商务英语.doc

Money and Trading1. Money2. International TradeMoneyFunctions of MoneyOpportunity costTime is money. - Benjamin FranklinThe love ofmoneyis the root of all evil. -The BibleLack of money is the root of all evil. -George Bernard ShawMoney makes the mare go. 有钱能使鬼推磨MoneyCurrency, bills, coins, checks, checking account You will need some cash in local , but you can also use your credit card.I have nothing to pay you except some big .MoneyCurrency, bills, coins, checks, checking account, Afewmoretravelers maycome inhandyonholiday. Is there a service charge for the ?MoneyTravelers CheckMoneyChecking account deposits-支票活期账户存款Savings account-储蓄账户Current account -活期账户Fixed account - 定期账户Debit card 借记卡Credit card 信用卡Functions of MoneyA medium of exchangeA unit of accountA store of valueA standard of deferred paymentsFunctions of MoneyA medium of exchangeBarter system 以物易物-indirect exchangeFunctions of Money2. A unit of accountMeasure of valueUSD - $ 1 cent - penny5 cents - nickel10 cents - dime25 cents - quarter50 cents - half dollar1 dollar - coin or paperGBP - 1 penny5 pence 10 pence20 pence50 pence1 poundCurrency namesCNY/RMB - 人民币 YuanJPY- Japanese YenEUR - EuroCAD - Canadian DollarHKD - Hong Kong DollarSUR - Russian RubleIEP - Irish PoundFunctions of MoneyMeasure of valueI would like to break this 50 dollar note.Id like some coins for this note. Could you give me some small notes?The interest rate for the savings account is 4%.How much of the remittance do you want to convert/change into Japanese yen? The exchange rate of the US dollar into the RMB yuan is 1 to 6.12.The exchange rate today is USD 1 to RMB 6.12. Functions of Money3. A store of valueGoods are perishable.Houses, land involve storage costs.Bonds are not liquid.Appreciate升值-Depreciate贬值inflation 通货膨胀 - deflation 通货紧缩Functions of Money4. A standard of deferred payments- buy now, pay laterExamples：Payment in bulk tradingTuition fees in collegeWages for employeesPromotional sales of new productsOpportunity CostOpportunity cost is the cost of any activity measured in terms of the best alternative forgone. Scarcity - Trade-off 权衡 - Opportunity cost(forgo; give up; sacrifice)Opportunity Cost P23-24Questions based on the textbookIs opportunity cost a monetary term? What is the meaning of “next best alternative”?2. What is the opportunity cost of taking a course in microeconomics? 3. Can opportunity cost be measured?4. What is the opportunity cost of studying hard for a final examination?Opportunity CostExample: Construction of a RoadOpportunity Costrun through wetlands 湿地provide better public transport and get cars off the road Improve the quality of the local schools Provide better local health services Applications of Opportunity CostConsumer choiceProduction possibilitiesCost of capitalTime managementCareer choiceAnalysis of comparative advantageInternational TradeMajor International Economic organizationsThe World Bank 世界银行the International Monetary Fund (IMF) 国际货币基金组织World Trade Organization (WTO) 世贸组织G8 八国集团European Union 欧盟APEC 亚太经合组织Major International Economic organizationsThe World Bank 世界银行 / The World Bank is a vital source of financial and technical assistance to developing countries around the world. Goal: poverty reductionThe International Monetary Fund (IMF) 国际货币基金组织 /promotes international monetary cooperation and exchange rate stabilityfacilitates the balanced growth of international tradeprovides resources to help members in balance of payments difficulties or to assist with poverty reduction 收支平衡World Trade Organization (WTO) 世贸组织 / An organization for trade opening and trade agreements negotiation.At its heart are the WTO agreements, negotiated and signed by the bulk of the worlds trading nations and ratified in their parliaments. protection of intellectual property rights Tariff lowering: benefits for textile,metalsandmachinerysectors G8European Union 欧盟(28countries-2013)APEC-Asia-Pacific Economic CooperationASEAN-Association of Southeast Asian NationsAccording to the statistics of The US-China Business Council 美中贸易全国委员会 Table 1: Chinas Trade with the United States, 2001-10 ($ billion)琰茞200220032004200520062007200820092010US exports22.128.434.741.855.265.271.569.691.9US imports125.2152.4196.7243.5287.8321.5337.8296.4364.9Total*147.2180.8231.4285.3343.0386.7409.2366.0456.8US balance-103.1-124.0-162.0-201.6-232.5-256.3-266.3-226.8-273.1ExpressionsBalance of trade 贸易差额Favorable balance of trade -Trade surplus 贸易顺差Unfavorable balance of trade -Trade deficit 贸易逆差ExpressionsChina runs a huge trade surplus with the US.