自考国际商务英语课后题

一、

What does international business refer to? Please tell the difference between international business and domestic business.

1. International business refers to transactions between parties from diffirent countries.

There are four major diffrences between international business and domestic business:

1)differences in legal system

2)differences in currencies

3)differences in cutural background

4)differences in natural and economic conditions

Please explain the differences between visible trade and invisible trade. Which is becoming more and more important and accounts for an increasing proportion in international trade?

https://www.360docs.net/doc/2a17472076.html,modity trade, i.e exporting and importing goods produced or manufactured in one

country for consumption or resale in another. This kind of trade is also referred to visible trade.

Invisible trade is in the form of transportation, communication, banking, insurance, consulting, information etc. Invisible trade is becoming more and more important and accounts for an increasing proportion in international trade.

Can you cite some examples to illustrate cultural differences in international business?

3.Cultural differences including language, customs, traditions, religion, value, behavior etc. Please elaborate on the two categoreis of international investment. What is their major difference?

4.Foreign direct investments or FDI for short is made for returns through controlling the

enterprises or assets invested in in a host country.

Portfolio investment refers to purchases of foreign financial assets for a purpose other than controlling.

What is licensing? Why do firms sometimes choose it as means of entering a foreign market?

5.In licensing, a firm leases the right to use its intellectual property to a firm in another country.

Firms choose licensing because they do not want to make cash payments to start business, and can simply receive income in the form of royalty. Besides, they can benefit from locational advanteges of foreign operation without any obligations in ownership or management.

What is franchising? How is it different from licensing?

6.Under franchising, a fim, called the franchisee, is allowed to operate in the name of another,

called the franchiser who provides the former with trademarks, brand name, logos, and operating techniques for royalty.

In comparision with the relation between the licenser and the licensee, the franchiser has more control over and provides more support for the franchisee.

What is a management contract? Under what conditions is it most applicable?

7.Under a management contract, one company offers managerial or other specialized services to

another within a particular period for a flat payment or a percentage of the relevant business volum.

When a government forbids foreign ownership in certain industries it considers to be of strategic importance but lacks the expertise for operation, management contracts may be a practical choice enabling a foreign company to operate in the industry without owning the assets..

What is an international turnkey project? In what way is its variant BOT different from it?

8.For an interantional turnkey project, a firm signs a contract with a foreign purchaser and

undertakes all the designing, contracting and facility equiping before handing it over to the latter upon completion.

For a BOT project, a firm operate a facility for a period of time after building it up before finally transferring it to a foreign company.

Making profit from operating the project for a period is the major difference between BOT and the common turnkey project.

Franchise: an arrangement by which a monopoly producer or owner gives another permission for the exclusive right to manufacture or sell the products in certain area.

Royalty: money paid to the owner of a copyright fr permission to publish copy right material and to the owner of a patent for permission to use a patented design, usu, at an agreed percentage of the selling price of the product.

Patent: a special right to an inventor to be the only person to make and sell, or to authorize others to make and sell a newly-invented machine or process.

Non-tariff barries: all forms of man-made obstructions to international trade other than tariffs, including prohibitions and quotas, etc.

Portfolio: the entire collection of investments in the form of stocks, bonds, or certificate of deposits for purposes other than controlling.

Turnkey project: one in which one of the parties agrees to supply, at the contract price, a complete product ready for use, such as a new home, factory, ship, etc.

Budget: an account of probable future income and expenditure during a stated, period, usu, a year used as a guide in making financial arragements.

Return: the gain from an investment, either as income or yield or as profit on the sale of the investment.

Expertise: expert knowledge or skill, esp. in a particular field; know-how

Licensor: a person or company granting a licence

1.国际贸易一般指不同国家的当事人进行的交易，它涉及到许多因素，因而比国内贸易要复杂得多。

International business refers to transaction between parties from different countries, it involes mor factors and thus is more complicated than domestic business.

2．随着经济一体化进程的发展，很少人和公司能完全独立于国际商务之外而存在。因此，在此方面具有一定的知识是十分必要的，这既有益于企业的发展又有益于个人的进步。

With the development of economic globalization, few people or companies can completely stay away form international business. Some knowledge in this respect is necessary both for the benefit of enterprises and personal advancement.

3.其他参与国际贸易的形式有管理合同、承包生产和“交钥匙”工程。

Other forms for paticipating in international business are management contract, contract manufaturing and turnkey project.

4.国际贸易最初以商品贸易的形式出现，即在一国生产或制造商品而出口或进口到另一国进行消费或转售。

International business first took the form of commodity trade, i.e. exporting and importing goods produced or manufactured in one country for sonsumption or resale in another.

