Lesson 5-9.doc

Lesson 5International Trade IBusiness Knowledge:(1) The definition of international trade(2) Two reasons for international tradeA. The uneven distribution of natural resources among countriesB. International specialization(3) Two theories for international specializationA. The theory of absolute advantageB. The theory of comparative advantagea. Contents of the theoryb. Not a static conceptc. The cornerstone of modern thinking on international traded. David Ricardo, the economist who introduced the theoryTrade Terms:1. Services服务2. Primary commodities初级产品3. Specialization专业化: To restrict ones economic activities to certain particular fields.4. Absolute advantage绝对利益: It holds that a commodity will be produced in the country where it costs least in terms of resources (capital, land and labor)5. Comparative advantage比较利益: It holds that even if a country is less efficient than another in the production of both commodities, i.e. it has absolute disadvantage in production both commodities, there is still a basis for mutually beneficial trade.6. Capital资本7. Land and labor土地和劳动力8. International trade国际贸易: The exchange of goods and services produced in one country with those produced in another sufficient.9. Farm produce农产品10. Scarce resources 稀缺资源Answer the following questions:1. How would you define international trade?A: International trade can be defined as the exchange of goods and services produced in one country with those produced in another sufficient.2. Why did international trade first begin?A: The distribution of natural resources is uneven. Some countries are abundant in resources, while elsewhere reserves are scarce or even nonexistent. And a country may be rich in some resources but poor in others. Thats why international trade first began.3. What is the new incentive for trade that arose with the development of manufacturing and technology?A: With the development of manufacturing and technology, there arose another incentive for trade, i.e. international specialization. One country producing more of a commodity than it uses itself and selling the remainder to other countries.4. According to the theory of absolute advantage, trade occurs only when a country has an absolute advantage or comparative advantage?A: According to the theory of absolute advantage, trade occurs only when each country has an absolute advantage over the others in the production of one commodity.5. Who introduced the theory of comparative advantage? Which theory makes more sense, absolute advantage or comparative advantage?A: David Ricardo, English economist, introduced the theory of comparative advantage. It seems that the idea of comparative advantage makes more sense.6. Explain briefly why trade to exploit comparative advantage promotes efficiency among countries.A: The comparative advantage holds that even if a country is less efficient than another in the production of both commodities, there is still a basis for mutually beneficial trade. The first should specialize in the production ad export of the commodity in which its absolute disadvantage is smaller and import the commodity that its absolute disadvantage is greater.7. Is comparative advantage something static? Is it purely decided by the endowments of nature? Give examples to show the development of comparative advantage by certain countries?A: Comparative advantage is not a static concept. A country may develop a particular comparative advantage purely through its own actions, independent of the endowments of nature. Such as the watch making in Switzerland.Translate the following sentences into English:1. 在复杂的经济世界中，没有一个国家可以完全自给自足。In the complex economic world, no country can be completely self-sufficient.2. 随着制造业和技术的发展，出现了另一个刺激贸易的因素，即国际专业化。With the development of manufacturing and technology, there arose another incentive for trade, i.e. international specialization.3. 按照比较利益学说，两个贸易伙伴均可从贸易中得到好处。According to the theory of Comparative advantage, both trade partners can benefit from trade.4. 比较利益并不是一个静止的概念，一个国家可以通过自己的行动发展某种特定的比较利益。Comparative advantage is not a static concept. A country may develop a particular comparative advantage purely through its own actions5. 比较利益理论已成为现代国际贸易思想的基石。