《国际贸易实务与操作》Chapter 1

国际贸易实务与操作InternationalTradePracticeandOperation1Chapter1IntroductiontoInternationalTradePracticeTeachingObjectives1．Introducethreeinternationalbusinessforms:trade,licensing,andforeigndirectinvestment.2.Discusstypicalrisksassociatedwithinternationalbusinesstransactions.3.Explainparticipantsandproceduresofinternationaltrade.2Section1FormsofInternationalBusiness

Basedonthemethodsofenteringaforeignmarket,internationalbusinesscanbeclassifiedintothreebroadcategories:trade,intellectualpropertyrightsandinternationallicensingagreements,andforeigndirectinvestment.3Section1FormsofInternationalBusiness1.TradeTradeconsistsoftheimportandexportofgoodsandservices.

Exportingistheshipmentofgoodsortherenderingofservicestoaforeignbuyerlocatedinaforeigncountry．Everyexportentailsanimport,andviceversa.4Section1FormsofInternationalBusinessExportingisgenerallydividedintotwotypes.

Directexportingisoftendonethroughforeignagents

whoworkoncommission,orbysellingdirectlyto

foreigndistributors.Indirectexportingisusedbycompaniesseekingtominimizetheirinvolvementabroad.Thereareseveraldifferenttypesofindirectexporting:exporttradingcompanies,exportagents,andexportmanagementcompany(EMC).5Section1FormsofInternationalBusinessGovernmentControlsoverTradeTariffsareimportdutiesortaxesimposedongoodsenteringthecustomsterritoryofanation.Nontariffbarriersareallbarrierstoimportingorexportingotherthantariffs.Oneformofnontariffbarrieristhetechnicalbarriertotrade,orproductstandard．Anothertypeisexportcontrol.

6Section1FormsofInternationalBusinessTradeliberalization

referstotheeffortsofgovernmentstoreducetariffsandnontariffbarrierstotrade.AllWTOnationsareentitledtonormaltraderelationswithoneanother.ThisisreferredtoasMostFavoredNationtradingstatus.

7Section1FormsofInternationalBusiness2.IntellectualPropertyRightsandInternationalLicensingAgreementsIntellectualpropertyrightsareagrantfromagovernmenttoanindividualorfirmoftheexclusivelegalrighttouseacopyright,patent,ortrademarkforaspecifiedtime.Internationallicensingagreements

arecontractsbywhichtheholderofintellectualpropertywillgrantcertainrightsinthatpropertytoaforeignfirmunderspecifiedconditionsandforaspecifiedtime.8Section1FormsofInternationalBusinessTheexchangeoftechnologyandmanufacturingknow-howbetweenfirmsindifferentcountriesthroughlicensingagreementsisknownastechnologytransfer.Franchisingisapopularformoflicensing.Thefranchiseeisallowedtouseatradenameortrademarkinofferinggoodsorservicestothepublicinreturnforaroyaltybasedonapercentageofsalesorotherfeestructure.9Section1FormsofInternationalBusinessCase1-1(Dayanv.McDonald’sCorp.)

DayaninParishadanexclusivefranchiseagreementwithMcDonald’sin1971.TheagreementrequiredthatDayanmeetallquality,serviceandcleanliness(QSC)standardsetbyMcDonald's.Dayanviolatedthequalityandcleanlinessstandardsforalongtime.CouldMcDonaldterminatethecontract?10Section1FormsofInternationalBusiness3.ForeignDirectInvestmentForeigninvestmentorforeigndirectinvestmentreferstotheownershipandactivecontrolofongoingbusinessconcerns,includinginvestmentinmanufacturing,mining,farming,assemblyoperations,andotherfacilitiesofproduction.Adistinctionismadebetweenthehomeandhostcountriesofthefirmsinvolved．Thehomecountryreferstothatcountryunderwhoselawstheinvestingcorporationwascreatedorishead-quartered．

