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Unit 1 A brief introduction to international tradeKeyI. Answer my questions1. 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, tourism, 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 supplies.3. To gain profit.4. To seej out foreign markets and procurement.5. There are four major forms which are the following: Merchandise exports and Imports, Service Exports and Imports, Investment and Multinational Enterprise. 6. It is the account which is a summary statement of the flow of all international economic and financial transactions between one nation (eg.the United States ) and the rest of the world over some period of time, usually one year. 7. Merchandise Exporting and Importing. 8. Yes. There are great differences between them. 1) direct investment takes place when control follows the investment. It usually means high commitment of capital, personnel, and technology abroad. It aims at gaining of foreign resources and foreign markets. Direct investment may often get higher foreign sales than exporting. And sometimes it involves two or more parties. 2) While portfolio investments are not under control. And they are used primarily for financial purposes. Treasures of companies, for example, routinely more funds from one country to another to get a higher yield on short term investments. 9. MNE is the abbreviation of the multinational enterprise. Its synonyms are NNC (the multinational corporation) and TNC (transnational corporation). 10. Examples are travel, transport, fee, royalties, dividends and interest. 11. The choice of forms is influenced by the objective being pursued and the environments in which the company must operate. 12. It is limited by the number of people interested in a firms products and services and by customers capacity to make purchase. 13. This is because at an early stage of international involvement these operations usually take the least commitment and least risk of a firms resources. 14. Royalties means the payment for use of assets from abroad, such as for trademarks patens, copyrights, or other expertise under contract known as licencing agreements.Royalties are also paid franchising. 15. It is a way of doing business in which one party (the franchiser) the use of a trademark that is an essential asset for the franchisers business.II Match each one on the left with its correct meaning on the right1. J 2.A 3.E 4.B 5.C 6.D 7.I 8.G 9.F 10.HIII Translate the following terms and phrases into Chinese1 购买力 11经济复苏；恢复2潜在销售量 12 经济衰退3加价，涨价 13间接投资4国内市场 14有形货物5制成品 15有形进出口6边际利润 16收入及支出；岁入及岁出7市场占有率 17超额能力8贸易歧视 18贸易中间人（商）；经纪人9时机选择 19全部包建的工程承包方式10经销周期 20许可证协定IV Case Study 1 Answer：Batteries called white elephant exported from China were very popular in Southeast Asia, because white elephant was a lucky thing in Southeast Asia, but no one was interested in it in the market of Europe and the United States. The boss of the company was very strange that the quality of the battery or the price of reasons, so he asked his staff to investigate. Finally he found that is the brand white elephant to be blame. The brands name translated into English was white elephant which meant something were no use but cumbersome in Western countries. It was really a bad translation from culture information perspective. The meaning derived from a legend. According to the legend, there was a king who hated a minister, so he gave a white elephant to the minister for punishment. The minister has to take care of the white elephant, he couldnt give it to others or kill it because its the king gave it to him. However, the appetite of the white elephant was so great, and the minister became poorer. So it showed people in western countries would not buy the battery for the consumers have no willing to buy something useless but cumbersome.V. OpenVI.Translate the following into English1. Trade is often the engine of growth. However oversimplified this metaphor may be, it does serve to underline the importance of foreign trade in the process of growth. A healthy expansion of exports may not always be sufficient condition for rapid and sustained growth, but a strong positive association between the two is clearly undeniable. Trade expansion contributes to economic growth in many ways. Among them are the benefits of specialization; the favorable effects of international competition on domestic economic efficiency; the increased capacity to pay for the imports required in development and more generally the stimulus to investment.2. International trade is the exchange of goods and services produced in one country for goods and services produced in another country. In addition to visible