The idea of comparative advantage has become the cornerstone of modern thinking on international trade.Lesson 6International Trade IIBusiness Knowledge:(1) Other bases for trade among countriesA. Patterns of demand: different consumption preferenceB. Economy of scale: the cost advantages of large-scale productionC. Innovation or style(2) The reasons why complete specialization may never occur(3) Tariff barriers-the most common form of trade restrictionA. Export dutyB. Import dutya. Specific dutyb. Ad valorem dutyc. Compound duty(4) Quotas-the most common form of non-tariff barriersTrade Terms:1. Tariff关税: A tax levied on a commodity when it crosses the boundary of a custom area.2. Quota配额: A quota limits the imports or exports of a commodity during a given period of time. It is the most common form of non-tariff barriers.3. Import duties进口关税: Tariffs levied on goods entering an area4. Export duties出口关税: Taxes levied on goods leaving an area5. Ad valorem duty从价税: 6. Specific duty从量税7. Compound duties复税、混合关税8. Drawback退税: Duties paid on imported goods that are refunded if the goods are reexported.9. Most-favored-nation (MFN) treatment最惠国待遇: A tariff treatment under which a country is required to extend to all signatories any tariff concessions granted to any participating country10. Tariff schedule税率表、税则11. Non-tariff barrier非关税壁垒12. GSP普惠制: Generalized system of preferences.13. Reasonable costs合理的成本14. Customs area关税区15. Customs union关税同盟16. Tariff barriers 关税壁垒: The traditional protectionism measureAnswer the following questions:1. Are there other bases for trade when there are no differences among countries in production conditions? Mention some of the bases.A: Yes, there are. First, patterns of demand may differ among nations. Second, trade may occur out of economies of scale, i.e. the cost advantages of large-scale production. Third, trade takes place because of innovation or style.2. What is economy of scale? What is the relation between economies of scale is trade?A: Economies of scale is the cost advantages of large-scale production. The cost for the production of commodities will decrease if the goods are produced on a larger scale.3. What does the theory of international specialization seek to answer?A: The theory of international specialization seeks to answer the question which countries will produce what goods, with what trade patterns among them.4. Will complete specialization occur in reality? Why?A: No, it may never occur. For strategic or domestic reasons, a country may continue to produce goods for which it does not have an advantage. The benefits of specialization may also be affected by transport cost. Protectionist measures that are often taken by governments are also barriers to trade.5. What are tariff barriers? What is a customs area and what is a customs union?A: A Tariff barrier is a tax levied on a commodity when it crosses the boundary of customs areas.A customs area is usually coincides with the area of a country. And a customs area extending beyond national boundaries to include two or more independent nations is called a customs union.6. What is most favored nation treatment? Is it a very special treatment? Why?A: MFN treatment refers to a tariff treatment under which a country is required to extend to all signatories any tariff concessions granted to any participating country. It gives a country the lowest tariffs only within the tariffs schedule, but it still possible to have lower tariffs.7. What is the most common form of non-tariff barriers? Explain it in a few words.A: Quotas or quantitative restrictions are the most common form of non-tariff barriers. A quota limits the imports or exports of a commodity during a given period of time. The limits may be in quantity or value terms, and quotas maybe on a country basis or global, without reference to countries.8. What are the differences between visible trade and invisible trade? Give a few examples of invisible trade.A: Visible trade involves the import and export of goods and invisible trade involves the exchange of services between countries. Invisible trade is including transportation service, Insurance, tourism and the immigrant remittance from import and export labor service.9. Explain briefly the different kinds of tariffs.A: Import duties are tariffs levied on goods entering an area while export duties are taxes levied on goods leaving an areaTranslate the following sentences into English:1. 