5.除了国际贸易和投资，国际许可和特许经营有时也是进入国外市场的一种方式。Besides trade and investment, licensing and franchising are sometimes taken as a means of entering a foreign market.

二、

Explain the concepts of GNP and GDP respectively and point out their major difference. Can we use them interchaeably?

1.GNP refers to the market value of goods and services produced ty the property and labor

owned by the residents of an economy.

GDP measures the market value of all goods and services produced within the geographic area of an economy.

The difference between GNP and GDP is that the former focuses on ownership of the factors of production while the latter concentrates on the place where production takes place.

The difference between GNP and GDP can be ignored since it is very small in most cases, so we can use them interchangeably.

What are meant by high income, middle income, and low income countries according to the World Bank? Cite some exaples for each group.

2.Those enjoying annual per capita income of $9386 and above are classified as high-income

countries. This group comprises three types of countries.

a)most members of the Organization for Economic Cooperation and Development(OECD)

b)rich oil producing contries of the middle east (Kuwait, Saudi Arabia, United Arab

Emirates).

c)Small-industrialized countries or regions such as Israel, Singapore, Hong Kong and

Taiwan.

Countries with annual per capita income below $9386 but above $765 are regarded as middle-income countries.

1)most East European countries and most members of the Commonwealth of Independent

States, six OECD members.(Czech, Greece, Hungary, Mexico, Turkey)

2)quite a number of Latin American countries and some comparatively developed countries

in Asia.(Indonesia, Malaysia, the philippines, Thailand)

3)Among the African countries, South Africa and oil-producing Libya, Nigeria and Algeria.

Lower income countries are those that have per capita incomes of only $765 or even less.

1)Most African contries, some Asian countries and a few Latin American countries.

Why are high income countries important to trade and investment? Should we neglect low income countries in international business?

3.High-income countries often have good infrastructure, high purchasing power, advanced

technology, efficiet management, and favorable environment for trade and investment. They offer prime markets for expensive consumer goods and are both attractive sources and destinations of investment.

We should not neglect low income countries in international business, because they constitute markets for lower-priced staple goods, provide cheap labor and are often rich in resources. What is more important, market is something to be developed. Once tapped, the business potential of these countries will one day become real business opportunities.

In what different ways are GDP and per capita income significant in assessing the potential of a particular market?

4.Total GDP indicates the overall size of an economy which is important in market assessment

for durable equipment or bulk goods such as grain, steel, or cement. Per capita GDP reveals the average income level of consumers, which is important when marketing consumer durables.

Was china a low-income country a few years ago? How about now?

5.China with a per capita income of over $1100 is a middle-income country though it was a low

income country just a few years ago.

What does the term “Traid” refer to? What is meant ty Quad?

6.The term Triad refers to the three richest regions of the world the United States, the European

Union and Japan that offer the most important business opportunities.

Some people extend the scope of Triad to include Canada and name the broadened grouping Quad.

How much do you know about OECD? Please make a brief account.

7.OECD means Organization of Economic Cooperation and Development was established in

1961 by the major capitalim countries with the headquarter in Paris. It has 29 member countries, among which, 23 of them are high-income countries and the others are middle-income countries.

What is the best policy for China to develop business opportunites?

8. The best policy is to develop business opportunities wherever advantageous while keeping in mind the key markets.

Tap: to take what is needed form, to exploit

PPP: purchasint power parity

Consumerism: considerable desire to make purchase for consumption

Recipient: a person or an organization etc. that receives something

Pruchasing power: of persons, the public, having the money to buy goods and services

Average: of an ordinary, common or usual kind in quality or amount

Spur: to urge or encourage

Productive: producing in high efficiency or in large quantity

Assess: to judge an amount or value

Infrastructure: large-scale public services, such as water and power supplies, road, rail and radio communications, etc. needed to support economic activity, esp. industry, trade and commerce

国民生产总值和国内生产总值是表明一国收入的两个重要概念。区别在于前者强调的是生产要素的所属权而后者着重于进行生产的国家。

GNP and GDP are two important concepts used to indicate a country’s total income. The difference between GND and GDP is that the former focuses on ownership of the factors of production while the latter concentrates on the place where production takes place.

要估评某一市场的潜力，人们往往要分析其收入水平，因为它为那里居民的购买力高低提供了线索。

In assessing the potential of a market, people often look at its income level since it provides clues about the pruchasing power of its residents.

世界各国被世界银行分为三大领域：高收入国家，中等收入国家和低收入国家。Countries of the world are divided by the World Bank into three categories of high-income, middle-income and low-income economies.