trade, which involves the import and export of goods and merchandise, there is also invisible trade, which involves the exchange of services between nations. Nations such as Greece and Norway have large maritime fleets and provide transportation service. This is a kind of invisible trade. Invisible trade can be as important to some nations as the export of raw materials or commodities is to others. In both cases, the nations earn the money to buy necessities.3. There exist different ways of conducting international business. Exclusive sale means the seller gives the overseas client the exclusive right of selling a particular product in a designated area within a specified period of time. In this kind of business transaction, the product is bought by the exclusive seller and therefore he should sell the product by himself, assuming sole responsibilities for his profit and loss. Exclusive sale is different from agency where only commission is involved. And difference exists between general contract and exclusive sales because the exclusive seller enjoys exclusive right in a particular area.4. There is no country in the world that can produce all the products it needs. Thus countries join in international division of labor for effective production and reproduction. Sometimes a country can buy goods and services from abroad on a barter basis. Barter means doing business by exchanging goods of one sort for goods of another sort without using money. Barter trade itself is not enough to meat a countrys import needs. But as a form of international trade, it is still attractive in developing countries where foreign exchange is in short supply and inflow of foreign funds is far from sufficient to meet their obligations in external trade.Unit 2 General Procedures of Export and Import TransactionI. Answer the following questions (Omited)II. Filling the blanks with the suitable words in the text:1.meeting/satisfying; 2.agent, foreign/overseas; 3.commission; 4.own; 5.setting; 6.patent; 7.profits; 8.outlets; 9.joint, venture; 10.subsidiaryIII. Judge the following statement, mark True (T) or False(F)1F 2. T 3. F 4. F 5.F 6.F 7.T 8.F 9.F 10. TIV. Explain the meaning of the words or phrases below as requested1. Offer: An offer is a proposal made by sellers to buyers in order to enter into the contract.2. Withdrawal: It means an offer by the offerer has been withdrawn before it is reached to the offeree in order to prevent its entry into force.3. Enquiry: An enquiry is a request for business information, such as price lists, catalogue, samples, and details of the goods or trade terms. It can be made either by the importer or the exporter.4. Acceptance: Acceptance is a statement made by other conduct of the offerees indicating unconditional consent to an offer.5. Shipping agent: Shipping agent(船代）is a ship owners representative whose job is to find the ships to carry.V. Compose a letter of enquiry with the following particulars:KeysMessrs. Arthur Grey & Son,19 Cheapside,London, E.C.2Dear Sirs,We have obtained your name and address from China Council for Promotion of International Trade and learned that you are one of the leading exporters of Ice Box in your district.We are now interested in 100 sets of the said article and should be pleased if you would let us know whether you can supply us with the quantity and quality we desire. Please quote us your best price on CIF Guangzhou basis. When offering, please state clearly terms of payment, time of delivery, packing conditions together with illustrated catalogue for our consideration.We are looking forward to your early reply.Yours faithfully,VI. Please make your offer according to the following particulars:KeyDear Sirs,Thank you for your letter of 5th May. We are glad to learn of the inquiries you have had from your customers for our raincoats. Our D.D. range is particularly suitable for warm climates, and during the past years we have supplied this range to dealers in several tropical countries, from many of whom we have already had repeated orders. This range is popular not only because it is light in weight, but also because the material used has been specially treated to prevent excessive condensation on the inside surface.For the quantities you mention we are pleased to quote as follows:D.D. Raincoats100 mens medium US$14.50 US$ 1,450100 mens small 14.0 1,400100 womens medium 13.2 1,320100 womens small 12.7 1,270US$ 5,440Payment: by irrevocable L/C at sightShipment: Shipment will be effected within three or four weeks after receiving the L/C.This offer is subject to our final confirmation. We feel you may be interested in our other products and enclose some pamphlets for your reference.We are