11Section1FormsofInternationalBusinessMultinationalcorporations

arefirmswithsignificantforeigndirectinvestmentassets.Throughdirectinvestment,theycanstartanewforeignsubsidiarycompany,formajointventurewithanexistingforeigncompanyoracquireanexistingforeigncompanybystockpurchase.Multinationalcorporationsareusuallynotasinglelegalentity．12Section1FormsofInternationalBusinessOfthethreeformsofinternationalbusiness,foreigninvestmentprovidesthefirmwiththemostinvolvement,andperhapsthegreatestriskabroad．Investmentinaforeignplantisoftenaresultofhavinghadsuccessfulexperiencesinexportingorlicensing,andofthesearchforwaystoovercomethedisadvantagesofthoseotherentrymethods.13Section2ManagingRisks

ofInternationalBusinessTransactions

Thelevelofriskrisesupfromtradetolicensing,andtoforeigndirectinvestment.Theriskswillalsovarydependingonwhatcountriesthebusinesspartiesarelocatedinorwhatcountrythetransactionistobeperformedin.14Section2ManagingRisks1.PoliticalRiskPoliticalriskisgenerallydefinedastherisktoafirm’sbusinessinterestsresultingfrompoliticalinstabilityorpoliticalchangeinacountryinwhichthefirmisdoingbusiness．Handlingpoliticalriskrequiresplanningandvigilance.

15Section2ManagingRisks2.LanguageandCulturalDifferencesEventhoughEnglishiswidelyusedinbusinessallovertheworld,thelanguageofagiventransactionstilldependsonthetypeofbusinessoneisdoingandontheregionoftheworld．Onedevicetoovercomelanguagedifferencesistohavethecontractdrawninthelanguageofbothparties.

16Section2ManagingRisksCase1-2(Gaskinv.StummHandelGMBH):

Gaskin(Americancitizen)couldnotspeakorreadGerman,butheenteredintoanemploymentcontractwrittenentirelyinGermanwiththeGermanfirmofStummHandeloperatedinNewYork.Whenhesignedthecontract,thetermsofthecontractwereexplainedtohiminEnglish,includingthe“forumselectionclause”ofsettlinganydisputesinthecourtsofGermany.Later,thetwopartieshadadisagreement.CouldGaskinsettlethedisputeintheUnitedStates?17Section2ManagingRisks3.CurrencyandExchangeRateRisks

Threeseparaterisksrelatetocurrencyandinternationalbusinesstransactions:convertibility,repatriation,andcurrencyratefluctuation.18Section2ManagingRisksHedgingCurrencyRisk

Ahedgeisapositionestablishedinonemarketinanattempttooffsetexposuretopricefluctuationsinsomeoppositepositioninanothermarket.Hedgingallowstheinvestortotransferthecurrencyrisktosomeoneelsewhowantstotakeupapositioninthecurrency.Examplesofhedgingincludeforwardexchangecontract,currencyfuturecontracts,etc..19Section2ManagingRisksCase1-3(BerninaDistributors,Inc.v.BerninaSewingMach.)BerninaSewingMachineCo.(Importer)hadaseven-yearcontracttoimportandsupplyBerninasewingmachinestoBerninaDistributorinUS.TheImporterwasrequiredtopayinSwissfrancs．WiththesharpdeclineofdollartoSwissfranc,Importer’scostsdoubledandthushalveditsrateofreturnperdollarinvested.CouldtheImportercancelthecontractwiththeDistributor?20Section2ManagingRisks4.LegalRiskBecauseofdifferencesinlanguage,culture,andlegalsystems,theintentionsofpartiesinaninternationaltransactionmaynotbeeasilydiscernablefromtheircontract.Thepartiesshouldexpresscarefullyintendedrightsandobligationsinawrittencontract.

21Section2ManagingRisks5.SpecialTransactionRisksinContractsforSaleofGoodsTheriskthatabuyerwilldefaultonasalescontractandfailtopayforthegoodsisknownaspaymentrisk,orcreditrisk．Theriskthatabuyerwillnotreceivethegoodsunderacontractiscalleddeliveryrisk.Thiscoursewillfocusonthespecialrisksinherentininternationaltransactionsforsaleofgoods.

22Exercises–SpecialTerms国际贸易直接出口非关税壁垒贸易自由化跨国公司知识产权最惠国贸易地位货物转运商承运人海关报关行提单信用证保险公司技术转让23Exercises–SpecialTermstransactionlicensingagreementforeigndirectinvestmentcommissionmerchandiseglobalsourcingcountryoforiginknow-howbusinessoperationsfranchisedefendantplaintiffhostcountries

24Exercises–Explanation1.Whataretariffs?

2.Whatareinternationallicensingagreements?3.Whichformofinternationalbusinesshasthehighestlevelofrisk?Why?25Section3Participants