中国现在的年人均收入为1100美元以上，但几年前它还是个低收入国家。

China with a per capita income of over $1100 is a middle-income country though it was a low income country just a few years ago.

就中国来说，周围还有其他应特别关注的市场，如亚洲四小虎、东盟国家、俄罗斯等国，这些国家都具有前景看好的市场潜力，能为中国提供很好的商机。

So far as China is concerned, other markets we should pay particular attention to are those around us: the Four Tigers, the ASEAN countries, Russia, India, and a bit farther away Australia.

三、

1.What is a free trade area? Make a brief account of the most notable free trade area in

the world.

Members of a free trade area removes barries to the flow of goods and services smong themselves while each member still adopts its own policy as regards to trade with outsiders.

The most notable free trade area is the North American Free Trade Agreement (NAFTA), the largest free market formed by the United States.

2.In what way is a customs union different from a free trade area?

Customs Union that goes a step further by adopting the same trade policy for all the members toward countries outside their organization in addition to abolishing trade barriers among

themselves.

3.What are the characteristics of a comon market? Which organization remained a

common market for some years in the past?

Besides free movement of goods and services and adoption of common external trade policy, factors of production such as labor, capital and technology are free to move among members so that they can be utilized in a more efficient and productive way.

In the past, the European Community remained a common market for some years.

4.How much do you know about an economic union? Can members of an economic union

keep all of their national sovereignty?

Economic union is characterized by integration of the domestic policies of its members in respect of economy, finance etc. in addition to absence of trade barriers, practice of common external policy and free production factor mobility.

The member countries of an economic union are required to surrender some of their national sovereignty.

5.Make a brief account of the origin and development of the EU.

Its history dates back to the early post-war years. The first community, the European Coal and Steel Community (ECSC) was established in 1952 which set the stage for more ambitious integration efforts. The signing of the monumental Treaty of Rome in 1957 marks the establishment of the European Economic Community with the aim of gradually realizing the free movement of goods, services, labor and capital as well as the harmonization of economic policies of the member countries. Ten years later in 1967, the European Community was formed by merging EEC, ECSC and the European Atomic Energy Community (EURATOM).

1992 was a landmark year in the development of the EC when it became a true common market as envisaged by the Single Eropean Act. Then on January 1, 1994 the European Union (EU) came into being on the strength of the Maastricht Treaty.

6.What is the most powerful institution of the EU? What is the executive body of the EU?

How does it operate?

The most Powerful institution of the EU is the Council of Ministers. It has the final say on all important matters. Decisions of the council are made by votes allocated to member countries on the basis of their size. Different ministers attend the council meetings depending on the matters discussed.

Its executive body is the European Commision composed of 20commissioners overseeing 23 departments in charge of different affairs.

7.Explain briefly the five layer organizational structure of Asia-Pacific Economic

Cooperation.

1)The first is the Informal Meeting of Economic leaders held annually.

2)The second is the Dual-Ministerial Meeting attended by foreign ministers (excluding

Chinese Taipei and Hong Kong) and ministers in charge of foreign trade.

3)The third is the Meeting for Ministers Responsible for Trade.

4)The fourth is the Senior Officials Meeting (SOM) attended by vice ministers, departmental

directors or ambassadors to implement decisions by economic leaders and ministerial meetings.

5)The fifth layer refers to the four subordinate committees under SOM, i.e. Committee of

Trade and Investment, Economic Committee, Economic and Technical Cooperation

Subcommittee of SOM and Budget Management Committee.

8.What are the tenet and objectives of APEC? What is meant by its two wheels?

APEC-Asia-Pacific Economic Co-operation, its tenet and objectives are “inter-dependence, mutual benefits, adhering to an open and multilateral trading system and reduction of regional trade barriers”.

APEC co- operation concentrates on trade and investment liberation and facilitation (TILF) and economic and technical cooperation (ECOTECH) that are commonly termed as “the two wheels of Apec”.

9.What are the nature and objectives of OPEC?

The nature of OPEC is a commodity cartel.

By assigning production quotas among its members, OPEC tried to limit the overall crude oil supply of the world for the purpose of maintaining higher oil prices.

Veto: right to reject or forbid something

Detour: route that avoids a blocked road, deviation

Erode: wear away, eat into

Integration: combing into a whole

Liberalization: of trade, the act of government in lifting controls overimports and exports

Tariff: tax levied by the customs

Envisage: picture (an event, action, etc) in the mind as a future possibility; imagine

Banknote: printed paper money issued by a bank, usu. The country’s central bank

Mobility: capacity that can move or be moved easily and quickly from place to place

Barrier to trade: any action by a government to limit or prevent the free flow of goods in and out of its country

1.过去的几十年，地区经济一体化越来越重要。

The past decades witnessed increasingly growing importance of regional economic integration.

