72H 5 17. invisible trade FUR HA 18. barter trade 5) HH 5 19. bilateral trade QW '54 54 20. triangle trade = ffi #54 21. multilateral trade 20H 22. counter trade XY 4454 Sa, Mes HH 23. counter purchase H.W A 24. buy-back [5 5H 5 25. compensation trade #Mz 4 5 26. processing trade Mil #54 27. assembling trade MACH H 28. leasing trade fA HH 29. in exchange for... FiJs+++++2EHesr+++ 30. trade agreement 9 5) Bhi Part D Exercise 1. Answer the following questions according to the information you have got. 1, What is international trade? 2. What are the major motivations for private firm to operate international business? 3. What is the most essential motive to pursue international trade? 4, What measures do most companies usually adopt to avoid wild swings in the sales and profits? 5. Pleas give the four major operation forms chosen by most companies. 6. What does balance of payments account mean? 7. What are the basic sources of international revenue and expenditure for most countries? 8. Could you find any differences between Direct Investment and Portfolio Investment? If you can, please tell the main reasons. 9, What is MNE? What are its synonyms?aa mann /) 10. Please give examples to explain “Services are earnings other than those from goods”. 11. What influences the international operational forms which a company will choose? 12. What limits a firm’s sales? 13. What are the advantages for firms to set up joint ventures in overseas market? 14, What does “royalties” mean? 15. What is “franchising”? II, Match each one on the left with its correct meaning on the right. 1. motivation —_A. to make continual efforts to gain sth. 2. pursue B. the action of obtaining, esp. by efforts of careful attention 3. mark up C. which by its nature can not be known by senses, not clear and certain, not real 4. procurement _D. the goods (freight) carried by a ship, plane or vehicle 5. intangible E. the amount by which a price is raised 6. cargo F. profit, interest 7. royalty G. the net value of assets or interest, invest 8. equity H. not needing other things or people, taking decisions alone 9. yield Ia share of the profits 10. independent J. need or purpose WO) 200 307 400 OD 6( ) 70) BC) HE) OC +) IIL Translate the following terms and phrases into Chinese. 1. purchasing power 2. potential sales 3. mark-up 4, domestic markets 5. finished goods 6. profit margin 7. market share 8. trade discrimination 9. timing 10. business cycles 1 L.recovery 12. economic recession 13. portfolio investment 14. tangible goods 15. visible exports and imports 16. revenue and expenditure 17. excess capacity 18. trade intermediary 19. turn-key operations 20. license agreement IV. Case Study. Batteries called “White Elephant” exported from China were very popular in Southeast Asia, but in United States no one was interested in the goods. Why? V. Please try to find out some cases about cultural differences in doing international business. VI. Please determine whether the following statements are True or False. Then put T for ‘TRUE or F for FALSE in the bracket at the end of each statement. 1. When dealing in international trade(exporting and importing), a businessman has to face a variety of conditions which differ from those to which he has grown accustomed in the domesticW PRAALBMIBBAS (5 4 hi) trade.() 2. International trade includes import, export, direct selling and indirect selling trade operations. « ) 3. The different distributions of the world’s resources can not determine the patterns of world trade.( +) 4. Every individual country puts controls on trade for the reasons: (1) To correct a balanced-of-payment deficit; (2) In view of national security; (3) To protect their own industries against the competition of foreign goods.(_) 5, International trade transactions can refers to the importation and exportation of goods from one country to another.( >) 6. There exists a variety of instruments for achieving the goals of foreign trade policy.(_) 7. Licensing agreements could be a satisfactory method of exporting for small firms new to international business.(_) 8. Compared with the joint venture, the wholly-owned subsidiary is a less risky mode of entering foreign markets.(__) 9. Service exports and imports refer to international earnings other than those from goods sent to another country.) 10. Services are also referred as invisible. International business comprises many different types of invisible services.(_) 11. If every country in the world use the same currency, the world trade would be much tougher. C ) 12, Importing and exporting firms to whom the payment is made in foreign currency can be involved in significant foreign exchange risks because of the fluctuation in interest rates.(_) 13. The free flow of international trade benefits all who participate in.(_) 14, Nations sometimes restrict exports of critical raw materials, high technology, or equipment when such export might harm its own security.) 15. A country usually offers protection to its domestic industries by taxing imports of different foreign goods.