《国际贸易实务l》PPT课件.ppt

International Trade practice 授课教师：欧阳章文 适用专业：2008 英语专业 开课时间：2010-2011 第二学期 Lesson One Introduction to International Business importing and exporting cross-border transaction in IPR by means of licensing and franchising: investment in physical and financial assets in foreign countries contract manufacturer or assembly of goods abroad for local sale or for exports to other countries the establishment of foreign warehousing and distribution system the import to one country of goods from a second foreign country for subsequent local sale 2. Modes of IB (1). Merchandise and service: importing and exporting (2). Direct investment and portfolio investment (3). licensing and franchising (4). Turnkey operation. (5). Management contracts 3. The need for IB a. to countries: b. to companies: c. to consumers: d. to individuals: e. to learners: 4. International business and trade Figure A: Figure B: International Trade 1. What is international trade? Definition: It refers to the exchange of goods and services between nations, also known as international trade or overseas trade. Keys: All business transactions involving at least two countries Any type of trade activities that cross national borders Issues: How will idea, good or service fit into international market? Should we enter the market through trade/investment? What product adjustments to be responsive to local conditions? What threats from global competition should be expected? How can these threats be counteracted? 2. Main aspects of international trade 1. The classification of the international trade 2. Some important theories of international trade 3. Instruments of trade policy 4. Economic integration, special types 5. International capital movements FDI 6. International institution, 7. International trade terms. 8. Transportation insurance 9. International trade payment 10. Inspection, claim, force majeure and arbitration 11. Trade negotiation and formation of the contract 12. Implementation of the contract 13. International financial market 14. International cargo shipment 3. Reasons for International Trade 1) Resources reasons: A. favorable climatic conditions and terrain B. natural resources C. skilled workers D. capital resources E. favorable geographic location and transport costs F. insufficient production In short, the uneven distribution of resources around the world is one of the most basic reasons why nations trade with each other. 2) Economic reasons: gaining economic benefits. 3) Other reasons: political objectives; market needs 4. International Trade VS Domestic Trade a. Numerous culture differences-cultural problems b. Control and communication systems more complex c. Risks levels higher: political risks; commercial risks; financial risks; transportation risks. d. Broader range of management skills than DB concerned with 5. Classification of International trade 1). by the direction of the movement of goods A export trade; B import trade; C interpret trade; D transit trade; E re-export trade; F re-import trade. 2) by trade policy A. free trade; B. protect trade; C. control trade. 3) by the nature of trading goods A. tangible/visible goods trade; B. intangible goods trade. 4) by territory and customs A. general trade; B. special trade. 5).by trade relation A. direct trade B. indirect trade 6).by the number of countries involved A. bilateral trade B. triangular trade C. multilateral trade 7).by the liquidation way A. spot exchange trade B. clearing account trade C. barter trade 8).by the way of transaction A. goods trade B. process trade C. compensation trade D. renting trade 6. Trade Theory: 1). Mercantilism: also referred to theory of political economy of state buildingsuperstructure; school of economic thoughts in Europe during 1500-1750. A: core idea: national wealth reflected by the holding of precious metal; static view of world resources. B: 2 stages: monetary balance (W. Staffor) and trade balance (T. Mun). C: economic policies : governments controlled the use and exchange of precious metals; prohibition of the export of precious metals of individuals; exports subsidized and quotas and high tariffs placed on imports D: discussion: 2). Absolute Advantage: Adam Smith, “The wealth of Nations” in 1776. 2 main areas of contribution: absolute advantage and the division of labor. A): Key features # Challenging mercantilism # Market forces # Specialization # Benefits from specialization and trade positive- sum game B) :Example1 # Assume: perfect competition no transportation cost # Suppose: * the US and Japan are involved * Each nation two input units to produce * uses one unit of input to produce each of the products. a). if neither country imports nor exports b): Use resources to produce the product at which it is more efficient-exchange C. Example 2 Assume: a labor theory of value : goods exchange for each other at home in proportion to the relative labor time embodied in them. England: 1 barrel of wine4 yards of cloth; Portugal: 1 W1 1/2 C D. Discussion: a). crucial for the early development of classical thought and for altering the view of the potential gains from international trade; b). extended his division of labor in the production process to a division of labor and specialized product across countries; c). relied on a country possessing AD in production, but didnt explain what caused the production advantages 3). Comparative Advantage: David Ricardo 1819 “on the Principle of Political Economy and Taxation”. Even though a nation held an absolute advantage in the production of both goods, the two countries still trade with advantages for each other as long as less efficient country was not equally less efficient in production of both goods. A: Key features # Development from the absolute advantage # What happens when a country can produce both or all products at an absolute advantage? # Specializing in producing those that a country has more absolute advantage or disadvantage # Still benefits from such specialization and trade B: Example1 # Assume: * perfect competition * no transportation cost # Suppose: * USA: absolute advantage * Japan: absolute disadvantage * The same suppositions in the first example If each country specializes in what it does best, its output will be: C. Example 2: labor requirements per unit of production Note: Two ways to illustrate the gains : labor saved; more goods produced. D. Discussion: a. theoretical basis of international trade; b. took the logic of absolute advantage; c. an extension of absolute d. argued that nations could improve the welfare through IT. 4). Factor Proportion trade theory. - Hecksher-Ohin theory: International and interregional differences in production costs occur because of the differences in the supply of production factors. -2 factors of production: labor and capital. Technology determines the way of production. A Contributors Swedish economists Eli Heckscher(赫克歇尔)(1879-1952) Bertil Ohlin (俄林)(1899-1979) Teacherstudent/ further extension Referred to as Hechscher-Ohlin Theory B Assumptions # two countries, two products, and two factors of production, the so- called 222 assumption # Market for the inputs and the outputs perfectly competitive. # Increasing production of a product experiences diminishing returns. # identical technologies. C Key features # Analysis of production factors # Abundance or scarcity in production factors D Example # India: relatively well endowed with labor compared to the UK(abundance in capital) E Discussion a. One of the most influential theoretical ideas in international economics. b. No difference in tech or productivity of factors. C. Labor-intensive products for capital- intensive products. 5). Business Cycle: boom and bust A. A cycle in time during which business moves from a state of boom through recession to trough, then upward again when business improves until there is a return to high activity once more, the whole cycle then begins again. B. 2 main phases: recession and expansion C. Characters of recession: consumer purchases decline; inventories increase; demand of labor falls; output falls, inflation slows; business profit falls interest rate falls. D: External vs. Internal Mechanisms: causes aggregate demand to shift suddenly The external theories: the root in the fluctuations of outside factors The Internal theories: mechanisms to self-generate BC. E: Demand-induced cycles. F: Behind the AS and AD curves A) Monetary theories B) The multiplier-accelerator model. C) Political theories 6). Product Life Cycle A: Introduction-Growth-Maturity-Decline. B: explaining why a product that begins as a nations export eventually becomes its import. C: Main contributor: Raymond Vernon 1966 D: Key features # The production location for products depending on the stage in the products life cycle. # Role of technology & research determining trade patterns. . E Division into two parts -a.