2.最著名的自由贸易区是北美自由贸易区，它是由美国、加拿大和墨西哥于1991年建立

的。

The most notable free trade area is the North American Free Trade Agreement (NAFTA), it was formed by the United States, Canada and Mexico in 1991.

3.经济联盟的成员国不仅要在税收、政府开支、企业策略等方面保持一致，而且还应使用

同一的货币。

The members of an Economic Union are required not only to harmonize their taxation,

government expenditure, industry policies, etc., but also use the same currency.

4.欧洲委员会是欧盟的管理机构之一，此机构将提议呈交给部长理事会做决定，并监督各

成员国根据所制定的条约履行自已的义务。

European Commission is one of the administration institutions of European Union, it hands over the proposes to the council of Ministers for dicision and oversees member countries to implement their obligations according to the enacting clauses.

5.APEC建立于在澳大利亚首都堪培拉召开的一次部长级会议上。当时有12位成员国出

席，分别为澳大利亚、美国、加拿大、日本、朝鲜、新西兰和东盟六国。

APEC was set up at the Ministerial Meeting held in the Australian capital Canberra attended by 12 members of Australia, the United States, Canada, Japan, Republic of Korea, New Zealand and six ASEAN countries.

四、

1.What are the basic feature and major role of economic globalization?

With the basic feature of free flow of comodity, capital, technology, service, and information in the global context for optimized allocation, economic globalization giving new impetus and providing opportunities to world economic development and meanwhile making the various economies more and more interdependent and interactive. It has become an objective trend in world economic development.

2.Mention some of the pros and cons of economic globalization. What is the right attitude

toward it?

Economic integration enables countries benefit from the boom of other countries but also makes them more vulnerable to the adverse events across the globe.

The best policy for us is to follow the trend closely, availing the opportunities it offers to develop ourselves and avoiding its poosible impacts.

3.What is the formal definition of a multinational enterprise? How can you tell whether a

multinational corporation is aparent or just an affiliate?

A typical multinational enterprise shall be defined as a business organization which owns

(whether wholy or partly), controls and manages assets, often including productive resources, in more than one country, through its member companies incorporated separately in each of these countries.

If the MNC is the original investing corporation, it is known as the parent MNC, which is normally also the international headquarters of the MNE.

If the MNC is established as a result of investments by the MNE, whether through the parent or through another of its already established MNC, it is an affiliate MNC.

4.Describe briefly the characteristics of MNEs.

a.enormous size

b.wide geographical spread

c.longevity and rapid growth

5.What is the ecommonly recognized objective of MNEs?

Like most business organizations, MNEs are formed for profit.

6.Why is security so important to MNEs?

Profit is useless if it cannot be secured by the MNE and transfeeed wherever it so desires.

7.Do you think “wide geographical spread” of MNEs plays a very important role in the

development of their business? Why?

a.enables them have a wide range of options in terms of decisions in areas such as sourcing

and pricing.

b.More able to take advantage of changes in the international economic environment.

c.Enable MNEs to engage in worldwide integrated production and marketing giving rise to

extensive intra-MNE transactions which constitute a very significant proportion of total international trade.

8.What is the relationship between MNEs and their host countries?

Host governments can and do wield power over MNCs located within their territories. MNCs are under the legal jurisdiction of their host governments which can impose various rules, regulations, and laws on the MNCs to the extent of nationalizing all their assets.

9.What are the four types of multinational enterprises? Describe each of them briefly.

a.multi-domestic corporation that is a group of relatively independent subsidiaries.

b.Global corporations which operates under an opposite principle from the first type and

views the world market as an integrated whole.

10.Are there many world companies at present? Imagine their future role in complete

globalization?

No, very few companies, if any, have reached this level of internationalization.

When such companies become dominating, the possiblility of conflicts among sovereign states may be greatly reduced. Possibly they will be instrumental to the realization of complete globalization.

Revenue: the total annual income of a state

Decentralize: distribute the administrative powers over a less concentrated area

Nationalize: to bring under the control or ownership of a nation

Input: something that is put in business operation

Welfare: well-being

Framework: organization structure

Facilities: something designed, built or installed to serve a specific function or perform a particular service

Affiliate: a subsidiary company controlled by another

World company: a multinational whose national identity has been blurred

Assets: total resources of a business, as cash, accounts receivable, real estates etc.

