国际贸易英文讲义.doc

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1、Chapter 1 An Overview of International Trade1.1 International Trade1.1.1 Definition of International Trade 1 International TradeInternational Trade refers to the exchange of goods and services between nations. It is also known as foreign trade or overseas trade. 2 Difference between international tr

2、ade and domestic tradeThe fundamental characteristic making international trade different from domestic trade is that international trade involves transactions that take place across national borders. Special problems may arise in international trade, which are not normally experienced in domestic t

3、rade. These problems are listed as follows:International trade usually has to be conducted in foreign languages and under foreign laws and regulations. It is difficult to obtain information about the credit and financial standing of the possible dealing partners.It is often unavoidable to use foreig

4、n currency in international trade and exchange rate variations can be risky to international traders.Numerous culture differences may have to be taken into account in international trade. Risks levels might be higher in foreign market. The risks include political risks, commercial risks, financial r

5、isks and transportation risks.1.1.2 Why Nations TradeAlmost every nation of the world export goods to other countries. Likewise, almost every nation import goods from other nations. Why do countries of the world engage in international trade? Why are thy not self-sufficient, capable of living exclus

6、ively on the goods and services produced within their own borders? Various answers can be cited. In general, the reasons for international trade can be classified as resource reasons, economic reasons, and political reasons.Resources ReasonsSome nations of the world have certain conditions or resour

7、ces that provide them with a basis for international trade. Illustrations include the following:Favorable climate conditions and terrain. For example, Colombia and Brazil have just the right climate for growing coffee beans.Natural resources. If a country has an abundance of natural resources, it is

8、 common to find some of these resources being exported. Tin from Bolivia and oil from the Middle East countries are examples. On the other hand, among highly industrialized nations, the raw materials are often sold in finished form. For example, the United States sells its own iron ore in the form o

9、f steal products.Skilled workers. If a nation has a great many skilled workers, it can produce sophisticated equipment and machinery such as computers, jet aircraft, electric generators, etc.Capital resources, Another important factor in international trade is that of capital resources. These includ

10、e things such as plant, machinery, and equipment. Poor countries, of course, lack these capital resources and must rely heavily on manual labor in making goods for both domestic consumption and international trade.Favorable geographic location and transportation costs. Nations located near each othe

11、r tend to do more trading than those located thousands of miles apart.Economic ReasonsAnother reason why nations engage in international trade is to secure some kind of economic benefit. However, this gain will be obtained only if they produce and sell the right goods. In determining which goods the

12、se are, the business people of the country must understand two important principles: 1) absolute advantage, and 2) comparative advantage, which will be discussed in chapter 2 trade theories.Political ReasonsSome nations of the world trade with others for basically political reasons. For example, the

13、 former Soviet Union had trade with Cuba for two decades. Why? Because the Soviet wanted to support a government in the country that was in basic agreement with their political doctrine. The United States has traded with South Korea for a long time for similar reasons. In both cases, political objec

14、tives have outweighed economic consideration. The reverse is also true: nations often refuse to trade with others because of political disagreements.1.1.3 History of International TradeTrade between the peoples and countries of the world is as old as human historyLand and sea routes connected the fi

15、rst civilizations in Mesopotamia and around the Mediterranean：and the Phoenicians of the eastern Mediterranean traded metals，cedar wood，cloth，and animals across the sea as early as 3,000 BCOne of the most important land routes was the Silk Road, connecting China in the east with the Roman Empire in

16、the westSilks，gemstones，perfumes，and other luxury goods were carried along this route from 300 BC onwards，providing a direct link between two of the major civilizations of the worldThe European end of this route was controlled first by Constantinople (Istanbul) and then by the cities of northern Ita

17、ly，particularly Venice，which grew rich on the proceeds of this tradeIn the 15th and 16th centuries，the development of sea-going vessels and advances in navigation by the Portuguese and Spanish led to a vast increase in world trade, as European merchants sought out new markets in Africa and Asia and

18、brought back rare spices and other exotic goodsAll of the major European nations set up trading posts around the world which grew into colonies and eventually，between the 16th and 19th centuries，developed into land-based empires many times the size of their parent countries During the 18th and 19th

19、centuries，the Industrial Revolution transformed the British economy into the richest in the worldNew factories manufacturing cotton and other goods sprung up throughout the country，requiring raw materials from overseas to keep them suppliedThis led to a vast increase in world trade and established B

20、ritain as the worldS largest trading nationThe development of railways and steam ships enabled goods to be transported around the world in a fraction of the time achieved by sailing shipsA century later，most of Europe and North America were industrialized，leading to the dominance of the world econom

21、y by a few key nationsUntil the mid-20th century，trade was mainly in primary products，but today it is dominated by the import and export of secondary and tertiary products between industrialized nationsThe pattern of world trade has shifted in the 20th century as developed nations have set up their

22、own manufacturing plants in developing countries，where labor and manufacturing costs are much cheaperThis situation can be both helpful and harmful to the developing countryFor example，the new industry can create employment for the people living there，develop the infrastructure，and boost the economy

23、However，such a set-up can also be seen as explorative because wages are often very low，the majority of profits go to the manufacturer，and the situation often prevents the host country from developing its own manufacturing base，thereby increasing its reliance on expensive importsToday，tourism is all

24、increasingly important service industry in developing nations whose economies would otherwise be solely dependent on one or two primary productsAs these poorer countries become more profitable，they will have more money to invest in their own industries，and so the balance of trade will shift again，as

