国际商务英语课文电子版lesson
国际商务英语课文电子版lesson (19)
Lesson 19Foreign Direct Investmentis the major form of international investment, whereby (through FDI)residents of one country acquire 获得assets in a foreign country for the purpose of controlling and managing them. Why does FDI occur? An instinctive本能的answer to the question by many people may be that the rates of investment returns(投资回报率)are higher in a foreign country. This answer, though seemingly似乎plausible似乎有理的, is actually farfetched 牵强的.Just think of the fact that Britain is both a major source of FDI in the United States and an important destination for FDI from the country. We cannot say the rates of investment returns in the United States is at the same time higher than those in Britain (which explains investment into it) and lower (which justifies说明…的理由capital flow to the opposite direction).我们不能说,因为美国的投资收益率高于英国的投资收益率,所以资金流向美国。
国际商务英语课文电子版lesson(12)
国际商务英语课文电子版lesson(12)Letters of credit fall under several categories depending on their function, form and mechanism. Here are the major types of credit:1. Clean credit and documentary credit: Credits that only require clean draft, i.e. draft not accompanied with shipping documents, for payment are clean credit. They are generally used in non-trade settlement(非贸易结算)or in payment in advance by means of the L/C. Most of the credits used in international trade aredocumentary credits, i.e. credits that require shipping documents to be presented together with the draft.2.Revocable credit and irrevocable credit: This classification is based on the certainty确信of the commitment承诺to pay on the part of the applicant and the issuing bank. The credit is a revocable one if such commitments can be altered (改变)or even canceled(取消)without consulting with the beneficiary. It is quite obvious that the exporter has little assurance保证to get payment,and therefore this type of credits are rarely used. Irrevocable credits are those that cannot be amended (revised修改)or revoked(取消)without the consent(同意)of all the parties concerned. Safe and reliable, this type is extensively(widely)used in world trade. It must be noted that if there is no specific indication whether a credit is revocable or irrevocable, it should be regarded as irrevocable.3. Confirmed credit and unconfirmed credit: If a credit is confirmed by abank other than(除…之外)the issuing bank, it becomes aconfirmed credit. The confirmation is undertaken 承担either by the advising bank or by another leading bank. Under a confirmed credit, the beneficiary is given double assurance of payment 双重付款担保since the confirming bank has added its own undertaking承诺to that承担of the opening bank. If the credit is not confirmed by another bank, it is an unconfirmed letter of credit. Though a confirmed credit isconsidered to be able to provide the greatest degree of security to the beneficiary, it involves additional cost as a result of the confirmation. Therefore if the establishing bank is a reliable prime bank, confirmation may not be necessary.4. Sight credit and usance credit: A sight credit is one by which payment can be made upon presentation of the draft and impeccable documents by the beneficiary to the bank. It gives the beneficiary better security and helps him speed up his capital turnover. 资金周转Most of China’s export contracts stipulate for sight credit in payment terms. Obviously, a sight credit calls for a sight draft.It is also clear that this type of credit requires a usance draft. If the beneficiary wishes to get payment before the maturity到期of the draft, he can ask the bank to discount贴现the acceptance, and immediately pay him the net proceeds净收益(net position 实际头寸), i. e. the face value 面值of the draft minus 减去the discount charges收费.5. Transferable credit and non-transferable credit: If a credit can be transferred by the original beneficiary to one or more parties, it is a transferable credit. The original beneficiary is called the first beneficiary and the party (or parties) the credit is transferred to is called the second beneficiary. It is usually used when the first beneficiary is a middleman and does not supplythegoods himself. A credit can be transferred only once. But transferring a credit to more than one party at the same time is allowed provided partial shipments are permitted. If a credit does not specify whether it is transferable, it should be regarded as a non-transferable document according to the credit stipulation.6. Non-draft credit: There is a modern tendency for payment to be made by presentation of the documents without the formality ofdrawing and presenting a draft. Such credits are non-draft credit. They mainly include payment credit and deferred payment credit which are respectively similar to sight credit and usance credit with the difference that no draft is drawn and presented in the case of non-draft credit.7. Revolving credit: If a credit stipulated that its amount can be renewed更新or reinstated恢复without specific amendment to the credit being made, it is then a revolving credit. It is particularlyuseful when the buyer and seller have regular trading relationship and deal in a specific quantity of goods each month or any particular period of time.It has already been mentioned that the letter of credit has greatly facilitated便利and promoted international trade. However, like any other methods (mode) of payment, it is not perfect. It cannot provide absolute security for the contracting parties. The seller may sustain losses 蒙受because of the buyer’s delay even failure in the establishment of credit开立信用证. The buyer may suffer losses as a result of the documents presented by the seller which do not truly represent the goods shipped. And it is not absolutely avoidable that thebank may become insolvent破产的or bankrupt. Besides, it is more expensive to use the letter of credit than remittance or collection as the bank will charge 收费its client for all the services it provides. So the letter of credit may not be the most ideal(best)method of payment for a particular transaction, and the contracting parties should make their best choice according to the specific conditions.。
国际商务英语课文电子版lesson (21)
