英语经贸知识(新)ppt.ppt

1、国际商务英语,何康民 湖北经济学院外语学院 Tel:Email:,Lesson1 International Business,It means the safe exchange of goods and proceeds between the buyer and the seller across countries boundaries. Sometimes business across the bonders of different customs areas of the same country is also regarded as import

2、or export, such as business between Hongkong and Taiwan.,Different from the domestic trade,1. The countries involved often have different legal systems, and one or more parties will have to adjust themselves to operate in compliances with the foreign law. 2. Different countries use different currenc

3、ies and the parties concerned will have to decide which currency to use and do everything necessary as regards conversion etc. Uncertainties and even risks are often involved in the use of a foreign currency. 3. Cultural differences including language, customs, traditions, religions, value, behavior

4、 etc. often constitute challenges and even traps for people engaged in intl businesses. 4. Countries vary in natural and economic conditions and may have different policies towards foreign trade and investment, making intl business more complex than domestic trade.,Types of intl business,1. Form of

5、commodity trade-import and export commodities i.e. visible trade and invisible trade 2. Supplying capital by residents of one country to another, known as intl investment-FDI and portfolio investment which refers to purchases of foreign financial assets for a purpose other than controlling. 3. Intl

6、licensing and franchising 4. Management contract, contract manufacturing and turnkey project.,What is foreign direct investment,Foreign direct investment (FDI) or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an econ

7、omy other than that of the investor. It is the sum of equity capital, other long-term capital, and short-term capital as shown in the balance of payments. It usually involves participation in management, joint-venture, transfer of technology and expertise.,Methods of FDI,The foreign direct investor

8、may acquire voting power of an enterprise in an economy through any of the following methods: by incorporating a wholly owned subsidiary or company by acquiring shares in an associated enterprise through a merger or an acquisition of an unrelated enterprise participating in an equity joint venture w

9、ith another investor or enterprise,Why is FDI important ?,Firms want a presence in foreign markets and increase their impact or take up more market shares Firms want control over growth of these foreign markets To gain first mover advantages To ward off (防止, 避开) competitors To determine locations, a

10、dvertising and other related strategic decisions in the firms interest,Licensing,It refers to a firm leasing the right to use its intellectual properties to a firm in another country Such intellectual property may be trade marks, brand names, copyrights or technology. Firms choose licensing because

11、they do not have to make cash payments to start business, and can simply receive income in the form of royalty. Besides, they can benefit from location advantages of foreign operation without any obligations in ownership or management. The use of licensing is particularly encouraged by high customs

12、duty and non-tariff barriers on the part of the host country.,Franchising,Franchising can be regarded as a special form of licensing. Under franchising, a firm, called the franchisee, is allowed to operate in the name of another, called the franchiser who provides the former with trademarks, brand n

13、ames, logos, and operating techniques for royalty. In comparison with the relation between the licenser and licensee, the franchiser has more control over and provides more support for the fanchisee.,Management contract,One company offers managerial or other specialized services to another within a

14、particular period for a flat payment or a percentage of the relevant business volume. Sometimes bonuses based on profitability or sales growth are also specialized in management contracts.,Contract manufacturing,A firm can concentrate on their strongest part in the value chain, e.g. marketing, while

15、 contracting with foreign companies for the manufacture of their products. Such firms can reduce the amount of their resources devoted to manufacture and benefit form location advantages from production in host countries. Loss of control over the production process may give rise to problems in respe

16、ct of quality and time of delivery.,Intl turnkey project,A firm signs a contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over the latter upon completion. Such projects are often large and complex and take a long period to comple

17、te. Payment for a turnkey project may be made at fixed or on a cost plus basis. The latter way of payment shifts the burden of possible additional cost over the original budget onto the purchaser.,BOT,BOT is a popular variant of the turnkey project where B stands for build, O for operate and T for t

18、ransfer. For a BOT project, a firm operate a facility for a period of time after building it up before finally transferring it to a foreign country. Making profit from operating the project for a period is the major difference between BOT and the common turnkey project. Needless to say, the contract

19、or has to bear the financial and other risks that may occur in the period of operation.,Lesson 2 Income level and world market,Business knowledge Gross national product (GNP) and gross domestic product (GDP) 国民生产总值和国内生产总值 GNP refers to the market value of goods and services produced by the property

20、and labor owned by the residents of a country. GDP measures the market value of goods and services produced within the geographic area of an economy.,Per capita income and per capita GDP,Per capita income is calculated by dividing its national income by its population. Per capita GDP is calculated b

