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1、 unit 2 INTERNATIONAL unit 2 INTERNATIONAL Business Practice Business Practice1 What is international trade?2 What are the major motivations for firms to operate international business?3 What measures do most companies usually adopt to avoid wild swings in the sales and profits?4 Please give the fou
2、r major operation forms chosen by most companies.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, touris
3、m, 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 suppli
4、es.3. To seek out foreign markets and procurement.4. There are four major forms which are the following: Merchandise exports and Imports, Service Exports and Imports, Investment and Multinational Enterprise.Main Points in this UnitSection One Procedures of Export and Import Transaction(进出口贸易的步骤)Sect
5、ion Two Business Negotiation(交易的磋商)1 What is Exporting Theaters sell entertainment; insurance companies sell financial protection against future loss, ideas urging actions can be sold too. Exporting is the process of earning money by providing the right product at the right price,at the right time,i
6、n the right place beyond your home boundary. The ultimate goal is to make sure that the exporter is to be paid for the goods he sells.Section One Procedures of Export and Import Transaction1 What is Exporting The procedures of an export or import business are so complicated that it may take quite a
7、long time to conclude a transaction.Four stages: preparing for exporting or importing business negotiation implementation of the contract settlement of disputes(if any) Section One Procedures of Export and Import TransactionExport Procedurers3 What is Importing Is referred to the purchase activities
8、 of foreign products produced in the world market or those services provided by foreign companies.Procedures of import transaction1.Conduct market investigation2;Formulate import plans for a certain commodity3.Send enquiries to the prospective sellers overseas4.Compare and analyze the offers or quot
9、ations时价 received5.Make counter-offers and decide on which offer is most beneficial6.Sign a purchase contractSection One Procedures of Export and Import Transaction3 What is Importing 7.Apply to a bank for opening a letter of credit8.Book shipping space or charter a carrying vessel for taking over t
10、he cargoes, if the contract is in terms of FOB.9.Effect insurance with the insurance company upon receipt of shipping advice装运通知10.Apply for inspection if necessary11.Attend to customs formalities报关单 to clear the goods through the customs12.Entrust forwarding agents委托承运人 with all the transport arran
11、gements from the port to the end users warehouse13.Settle disputes(if any)Section One Procedures of Export and Import Transaction AcceptanceSigning ContractApplying Import LicenseOpening L/CChartering Space ShipDeliveryChecking L/CArrivalDeclare and DischargeConclusionDischargeTrack GoodsInsuranceSe
12、ttlementClaims, AdjustmentProcedures of Import Transaction Market Research Any exporter who wants to sell his products in a foreign country or countries must first conduct a lot of market research. Market research is a process of conducting research into a specific market for a particular product. E
13、xport market research, in particular, is a study of a given market abroad to determine the needs of that market and the methods by which the products can be supplied. The exporter needs to know which foreign companies are likely to use his products or might be interested in marketing and distributin
14、g the products in their country. Marketing concept营销理念营销理念 The marketing concept We must produce what people want, not what we want to produceThis means that we put the customers first This means that we put the customers first We organize the company so that this happensWe organize the company so t
15、hat this happensWe must find out what the customer wants We must find out what the customer wants We carry out market researchWe carry out market researchWe must supply exactly what the customer wantsWe must supply exactly what the customer wantsMarketing concept We can do this by offering the right
16、 marketing mixWe can do this by offering the right marketing mix销售销售组合策略组合策略-The Four Ps-The Four Ps1.The right product1.The right product2.The right price2.The right price3.Available through the right channels of distribution: 3.Available through the right channels of distribution: placeplace4.Pres
17、rnted in the right way :promotion4.Presrnted in the right way :promotionthe exporters* the railway (in some cases)in the exporters country出口商所在国家的铁路部门the road hauler (in some cases) in the exporters country出口商所在国家的陆运承运人 the port authority 港口当局 * the shipping company (for sea freight)港务公司( 对海洋运输)the