Lesson 21WTO and ChinaAfter 15 long years of hard negotiations, China became a formal member of the World Trade Organization on Dec. 11, 2001. People may wonder whether it pays(值得be worthwhile) for China to devote such a lot of time and efforts for accession to加入the organization. So some knowledge about the WTO as well as the opportunities it provides and the challenges it poses to China is quite necessary.The origin of the WTO can be traced back to(date back) the early post World War II years. To guard against the threat of trade wars, major trading nations sent their representatives to Havana in 1947 to create an International Trade Organization for the promotion of international trade. That objective was, however, not realized for controversy(争议)over the extensiveness of the powers of the proposed ITO(拟成立的ITO)(这一目标由于对拟成立的ITO 的权力广泛性有争议而没能实现), mainly for the refusal by the UnitedStates to ratify(批准approve by signing)the charter of the stillborn organization. Nevertheless,the General Agreement on Tariffs and Trade(GATT) was formed as a conduit(channel渠道)for multilateral negotiations on a variety of international trade issues.Headquartered in Geneva, GATT provides a framework within which international negotiations are conducted toward creating global trade rules and a consultative mechanism for resolving differences and settling disputes under those rules. It alsoprovides technical assistance to developing countries in the form of seminars and training courses on trade policy issues.T he general aims of GATT are the improvement of standards of living, full employment, a large and steadily growing volume of real income and effective demand, the full use of the world’s resources, and the expansion of production and international trade. It is the specific task of GATT to contribute to the attainment of these objectives through arrangements directed to the substantial reduction of tariffsand other trade barriers and to the elimination of discrimination.Initially, GATT consisted of only three basic parts. In part 1 the basic obligations which are to be fulfilled by the contracting parties are laid down —the most-favored nation clause and the schedules of tariff concessions.In the years followed, the text of the General Agreement was revised, numerous amendments were reached relating mainly to the expansion of exports of less-developed countries and a part 4 was added. In the new part, thecontracting parties agree that the attainment of the general aims is particularly urgent where less-developed countries are concerned. In the interest of the less-developed countries, endeavors (efforts) must also be made to ensure the stabilization of commodity prices, better access to the markets of the developed countries, and the diminution 减少of the burdens which the developing countries assume承担in the interest of their economic development.The Generalized System ofPreferences (GSP) is meant to assist developing countries in their economic development efforts. It was established in 1968 after years of endeavors by developing countries in the UNCTAD and the GATT. Under the system, developed countries grant (give) developing countries favorable lower tariffs without granting them to developed members. And the developing countries do not have to reciprocate (exchange; give in return) such favorable treatment to the developed countries. So the GSP is an important exception tothe non-discriminate principle of MFN.A number of tariff negotiating conferences were held under the auspices of GATT during the course of the years GATT was functioning. Altogether 8 rounds of protracted yet fruitful multilateral trade negotiations were held since GATT entered into force in 1947 till the end of 1993 when the last round, the Uruguay Round finally concluded. The cumulative effect of the 8 rounds realized substantial reduction of tariffs. Tariff rate by the developed countries fell from anaverage of over 40 percent to about 3 percent in 1995.Despite GATT’s success in coordinating international trade policy, it is only an interim body without a fully defined institutional structure and with little legal enforcement power. So a big decision was made at the last Round to establish a permanent organization, the World Trade organization, to take the place of GATT.On January 1, 1995 the WTO established on the basis of the document signed before theconclusion (完成) of the Uruguay Round by the ministers of 97 countries started its operation and began its administrative work, taking over all the unfinished work left by GATT and continuing to carry out the agreements reached during the Uruguay Round. Being a new, improved replacement of GATT, the WTO is a permanent international organization to which all the members of GATT automatically become members. It is the organization’s aim to facilitate the creation of an optimal environment for international tradeand further strengthen the multilateral trading system.The WTO has three major objectives: 1. To promote free trade by encouraging members to adopt nondiscriminatory歧视, predictable trade polices; 2. To further reduce trade barriers through multilateral negotiations; 3. To establish more effective trade dispute settlement procedures.Instead of being a mere replacement of GATT, the WTO differs from its predecessor/ successor in several prominent dimensions (aspects). Firstly, as thename suggests (indicates), the GATT is only an agreement, or more exactly an interim secretariat, rather than an organizational entity in the true sense, while the WTO is a full-fledged (机构完善的) permanent organization, with the biennial ministerial meeting as its supreme decision-making body, affording it more political clout (influence) and a higher international profile (image). And its subsidiary bodies specialize in different areas. Secondly, the WTO has a much broader mandate. In addition to promoting commoditytrade which used to be the focus of GATT, the WTO is also responsible for service trade, international intellectual property protection a nd trade-related investment. Thirdly, the WTO has far greater enforcement powers. Unlike GATT,the new organization has a clearly defined dispute settlement mechanism. Its verdict is binding (有约束力的)on