21、y dividing its total GDP, the overall size of an economy, by its population. Per capita GDP reveals the average income level of consumers.,High-income, middle-income and low-income countries,Standards for classification: Those enjoying annual per capita income of $9,386 and above are classified as h

22、igh-income countries. Countries with annual per capita income below $9,386 but above $765 are regarded as middle-income countries. Low-income countries are those that have per capita income of only $765 or even less.,Triad (三位一体),Triad refers to the three richest nations of the world the United Stat

23、es, the European Union and Japan that offers the most important business opportunities. Any intl enterprise must bear Triad in mind if they want to be successful in the inceasingly competitive world market.,Triad and Quad(四位一体),United States: With a per capita income of about $30,000. The United Sta

24、tes is the richest country in the western hemisphere. The U.S dollar is an important component of foreign currency reserves of the world. For many years the country remained the largest recipient of foreign investment. Western Europe: Western Europe mainly refers to the European Union. With an avera

25、ge per capita income of over $20,000, all the members are classified as high-income countries. Japan: Japan is the second largest economy of the world. It is an important supplier of high-tech products and a major importer of raw materials. Japan remained a target of criticism for engaging in unfair

26、 trade practices. The large trade surplus has enabled it to invest heavily abroad and for years it has the largest creditor country of the world. Canada: With the worlds second largest territory, Canada is rich in natural resources, and its export accounts for nearly 40% of its GDP.,Other important

27、markets for China,The other markets we should pay particular attention to are those around us: the Four Tigers, the ASEAN countries, Russia, India, and a bit further away Australia.,Lesson 3 Regional economic integration,Major objectives of regional integration: The major objectives of regional inte

28、gration is to better enjoy the benefit of free flow of goods, services, capital, labor and other resources, at the same time possibly put up barriers to economic activities with non-members.,Four levels of regional economic integration,Free trade area: it is the first and loosest form economic integ

29、ration. Members of a free trade area 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. Customs Union: The Customs Union is a further step. All members adopt the same trade policy towards countries out

30、side their organization in addition to abolishing trade barriers among themselves. Common Market: The common market is further up the scale of regional economic integration. Besides free movement of goods and services and adoption of common external trade policy, factors of production such as labor,

31、 capital and technology are free to move among members so that they can be utilized in a more efficient and productive way.,Economic union:,It is the highest form of economic integration, which is characterized by integration of the domestic policies of its members in respect of economy, finance etc

32、. in addition to absence of trade barriers, practice of common external policy and free production factor mobility. The members are required not only to harmonize their taxation, government expenditure, industry policies etc., but also use the same currency.,European Union,The economic association o

33、f over a dozen European countries which seek to create a unified, barrier-free market for products and services throughout the continent, as well as a common currency with a unified authority over that currency.,Asia-Pacific Economic Cooperation,APEC is an intl group of countries and economies whose

34、 goal is to promote trade and investment by changing policies and laws that slow down, and, or prevent the process of people doing business with each other. The 21 member countries are Australia, Malaysia, Brunei, Peru, Mexico, Canada, New Zealand, Hong Kong, Singapore, Indonesia, Chinese Taipei, Ru

35、ssia, Thailand, the United States, Japan, Republic of Korea, Vitnam.,Organization of Petroleum Exporting Countries,A group of countries which are major producers and exporters of crude petroleum. The organization, set up in 1960, acts as a forum for discussion of and agreement on the level at which

36、the member countries should fix the price of their crude petroleum exports by production quotas. The 13 member countries are: Algeria, Ecudor, Gabon, Indonesia, Iran, Iraq, Kewait, Libya, Nigeria, Quatar, Saudi Arabia, the United Arab Emirates and Venezuela.,Lesson 4 Economic Globalization,Economic

37、globalization as an objective trend Basic feature: The basic feature of economic globalization is free flow of commodity, capital, technology, services and information in the global context for optimized allocation.,Advantages and negative impacts:,The advantages of economic globalization is that it

38、 is giving new impetus and providing opportunities to world economic development and economic integration enables countries benefit from the boom of other countries. Meanwhile, it has negative impacts, too. It is making the various economies more and more interdependent and interactive, thus, making

39、 countries more vulnerable to the adverse events across the globe. Besides, different countries and peoples do not enjoy balanced benefits in it.,What is Regional Economic Integration?,Definition: They refer to agreements among countries in a geographic region to reduce, and ultimately remove tariff

