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Unit Oneinternational businessexports/importsexporter/importerpatentstrademarkscopyrightsinternational tradetransportation tourismbanking advertisingconstruction retailing/wholesalinginsuranceeducation mass communication specializationabsolute advantage comparative advantageinput/outputopportunity cost opportunity cost ratiosexchange rateoperating costsbank credit agreementsclearing arrangementstrade in goodstrade in servicesvisible goods/invisible goodsinternational investmentsbalance of paymentsforeign direct investment (FDI)manufactured goodscultural conflictsnegotiationmarketingbusiness administrationbusiness public relationsbusinessmanbusinesspeoplesubsidiary/subsidiariesjoint venturesaffiliated businessesgeneral managerexecutivesCEOcommercial risk financial riskspolitical risksregulatory riskstax risksantitrust lawsdouble taxationcommercial creditcommercial lendingpurchased merchandise on accountadvances on salescommercial billa qualified lenderbank loans current ratiocash assetsoutstanding indebtednesscollateralcredit historyfinancial profilethe commodity economyindustry capital business enterprisespersonal creditcreditorsliensinternational business managementcreative consciousnessthe capacity of working on ones ownglobal economic integrationinternationalizationWTOUruguay RoundGATTNegotiation forumDoha Development Agendatrade rulesside-effectswell-beingtrade disputesagriculturetextiles and clothing telecommunications government purchasesgovernment procurementindustrial standardsproduct safety food sanitation regulationsintellectual propertytrade without discriminationGATSTRIPs Agreementmost-favored-nation(MFN)customs duty ratecustoms duties tariffsnational treatmenttransparencyTrade Policy Review Mechanismannexpredictable and growing access to marketsfree-tradeimport bansquotaspredictabilitythe bound ratestransition economiesfair competitiondumpingsubsidieseconomic reformthe least-developed countriesUnit Twointernational trade world tradeoverseas tradeindustrializationadvanced transportationglobalizationtransnational corporationstrade restrictionsgovernmental quotasexport tariffs trade barriersraw materialscapital-intensive productsland-intensive productslabor-intensive commoditiesheavy construction equipment industrial machineryconsumer goodslabor costsproduction facilitiesfarming technologymass productioneconomic benefitsdomestic marketnatural resourcestechnology resources human resources cost of productionpolitical strengthtastespreferences consumption patternsre-export/re-importfavorable trade balanceactive trade balanceexport surplustrade surplusunfavorable trade balance adverse trade balanceimport surplustrade deficitexport trade, import trade and transit trade direct trade, indirect trade and entrepot tradetangible trade and intangible tradebarter trade and free-liquidation trade direct transit trade and indirect transit tradethe bonded warehousethe domestic transportation line warehouse chargestransshipment processorIncoterms CISGUCP600bargaining an intervening mediumcash tradeterms and conditionsbusiness correspondenceletters, telexes, cables, faxes, e-mails, etc. inquiry/enquiry, offer, counter-offer, acceptance and conclusion of a contractdocumentary credit shipment documents settlementanalytical studycredit standing capacityspecificationstrade termsFOB, FCA, FAS, CFR, CPT, CIF, CIP, EXW, DAF, DDU, DDP, DES, DEQ, L/Cshipping spacecharter a shipimport entry import inspections market research, credit inquiry, making contactscontractual termsMOFTECChinese Embassy foreign trade corporationschambers of commerceinquiry agencies business connectionsinquirera bank referencetrader, dealer trade shows, direct sales, direct mail, manufacturers representatives, wholesalers and distributors the consulate officeICCannual sales volumebusiness culturebusiness negotiationbusiness talksinternational fairsthe China Export Commodities Fair the export sales contractforce majeuretile documentsthe total volume of tradepractitionersan essential conditionthe mandatory supervisionthe prerequisite customs formalitiesa certificate of qualitytraditions and practices UNCTADairfreight, sea freightopen accountaccuracy, completeness, conciseness and promptness government control documentscommercial documentstransportation documentsinsurance documentsfinancial documents general useimport licenseforeign exchange license export licensecertificate of origininspection certificateconsular invoicecustoms invoicethe licensing authorities central bankscustoms clearanceeconomic sanctionsa