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Unit 1 A brief introduction to international trade Key I Answer my questions 1 International trade is business whose activities involve 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 and mass communications It includes all business transactions that involve two or more countries Such business relationship may be private or governmental 2 Sales expansion resource acquisition and diversification of sales and supplies 3 To gain profit 4 To seej out foreign markets and procurement 5 There are four major forms which are the following Merchandise exports and Imports Service Exports and Imports Investment and Multinational Enterprise 6 It is the account which is a summary statement of the flow of all international economic and financial transactions between one nation eg the United States and the rest of the world over some period of time usually one year 7 Merchandise Exporting and Importing 8 Yes There are great differences between them 1 direct investment takes place when control follows the investment It usually means high commitment of capital personnel and technology abroad It aims at gaining of foreign resources and foreign markets Direct investment may often get higher foreign sales than exporting And sometimes it involves two or more parties 2 While portfolio investments are not under control And they are used primarily for financial purposes Treasures of companies for example routinely more funds from one country to another to get a higher yield on short term investments 9 MNE is the abbreviation of the multinational enterprise Its synonyms are NNC the multinational corporation and TNC transnational corporation 10 Examples are travel transport fee royalties dividends and interest 11 The choice of forms is influenced by the objective being pursued and the environments in which the company must operate 12 It is limited by the number of people interested in a firm s products and services and by customers capacity to make purchase 13 This is because at an early stage of international involvement these operations usually take the least commitment and least risk of a firm s resources 14 Royalties means the payment for use of assets from abroad such as for trademarks patens copyrights or other expertise under contract known as licencing agreements Royalties are also paid franchising 15 It is a way of doing business in which one party the franchiser the use of a trademark that is an essential asset for the franchisers business II Match each one on the left with its correct meaning on the right 1 J 2 A 3 E 4 B 5 C 6 D 7 I 8 G 9 F 10 H III Translate the following terms and phrases into Chinese 1 购买力 11 经济复苏 恢复 2 潜在销售量 12 经济衰退 3 加价 涨价 13 间接投资 4 国内市场 14 有形货物 5 制成品 15 有形进出口 6 边际利润 16 收入及支出 岁入及岁出 7 市场占有率 17 超额能力 8 贸易歧视 18 贸易中间人 商 经纪人 9 时机选择 19 全部包建的工程承包方式 10 经销周期 20 许可证协定 IV Case Study 1 Answer Batteries called white elephant exported from China were very popular in Southeast Asia because white elephant was a lucky thing in Southeast Asia but no one was interested in it in the market of Europe and the United States The boss of the company was very strange that the quality of the battery or the price of reasons so he asked his staff to investigate Finally he found that is the brand white elephant to be blame The brand s name translated into English was white elephant which meant something were no use but cumbersome in Western countries It was really a bad translation from culture information perspective The meaning derived from a legend According to the legend there was a king who hated a minister so he gave a white elephant to the minister for punishment The minister has to take care of the white elephant he couldn t give it to others or kill it because it s the king gave it to him However the appetite of the white elephant was so great and the minister became poorer So it showed people in western countries would not buy the battery for the consumers have no willing to buy something useless but cumbersome V Open VI Translate the following into English 1 Trade is often the engine of growth However oversimplified this metaphor may be it does serve to underline the importance of foreign trade in the process of growth A healthy expansion of exports may not always be sufficient condition for rapid and sustained growth but a strong positive association between the two is clearly undeniable Trade expansion contributes to