一件商品的成本会因生产规模的扩大而减少。The cost of a product will decrease with the expansion of production scale.2. 在实际中，即使完全的专业化在经济上有利，也可能永远不会发生。In reality, complete specialization may never occur even though it is economically advantageous.3. 配额或者说数量限制是最常见的关税壁垒。Quotas or quantitative restrictions are the most common form of non-tariff barriers.4. 有形贸易指货物的进出口贸易，而无形贸易涉及的是国家间的劳务交换。The visible trade is the import and export of goods, and the invisible trade is the exchange of services between countries.5. 国家从事的贸易种类是多样的、复杂的，往往是有形贸易和无形贸易的混合。The kinds of trade nations engage in are varied and complex, often a mixture of visible and invisible trade.Lesson 7Incoterms 2000Business Knowledge:(1) The necessity and purpose of having Incoterms(2) The reasons for the 2000 revision of IncotermsA. Spread of customs-free zones无关税区的发展B. Changes in transportation practices运输方式的变化C. Increased use of electronic communication电子通讯使用的增加(3) The four groups of IncotermsA. Group E: EXWB. Group F: FCA, FAS, FOBC. Group C: CFR, CIF, CPT, CIPD. Group D: DAF, DES, DEQ, DDU, DDP(4) The three most commonly used termsA. FOB (free on board)B. CFR (cost and freight)C. CIF (cost, insurance, freight)Trade Terms:1. Deal交易2. Trade terms贸易术语、交易条件3. Trade practices贸易惯例4. Negotiable（票据、证券等）可转让的、可流通的5. EDI电子数据交换: Electronic Date Interchange6. Customs clearance清关、结关7. Dispatch发运、发送8. ICC国际商会: International Chamber of Commerce9. Roll on-roll off滚装滚卸的10. Incoterms国际贸易术语解释通则: It is a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree.11. Negotiable transport documents可转让的装运单据=Transferable transport documents12. EXW工厂交货: Ex Work13. FCA货交承运人: Free Carrier14. FAS装运港船边交货: Free Alongside Ship15. FOB装运港船上交货: Free On Board16. CFR成本加运费: Cost and Freight17. CIF成本、保险费加运费: Cost, Insurance and Freight18. CPT运费付至: Carriage Paid To19. CIP运费、保险费付至: Carriage and Insurance Paid To20. DAF边境交货: Delivered At Frontier21. DES目的港船上交货: Delivered Ex Ship22. DEQ目的港码头交货: Delivered Ex Quay23. DDU未完税交货: Delivered Duty Unpaid24. DDP完税后交货: Delivered Duty Paid25. UCP (the Uniform customs and Practice for documentary credit)跟单信用证统一惯例Answer the following questions:1. What sort of risks can arise when goods are being moved from one place to another? If risks do occur, what consequences would they bring about?A: Sending goods from one country to another, they have to face the risk, such as lost or damaged or delivery does not take place for some other reason. If risks do occur, the climate of confidence between parties may degenerate to the point where a law suit is brought.2. Why is it necessary to have Incoterms? And what is the purpose of making amendments and additions to Incoterms?A: If, when drawing up their contract, buyer and seller have some commonly understood rules to specifically refer to, they can be sure of defining their respective responsibilities simply and safely. In so doing they eliminate any possibility of misunderstanding and subsequent dispute. The purpose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. Thus, the uncertainties of different interpretations of such terms in different countries can be avoided or at least reduced to a considerable degree.3. What is the main characteristic of Incoterms 1990?A: The main reason for the 1990 revision of Incoterms was the desire to adapt terms to the increasing use of electronic data interchange.4. What are the four different categories of terms in Incoterms 2000?A: In Incoterms 2000, the terms have been grouped in four basically different categories: Group E (departure), Group F (Main carriage unpaid), Group C (Main carriage paid) and Group D (Arrival).5. Why should the compilers of Incoterms 2000 take the trouble to set forth in detail the division of duties, taxes, costs and charges etc. of both sellers and buyers, as some of them are irrelevant to either the seller or the buyer?A: As with respect to the division between the parties of duties, taxes and other official charges, as well as the costs of carrying out customs formalities, the terms explain for the sake of clarity how such costs are divided between the parties although, of course, the seller might not have any interest at all in the buyers further disposal of the goods after they have been delivered to him.6. In what areas are substantive changes made with Incoterms 2000?A: The substantive changes have been made in some areas: one is the customs clearance and payment of duty obligations under FAS and DEQ. Two is the loading and unloading obligations under FCA.Translate the following sentences into English:1. 