1.经济全球化为世界经济发展提供了新的动力和机会，同时也使各经济体更加相互依赖、

相互影响。

Economic globalization is giving new impetus and providing opportunities to world economic development and meanwhile making the various economies more and more interdependentand interactive.

2.跨国公司是在一个以上国家拥有、控制和经营资产的商业组织。

Multinational enterprise is a business organization which owns, controls and manages assets in more than one country.

3.许多人欢呼经济全球化带来的好处，但同进也有强烈的反对声音。

While many people are acclaiming the benefits brought about by economic globalization, there are also loud voices of opposition.

4.跨国公司的内部交换占整个国际贸易的一个很大的比例。

Intra-MNE transactions constitute a very significant proporttion of total international trade. 5.尽管公司的日常管理工作下放到跨国企业的子公司，但重要决策，如有关公司目标和新

投资等都由母公司来决定。

Although the day-to-day running of corporate operations maybe decentralized to the affiliates, the major decisions, such as those on corporate goald, new investments and their location, are made by the parent company.

6.无论人们是否喜欢，经济全球化已成为世界经济发展中的一个客观趋势。

Like it or not, economic globalization has become an objective trend in world economic development.

五、

1.How would you define international trade?

International trade can be defined as the exchange of godds and services produced in one country with those produced in another.

2.Why did international trade first begin?

In the complex economic world, no country can be completely self-sufficient. 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. That is the reason why international trade first begin.

3.What is the new incentive for trade that arose with the development of manufacturing

and technology?

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 over another. Is that always true?

No. Because in reality, it is not rare that one country has no absolute advantage in any commodity.

5.Who introduced the theory of comparative advantage? Which theory makes more sense,

absolute or comparative advantage?

David Ricardo.

Comparative advantage.

6.Explain briefly why trade to exploit comparative advantage promotes efficiency among

countries.

Since it can make one country better off without making another worse off.

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.

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. Switzerland’s comparative advantage in watchmaking is a typical example.

Service: something done to help or benefit others

Aboundant: plentiful, more than enough

Specialization: to restrict one’s economic activities to certain particular fields

Primary commodities: those commodities not processed, or only slightly processed, usually farm produce or raw materials

Incentive: that which incites, rouses or encourages a person

Alternative: that may be had, used etc. in place of sth else

Intuitive: relating to the power of the immediate understanding of something without reasoning or study.

Efficient: producing a desired or satisfactory result; able to perform duties well

Endowment: a natural gift or ability

Exploit: to develop the use of, make the best use of

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 countries can gain 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已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 actions.

5.比较利益理论已成为现代国际贸易思想的基石。

The theory of comparative advantage has become the cornerstone of modern thinking on international trade.

六、

1.Are there other bases for trade when there are no differences among

countries in production conditions? Mention some of the bases.

a.patterns of demand

b.economy of scale

c.innovation or style

2.What is economy of scale? What is the relation between economy of scale and

trade?

The cost advantages of large-scale production.

Trade may occur out of economy economies of scale.

3.What does the theory of international specialization seek to answer?

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?

No. Because for strategic or domestic reasons, a country may continue to produce goods for which it does not have any advantage.

5.What is tariff barriers? What is a customs area and what is a customs union?

Tariff barriers are the most common form of trade restriction.

Customs area usually coincides with the area of a country.

A customs area extending beyond national boundaries to include two or more

independent nations is called a customs union.

6.What is most favoured nation treatment? Is it a very special treatment?

Why?

The term most-favoured-nation treatment refers to a tariff treatment under which a county is required to extend to all signatories any tariff concessions granted to any participating country.

MFN treatment is not relly special but is just normal trading status. It gives a country the lowest tariffs only within the tariff’s schedule, but it is still possible to have tariffs.

7.What is the most common form of non-tariff barriers? Explain it in a few

words.

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.

8.What are the differences between visible trade and invisible trade? Give a

few examples of invisible trade.

Visible trade involves the import and export of goods, while invisible trade involves the exchange of services between countries.

Transportation service across national boundaries; insurance; tourism and immigrant remittance.

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 area.

b.The term drawback refers to duties paid on imported goods that are refunded

if the goods are reexported.

Drawback: duties paid on imported goods that are refunded when reexported. Highlight: to make prominent; to draw special attention

Bulky: taking a lot of space, and often of a shape difficult to handle

Perishable: easily to go bad

Tariff: duties imposed on goods imported and exported

Specific duties: duties levied on the basis of quantity, weight, size etc. of the goods Ad valorem duties: duties levied on the basis of the price of the goods Unilaterally: done by one side or party only

Maritime: connected with the sea or navigation

Remittance: money sent by pose

1.一件商品的成本会因生产规模扩大而减少。

The cost will decrease if the goods are produced on a large 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, however, complete specializatin may never occur even when it is economically advantageous.