economic growth in many ways Among them are the benefits of specialization the favorable effects of international competition on domestic economic efficiency the increased capacity to pay for the imports required in development and more generally the stimulus to investment 2 International trade is the exchange of goods and services produced in one country for goods and services produced in another country In addition to visible trade which involves the import and export of goods and merchandise there is also invisible trade which involves the exchange of services between nations Nations such as Greece and Norway have large maritime fleets and provide transportation service This is a kind of invisible trade Invisible trade can be as important to some nations as the export of raw materials or commodities is to others In both cases the nations earn the money to buy necessities 3 There exist different ways of conducting international business Exclusive sale means the seller gives the overseas client the exclusive right of selling a particular product in a designated area within a specified period of time In this kind of business transaction the product is bought by the exclusive seller and therefore he should sell the product by himself assuming sole responsibilities for his profit and loss Exclusive sale is different from agency where only commission is involved And difference exists between general contract and exclusive sales because the exclusive seller enjoys exclusive right in a particular area 4 There is no country in the world that can produce all the products it needs Thus countries join in international division of labor for effective production and reproduction Sometimes a country can buy goods and services from abroad on a barter basis Barter means doing business by exchanging goods of one sort for goods of another sort without using money Barter trade itself is not enough to meat a country s import needs But as a form of international trade it is still attractive in developing countries where foreign exchange is in short supply and inflow of foreign funds is far from sufficient to meet their obligations in external trade Unit 2 General Procedures of Export and Import Transaction I Answer the following questions Omited II Filling the blanks with the suitable words in the text 1 meeting satisfying 2 agent foreign overseas mission 4 own 5 setting 6 patent 7 profits 8 outlets 9 joint venture 10 subsidiary III Judge the following statement mark True T or False F 1F 2 T 3 F 4 F 5 F 6 F 7 T 8 F 9 F 10 T IV Explain the meaning of the words or phrases below as requested 1 Offer An offer is a proposal made by sellers to buyers in order to enter into the contract 2 Withdrawal It means an offer by the offerer has been withdrawn before it is reached to the offeree in order to prevent its entry into force 3 Enquiry An enquiry is a request for business information such as price lists catalogue samples and details of the goods or trade terms It can be made either by the importer or the exporter 4 Acceptance Acceptance is a statement made by other conduct of the offerees indicating unconditional consent to an offer 5 Shipping agent Shipping agent 船代 is a ship owner s representative whose job is to find the ships to carry V Compose a letter of enquiry with the following particulars Keys Messrs Arthur Grey people have developed different skills This is the foundation of international trade and economic activities Foreign trade the exchange of goods between nations takes place for many reasons The first as mentioned above is that no nation has all of the commodities than it needs Raw materials are scattered around the world Large deposits of copper are mined in Peru and Zaire diamonds are mined in South Africa and petroleum is recovered in Middle East Countries that do not have these resources within their own boundaries must buy from countries that export them Foreign trade also occurs because a country often does not have enough of a particular item to meet its needs Although the United States is a major producer of sugar it consumes more than it can produce internally and thus must import sugar Third one nation can sell some items at a lower cost than other countries Japan has been able to export large quantities of radios and television sets because it can produce them more efficiently than other countries It is cheaper for the United States to buy these from Japan than