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1、 General IntroductionChapter OneContents 1 1Define international trade.2 2The reasons for international trade.3 3Differences between international trade and domestic trade.4 4Classification of international trade.5 5The main procedures of import and export business.1.1 Definition of International Tr
2、adeInternational Trade / World Trade / Foreign Trade / Overseas TradeIt refers to the process of fair and deliberate exchange of goods or services between two or more countries, involving the use of two or more currencies. Besides, international trade concerns trade operations of both import and exp
3、ort and includes the purchase and sale of both visible and invisible goods.1. 2 Reasons for International Trade1) Resource reasons the uneven distribution of resources around the world 2) Economic reasons the theory of Comparative Advantage (相对优势理论） - developed by David Ricardo 3) Other reasons For
4、meet different consumption preferences For political objectives4)Benefits of International Trade Economic growth Cheaper goods or service Greater variety No country has all the commodities or services that it needs, so trade means countries can provide a wider variety of products for their consumers
5、 and thus help to improve the living standard of the people.Expand the marketEconomies of scaleReduce the costGet more profitCreate jobsEconomic growthThe importance of foreign tradeCreate jobsImprove living standardsImprove industrial competitivenessExport sales$100 millionNew jobs12,000costrange o
6、f goodsTechnologies/equipmentProduction efficiency1. 3 Differences between International Trade and Domestic Trade Language and Culture Laws, Rules & Regulation and customs Foreign currencies and Exchange rate High risks (political risks, commercial risks, financial risks and transportation risks) Ma
7、nagement skills1.4 Classification of International Trade From the direction of cargo flow From the number of participants involvedExport TradeImport TradeTransit TradeDirect TradeEntrepot TradeIndirect Trade According to the form of the goods According to the settlement instrument involvedVisible Go
8、ods TradeInvisible Goods TradeBarter TradeFree-liquidation Trade1.5 The main procedures of an export and import businessPreparations for transactionNegotiationSigning the contractPerformance of the contract Settlement of disputes (if any) Selecting the right market Finding the potential partner Stud
9、ying creditability of the partners Applying for export or import licensePreparations for transactionNegotiation of a Sales ContractI In wordsn words F Face-to-face negotiationace-to-face negotiationI In writingn writing C Correspondence negotiationorrespondence negotiationFour main steps1enquiry2off
10、er3Counter- offer4acceptancePerformance of the contractPreparing the goodsApplying for inspectionImplementing payment termsChartering a ship or booking shipping spaceTaking out insuranceMaking declaration to the CustomsSending out the shipping adviceMaking out documents for settlementExport tax repa
11、y备货申请检验落实支付条款租船订舱办理保险报关寄送装船通知制单结汇出口退税Export ProcedureInternational Organization in international tradeWTO World Trade Organization 世界贸易组织 ICC International Chamber of Commerce国际商会 MOFCOM Ministry of Commerce 商务部 IMF International Monetary Fund 国际货币基金组织 WB the World Bank Group 世界银行Learn by yourself C
12、ISG The United Nation Convention on Contract for the International Sale of Goods联合国国际货物销售合同公约 Incoterms 2010 International Rules for the Interpretation of Trade Terms 2010年国 际贸易术语解释通则 UCP600 The Uniform Customs and Practice for Documentary Credits No. 600 publication 跟单信用证统一惯例Learn by yourselfLaws a
13、nd Regulations Governing International TradeTo collect data on the foreign trade in China or Hebei or Baoding and make a PPT presentation.The theory of compartative advantage（比较优势理 论）: Individuals or nations trade because they have superior productivity in particular industries, and that they should produce and export goods for which they possess a comparative advantage and import others which other nations possess a comparative advantage for. - David Ricardo
