Internatinal Trade Practice
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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
1/3). 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