国际商务英语考试卷.doc

1. What does international business refer to? Please tell the difference between international business and domestic business? International business refers to transaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country is also regarded as import and export. International business takes place between countries while domestic business takes place in the same country. Differences in legal system; in currencies; in cultural background; in natural and domestic conditions.2. Visible trade and invisible trade. Visible trade refers to the form of commodity trade, i.e. Exporting and importing goods produced or manufactured in one country for consumption or resale in another. Invisible trade refers to the change of services between countries.3. Yes, in business activities, American are more informal than European.4. International investment can be classified into two categories this is: wo categories of international investment. What is their major difference? FDI foreign direct investment. portfolio investmentMajor difference between them is that former is made for returns through controlling the enterprises or assets invested in in a host country. The latter refers to purchase of foreign financial assets for a purpose other than controlling.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 have make payments to start business,and can simply receive income in the form of royalty. Besides, they can benefit from local advantages of foreign operation without any obligation in ownership or management.6. Franchising can be regarded as a special form of licensing. Under franchising, a firm , called the franchisee, is allowed to operate the franchiser who provides the former with trademarks, brand names, logos, and operating techniques for royalty. In comparison with the relation between the licenser and the licnsee, the franchiser has more control over and provides more support for the franchisee.7. Under a management contract, one country offer managerial or other specialized services to another within a particular period for a flat payment or a percentage of the relevant business olume. When a government forbids foreign ownership in certain industries, it is most applicable.8. For an international turkey project, a firm signs a contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to latter upon completion. For BOT, B stands for bulid, O for operate and T for transfer. BOT is a popular variant of the turkey project. For a BOT project, a firm operate a facility for a period of tome 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 turkey project.1. GNP and GDP are two important concepts used to indicate a countrys total income. GNP refers to the market value of goods and services produced by the property and labour 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 major difference between GNP and GDP is that the former focus on ownership of the factors of production while the latter concentrate on the place where production take s place.2. Annual per capita income $9386 and above is high income country. Below 9386$ and above $765 is middle income country. Below $765 is low income country.3. Because high income country often have good infrastructure, high purchasing power, advanced technology, efficient management, and favorable environment for trade and investment. They offer prime markets for expensive consumer goods and both attractive sources and destination of investment. But lower income countries should not be neglected in international business activities, because they contribute markets for lower priced staple goods, provide cheap labour and often rich in resources. Besides, market is something to be developed.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. Per capita GDP reveals the average income level of consumers, which is important when marketing consumer durables.5. China is a middle income country.6. United states, japan, and European union.7. OECD stands for organization for economic cooperation and development. An organization acts as a meeting ground for 30 countries which believe strongly in the free market system. The OECD provides a forum for discussing issue and reaching agreements, some of which are legally binding.8. The best policy for China to develop business opportunities is that we should pay particular attention to the markets around us: the Four Tigers, the ASEAN countries, Russia, India, and a bit farther away Australia, at the same time, do not neglect other market. It is not a good idea to tie ones business to only a few market1. in the free trade area, members removes barriers to the flow of goods and services among themselves while each member still adopts its own policy as regards to trade with outsiders.2. The customs union adopts the same trade policy for all the member toward countries outsider their organization in addition to abolishing trade barriers among themselves. It is more integrative than free trade areas.3. In common market, free movement of goods and services and adoption of common external trade policy, factors of production such as labour, capital, and technology are free to move among members so that they can be utilized in a more efficient and productive way.4. The economic union is the highest form of economic integration of the domestic policies of its members in respect of economy, finance and so on. In addition to absence of trade barriers, practice of common external policy and free production factor mobility. No they cant.5. 1994 the European union6. The most powerful institution of the EU is the council of ministers. Its executive body is the European commission.7. APEC has a five layer organizational structure.8. The tenet and objectives of APEC are inter-dependence, mutual benefit, adhering to an open and multilateral trading system and reduction of regional trade barriers. The two wheels of APEC refers to trade and investment liberation and facilitation and economic and technical cooperation.9. The nature of OPEC is commodity cartel. Its objective is to limit the overall crude oil supply of the world for the purpose of maintain higher oil prices.1. the basic feature of economic globalization is the free flow of commodity, capital,technology, service and information in the global context for optimized allocation. The major role of economic globalization is to give new impetus and provide opportunities to world economic development and meanwhile making the various economies more and more interdependent and interactive.2. economic globalization brings about both advantages and disadvantages to countries in the world. For instance, economic integration enables countries benefits from the boom of other countries but also makes them more vulnerable to the adverse events across the globe. But like it or not, it has become an objective trend in world economic development. The right attitude should be to follow the trend closely, availing the opportunities it offers to develop ourselves and avoiding its possible impacts.3. A typical multinational enterprise shall be defined as a business organization which owns 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 a multinational corporation is the original investing corporation, it is the parent. Otherwise, if it is established as the result of investments by the MNE, whether through the parent or through another of its already established MNC, it is an affiliate MNC.4. The MNE have the following distinctive characteristic:Firstly, MNE are generally enormous in size.Secondly, wide geographical spread Thirdly, is their longevity and rapid growth5. The commonly of recognized objective of MNEs is profit.6. Security is important to MNE because profit is useless if it cannot be secured by MNE and transferred wherever it so desires. It assets and investments must be secured. A favorable business environment must also be secured. Without security, an MNEs survival can never be assured.7. Yes, because such geographical spread enables them to have a wide range of options in terms of decisions in areas such as sourcing and pricing. They