18、airline (for air freight) * the insurance company or brokers经纪人 * the exporters bank * the importers bank* the railways (in some cases) in the importer countrythe road hauler 陆运承运人( in some case) in the importer country * the shipping agent at the port or airport of discharge装卸港或机场的运输经纪人* the import
19、ers Parties involved in export and import transaction进出口贸易所涉及的当事人进出口贸易所涉及的当事人Parties Involved in Exp. & Imp. Transaction* the exporters* the importers* the port authority* the shipping company (for sea freight)* the airline (for air freight)* the insurance company or brokers* the exporters bank*
20、 the importers bank* the railways (in some cases) in the importer country* the road hauler ( in some case) in the importer country* the road hauler ( in some case) in the importer country* the shipping agent at the port or airport of discharge* the shipping agents at the port or airport of loading*
21、the railway (in some cases)in the exporters country* the road hauler (in some cases) in the exporters countrySpecialists involved in export and import transactions出口和进口贸易所涉及的专业人员出口和进口贸易所涉及的专业人员A shipping agent and /or foreign forwarder (forwarding agent) 转运商will take responsibility for the documenta
22、tion and arrange for the goods to be shipped by air, sea, rail or road. Theses services may be carried out by the suppliers own export department, if they have the expertise. Airlines, shipping lines, railway companies or haulage contractors (货物承运商)will actual transport the goods.Both the importers
23、and exporters banks will be involved in arranging payments if a letter of credit or bill of exchange is used.Customs and Excise officers 征税官员may need to examine the goods, check import or export licences and charge duty and /or VAT(value added tax增值税).A chamber of Commerce may need to issue a certif
24、icate of origin, if this is required by the importers country.An insurance company insures goods in transit. A lawyer if a special contract has to be drawn up. An import/export transaction usually requires a lot of complicated documents because it is difficult to make many different arrangements whe
25、n one firm is dealing with another on the other side of the world. The number and type of documents needed depend on the specific requirements of the exporter and importer. Generally, the documents needed include: 1). Bill of Lading提货单 2). Commercial Invoice商务发票 3). Proforma Invoice形式发票 4). Consular
26、 Invoice领事发票 5). Packing List装箱单 6). Weight Memo重量单 7). Certificate of Inspection检验证书 8). Certificate of Origin原产地证 9). Insurance Policy (Certificate)保险凭证 10). Sales Contract销售合同 11). Sales Confirmation销售确认书Basic Documents needed in Export and Import Transaction Review 1 General Procedures of Export
27、 and Import Transaction 2 What is export? 3 What is import? 4 Parties involved in export and import transaction 5 Specialists involved in export and import transaction 6 Basic documents needed in export and import transactionSection Two Business NegotiationWhat is business negotiation? What is busin
28、ess negotiation? Business Negotiation is a bargaining situation in which two or more players have a common interest to cooperate, but at the same time have conflicting interests over exactly how to share.Features of Business NegotiationIn negotiations, both parties should know the followingWhy they
29、negotiate; 为什么谈判为什么谈判Who they negotiate with; 与谁谈判与谁谈判What they negotiate about; 谈判的内容谈判的内容Where they negotiate; 谈判的地方谈判的地方When they negotiate; 谈判的时间谈判的时间How they negotiate; 谈判的方式谈判的方式Features of Business NegotiationBusiness negotiation can be a very trying process that is full of confrontation and
30、concession.for the most part, it comes to the interaction between two sides with a common goal but divergent methods. These methods must be negotiated to the satisfaction of both parties. Business negotiation proceed through four stages:1.Non-task sounding开局前的试探开局前的试探2.task-related exchange of infor
31、mation交换与探班目交换与探班目标有关的信息标有关的信息3.persuasion说服说服4.concessions and agreement让步与同意让步与同意The negotiation consist of the following links:EnquiryOfferCounter-offerAcceptanceConclusion of Contractindispensable linkindispensable linkOffer, and acceptance are two indispensable links for reaching an agreement a
32、nd concluding a contract.The ways of Negotiation: Oral Written (letter, fax, email, telex, etc.)To improve the success rate of the transction,the following preparations shouldo be made before the business negotiation.1.arrange sound trade negotiations personnel.2.select target market3.select transac