3.配额或者说数量限制是最常见的非关税壁垒。

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劳务交换。

Visible trade involves import and export of goods while invisible trade involves 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.

七、

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.lost or damaged

b.delivery does not take place for some other reason

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?

The prupose of Incoterms is to provide a set of international rules for the interpretation of the most commonly used trade terms in foreign trade.

In order to bring the rules in line with current international trade practices.

3.Do you know anything about container transport? Is it a revolutionary innovation in

transportation techniques? Give your reasons.

Container transport is a revolutionary innovation. It greatly accelerates modern transport.

4.Can you explain the word “negotiable” in the phrase “negotiable transport document”?

Negotiable here means that the transport document can be passed from person to person instead of money.

5.What are the main characteristic of Incoterms 1990?

In the present 1990 version of Incoterms the trade terms are presented in a new format which allows seller and buyer to follow a step-by-step process to determine their respective obligations. Further, under all terms, the respective obligations of the parties have been grouped under 10 head ings where each heading on the seller’s side mirrors the position of the buyer with respect to the same subject matter. 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.

6.What are the four different categories of terms in Incoterms 2000?

Group E: the seller makes the goods available to the buyer at the seller’s own premises

Group F: the seller I called upon to deliver the goods to a carrier appointed by the buyer

Group C: the seller has to contract for carriage, but without assuming the risk of loss of or damage to the goods or additional costs due to events occurring after shipment

and dispatch

Group D:the seller has to bear all costs and risks needed to bring the goods to the country of destination

7.How do you understand the first sentence of Paragraph 6? Try to put it into Chinese and

then paraphrase it in English.

1990年修订通则的主要原因是使贸易术语能够适应日益广泛使用的电子数据交换系统。

That means in the 1990 version of Incoterms, it’s possible for the parties to supply various document by means of electronic data interchange.

8.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?

The terms explain for the sake of clarity how such costs are divided between the parties.

9.Explain briefly the terms FOB, CFR and CIF.

FOB: Free On Board

CFR: Cost and Freight

CIF: Cost, Insurance and Freight

10.In what areas are substantive changes made with Incoterms 2000?

a.the customs clearance and payment of duty obligations under FAS and DEQ;

b.the loading and unloading obligations under FCA.

Law suit: legal prosecution

Dispute: argument or controversy

Remedy: method of putting right something that is wrong

Amendment: changes made to something

Incoterms: a set of international rules for the inter-pretation of trade terms

Present: the arrangement of things by groups

Premises: a tract of land including its buildings

Heading: submit

Classification: category

Carriage: the price or cost of transportation

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到目的地所

需要的包装。

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。

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。

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.

八、

1.What is a contract? What may happen if a contracting party fails to fulfill his

obligations?

A contract is an agreement which sets forth binding obligations of the relevant parties.

It is enforceable by law, and any 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.

Oral and written.

Oral: direct discussions conducted at trade fairs; sending trade groups abroad; inviting foreign

cusomers; business discussions through international trunk calls

Written: enquiries made by the buyers to get information about the goods to be ordered

3.Is an inquiry binding on the inquirer? What is a first inquiry, and what information

should be given in it ?

An enquiry is made without engagement on the part of the enquirer.

In case of a first enquiry, that is, an enquiry sent to an exporter whom the importer has never dealt with, 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. so as to facilitate the exporter’s work.

4.What is a firm offer? What contents should be included in a firm offer?

A firm offer is a promise to sell goods at a stated price.

In making a firm offer, mention should be made of the time of shipment and the mode of payment desired in addition to an exact description of the goods including the quantity, quality, specification, packing, etc. The validity period is indespensable to a firm offer.

5.Is a counter offer an acceptance or a refusal of the original offer? What happens to the

offer once a counter offer is made?

It is a refusal of the offer which will be invalid and unbing once a counter-offer is made. The counter offer thus becomes a new offer made by the original offeree to the original offerer.

6.Is a written contract a must internationally for the conclusion of a transaction? What is

the case in China? What are the functions of a written contract?

A legitimate contract can be either in written or oral form.

In business practice however, a written contract is generally prepared and signed as the proof of the agreement and as the basis for its exectution.

7.What is the difference between a sales contract and a purchase contract, and between a

contract and a confirmation?

When the contract is made by the seller, it is called a sales contract, and when made by the buyer, a pruchase contract.

A sales or purchase confirmation is less detailed than a contract, covering only the essential

terms of the transaction. It is usually used for smaller deals or between familiar trade partners.