notary publicthe country of destintionpreferred import statusthe place of manufacturethe Import and Export Commodity Inspection BureauChina Council for Promotion of International Tradethe Generalized System of Preferences (GSP)EUpreferential import dutiesCertificate of Origin of Textile ProductsExport Licenses of Textile ProductsShipment Certificate of Textile ProductssurveyorInspection Certificate of QualityInspection Certificate of WeightInspection Certificate of QuantityInspection Certificate of Health and Veterinary Inspection Certificate Inspection Certificate of QuarantineAQSIQthe importing countrythe exporting countrypro forma invoicecommercial invoicequality certificateweight certificatepreliminary invoicea quotationan irrevocable letter of creditconsular documentsBuyers reference Order number/indent numberInvoice number and dateExport or import license number Method of dispatchShipment termsNames and addresses of the seller and the buyerCountry from which the shipment is madeDescription of the goodsRebate or similar incentivesSignature of the exporterapplication form for international money transferdrafts (bills of exchange)bankers draftcommercial draftsight drafttime draft (usance draft)application for documentary letter of credit and letter of creditcash in advanceremitterdrawer/draweepayor, payer/payeethe payment instrument30 days sight50 days after sight90 days after the date of this draft30 days after the bill of lading Method of adviceDate of expirybeneficiaryadvising/paying/confirming bank partial shipmentsport of shipment airport/port of dischargeairport/port of loadinga payment undertaking shipping notepacking listbill of lading rail/road consignment note air waybill (AWB)parcel post receiptcombined transport documentsarrival notificationon board his vessela delivery or receipt notea Mates Receiptthe on-board bill of lading a supplimentary documentinsurance claimsclaim settlementsconsignor/consignee place of deliveryshipping markscontainer numbercarriershipperbulk cargocubic measurementgross weightthe notified partyrail transportthe departure/destination stationtransferable or negotiable an instruciton sheeta straight or non-negotiable bill of lading right of disposalthe shipping brokerthe insurer (insurance company), underwriter the insuredan indispensable adjunctinsurance policy insurance certificate open policyinsurance coveragePICCmutual consentlegal avoidance breach of contractcargo readinesscustomary packagesseaworthy shipment packing CISGsole ownershipindustrial property rightL/Cfund shortage market fluctuation payment routelate shipmentthe amendment notificationthe shipping orderdelivery documentsworking fundsshipping operationtaking deliveryinspection reportUnit Threebusiness negotiationsocial interactionconsultationbargainingmediationarbitrationlitigationwin-win principle/integrative bargaining/interest-based bargaining equality principlesincere cooperationkeep it flexible and fluidpositional bargaining mutual success convergence of interestsequality and mutual benefitlaw status negotiation strategies and tactics the negative effectspreparation for negotiation the negotiating teamgathering of informationthe negotiation briefan essential precondition the factual requirementinner depletion extra expensework-loadproduction organizaitoninvestment distribution a development projectan engineering projectthe chief negotiatortechnologistfinancial expertlegal specialistbackup onespublic relations contingency abilities capital guaranteethe power of the collectivethe optimal effectexplicit responsibilities the cooperation of negotiators a clear job-divisionthe cooperation between on-stage people and out-stage onesrepresentatives and deputies favorable moral characters necessary psychological makingsnecessary professional knowledge favorable language skillsfavorable polical makingsthe physical factors (the tempo, intensity, flexibility, stability and so on )sanguine peoplebilious people phlegmatical people depressed peoplethe factual needsgeneralistscommercial warsbilateral and multilateral communication identifying issuesissues and objectivesa competitive negotiationa noncompetitive negotiationa responsible sourcea contract priceinfrastructure logistics systemsub-contractorsbusiness scopeannual sales volumespaybacka feasibility studypolitical and social backgroundsocial and economic analysisdetailed analysis location and sitemain costsmanpowerschedul implementationfinancial and economic evaluaitonalternative approaches the basic components and implicationsplant capacitymarket demandoverhead costsadministrative