Chapter One International Trade
Teaching Objective:
After studying this chapter, students should:
■ Have a clear idea of the concept and characteristics of international trade,
■ Comprehend several basic concepts of international trade, such as Export and Import, Value and Quantum of Foreign trade, Balance of trade, Export/import/transit trade, tangible and intangible trade,
■ Familiarize the basic procedures of both Export business and import business.
Difficulties and Key points:
■ Several basic concepts of international trade
■ Basic procedures of export business
■ Basic procedures of import business
1. What is international trade?
QUESTION: Distinguish whether the following activities belong to the category of foreign trade:
(1) running man;
(2) two broke girl/ Pinocchio
(3) I bought an iPhone from H.K.
(4) A Chinese company pays for a German technician to come to China for the technical innovation of the company
(5) Jon, your foreign teacher, bought twenty vases in the supermarket
ANSWER: ALL OF THEM
DEFINITION:
■ All economic transactions that made between countries are referred to as international trade.
■ INCLUDING GOODS AND SERVICE
QUESTION: Is this international trade?
There are two Arabians who are you long-time business partners. One day, they get tired from buying products from you and ask you tell them the techniques of manufacturing. Is this international trade?
ANSWER: YES, it is international service trade
CASE STUDY:
(1)安提瓜和巴布达:
安提瓜和巴布达原为英属西印度群岛中的两个小岛,1981年11月1日宣布独立并成为一个联合国家,总面积170平方公里、人口约6.7万。由于其传统旅游业在20世纪90年代受到一系列飓风冲击,该国政府开始建立主要通过因特网提供“远程”博彩服务的赌博业,作为该国经济发展战略的重要组成部分。目前,安提瓜是世界上提供网络赌博最活跃的国家之一,该行业大约1/4的服务是由设在安提瓜的网络公司提供。1999年,提供网络赌博服务带来的产值占安提瓜国民生产总值(7.5亿美元)的10%,而该国政府每年2亿美元的财政收入中,约1/6来自网络赌博行业。
(2)中国电信:
■ 正当美国及欧盟这些发达成员在觊觎中国电信业这块大蛋糕之际，中国的企业已凭自身的力量，在东盟国家电信服务贸易中率先发展起来。早于2004年，华为技术在总裁任正非的率领下，走进东盟国家文莱，承建全球最大的商用NGN（下一代网络），用户人数达12万。另外中国电信已与缅甸、印度尼西亚等国家展开国际电信合作谈判，加快建设东盟国家湄公河次区域国际通信中心，2006年11月在APEC峰会期间，中国联通分别与越南河内电信、越南电信签署CDMA商务合作备忘录及合作与业务协议，中国电信运营商走向东盟之路已经开启。在中国与东盟10国签署的——中国与东盟自贸区《服务贸易协议》，马来西亚、菲律宾、越南、老挝、缅甸、柬埔寨六国均承诺向中国开放电信市场，承诺包括允许中方设立独资或合资企业，放宽设立公司的股比限制等内容。《协议》将于2007年7月1日起正式生效。按照现时局面，预计电信业将会是首批受惠中国与东盟自贸区《服务贸易协议》的中国企业。
(3)中德工业服务区
截图ppt第7，8，9，10页，插入在此处
2. Reasons for international trade:
(1)Resource Acquisition (寻求资源)
e.g.
blueberries from south America
irons from Australia
woods from Amazon
toilet lid from Japan
(2)Benefits Acquisition (追求利润)
QUESTION:
Why does international manufacturers move their factories from China to Sri Lanka, Indonesia, and other South Asian countries?
ANSWER: For acquiring more benefits.
(3)Diversification (多种经营)
QUESTION:
Why should Wuliangye(五粮液) buy French Vineyards and Chateaux?
