鸬鹚图片Internatinal Trade Practice

2021年1月7日发(作者：池志勇)
International Trade Practice（国际贸易实务）
Learning Objective: by learning this course, students should be able to know:
1.
2.
3.
4.
The Reasons of International Trade;
The forms of International Trade;
The procedures of export and import;
The elements of a contract in international trade and what attentions should be paid in making
the sales contract in international trade.
5. The mode of international payment and terms of payment
6. The impact of appreciation and depreciation of currency to international trade
7. Transportation of goods for international trade;
8. Packing of goods for international trade
9. INCOTERMS 2000
10. About currency exchange and tax refund from export

1. Definition of International Trade (foreign trade, overseas trade) :
International trade is a business transaction 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 etc.

2. The International Trade Arises for Many Reasons:
2.1 For resources (寻求资源)
The world resources are unevenly distributed. Some countries and regions are abundant in
natural resources, elsewhere, resources are scarce or nonexistent. Both modern manufacturing
and agriculture require many different resources.
Britain possesses large reserves of coal but lacks minerals such as copper and aluminum. The
United States is a major consumer of coffee, yet it does not have the climate to grow coffee.
So it has to import coffee from other countries rich in coffee like Brazil, Colombia and son on.
2.2 For Benefits （寻求利润）
Another reason of international trade is for economic benefit. 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 it own
country.
Comparative advantage has directed countries to specialize in particular products and to
mass-produce. For example, the US is relatively more efficient than Europe in producing food
(using one third of the labor所需劳动力仅占欧洲所需劳动力的13). Consequently, a great
deal of food is imported from the US to Europe.
2.3 Diversification （多种经营）
Companies usually seek out foreign markets to avoid wild swing
(激烈波动)
in their sales and
profits. So when a company’s sales decrease in one country that is experiencing recession,
they increase in another that is undergoing recovery.
2.4 For sales expansion （扩大销售）
Since the number of people and the purchasing power are higher for the world as a whole than
for a single country, companies may increase their sale potentials by defining markets in
international terms. Higher sales often mean higher profits.
2.5 For international balance of payment (BOP) （国际收支平衡）
BOP relates to the difference between the amount of money that has come into the country
and that has gone out of the country.
（国际收支是一个国家外汇收入和支出的差额）


3. Problems Concerning International Trade
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.
3.1. Culture difference
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 culture are ethnocentric. They judge the world from their own
way of looking at things.
3.2 Monetary conversion （货币转换）
Monetary conversion is another major problem in international trade. If every country in the
world use the same currency, the world trade would be easier. But this is not the case. The
exchange rates change every day and are constantly updated in banks and foreign exchanges
office around the world.
3.3 Trade barriers （贸易壁垒）
It is said that the free flow of international trade benefits all who participate in. In actual
practice, however, the world has never had a completely free trading system. This is because
every country puts controls on trade for the following reasons:
a. To correct the balance- of-payment deficit （改善国际收支逆差）
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 limits imports and increase exports.
b. In view of national security （考虑国家安全）
Nations sometimes restrict exports of critical raw materials, high technology, or equipments
when such exports might harm its own security.
c. To protect their own industries against the competition of foreign goods （保护本国产业
免受国外商品竞争）
This is generally on the ground that infant industries need to be shielded from foreign
competition during their start-up period. A country usually offers protection to its domestic
industries by taxing imports of similar goods. When a tariff is added to the price of a foreign
product coming into a country, it raises the price of the item to the consumer.

4. Forms of International Trade
4.1 Merchandise Exports and Imports 商品进出口
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 to as visible exports and imports
(有形进出口)
. The terms exports and imports
are used frequently, yet, in reality the reference is only to be merchandise exports and imports.
1). Exporting
Exporting is an extension of trading with customers living in another country. The need to acquire
natural resources and capital equipment
(资本设备，固定设备)
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.
a. Direct exporting
Direct exporting means you export directly to a customer interested in buying your product. You
are responsible for handling the market research, foreign distribution, logistics of shipment and for
collecting payment.
Advantages of direct exporting:
-Your potential profits are greater because you are eliminating intermediaries.
-You have a greater degree of control over all aspects of the transaction.
-You know who your customers are.
-Your customers know who you are. They feel more secure in doing business directly with you.
-Your business trips are much more efficient and effective because you can meet directly with the
customer responsible for selling your product.

The disadvantages of direct exporting:
-It takes more time, energy and money than you may be able to afford.
-It requires more
-Servicing the business will demand more responsibility from every level of your organization.
-You are held accountable for whatever happens.
-You have to handle all the logistics of the transaction.
-You must be prepared to respond to technical questions, and to provide on-site start-up training
and services.

b. Indirect exporting
Indirect exporting means selling your products through middlemen, the third party, commonly
called export agent, who in turn sells your products either directly to customers or to importing
wholesalers. The easiest method of indirect exporting is to sell to an intermediary in your own
country. When selling by this method, you normally are not responsible for collecting payment
from the overseas customer, nor for coordinating the shipping logistics.
The major advantage of indirect export is that the company does not deal with foreign currency
or the red-tape of international marketing. Indirect export involves less investment and is
therefore less risky, which enables small companies with limited capital and product
diversification can export easily.
The major disadvantage of indirect export is that because the export agent wants to make profit,
the export price of the product must be increased, thus lead to the lower competitive in marketing,
or the domestic company must provide a larger discount that it would be in domestic transaction.

2) Importing
Importing means the process of purchasing goods from other countries. One country’s import is
another country’s export. Like exporting, importing can be either direct or indirect. Indirect import
is the purchase of foreign goods through domestic agent, while direct import 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 that buying from importing
agent.

4.2 Service exports and imports
Service exports and imports refer to international earning 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. Service are also referred as invisible. International business
comprises many different types of services.

1) Tourism and Transportation
Earning from transportation and foreign tourism 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
cargo on their ships. The Bahamas earns much more from foreign tourists than it earns from
exporting merchandise.
2)
Performance of Activities Abroad
(国外商务活动)
Fees are payments for the performance of certain activities abroad, such services as banking,
insurance, rentals, engineering and management.

3)
Use of assets from abroad
(国外资产的运用)
Royalties
(特许使用权费)
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
(特许经营权)
, 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.
4.3 Licensing (许可证贸易)
Licensing refers to the business agreement in which the manufacturer (the licenser) of a product
grants permission to some other group or individuals to manufacture that product, in return for
specified royalties or other payment of the 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 (the licensor) in one country enter into
an agreement with a manufacturer (the 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
(固定收费率)
or
a royalty.
4.4 Trading Companies
Trading companies serve as a link between buyers and sellers in different countries to facilitate
trade business. They purchase goods at the best price they can obtain in one country and sell them
to buyers in another country.
4.5 Joint Venture
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.
4.6 Investment
Investment refers to the economic activity, in which the value that can be used has been sacrificed
or given up for future greater value.（
投资是指牺牲或放现在可 用于消费的价值以获取未来更大价值的
一种植经济活动。）
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.

4.7 Visible and Invisible Trade
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 being shipped. While at sea, every shipment has
to run the risk of a long list of dangers: fire, storm, collision, theft, leakage, explosion, etc. 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 countries specialize.
Many workers work abroad to earn money and send them back to their families in their own
countries. These are also called invisible trade. Invisible trace can be as important to some nations
as the export of raw materials or commodities is to others. In both cases, the nations earn money to
buy necessities.