are also more able to take advantage of change in the international economic environment. Such multinationality also enables MNEs to engage in worldwide integrated production and marketing.8. On the one hand, host country 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 MNC to the extent of nationalizing all their assets. On the other hand, in order to ensure the security of their profits, assets, and operations, MNEs, may grow into gigantic sizes to control resources, and production and manufactureing processes in many countries, and even to intervene in the affairs of government in the host countries.9. Multinational corporations ;global corporations; transnational corporation ;world company 10. At present very few companies, if any, could be called world companies. But they will be great moves of economic globalization. When such companies become dominating, the possibility of conflicts among sovereign states may be greatly reduced. Possibly they will be instrumental to the realization of complete globalization.1. international trade can be defined as the exchange of goods and services produced in one country with those produced in another.2. Because 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.3. The new incentive for trade that across with the development of manufacturing and technology is international specialization- one country producing more of a commodity than it uses itself and selling the remainder to other countries.4. Absolute advantage holds that a commodity will be produced in the country where it costs in terms of resources. In international trade, it attempts to determine which goods a country should produce for itself and export to other countries and which goods it should import from other countries.5. The English economist David Richardo introduced the theory of comparative advantage.6. Because comparative advantage can make one country better off without making another worse off.7. No it isnt. 1. Yes there are. For example, patterns of demand, economies of scale, innovation or style.2. Economy of scale is the cost advantages of large-scale production. Trade may occur out of economies of scale.3. The theory of international specialization seeks to answer the question which countries will produce what goods, with what trade patterns among them.4. No it will not. 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 which are often taken by governments are also barriers to trade, and typical examples are tariffs and quotas.5. Tariff barriers are the most common forms of trade restriction. A tariff is tax levied on a commodity when it crosses the boundaries of a customs area which usually coincide 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.The most favoured nation treatment refers to a tariff treatment under which a country is required to extend all signatories any tariff concessions granted to any participating coutry. MFN treatment is not really special but is just normal trading status because it gives a country the lowest tariffs only within the tariffs schedule, but it is still possible to have lower tariffs.7. Quotas or quantantative 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. Visible trade involves the import and export of goods. Invisible trade involves the exchange of services between countries. Invisible trade includes transportation service, insurance, tourism, immigrant remittance.9. Export duties are tariffs levied on goods leaving an area. import duties are tariffs levied on goods entering an area.Specific duties are duties levied on the basis of quantity, weight, size, of the goods.Ad valorem duties are duties levied on the basis of the price of the goods.Compound duties is a combination of the two-compounded duties.Drawback refers to duties paid on imported goods that are refunded if the goods are reexported.1. sending goods from one place to another, as part of a commercial transaction, can be a risky business. If they are lost or damaged, or if 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. 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 avoid or at least reduced to a considerable degree. Amendments and additions are made in order to bring the rules in line with current international trade practices.3. Yes it is. Because it greatly accelerates the modern transport and promotes international trade.4. Negotiable means that the transport document can be transferred from one party to another legally after a fixed progress, which mainly is an endorsement.5. In the 1990 versions of incoterms, the trade terms are presented in a format which allowss seller and buyer to follow a step-by-step progress to determine their respective obligations of the parties have been grouped under 10 headings where each heading on the sellers side mirrors the position of the buyer with respect the same subject matter.6. The terms have been grouped in four basically different categories: namely stating with the only term which is the ex works; followed by the second group the F-terms: FCA, FAS AND FOB; continuing with the C-terms: CFR, CIF, CPT, and CIP and finally the D-terms: DAF, DES, DEQ, DDU, and DDP.7. In order to adapt the trade terms to the increasing use of electronic data exchange, inciterms were revised in 1990.8. The compilers took the trouble to do so in order to make it clear how much such costs are divided between the parties.9. FOB: is the price terms of delivery on board the ship in the named port of shipment. The seller has to transport the contracted goods to be on board the ship rented by the buyer, in a stated date or in a certain period. The seller will be responsible for the risks of the goods before they are loaded across the ship line. And hereafter the buyer will be responsible for it, and insure the goods for transportation. CFR: cost and freight: the responsibility for the risk of the buyer and the seller are the same as those in FOB. But the seller is responsible for renting a carrying vessel and bearing the carriage. CIF: cost, insurance and freight: the responsibility for the risk of the sellers are the same as those in CFR. But the seller is still responsible for insuring the shipped goods for ocean transportation and bearing all the insurance costs.10. Substantive changes have been made in the following areas: the customs clearance and payment of duty obligations under FAS and DEQ; the loading and unloading obligations under FCA.1. A contract is an agreement which sets forth binding obligations of the relevant parties. If a contracting party fails to fulfill his obligations, he may be sued and forced to make compensation.2. Oral negotiation refers to direct discussions conducted at trade fairs or by sending trade abroad or by inviting foreign customers, including business discussions through international trunk calls. Written negotiation often begin with inquiries made by the buyers to get information about the goods to be ordered such as quantity, specifications, prices, time of shipment and other terms.3. No, an inquiry is not binding on the inquirer. The first inquiry is an inquiry sent to an exporter whom the importer has never desalt with. Information should be given in it as to how the name and address of the exporter have been obtained, the business line and usual practice of the importer, and so on.4. A firm offer is a promise to sell goods at a stated price. The contents of a firm offer should include the time of shipment and the mode of payment desired in addition to an exact description of the goods including the quantity, quality, specifications, packing, etc.5. A counter-offer is a refusal of the original offer. Once a counter-offer is made, the offer will be invalid and unbinding.6. No, a written contact is not a must internationally for the conclusion of a transaction. In China, it is stipulate that a written contact must be signed by two parties for all transactions. A written contract is the proof of the agreement and the basis for its execution.7. The difference between a sales contract and a purchase contract is that a sales contract is made by the se