33、tion object 4.work out import and export mangagement plan.What should be negotiated while negotiating includes all the terms based on which the contract is going to be concluded: the name of the commodity, quality or specifications,quantity,packing, price,shipment,insurance,payment,inspection,claims
34、,adjustment, force majeure,etc. the essential terms in a transactions PricePacking InsurancePayment ShipmentQuantity Name Quality or specifications规格Contract Name of commodity Quality QuantityPackagePricePaymentTransport and insuranceThe time limit and place of performance 履行地履行地The prevention and h
35、andling of dispute预防与处理预防与处理BodyThe rest are general transaction terms, which can be printed on the back of the contract. Such as inspection . claims, arbitration , force majeure.What is an enquiry? An enquiry is a request for business information, such as price lists, catalogue, samples, and detail
36、s about the goods or trade terms(贸易条款determine at what points the seller has fulfilled his obligations so that the goods in legal sense could be said to have been delivered to the buyers). It can be made by either the importer or the exporter. On receiving the enquiry, it is a regular practice that
37、the exporter should reply to it without delay. The seller and the buyer both can make an inquiry. Usually, the inquiry made by the buyer is also called bid递盘, and the inquiry made by the seller is also called selling inquiry索盘. Inquiry will not bind upon both parties, but usually when you receive an
38、 inquiry, you should reply it as soon as possible (1)The meaning of an offer* An offer is a proposal made by sellers to buyers in order to enter into a contract. In other words, it refers to trading terms( 交易条件)put forward by offerers(发盘人 )to offerees(受盘人), on which the offerers are willing to concl
39、ude business with the offerers. There are two kinds of offers, one is the firm offer, the other, non-firm offer. * The party who makes an offer is called an offeror发盘方, in the case of the seller, the offer is called a selling offer卖方发盘, while in the case of the buyer, and it is called a buying offer
40、买方发盘 or a bid.firm offer实盘实盘non-firm offer虚盘虚盘(2)The basic conditions of an offerI ) The offer shall be made to one or more specific persons The offer shall be the definite representation in which the offeror expresses that he shall conclude transaction on the terms and conditions stipulated therein
41、.* The “Convention” stipulates that a sufficiently definite offer should include three basic elements: name, quantity and price * In our foreign trade practice, a complete offer shall include the quality, quantity, packing, price, terms of delivery of the goods and terms of payment and so on.* This
42、intention may be indicated by terms as “firm” offer, “offer with engagement”实盘, etc.* If the offer has a restrictive condition, i.e., “subject to取决于 our final confirmation”, then its a non-firm offer regarded as an invitation for offer邀请发盘.The term of validity is not an indispensable condition of an
43、 offer (1)Stipulate the latest date for acceptance. For example: This offer is subject to your reply reaching here on or before 29, June (2)Stipulate a period of time for acceptance As to this method, there is a question of computing validity time.(3) Time of Validity or Duration of OfferDifferent v
44、iews of the time that a written form offer becomes effective :1. Despatch Theory投递主义,发信主义投递主义,发信主义2. Arrival Theory到达主义到达主义 授信主义授信主义Both “convention”公约公约 and our “contract law” adopt arrival theory.A.Withdrawal (撤回)(撤回)Definition of the withdrawal of an offer:The withdrawal of an offer means the off
45、erors intent indication to make an offer invalid before the offer gets its effectiveness.B. Revocation(撤销)(撤销) Definition of the revocation of an offer: The revocation of an offer means the offerors intent indication to make an offer invalid after the offer gets its effectiveness.(6) Termination of
46、an offer 发盘的失效发盘的失效In the following cases, an offer is terminated:1.The offeree has already made it counter-offer.2.The offer has been lawfully withdrawn or revoked by the offeror.3.The offer has been overdue.4. There appears force majeure,namely war, government prohibition,the party in question is
47、in incapacity, bankruptcy or death.A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection of the offer and constitutes a counter offer. (1) A reply to an offer which alter the terms of the offer materially constitutes a counter-offer (2) An acceptance with restrictive conditions is another form of counter-offer, such as “subject to our final
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