25、 it continues to reflect the fluctuating fortunes and needs of the nations of the world1.2 Basic Concepts of International Trade1.2.1 International Trade Classification1. Import vs. export As everyone knows, there are imports and exports in international trade, classified by the directions of the mo

26、vement of commodity traded. Buy in commodities from another country is import and sell out commodities to another country is export. Normally, every nations foreign trade comprises both imports and exports.2. Tangible trade vs. intangible trade International trade could be classified into the two ty

27、pes of tangible trade and intangible trade by nature of the commodity traded. 1) Tangible trade Tangible trade, also referred to as visible trade, is the international exchange of tangible goods. There are many varieties of goods being traded internationally. According to SITC (Standard Internationa

28、l Trade Classification), the international trade commodities could be classified into 10 categories as follows: food stuffs ( 0 ) ; beverages and tobacco ( 1 ) ; non-food items ( not including fuels ) ( 2 ) ; mineral fuel, lubricating oil and related raw material (3) ; animal and vegetable oils and

29、fats and wax (4) ; chemical industrial products and related products (5) ; finished products classified by raw materials (6) ; machinery and transportation equipment (7) ; other products (8) ; items of unclassified commodities (9). When we import/export the above goods, we have to carry out importin

30、g/exporting customs formalities and the goods should be checked by the customs. Therefore, such transactions are observable, i.e. visible. These tangible commodities have to be shipped from the exporting country to the importing country. In the history of international trade, the tangible trade has

31、taken the dominate role for a long time. Nowadays, tangible trade still represents a major share in international trade.2) Intangible tradeIntangible trade is the international exchange of intangible goods, such as service and intellectual property right. Such transactions can not be observed and re

32、corded by the customs, which is the reason why they are also termed invisible trade. Intangible trade is far more complicated than tangible trade and very much different from it.General Agreement on Trade in Services (GATS) defines the trade in services as: (1) services supplied from the territory o

33、f one party to the territory of another (for example, TV shows); (2) services supplied in the territory of one party to the consumers of any other ( for example, tourism) ; (3) services provided through the presence of service providing entities of one party in the territory of any other ( for examp

34、le, banking) ; (4) services provided by nationals of one party in the territory of any other ( for example, construction projects or consultancies)Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs) defines the scope of the intellectual property rights as follows: copyright, t

35、rademark/service mark, patent, trade secret and know-how, geographical indication, industrial design, layout design of integrated circuit, etc.3. Direct trade vs. indirect trade Direct trade means that the producing country sells the goods directly to the consuming country. To the producing country,

36、 it exports the goods directly and to the consuming country it imports directly. However, the goods may be shipped directly or indirectly from the producing country to the consuming country. If the goods are shipped through a third country, the third country is referred to as a transit country. To t

37、he transit country, such a transaction is transit trade and may be imposed a transit duty. In practice, transit trade will exist when inland countries trade with non-adjoining countries, for example, Mongolia trades with the United States.Indirect trade means that the producing country sell the good

38、s to a third country first and then the third country resells them to the consuming country. Respectively, to the producing country and the consuming country, such a transaction is indirect export and indirect import. To the third country, this is entrepot trade. Entrepot trade is usually carried ou

39、t by a middleman in the third country but the goods are shipped directly from the producing country to the consuming country in normal cases.1.2.2 Important Terms about International Trade1. Favorable balance of trade vs. unfavorable balance of tradeWhen a country exports more than it imports within

40、 a certain period (normally a year), it is said to have a favourable balance of trade (trade surplus). On the contrary, when it imports more than it exports, an unfavourable balance of trade (trade deficit) exists. Generally, most nations hope to have favourable balances of trade.Balance of trade is

41、 one of the most important compositions of current account of a nations balance of payment.2. General trade system vs. special trade system There are two systems of recording merchandise exports and imports in common use. They are referred to as general trade system and special trade system.General

42、trade system is a system under which statistic figures are collected based on the country territory. It covers all types of inward and outward movements of goods cross the country border. Special trade system is a system under which statistic figures are collected based on the customs territory. It

43、covers all types of inward and outward movements of goods through the customs territory. The two systems differ because of the difference between the country territory and the customs territory. Normally, the two territories are the same. But sometimes, the former may be larger than the latter. Many

44、 countries set up bonded warehouses and free trade zones which are in the country territory but out of the customs territory. Thus the customs territory is not as large as the country territory. In other special cases, the country territory may be smaller than the customs territory. For instance, as

45、 to the members of EU, such as France, German, Italy, and etc, they all have the uniform customs territory of EU which is much larger than their individual country territories.At present, more than 90 countries or regions adopt the general system, including Japan, Britain, Canada, USA, Australia, Ch

46、ina, etc. About 83countries or regions adopt the special system, including Germany, Italy, France, etc.3. Value of international trade vs. quantum of international tradeValue of international trade refers to the sum of the exports based on FOB prices of all nations within a certain period, and somet

47、imes it may be also called the value of world trade. It shall be distinguished from the term value of foreign trade which means the total amount of the import and export of a nation within a certain period.Quantum of international trade is the value of international trade without the influence of th

48、e factor of price fluctuations. It is calculated on the basis of the value of international trade within the same period by a statistical method. For example: in 1997, the value of international trade is $ 5,450 billion. Take 1990 as the base period, the price index in 1997 is 200%. Then the quantum

49、 of international trade is 5440/200% = $ 2720 billion.In the same way, the quantum of foreign trade is to be calculated on the basis of the value of foreign trade of the certain nation.4. The commodity composition of international tradeThe commodity composition of international trade is the constitution of all kinds of goods in world trade. As for an individual nation, the constitution of all