8.Give the major items of the contract proper.

a.the name and address of the buyer and the seller

b.the details of the commodity transaction

c.the terms and conditions mutually agreed

d.indication of the number of original copies, language(s) used, and the validity

9.Are the stipulations on the back of the contract its constituent parts? Are they binding

on the contracting parties?

The stipulations on the back of the contract are constituent parts of the contract and are equally binding upon the contracting parties.

Business line: goods dealt in by a company

Voluntary offer: an offer made on the initiative of the offerer

Contract: an agreement setting forth the binding obligations of the relevant parties

Indispensable: absolutely necessary

contract proper: the main body of a contract

contracting parties: the party to whom an offer is made

force majeure: social or natural calamities that take place beyond the control of a contracting party

purchase contract: a contract made by the buyer

firm offer: signatories of an agreement

offeree: an offer whose terms and conditions are binding on the offerer

1.合同依法实施，未能履行合同义务的一方可能受到起诉，并被强制做出赔偿。

Contract is enforceable by law, and any party that fails to fulfill his contractual obligations may be sued and forced to make compensation.

2.口头业务协商指的是面对面的直接谈判或通过国际长途电话进行的商谈。

Oral negotiation refers to direct discussions or business discussions through international trunk calls.

3.买方发出的询盘是为了获得拟定购商品的有关信息，它对发出询盘的人无约束力。

Enquiries which made by the buyers to get information about the goods to be ordered is made without engagement on the part of the enquirer.

4.有效期对于确盘是必不可少的。在规定的时间之前，或在被对方接受或拒绝之前确盘一

直是有效的。

The validity period is indispensable to a firm offer. An offer is considered open until after a stipulated time or until it is accepted or rejected.

5.还盘是对发盘的拒绝，一旦作出还盘，原报盘即失效而失去约束力。

It is a refusal of the offer which will be invalid and unbinding once a counter-offer is made. 九、

1.What is counter trade? Why has it attracted so much attention?

Counter trade is a peculiar form of transaction allegedly popular in less developed countries and in centrally planned economies.

Because the landscape of economic systems drastically recently, one wonders what the fate of counter trade will come

2.How did counter trade originate? And what was the nature of early counter trade?

The terminology counter trade can originate from the pre-World War II years when normal trade relations were breaking down. Following German hyperinflation, competitive devaluations and protectionism meant a global collapse in trade and in international financial banking markets. The Reichsbank agreed to the establishment of a clearing system that settled only net positions. These arrangements were called compensation trade. After that , the term was changed into “counter trade”.

The nature of early counter trade is that all these arrangements are trade credit accounts between familiar trading partners exchanging unrelated goods.

3.Why should Britain use bilateral clearing arrangements after World WarⅡ?

Because financial markets in Britain were in disarray, and Britain want to continue the traditional trade flows.

4.What are the main features of the current counter trade? Can you summarize the

categories briefly under current counter trade?

The main feature of the current counter trade is “bundling”. The exchange of goods and services are bundled together (the exchanges are implemented either concurrently or inter temporally).

Barter: The direct exchange of goods and services, which is completed in a short period of time.

Counter purchase: The assumption by an exporter of a transferable obligation through separate but linked contract to accept as full or partial payment goods and services from the importer or importing country.

Buyback: An agreement by an exporter of plant and equipment to take back in the future part of the output produced by these goods as full or partial payment.

5.What are the major differences between counter purchase and buyback?

First difference is that in buyback the goods and services taken back are tied to the original goods exported whereas that is not the case in counter purchase. Second is that a buyback deal usually stretches over a longer period of time (as long as 15 to 20 years) than a counter purchase deal.

6.What is meant by bundling? What is the opposite way of doing business?

Bundling means that the exchange of goods and services are bundled together (the exchanges are implemented either concurrently or inter temporally). In normal market transactions buying and selling of goods and services is unbundled, an arrangement made possible by the use of money and the “market” as an institution.

7.Since bundling is not an efficient way of getting business done, why should a

significant part of the international trade of goods as well as services still be bundled?

Because the impression one gets is that bundled trade, i.e., counter trade, takes place where the market institution is imperfect. It can be said to generally take place between mature market economies and economies with a less sophisticated market system.

8.What are the advantages and disadvantages of counter trade?

Advantages: (1) Counter trade is implemented because it helps a country to deal with foreign exchange shortages. (2) Counter trade can be used to promote exports. (3) Counter trade can be used to reduce uncertainty regarding export receipts. (4) Counter trade is used to bypass an international price agreement like, for example, that of OPEC. (5) Counter trade may help those nations, with serious debt problem to continue to import goods while, in effect, concealing export earnings from creditors. (6) Finally, it may be considered as a form of protectionism.