中国拥有巨额对美贸易顺差In the first half of 2008, Chinas trade surplus shrank.2008年上半年，中国贸易顺差减少了。The surpluses were offset by American deficits.顺差（盈余）被美国贸易逆差抵消了。What Can Be Done About The Big U.S. Trade Deficit With China? - 08/03/2013Even though exports increased, the overall U.S. trade deficit with China expanded to $315 billion because of imports grew by a higher 6.6%, to $425 billion. OEM 代加工(Oriental Equipment Manufacture)Nike、Guess、LVMH、Prada、Timberland、Clarks、Rockport、EasySpirit、Ecco iphone Dell Samsung Sony-Ericsson PhilipOEM 代加工(Oriental Equipment Manufacture)FOXCONN 富士康Reasons for international tradeUneven Distribution of Resources1. favorable climate and terrainReasons for international tradeColumbia and Brazil - coffee beansUS great plain states - wheat and CornThe Second Largest Corn Exporter: ChinaJapan: 16 million metric tons of corn (2010)the largest;most consistent importerChinaChina imports in 2010: 1.5 million metric tons of corn2012: 3 million metric tons of corn 2014: 7 million metric tons of corn2. natural resourcesReasons for international tradeMiddle East - oil，petroleum South Africa - diamond- making jewelriesAustralia - iron ore 铁矿石- steel makingChina - rare earth elements 稀土- military weapons, spacecraft3. skilled labour 熟练工Average salaries covering all major industries in China rose 8.4 percent in 2010. labour intensive industry劳动密集型产业technology intensive industry技术密集型产业export of labour service劳务输出labor surplus - labor shortagedwindling population bonusrising wages in coastal cities foreign investors move outReasons for international trade3. skilled labour 熟练工Reasons of labor shortage in China:Bonds to left-behind childrenUrbanizations of interior citiesStructural changes in demographyMindset change of migrant workersIndustrial transfer in ChinaReasons for international trade4. production scaleThe Theory of Comparative AdvantageChinaSHIRTSBICYCLESNumber of Hours to Produce One Unit12Opportunity Cost (of producing one unit) bicycle2 shirtsItalySHIRTSBICYCLESNumber of Hours to Produce One Unit35Opportunity Cost (of producing one unit)3/5 bicycle5/3 shirtsBenefits of International Trade1. Consumer choice Cheaper goods or services; greater variety of choices Constant competition - lower price improved quality of life & maximize productivity of the industry2. ProductivityProductivity: The rate at which goods or services are produced, especially the output unit of labor3. Growth of economyGenerate employment;different countries sell their surplus products to other countries and earn foreign revenue4. Resource allocationWasteful duplication of resources is prevented.Business Risks1. Currency risksExchange rate changes affect profits2. Existing laws of different countriesFree trade zone in ShanghaiTariffs：关税壁垒 a tax on imports or exportsQuotas: 配额限制 A government-imposed trade restriction that limits the number, or in certain cases the value, of goods and services that can be imported or exported during a particular time period. 3. Risks of nonpaymentCredit limit：Acredit limitis the maximum amount a creditor will allow a person to borrow 信用额，信用限制Credit terms: Standardor negotiatedterms(offered by asellerto abuyer) thatcontrol(1) the monthly and totalcreditamount, (2) maximum time allowed forrepayment, (3)discountforcashor earlypayment, and (4) the amount orrateof late paymentpenalty.信用条款4. Language differenceUse internationally accepted contract termsInternational Chamber of Commerce - 国际商会Incoterms - International Commercial Terms 国际贸易术语通则5. Political risksWars and turmoilGovernme