awaiting your early orders.Yours sincerely,VII. Write a counter-offer according to the following particulars:Keys:Dear Sirs,We thank you for your quotation May 10 for 1,000 sets of Hair IceBox. We find your price as well as delivery date satisfactory, however, we would give our suggestions of an alternation of your payment terms.Our past purchase of other household electrical appliances from you has been paid as a rule by confirmed, irrevocable letter of credit at sight. On the basis, it has indeed cost us a great deal. From the moment to open credit till the time our buyers pay us, the tie-up of our funds lasts about four months. Under the present circumstances, this question is particular taxing owing to the tight money condition and unprecedentedly high bank interests.In view of our long business relations and our amicable cooperation prospects, we suggest that you accept either “cash against documents on arrival of goods” or “drawing on us at 60 days sight”.Your first priority to the consideration of the above request and an early favorable reply will be highly appreciated.Yours sincerely,VIII. Translate the followings into English1). Economic activity began with the cavemen, who was economically self-sufficient. He did his own hunting, found his own shelter, and provided for his own needs. As primitive populations grew and developed, the principle of division of labor evolved. One person was more able to perform some activity than another, and therefore each person concentrated on what he did best. While one hunted, another fished. The hunter then traded his surplus to the fisherman, and each benefited from the variety of diet.In todays complex economic world, neither individuals nor nations are self-sufficient nations are self-sufficient. Nations have utilized different economic resources; people have developed different skills. This is the foundation of international trade and economic activities.Foreign trade, the exchange of goods between nations, takes place for many reasons. The first, as mentioned above, is that no nation has all of the commodities than it needs. Raw materials are scattered around the world. Large deposits of copper are mined in Peru and Zaire, diamonds are mined in South Africa, and petroleum is recovered in Middle East. Countries that do not have these resources within their own boundaries must buy from countries that export them.Foreign trade also occurs because a country often does not have enough of a particular item to meet its needs. Although the United States is a major producer of sugar, it consumes more than it can produce internally and thus must import sugar.Third, one nation can sell some items at a lower cost than other countries. Japan has been able to export large quantities of radios and television sets because it can produce them more efficiently than other countries. It is cheaper for the United States to buy these from Japan than to produce them domestically. Finally, foreign trade takes place because of innovation or style. Even though the United States produces more automobiles than any other country, it still imports large quantities of autos from Germany, Japan and Sweden, primarily because there is a market for them in the United States.2). The different kinds of trade nations engaged in are varied and complex, a mixture of visible and invisible trade. Most nations are more dependent on exports than on any other activity. The earnings from exports pay for the imports that they need and want. A nations balance of payment is a record of these complex transactions. By reflecting all of these transactions in monetary terms , a nation is able to combine the income it receives, for example, from exports, tourists expenditures, and immigrant remittances. This combined incomes is then spent on such items as manufactured goods from other countries, travel for its citizens to other countries, and the hiring of construction engineers.IX. Case StudyAnswer:A 公司与B公司的第一封信函可视为发盘，在该发盘中A公司对包装做出了要求。而B公司对该发盘中包装条款进行了修改，可视为还盘，或新的发盘，B公司发出还盘后A公司未进行回复，虽然它用行动表明受B公司发盘约束，但没有明确向B公司表示接受，此时认为合同未成立。因此，B公司以此为由，拒不履行合同。A公司将陷入被动。为了避免出现此情况，A公司在收到B公司发盘时，应及时表示接受。Unit 3Contracts for the International Sale of GoodsKeyI. Translate the followings from Chinese into English: 1 terms of payment 2 written form of contract 3 execution of the contract 4 sales contract 5 purchase confirmation 6 terms of transaction 7 trading partners 8 the setting up of a contract 9 trade agreement 10 consignment contract 11 the contract proper 12 extension of the contract 13 the contracting parties 14 special clause 15 general terms and conditionsII. Answer the following questions in English: 1 A contract is an agreement which sets forth bind obligations of the relevant parties. And any part that fails to fulfill his contractual obligations may be sued and forced to make compensation. 