40、 and nontariff barriers to the free flow of goods, services, and factors of production between each other EU NAFTA FATT APPEC ASEAN,Economic case for integration,It can stimulates economic growth in countries Increases FDI and world production Countries specializing in those goods and services can e

41、fficiently produce more goods with low cost opportunities. There are additional gains from free trade beyond the international agreements such as GATT and WTO Because they may be easier to negotiate outside of the GATT and WTO,The political case for integration,Economic interdependence creates incen

42、tives for political cooperation This reduces potential for violent confrontation. Together, the countries have more economic clout (影响力) to enhance trade with other countries or trading blocs,Impediments to integration,Integration is hard to achieve and sustain Nation may benefit but groups within c

43、ountries may be hurt There may a potential loss of sovereignty and control over domestic issues,Multinational corporation,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 cou

44、ntry, through its member companies incorporated separately in each of these countries. A. organization-parent and affiliates In a typical multinational enterprise, each of its member company is known as a multinational corporation. Each MNC is purposed to represent certain interests of the multinati

45、onal enterprise and is linked to one another within the organizational framework of the same multinational enterprise. If the MNC is the original investing corporation, it is known as the parent MNC, which is normally also the international headquarters of the MNE. If the MNC is established as a res

46、ult of investments by the MNE, whether through the parent or through another of its already established MNC, it is an affiliate MNC.,Characteristics,MNEs are generally enormous in size. For instance, General Electrics established in 1892 now has subsidiaries in over 100 countries and regions with mo

47、re than 300.000 employees. In 2001 its business volume reached 126 billion US dollars. In China alone, it has 30 joint ventures or solely owned subsidiaries with over 8,000 employees. The size of an MNE does indicate the amount of resources it controls.,Wide geographical spread,Wide geographical spr

48、ead is also characteristic of MNEs. Such geographical spread of MNEs 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 changes in the intl economic environment. Such multinationality also enables MNE

49、s to engage in worldwide integrated production and marketing giving rise to intra-MNE transactions which constitute a very significant proportion of total international,Longevity and rapid growth,Another general characteristics of large MNEs is their longevity and rapid growth. Some MNEs have a hist

50、ory of many years and their double digit growth rate of revenue adjusted for inflation is higher than that of the GDP of many countries.,Needs, goals and roles,The behavior of MNEs is very much determined by their needs. These needs are often identified as goals. The purpose of organization is to fa

51、cilitate the MNEs operations and the purpose of its operations is to achieve its organizational goals.,Profit,Like most business organizations, MNEs are formed for profits. There is little doubt that the profit goal represents the basic need of the MNEs shareholders. It is also the need of all group

52、s interested in the continued surviVal of the MNE.,Security,Security is a second basic need. The needs for security includes the security of profits in the short-and-long-run, the security of the MNEs assets and investment, and the security of other organizational needs, including a favorable busine

53、ss environment, the need for supplies of raw materials and other resource inputs for the production processes of the MNE, the need for effective organizational control and management, the need for transportation and communication, the need for technical improvements and the private needs of employee

54、s including managers.,As vehicles for cross-border transfer of resources,In our world today, the multinational enterprises are very important vehicles for the transfer of resources across national boundaries. Given the organizational unity of parent and affiliates within such enterprises, and the fa

55、ct that they are situated in different countries, intra-organizational resources transfers between parent and affiliate or between affiliates of the same enterprise are also international transfers.,Four types,Multinational corporations can be classified into different types according to their organ

56、ization and way of operation. 1. Multi-domestic corporation: (多国跨国公司） It is a group of relatively independent subsidiaries. The parent company delegates sufficient power to each subsidiary to manage the production and marketing in the host country for the needs of local customers. This is a useful a

57、pproach when there are distinct differences in the specific conditions of host countries.,2.Global corporation（全球跨国公司）,It operates under an opposite principle from the first type and views the world market as an integrated whole. Power and responsibility are concentrated at the headquarters that man

58、ages production and marketing to achieve the economies of scale as much as possible.,3. Transnational corporation（跨国公司）,It aims to combine the advantages of the above two ways of operation so as to achieve both efficiency and flexibility. The activities and resources of the transnational corporation

59、 are neither highly centralized as the second type nor decentralized as the first type but are integrated in an independent network of affiliates.,4. World company（全球企业）,It can be referred to as world companies as their national identities are blurred （模糊的） to a large extent. Very few companies, if any, have reached this level of internationalization. But they will be great moves of economic globalization.,Strategic choices,Four basic strategies to enter and compete in the international environment: International strategy Multi domestic strategy Global strategy Transnational strateg