to produce them domestically Finally foreign trade takes place because of innovation or style Even though the United States produces more automobiles than any other country it still imports large quantities of autos from Germany Japan and Sweden primarily because there is a market for them in the United States 2 The different kinds of trade nations engaged in are varied and complex a mixture of visible and invisible trade Most nations are more dependent on exports than on any other activity The earnings from exports pay for the imports that they need and want A nation s balance of payment is a record of these complex transactions By reflecting all of these transactions in monetary terms a nation is able to combine the income it receives for example from exports tourists expenditures and immigrant remittances This combined incomes is then spent on such items as manufactured goods from other countries travel for its citizens to other countries and the hiring of construction engineers IX Case Study Answer A 公司与 B 公司的第一封信函可视为发盘 在该发盘中 A 公司对包装做出了要求 而 B 公司对该发盘 中包装条款进行了修改 可视为还盘 或新的发盘 B 公司发出还盘后 A 公司未进行回复 虽然它用行动表 明受 B 公司发盘约束 但没有明确向 B 公司表示接受 此时认为合同未成立 因此 B 公司以此为由 拒 不履行合同 A 公司将陷入被动 为了避免出现此情况 A 公司在收到 B 公司发盘时 应及时表示接受 Unit 3 Contracts for the International Sale of Goods Key I Translate the followings from Chinese into English 1 terms of payment 2 written form of contract 3 execution of the contract 4 sales contract 5 purchase confirmation 6 terms of transaction 7 trading partners 8 the setting up of a contract 9 trade agreement 10 consignment contract 11 the contract proper 12 extension of the contract 13 the contracting parties 14 special clause 15 general terms and conditions II Answer the following questions in English 1 A contract is an agreement which sets forth bind obligations of the relevant parties And any part that fails to fulfill his contractual obligations may be sued and forced to make compensation 2 There are two parties of business contract negotiations oral and written The former refers to direct discussions abroad written negotiations often begin with enquiries made by the buyers 3 A written contract is generally prepared and signed as the proof of the agreement and as the basis for its execution 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 4 The setting up of a contract is similar to that of a trade agreement or any other type of formal agreements It generally contains 1 the title The type of the contract is indicated in the title 2 the contract proper It is the main part of a contract 3 the signature of the contracting parties indicating their status as the seller or the buyer 4 the stipulations on the back of the contract and are equally binding upon the contracting parties 5 It generally contains the time of shipment the mode of payment described in addition to an exact description of the goods including the quantity quality specifications packing methods insurance commodity inspection claims arbitration and force majeure etc III Translate the following into Chinese 合同是在双方达成协议的基础上制定的 而协议又是双方进行商务谈判的结果 商务谈判 有口头谈判和书面谈判两种形式 口头谈判是通过参加商品交易会 派遣贸易小组 出国或邀 请客户本国进行的面对面讨论 而通过国际长途电话所进行的商务讨论也属于口头谈判 IV Case Study 1 Answer The law of the United States of America applies to this contract because a this was a CIF contract b the place of conclusion of the contract was in the USA c the place of the execution of the contract was also in the USA The seller completed this responsibilities after he delivered the goods at the port of the USA 2 Answer This contract was not concluded effectively Item 1 of Article 19 of the CISG indicates A reply to an offer which purports to be an acceptance but contains additions limitations or other modifications is a rejection to the offer and constitutes a counter offer In this case though Mr Johnson accepted Mr Anderson s offer his acceptance contained some additions to and modifications of the offer for example Mr Anderson asked for telegraphic transfer Mr Johnson sent the money to the bank to be kept there According to Item 3 of Article 19 of the CISG alteration to the mode of payment is material one thus Mr Johnson might keep silent and reject the acceptance 3 答 合同规定水分最高为 14 杂质不超过 2 5 从合同内容看 在这笔进出口交易中 双方 以商品的规格作为表示商品品质的方法 并以此作为交验商品的依据 属于凭规格的买卖 只要我方所交货 物符合合同规定的规格 我方就算已经履行了合同 但是成交前我方向对方寄送样品时并未声明是参考样品 签约后又电告对方成交货物与样品相似 这样对方就有理由认为该笔交易既凭规格又凭样品 而在国际贸易 中 凡属于凭样品买卖 卖方所交货物必须与样品完全一致 否则买方有权拒收货物或提出索赔 因此 在 这种情况下 我方很难以该笔交易并非凭样品买卖为由不予理赔 4 答 