overheadsa timeframefixed investmentsnet working capital estimatesnegotiating brief and negotiating planmemoranduman invitation to offeran invitation to make a bidpromotional communicationsales literatureofferor/offereeselling offer/buying offeroffer with engagementoffer without engagementfirm offerirrevocable offercommon practicea usual practicequotation sheetsfinal confirmationa contractual relationshippurchase contractagency arrangementexclusive sales agreementabsence of feedbacksatisfactionself-reinforcementtwo human biasesthe confirmation biasegocentrism mediocrityself-esteem separate people from the problemfocus on interests not positionsbe well preparedbe patience and integritylegitimate concernspersonal attacksblue-eyed weaknessoffensive and defensivea defensive-offensive stancea neutral stanceoutright acceptanceoutright rejectionqualified rejectiona nimble attack the barrier of languagecooperative language stylecompetitive language stylea longstanding relationship one-off contractsan all-purpose excusedeceptive strategies jargonacronymscontractions technical termslanguage principlescourtesy, conciseness, clarity, correctness, constructiveness and concessiontrade-offdeadlockmulti-nationsmulti-nationalitiescultural analysissub-cultural dynamicsintercultural communicationbreakdownintergroupencode and decodecultural literacycultural implicationsgeneral guidelinesverbal/nonverbalfacial expressons eye contactgesturesbody movementsposturephysical appearancespacebody languageorientationmonochronic and polychronic dominant culture settingssocioeconomic classcultural conflictsbusiness normsa sophisticated protocolguest-host relationshipunwritten rulesa fallback positionlinear communicationUnit FourInternational trade termsa price/export quotationsincidental chargesa foreign trade merchantIncoterms2000the price of commoditythe unit pricea name of currency, a unit price, a measuring unit, a trade term, and a name of destination or shipping placemiscellaneous expensesinternational rules and practices on trade termsWarsaw-Oxford Rules 1932Revised American Foreign Trade Definition 1941The American Chamber of Commercethe National Importers Association the American Foreign Trade Association the US Export Quotations and Abbreviations in 1919EX-point of origin Ex Factory, Ex Mill, Ex Minenamed inland carriernamed inland of departurenamed point of destinationnamed place of destination named port of destinationnamed port of shipmentnamed point of exportationnamed point of importationnamed point/placenamed inland point in country of importation Freight Prepaid ToFreight Allowed To C&F, EX-DOCKthe ships railthe risk of loss or of damagesales contract the mode of transportmulti-modal transportsea or inland waterway transport/transportationmarine insuranceobtain insurance only on minimum coverthe buyers/sellers obligations the export/import permit and export/import trax the loading/unloading costthe insurance premium the sea freightthe sellers/buyers premisescustomary packing/manner a contract of carriageMT(metric ton)subsequent carriers the first carrierat the disposal of the buyerbasic/special packing the loading berthib/IBa land frontierwarehouseterminaltransport stationcommon misconceptionsproperty rightsvariants of Incotermsunder tackleliner termsFOB trimmed/towedentry feeUnit Fivepricingpricing principlesprice and unit pricethe accompanying servicesthe pulse of the marketsthe price of commodity, the unit price: a nature of currency, a unit price, a measuring unit, a trade term and a name of destination or shipping placecost structurecosts of production, selling and delivery costs, and customs duties ancillary costthe factory pricefixed costsvariable costscommissionssales trip expenses pricing methodslong-term objectiveshort-term objectiveprofitabilitymarket shareannual budgets sales volumecost-based pricingbreak-even pricingmarginal cost pricing margin of profit, profit margintarget costing the break-even point (BEP)FC, P, VCtotal fixed pricemortgage interest/paymentsreal estate taxesmarginal costthe direct costs the variable overheadsmoney of accountmoney of paymenthard currencysoft currencyvehicle currencyforeign exchange ratesforeign exchange riskfloating exchange ratesexposurehedgeforward marketforward ratespot marketbrokerage housesforward contractintermediary servicequantity discountcash discountspecial discountnet pricepricing strategies the marketing mixfollowing-the-leader pricing penetration pricingcost-oriented pricing demand-oriented pricing retail pricingthe break-even point marketerscomponent