( VIL. Translate the following into English. 1, GODT BER TE AY “SIRE”. XTC RL TT, ELE AEA TE OP BL EAR RP IN MRE. TRH AROMA REPS. RAIA HII FET REE ALG A Z1A) BA TT EW PADI FR SERA HE AST EAA. ES RIT SS AE ARLE IS TH. Se. MRP AA AR, RE Pe ER RC EEE AL, BR A ETH BY SEU GE ASC AT AE A 5G SEA A A EN Ba BE 5h KAS Bd a A DG SF} AS EF A BCH. RT AHA, ONG AL ALB MBE Sh, AACE, AZ fal EH AE FUG AAA EAN MEAD, PEPER, ROAR AIC Sah — A. FIER te FOR, BAR IGOR ALTER ah HH YS the FE CE ZEB FE ER CEea amnama BUM HT A RENN Hh 3. FERIA MEAT 2 Sa AES EY. LA ARTE CEN Hh Al — RAF She PRP AA 5 TT VAL TY SN PERE, TE ARI, TAS, BRAT. KSABRARM RATA HAAR EM KSA AR, TS BALA. 4. HR LAE — TRE E TAP ih, USMS RT, UTA SCARE PALE 5 ALIN) AS FR EG DN Sa EAT A ER SRST ih ARS, SRT SANS FAD, TATE AE 5 EH SAS SEAR A Ai 4S REE GS (EAE BE AT, “EMSA. SPIRE AEH TIAA AL OP TGR AY BR OR TL HENRI. VIIL. Multiple Choices 1. The international division of labor formed in the period of (_) century. A. 11 to 12 B. 14 to 15 C. 16 to 18 D. 18 to 19 2. The basis of the international division of labor and the development is ( ). A. natural conditions B. population C. internationalization of capital D. appearance of countries 3.The( —_) of each country determines its status in international division of labor. A. productivity B. market size C. natural conditions D. social system 4, In the capital primitive accumulation period, the international division of labor is mainly between the( +). A. developed countries and developing countries B, developed countries and developed countries C. developing countries and developing countries D. suzerain and colony 5. Which of the following world market is characterized by free competition? (_) A. Closed market B. Free market C. Monopoly market D. North America market 6. A few developed countries in professional collaboration, joint production, this is the(_) international division of labor. A. horizontal B. vertical C. hybrid D. cross type 7. Different economic development level of vertical division of labor between countries is a C) A. vertical division of labor B. horizontal division C. division of hybrid D. three industrial division 8. The theory of absolute advantage and the relative theory of interest are the traditional theoryAW See ses mina (8 4 claiming( A. free trade B. protection trade C. state intervention D. state intervention combined with laissez faire 9. The theory of absolute advantage proposed by the international division of labor is based on the( _) differences between countries. A. comparative cost B. absolute cost C. factor endowments elements D. factor combination proportion 10. In the interests of the relative theory, the division of labor between countries is based on the differences of( A. products comparative advantage _B. products monopoly advantage C. products intensiveness D. product protectionChapter Two Part A Text General Procedures of Export and Import Transaction Exports and imports have been very important for Chinese economy since the reform and opening up. In fact, international trade is essential for every country. Each country has to import the articles and commodities it does not itself produce, and it has to earn foreign exchanges to pay for importing. It does this by exporting its own manufactured articles and surplus raw materials. Thus the import and export trades are two sides of the same coin, and both can have beneficial effects on the home market. Imports create competition for home-produced goods; exporting gives a manufacturer a larger market for his products, so helping to reduce the unit cost. In each case the effect is to keep prices in the home and market down. But because of some reasons there may be factors that compel the government to place restrictions on foreign trade. Imports may be controlled or subjected to a customs duty to protect the home industry, or because the available foreign exchange ought to be paid for buying more essential goods and exports, too, may be restricted, to conserve a particular raw material required by the developing home industries. ABAD, Sh REO EL ARR ALAA). SESE. eat aE ANB AEE RE ABA MBE EAS BBL AB Uh A ASF TS AP OS HE NBC, FASC Ash ae ee Oo hw BE HAS A As AE SR HS BE Sa TR AN TS BE ES A. HE EA A TSE, TAN MU APA TS BATS, ABP RAS. FSH AME UAE HL, SE Fa A BB A THT A. HELAE, EPI PER AAP RD, BORE ASAE ASAE RE Hb BSH DA Bil» WaT PR BLA HE Mie BRR BP FRG ESHA FA Ws Se By BE RY fe BE hl WE A BL AEE TURE, a TGR BB A RH 0 FB] FM IT AE HE — RO, HH tha ee SR Section One Procedures of Export and Import Transaction (#WORAATvE ) 1. What is Exporting (#420) In your lifetime, whether or not you are conscious of it, you are or will be selling. Manufactures sell the products they make and farmers sell the produce they grow. Theaters sell entertainment; insurance companies sell financial protection against future loss; ideas urging actions can be sold too. Selling is the process of assisting and/or persuading a prospective customer to buy a beneficial product or service or act upon an idea that has business significance to him. Later, selling extended