Disadvantages:It can be very risky business. By concealing the real prices and costs of transactions it may conceal and help perpetuate economic inefficiencies in the market place.

Companies may suffer losses because they could not get rid of products of poor quality.

9.What are the basic conditions for countertrade to exist?

It can be said to generally take place between mature market economics and economies with a less sophisticated market system.

10.What are the other modes of trade mentioned in the text?

Among other modes of trade are processing trade, consignment, leasing trade, agency etc.

Popular: liked and admired

Hyperinflation: soaring of prices beyond control

Inflation: rise in prices brought about by the excess demand, expansion of money supply, credit etc.

Protectionism: the theory of the system of developing home industries through duties and other means imposed on competitive imports

Bilateral: of two sides

Bundling: the exchanges of goods or services are tied together

Expertise: expert skill or knowledge

Creditors: a person to whom one owns money

Transferable: possible to be handed over

Verified data: authentic materials

1.对销贸易一般是与有关国家的政策目标相互联系的，如应对汇短缺和扩大出口之类的问

题。

Counter trade is often associated with policy objectives of relevant economies like dealing with foreign exchange shortages and promotion of exports.

2.实质上，反向贸易指的是各种货物和服务的直接交换。

Actually, couter trade refers to direct exchange of various goods and services.

3.回购贸易和互购贸易之间另一个重要的区别在于回购贸易一般比互购贸易要延续更长

一段时间。

Another important difference between counter purchase and buyback is that a buyback deal usually stretches over a longer period of time than a counter purchase deal.

4.在正常的市场交易中，由于使用货币及市场手段，货物的买与卖是分别进行的。

In normal market transactions, by the use of money and the “makrket”as an institution, buying and selling of goods and services is unbundled.

5.尽管有很多好处，反向贸易可能是风险很大的事。

Though there are many advantages, counter trade can be very risky business.

6.在其他贸易方式中还有加工贸易、寄售、租赁贸易、代理等。

Among other modes of trade are processin trade, consignment, leasing trade, agency etc.

十、

1.Why is it difficult to effect payment in a straight forward manner in international trade?

It is difficult to effect payment in a straight-forward manner in international trade, say by remittance or by debiting the debtor’s account because things are far more complicated in international trade. Purchase and sale of goods and services are carried out beyond national boundaries, which makes it rather difficult for the parties concerned in the transaction to get adequate information about each other’s financial standing and creditworthiness. Therefore, mutual trust is hard to build. Both the exporter and the importer face risks, as there is always the possibility that the other party may not fulfill the contract.

2.Mention some of the risks the exporter and the importer may face in trade.

For the exporter there is the risk of buyer default. The importer might fail to pay in full for the goods for some reason or other. It is even possible that the buyer is not reliable and simply refuses to pay the agreed amount on various excuses.

On the part of the importer, there is the risk that the shipment will be delayed, and such delays may lead to loss of business. There is also a risk that wrong goods might be sent as a result of negligence of the exporter or simple because of his lack of integrity.

3.Explain breifly the following methods of payment: cash in advance; open account;

consignment transactions.

a. cash in advance: In this case, the importer pays the exporter before the former gets the

latter’s goods. It is in the exporter’s favour.

b. open account: To trade on open account means that no documents are involved and that

legally the importer can pay the exporter anytime. Obviously the exporter must have sufficient financial strength carry the cost of the goods until receiving payment.

c. consignment transactions: It means the exporter has to send his goods abroad and will not

get payment until the goods are sold. If not sold, the goods can be shipped back. This arrangement should only be made with full understanding of the risks involved.

4.What is a draft? Does it have another name? What are the relevant parties in relation to

a draft?

A draft is an unconditional order to a bank or a customer to pay a sum of money to someone

on demand or at a fixed time in the future.

It has another name “bill of exchange”.

The person who draws the draft, usually the exporter, is called the drawer, and the person to whom the draft is drawn is called the drawee. There is yet another party the payee, that is, the person receiving the payment, who and the drawer are generally but not necessarily the same person.

5.What is the difference between a sight draft and a usance draft and what is the

difference between a clean draft and a documentary draft?

A sight draft calls for immediate payment on the presentation to the drawee. A usance draft

doesn’t call for immediate payment on the presentation to the drawee. He may pay at a later date e.g.30, 45, 60, or 90 days after sight or date.

A documentary draft is accompanied by the relevant documents such as the bill of lading, the

invoice, the insurance policy etc. A clean draft is not accompanied by any document