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General Introduction,Chapter One,Contents,1.1 Definition of International Trade,International Trade / World Trade / Foreign Trade / Overseas Trade It refers to the process of fair and deliberate exchange of goods or services between two or more countries, involving the use of two or more currencies. Besides, international trade concerns trade operations of both import and export and includes the purchase and sale of both visible and invisible goods.,1. 2 Reasons for International Trade,1) Resource reasonsthe uneven distribution of resources around the world2) Economic reasons the theory of Comparative Advantage(相对优势理论)developed by David Ricardo3) Other reasonsFor meet different consumption preferencesFor political objectives,4)Benefits of International TradeEconomic growthCheaper goods or serviceGreater varietyNo country has all the commodities or services that it needs, so trade means countries can provide a wider variety of products for their consumers and thus help to improve the living standard of the people.,Expand the market,Economies of scale,Reduce the cost,Get more profit,Create jobs,Economicgrowth,The importance of foreign trade,Create jobs,Improve living standards,Improve industrial competitiveness,Export sales,$100 million,New jobs,12,000,cost,range of goods,Technologies/equipment,Production efficiency,1. 3 Differences between International Trade and Domestic Trade,Language and CultureLaws, Rules & Regulation and customsForeign currencies and Exchange rateHigh risks (political risks, commercial risks, financial risks and transportation risks)Management skills,1.4 Classification of International Trade,From the direction of cargo flowFrom the number of participants involved,Export Trade,Import Trade,Transit Trade,Direct Trade,Entrepot Trade,Indirect Trade,According to the form of the goodsAccording to the settlement instrument involved,Visible Goods Trade,Invisible Goods Trade,Barter Trade,Free-liquidation Trade,1.5 The main procedures of an export and import business,Preparations for transaction,Negotiation,Signing the contract,Performance of the contract,Settlement of disputes(if any),Selecting the right marketFinding the potential partnerStudying creditability of the partnersApplying for export or import license,Preparations for transaction,Negotiation of a Sales Contract,In wordsFace-to-face negotiation,In writingCorrespondence negotiation,Four main steps,Performance of the contract,Preparing the goods,Applying for inspection,Implementing payment terms,Chartering a ship or booking shipping space,Taking out insurance,Making declaration to the Customs,Sending out the shipping advice,Making out documents for settlement,Export tax repay,备货,申请检验,落实支付条款,租船订舱,办理保险,报关,寄送装船通知,制单结汇,出口退税,Export Procedure,International Organization in international trade,WTO World Trade Organization 世界贸易组织ICC International Chamber of Commerce 国际商会MOFCOM Ministry of Commerce 商务部IMF International Monetary Fund 国际货币基金组织WB the World Bank Group 世界银行,Learn by yourself,CISG The United Nation Convention on Contract for the International Sale of Goods 联合国国际货物销售合同公约Incoterms 2010 International Rules for the Interpretation of Trade Terms 2010年国际贸易术语解释通则UCP600 The Uniform Customs and Practice for Documentary Credits No. 600 publication 跟单信用证统一惯例,Learn by yourself,Laws and Regulations Governing International Trade,Homework,To collect data on the foreign trade in China or Hebei or Baoding and make a PPT presentation.,The theory of compartative advantage(比较优势理论):Individuals or nations trade because they have superior productivity in particular industr

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