卖方未按合同规定包装货物 应视为违反合同 买方向卖方违反合同包装条款的行为提出异议 并要求赔偿是合理的 但是 买方以此为理由拒收货物是过分的要求 因为 公约 第 50 条第 1 款规定 买方只有在 卖方 完全不交付货物或不按合同规定交付货物等于根本违反合同时 才可以宣告整个合同 无效 并且 第 25 条规定 一方当事人违反合同的结果 如使另一方当事人蒙受损害 以至于实际上剥 夺了当事人根据合同规定有权期待得到的东西 即为根本违反合同 然而 卖方在交货发生困难的情 况下 及时采取了补救措施 只要所用塑料包装不对货物质量造成影响 这种补救措施可视为是合理的 虽 然仍属违约行为 但并不构成违反合同 买方只能对塑料包装造成的运输 储存 装卸等方面的不便而发生 的损失提出索赔 而不能拒收货物 V V Please fill in the Sales Contract according the letters between LONDON GREEN TRADE CORP and GUANGDONG LIGHT ELECTRICAL APPLANCES CO LTD 售售 货货 合合 同同 SALES CONTRACT 卖方 GUANGDONG LIGHT ELECTRICAL Sellers APPLANCES CO LTDContract No 98SGQ468001 Date APR 22 2009 地址 Signed at GUANGZHOU Adress 52 DEZHENG ROAD SOUTH GUANGZHOU CHINATelex 0835 Fax 86 020 83556688 Buyers LONDON GREEN TRADE CORP Address ELITHERBERTH STR AUTO P O BOX 16 LONDONTelex Fax This Sales Contract is made by and between the Sellers and the Buyers whereby the sellers agree to sell and the buyers agree to buy the under mentioned goods according to the terms and conditions stipulated below 1 货号 品名及规格 Name of Commodity and Specifications 2 数量 Quantity 3 单位 Unit 4 单价 Unit Price 5 金额 Amount 9600PCSPCCIF LONDUN USD3 00 PC USD 28 800 00DESK LIGHT J201 10 more or less both in amount and quantity allowedTotal Amount USD 28 800 000 6 Packing CARTON 7 Delivery from GUANGZHOU to LONDUN 8 Shipping Marks N M 9 Time of Shipment Within 30 days after receipt of L C allowing transshipment 10 Terms of Payment By 100 Confirmed Irrevocable Letter of Credit in favor of the Sellers to be available by sight draft to be opened and to reach China before MAY 15 2009 and to remain valid for negotiation in China until the 15th days after the foresaid Time of Shipment L C advised by BANK OF CHINA GUANGZHOU BRANCH TEX 0835 GZBC CN ALL banking Charges outside China the mainland of China are for account of the Drawee 11 Insurance To be effected by Sellers for 110 of full invoice value covering F P A up to LONDON To be effected by the buyers 12 Arbitration All disputes arising from the execution of or in connection with this contract shall be settled amicably by negotiation In case of settlement can be reached through negotiation the case shall then be submitted to China International Economic while for quantity discrepancy claim should be filed by the Buyer within 15 days after the arrival of the goods at port of destination It is understood that the seller shall not be liable for any discrepancy of the goods shipped due to cause for which the Insurance Company Shipped Company other transportation organization or Post Office are liable 本确认书内所述全部或部分商品 如因人力不可抗的原因 以致不能履约或延迟交货 卖方概不负责 The Seller shall not be held liable for failure of delay in delivery of the entire lot or a portion of the goods under this Sales Confirmation in consequence of any Force Major incidents 买方在开始卖方的信用证上请注本确认书号码 The Buyer is requested always to quote THE NUMBER OF THIS SALES CONFIRMATION in the letter of Credit to be opened in favour of the Seller 买方收到本售货确认书后请立即签回一份 如买方对本确认书有异议 应于收到后五天内提出 否则认 为以同意接受本确认书所规定的各项条款 The buyer is requested to sign and return one copy of the Sales Confirmation immediately after the receipt of same Objection if any should be raised by the Buyer within five days after the receipt of this Sales Confirmation in the absence of which it is understood that the Buyer has accepted the terms and condition of the sales confirmation 买方 卖方 THE BUYER 高村 THE SELLER 高丽 SHANGHAI IMPORT the terms should be followed by the port of destination c Correct d Incorrect On CIP terms the seller pays for transportation and insurance till the goods reach the destination the terms should be followed by the port of destination e Correct f Correct g Incorrect On FOB terms the seller s responsibilities end when he delivers the goods at the port of shipment that is at one of the ports in China h Incorrect On DES terms the seller must put the goods under the actual control of the buyer at the port destination a port of destination should be attached to DES i Incorrect On DDP terms the seller must physically deliver the goods to the buyer at a named place in the import country that is a named place of destination should be added to DDP terms j Correct IV Translation 1 please refer to INCOTERMs 19900 2 you must load the goods on board in accordance with the stipulations of the INCOTERMS 3 In reference to the consignment of June 5 4 but our business is on cash payment whether the

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