ANSWER:For diversification
(4)Expand sales（扩大销售）
佛山几乎所有产业
3. The characteristics of international trade
■ Affected by the foreign trade policy, trade measures and foreign exchange control of the countries concerned
■ 既是经济活动也是涉外活动
■ The application of laws for the protection of international trade is complicated
■ 跨国交易，文化不同，法律体系也不同
■ The quantities and sums of the international trade are large and long time is needed
■ 大宗交易，线长面广
■ More risky disturbed by international situation, the change of market conditions, etc.
■ 具有不稳定性，面临的风险比国内贸易大
4. Some Basic concepts of international trade
(1) export
(2) import
(3) reexport
without any processing of the imported products
***from the perspective of B country
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EXAMPLE:
a. from Japan to Singapore to Egypt (from the perspective of Singapore)
b. from China to Japan to China (from the perspective of Japan)
COMPARISION:
export processing(If processing conducted in B country, it can be considered as an import from A country plus an export to C country, or export processing)增加价值
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CASE STUDY:
自由贸易区
海关保税仓库
本国化商品
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(4)reimport
CASE STUDY:
■ 我方向西欧某国出口电冰箱，货抵买方后，以货物型号不对，遭卖方拒付。我方只好安排将货物运回中国，并自己承担损失。
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■ from China to Japan to China (from the perspective of China)
■ Louis Vuiton
■ my Harrods bear
(5) Value of foreign trade and Quantum of foreign trade
VALUE OF FOREIGN TRADE:
进出口总额=进口总额+出口总额
QUANTUM OF FOREIGN TRADE
进（出）口贸易量=进（出）口额/ 进（出）口价格指数
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(6) Balance of trade
favourable trade=active trade balance=export surplus=simply trade surplus
unfavourable trade=adverse trade balance= import surplus=simply trade deficit
QUESTION:
According to the table on the ppt/screen, distinguish whether China is in favorable trade or not? How about USA?
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ANSWER:
China—favourable trade
US——unfavourable trade
***(7)Classification of international trade
1.4.5.1Export trade, Import trade and Transit trade进口贸易、出口贸易和过境贸易
COMPARISON:
export/import trade v.s. export/import
ANSWER：
export/import trade emphasizes on the trade activities itself
***transit trade emphases the necessity of the PASSAGE of goods through the third country
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Question：
WHY do we need to use transit trade?
• countries with lower tax or tax free
• free trade zone between a few countries
• natural geographic passage, such as Malacca马六甲
1.4.5.2 Tangible trade and Intangible trade
1.4.5.3 Direct trade, Indirect trade and entrepôt trade直接贸易、间接贸易和转口贸易
DIRECT TRADE：without transshipment via any other countries
INDIRECT TRADE: executed indirectly through a third country (IN ANOTHER WORD: involvement of a third country!)
INCLUDING:
transit trade 过境贸易
entrepot trade 转口贸易 （including direct shipment or re-export ）
etc.
***COMPARISON
TRANSIT TRADE:B country as a passage过境贸易
In transit trade, a country can benefit through transit duties, i.e. the Panama Canal, Malacca(singapore)
Japan—Singapore(only passage, only transit duties, only shipping labour)—Egypt
ENTREPOT TRADE: a trade is conducted via A THIRD COUNTRY
MODAL A:Japan—Singapore(“I wanna do the business!”)—Egypt
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MODAL B: Japan—Egypt (trade is done by Singapore)
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QUESTION: How can a B country benefit from “reexport” or “entrepot trade”?
CASE STUDY: How did H.K. make its fortune during the 1970s and 1980s? And why did its economy go downward from the 1990s?
ppt40页
板书：
欧洲—内地：
每件8元，关税50%，每件衣服直接进口=8+8*50%=12
一万件衣服
12*10000=120，000
欧洲—香港—内地
每件8元，佣金25%，关税0%，每件衣服间接进口=8+8*25%=10
一万件衣服
10*10000=100，000
benefits:
欧洲：没变化
内地：120，000-100，000=20，000 省两万元
香港：8*25%*10000=20000 赚两万元
5. Basic Procedures of Export Business
6. Basic Procedures of Import Business
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