包装需按运输的要求进行，在大多数情况下，卖方明确知道把货物安全地运道目的地所需要的包装。Packing should be made according to the requirement of transportation. In most cases, the seller knows clearly the particular type of packing required for transporting the goods safely to destination.2. 在许多情况下，应通知买方在卖方将货物启运之时或之前安排验货。除非合同另有规定，否则买方必须支付为其自身利益而安排的验货费用。In many cases, the buyer shall be notified to go through the inspection of goods at or before the time of shipment. Unless otherwise specified, the buyers supposed to undertake the charges of inspection thus incurred for his own sake.3. 进口商可以通过可转让的运输单据将货物在运输途中卖给新的买方，这类可转让单据用起来非常方便。The importer can sell the goods to a new buyer while they are being carried by means of negotiable shipping documents that are very convenient for use.4. 在所有条款中，买卖双方各自的义务排列在10项标题下。Under all terms, the respective obligations of the parties have been grouped under 10 headings.5. 2000年对国际贸易术语解释通则的修改考虑了无关税区的发展，商务活动中电子通讯使用的增加，以及运输方式的变化。The 2000 revision of Incoterms took account of the spread of customs-freezones, the increased use of electronic communication, and the changes in transport practices.Lesson 8Business ContractBusiness Knowledge:(1) The definition of the contract(2) Two types of business negotiation: oral and written(3) Process of negotiation and conclusion of the contractA. InquiryB. QuotationC. Offer and acceptanceD. Counter-off(4) The necessity of the written contract(5) The types of contractsA. Sales contractB. Purchase contractC. Sales (or purchase) confirmation(6) The settling of a contractA. The titleB. The contract propera. The name and address of the buyer and the sellerb. The details of the commodity transactionc. The terms and conditions mutually agreedd. Indication of the number of original copies, language(s) used, and the validityC. The signatures of the contracting partiesD. The stipulations on the back of the contractTrade Terms:1. Inquiry / enquiry询盘、询价: It is made by the buyers to get information about the goods to be ordered such as quantity, specifications, prices, time of shipment and other terms.2. Quotation报盘: Estimate of how much something will cost3. Validity period有效期4. Offer发盘、出价5. Counter offer还盘: New offer made by the original offeree to the original offerer6. Offeree收盘人7. Sales (purchase) contract销售（采购）合同8. Sales (purchase) confirmation销售（采购）确认书9. Consignment寄售10. Contraction parties缔约方11. Arbitration仲裁12. Business line业务范围、经营范围13. Contract proper合同本身、合同正文14. Article number货号15. A first enquiry首次询价: An enquiry sent to an exporter whom the importer has never dealt with16. A contract一个合同: An agreement which sets forth binding obligations of the relevant parties17. A firm offer 一个实盘: Statement that you are willing to pay a certain amount of money to by something.18. Trade fairs 商品交易会19. Executed contract已履行的合同20. Executory contract待履行的合同21. Dispute settlement合同争议的解决22. Law suit诉讼= Legal action, LitigationAnswer the following questions:1. What is a contract? What may happen if contraction party fails to fulfill his obligations?A: A contract is an agreement which sets forth binding obligations of the relevant parties. If the party that fails to fulfill his contractual obligations may be sued and forced to make compensation.2. Mention the two types of business negotiations, and give examples of each.A: Oral and written business negotiations. Oral business negotiations refer to face-to-face discussions or those conducted through international trunk calls. Written negotiations often begin with enquiries.3. Is an inquiry binding on the inquirer? What are a first inquiry, and what information should be given in it?A: No, it isnt. A first enquiry is an enquiry sent to an exporter whom the importer has never dealt with. The information should be given in the enquiry as to how the name and address of the exporter have been obtained, the business line and usual practice of the importer, etc.4. What is a firm offer? What contents should be included in a firm offer?A: A firm offer is a promise to sell goods at a stated pr