2 There are two parties of business contract negotiations: oral and written. The former refers to direct discussions abroad; written negotiations often begin with enquiries made by the buyers. 3 A written contract is generally prepared and signed as the proof of the agreement and as the basis for its execution. A sales or purchase confirmation is less detailed than a contract, covering only the essential terms of the transaction. It is usually used for smaller deals or between familiar trade partners. 4 The setting up of a contract is similar to that of a trade agreement or any other type of formal agreements. It generally contains: 1) the title. The type of the contract is indicated in the title; 2) the contract proper. It is the main part of a contract; 3) the signature of the contracting parties indicating their status as the seller or the buyer; 4) the stipulations on the back of the contract and are equally binding upon the contracting parties. 5 It generally contains the time of shipment, the mode of payment described in addition to an exact description of the goods including the quantity, quality, specifications, packing methods, insurance, commodity inspection, claims, arbitration and force majeure, etc.III. Translate the following into Chinese: 合同是在双方达成协议的基础上制定的，而协议又是双方进行商务谈判的结果。商务谈判有口头谈判和书面谈判两种形式。口头谈判是通过参加商品交易会，派遣贸易小组，出国或邀请客户本国进行的面对面讨论，而通过国际长途电话所进行的商务讨论也属于口头谈判。IV. Case Study1 Answer: The law of the United States of America applies to this contract because: (a) this was a CIF contract; (b) the place of conclusion of the contract was in the USA; (c) the place of the execution of the contract was also in the USA. The seller completed this responsibilities after he delivered the goods at the port of the USA.2 Answer: This contract was not concluded effectively. Item 1 of Article 19 of the CISG indicates, A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection to the offer and constitutes a counter-offer. In this case, though Mr. Johnson accepted Mr. Andersons offer, his acceptance contained some additions to and modifications of the offer; for example, Mr. Anderson asked for telegraphic transfer, Mr. Johnson sent the money to the bank to be kept there. According to Item 3 of Article 19 of the CISG, alteration to the mode of payment is material one, thus Mr. Johnson might keep silent and reject the acceptance.3. 答：合同规定水分最高为 14% ，杂质不超过 2.5% ，从合同内容看，在这笔进出口交易中，双方以商品的规格作为表示商品品质的方法，并以此作为交验商品的依据，属于凭规格的买卖，只要我方所交货物符合合同规定的规格，我方就算已经履行了合同。但是成交前我方向对方寄送样品时并未声明是参考样品，签约后又电告对方成交货物与样品相似，这样对方就有理由认为该笔交易既凭规格又凭样品。而在国际贸易中，凡属于凭样品买卖，卖方所交货物必须与样品完全一致，否则买方有权拒收货物或提出索赔。因此，在这种情况下，我方很难以该笔交易并非凭样品买卖为由不予理赔。4. 答：卖方未按合同规定包装货物，应视为违反合同。买方向卖方违反合同包装条款的行为提出异议并要求赔偿是合理的。但是，买方以此为理由拒收货物是过分的要求。因为 公约第 50条第 1款规定：“买方只有在 （卖方）完全不交付货物或不按合同规定交付货物等于根本违反合同时，才可以宣告整个合同无效。”并且，第 25条规定：“一方当事人违反合同的结果，如使另一方当事人蒙受损害，以至于实际上剥夺了当事人根据合同规定有权期待得到的东西，即为根本违反合同。”然而，卖方在交货发生困难的情况下，及时采取了补救措施，只要所用塑料包装不对货物质量造成影响，这种补救措施可视为是合理的，虽然仍属违约行为，但并不构成违反合同，买方只能对塑料包装造成的运输、储存、装卸等方面的不便而发生的损失提出索赔，而不能拒收货物。V. V. Please fill in the Sales Contract according the letters between LONDON GREEN TRADE CORP. and GUANGDONG LIGHT ELECTRICAL APPLANCES CO. , LTD.售货合同SALES CONTRACT卖方：GUANGDONG LIGHT ELECTRICALSellers: APPLANCES CO. , LTDContract No.: 98SGQ468001Date: APR. 22, 2009地址：Signed at : GUANGZHOUAdress: 52, DEZHENG ROAD SOUTH, GUANGZHOU,CHINATelex: 0835Fax: 86-020-83556688Buyers: LONDON GREEN TRADE CORP.Address: ELITHERBERTH STR. AUTO P. O. BOX. 16, LONDONTelex:_Fax:_ This Sales Contract is made by and between the Sellers and the Buyers, whereby the sellers agree to sell and the buyers agree to buy the under-mentioned goods according to the terms and conditions stipulated below:(1) 货号、品名及规格Name of Commodity and Specifications(2)数量Quantity(3)单位Unit（4）单价Unit Price(5)金额 AmountDESK LIGHT J20110% more or less both in amount and quantity allowed9600PCSPCCIF LONDUNUSD3.00/PCUSD 28,800.00Total Amount USD 28,800.000(6) Packing: CARTON(7)Delivery from GUANGZHOU to LONDUN (8)Shipping Marks: N/M(9)Time of Shipment: Within 30 days after receipt of L/C. allowing transshipment.(10) Terms of Payment: By 100% Confirmed Irrevocable Letter of Credit in favor of the Sellers to be available by sight draft to be opened and to reach China before MAY 15,2009 and to remain valid for negotiation in China until the 15th days after the foresaid Time of Shipment. L/C advised by BANK OF CHINA GUANGZHOU BRANCH. TEX: 0835 GZBC. CN. ALL banking Charges outside China ( the mainland of China ) are for account of the Drawee.(11)Insurance: To be
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