partsutilitiessuppliersoperating expensesadvertising campaignsmanufacturersfranchise marketersthe U.S Small Business Administration (SBA)government regulationsload weightsspeed limitsa unit price: currency unit, unit price figure, measurement unit and delivery termsinitial price Unit Sixinternational transportationocean transportrail transportation air transportationcontainer transportinternational multi-modal transportationsea portscarrying capacityliner transportcharter transport / tramp transport the four fixed: fixed sailing date, fixed route and fixed ports to call at, and relatively fixed freight rateconsignor/consigneethe intermediate portsfreight: basic freight + surcharges the basic freight ratethe tariff of freight rateW, M, W/M, Ad Val., W/M or Ad Val. per metric tonweight tonper cubic metermeasurement tonfreight toncharge surchargestransshipment surchargesfuel surchargesoverweight and overlength surchargesa charter party: the charterer and the ship ownerbulk cargocrude oilraw timbertime chartervoyage charterthe loading/unloading ratedemurragedispatch moneyliner term, free out (FO), free in (FI), free in and out (FIO)scheduled airlinerschartered planesconsolidated consignments by freight forwardersFull Container Load (FCL)Less than Container Load (LCL)a door to door service desk-to-desk serviceport to port shipmentthe Container Freight Sation (CFS)the point of originthe place of destination a multi-modal transport operatorthe general carrierconveyancesub-carriersmarine bills of ladingseaway billsairway bills (AWB) or air consignment notescombined transport documentsinland transport way bills(road waybill or CMR consignment note and railway bill or cargo receipt)courier receipt or post parcel receipts shipping the bill of lading (B/L)a traded objecta contract of carriagea receipt of goodsa title documentin apparent good orderparties of a bill of lading: the carrier and the shipper/the consignor, the consignee, the notify party and the transferee /the endorsee /holderdifferent ordersdemonstrative orderrestrictive order bearer order“to order” and “to the order of the shipper”“to the order of the issuing bank”“to the order of the importer”“to bearer”under collectionnon-paymentnon-commercial transactionsbe left blank“to the named consignee (importer)”blank endorsementspecial endorsementthe shipping company (the carrier)the charting vesselthe voyae numberthe port of receipt/the port of loading/the port of shipmentthe port of destination/the port of discharge/the port of delivery the premises of the importer/exportermarks and numbersboxes/cartons/casesbe prepaid or collectedfreight prepaid/freight collectoriginal B/L, copiestypes of bill of lading on board B/L (or shipped B/L) and a received for shipment B/Lin ones custodyclean (or unclaused) B/L and unclean (or foul) B/Lnegotiable B/L (order B/L and bearer B/L or open B/L) and straight B/L (or non-negotiable B/L or a named consignee B/L)direct B/L and transshipment B/Llong form B/L and short form B/Lliner B/L and chartered B/Lon deck B/Lstale B/Lante-dated B/L & advanced B/Lcontainer B/Lcontents leaking, packaging spoiled by contents, packaging broken / holed / torn / damaged, packaging contaminated, goods damaged / scratched, packaging badly dented, packaging damaged and contents exposed, insufficient packing, cases short shipped, goods unprotected / unboxed / partial protected, etc. Combined Transport Document (CTD)Combined Transport Operator (CTO)the estimated date of departure (ETD)the estimated time of arrival (ETA)forwarderNVD: no value declared The flight date CMR, CIMadditional protocolEMS, DHL, UPS, FedExthe post officea courieran expedited delivery serviceexpedite (a.) servicesperils and lossesperils of the sea, maritime losses , maritime expenseslightergeneral perils of the sea and extraneous risks natural calamities (vile weather, thunder, lightning, tsunami, earthquake, flood, etc.)fortuitous accidents general extraneous risks and special extraneous risks theft, pilferage, contamination, leakage, breakage, sweating and/or heating, taint of odor, rusting, hook damage, fresh and/or rain water damage, short-delivery and non-delivery, shortage in weight, clashing, etc. political or military affairs or administrative ruleswar, strike, heightened duty, rejection, etc. total loss and partial loss actual total loss and constructive total lossgeneral average (G. A.) and partial average (P. A. )sue and labor expensessalvage charges marine insurance clauses the acope of cover, exclusions, commencement and termination of
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