all its members. In this respect, the WTO is akin to (similar to)an international court of justice for world trade with the institutional strength and legal mandate (power) to implement itsdecisions.China’s efforts to gain accession to the WTO can be divided into two periods. During the GATT days, China made strenuous endeavors for the restoration (恢复) of its status as a contracting party. Though the goal was not realized, the work laid some foundation for negotiations in the second period after the WTO came into being. At the turn of the century when China was on the threshold of the WTO, the pros and cons of entry into the organization was a subject of topical interest.There were worries as well as great expectations. Now that three years have passed since China’s accession to the WTO, it is time to review China’s performance as a WTO member.As a responsible large nation, China has been doing a lot in honoring its commitments兑承诺for entering the WTO. In a short span of three years, China amended over 2300 laws and regulations of which over 800 were abolished. The overall tariff level was lowered from about 40% to 10.5%. Non-tariff measures including quotaand import license were removed step by step. The sector of service trade has been opened further and protection of intellectual property right considerably strengthened. All these efforts have produced positive results both for the other members of the WTO and for China itself who has made good use of the opportunities offered by the organization.China’s total volume of import and export doubled from 500 billion US dollars in 2001 to over 1.1 trillion US dollars in 2004, ranking the third in the world, onlyafter the United States and Germany. For three consecutive years, the country remained the largest recipient(destination)of foreign direct investment with the average yearly figure exceeding 50 billion US dollars, showing the improvement of its investment environment in line with 符合the requirement of the WTO. Contrary to the worry of some people that there would be trade deficit after entry into the WTO, China still enjoys a favorable balance of trade of 12 billion US dollars. And China’s foreign exchange reserveincreased to 550 billion US dollars, being the second largest foreign exchange reserve next only to that of Japan. The sensitive industries liable (likely) to the impact of the WTO entry such as agriculture, automobile, retail business, banking, insurance, and telecommunication all registered (获得) encouraging development.Despite all the achievements, China still faces big challenges. The first is the protectionist measures prevalent in some countries that place various barriers to trade. They intensified 加剧的anti-dumpingand countervailing measures to restrict the export expansion of other countries. Among the anti-dumping investigations, as many as 380 are directed(targeted)against China, constituting about one seventh of the total, making China the largest victim of such investigations. With the complete removal of textile quotas from January 1st 2005, antidumping investigations against China will be further intensified, and we must get mentally prepared and endeavor to reduce the negative effects.The second is the increasingcompetition faced by commercial banks and insurance enterprises from their foreign counterparts. The foreign banks already enjoy national treatment in China and they have offered over 100 items of services, tripling those by domestic banks. From Dec. 1st 2004, the number of cities where foreign banks are allowed to handle Reminbi business for enterprises increased from 13 to 18. And from 2006 Reminbi business for individuals will also be open to foreign banks. As for foreign insurance companies, all thoseentering the Chinese market are well-known enterprises with a long history and rich experience, constituting formidable competition against domestic insurance companies.The third is the challenge faced by agriculture. China committed itself for entry into the WTO not to provide any export subsidy for its agricultural produce, and ultimately lower its import tariff for farm produce to about 15%. Tariff quota will be applicable to the import of bulk produce, but the quotas are fairly large and thetariff rates within the quotas are as low as 1% to 10%. All those form great pressure on China’s agricultural production and market.。
国际商务英语课文电子版lesson (15)
Lesson 15 InsuranceA brief survey of insurance literature(文献,图书资料) reveals (shows, indicate) differences of opinion concerning how the term should be defined. In whatever way the term is defined, insurance is a social device(mechanism机制)in which a group of individuals transfer risk (转移风向)and provides for payment of losses from funds contributed by (devoted by, given by) all members who transferred risk. Those whotransfer risk are called insureds/assured. Those who assume (承担)risk are called insurers/underwriter/insurance company.Insurance is a risk transfer mechanism, whereby the individual or the business enterprise can shift (transfer) some of the uncertainty (不确定性) of life onto the shoulders of others. In return for a known premium(保费), usually a very small amount compared with the potential loss,the cost of that loss can be transferred to an insurer. Without insurance, there would be a great deal of uncertainty experienced by an individual or an enterprise,not only as to(about) whether a loss would occur, but also as to what size it would be if it did occur.For example, a house-owner will realize that each year several hundred houses are damaged by fire. His uncertainty is whether in the coming year his house will be one of those damaged, and he isalso uncertain whether, given that (假如) he will be one of the unlucky ones, his loss will amount to (reach 达到)a hundred dollars or so for the redecoration of his kitchen or whether the house will be gutted and cost him thousands of dollars to repair. Even though the probability of his house becoming one of the loss statistics is extremely low, the average house-owner will nevertheless select to spend, say $50 to $60 on house insurance, rather than facethe extremely remote(very unlikely) possibility of losing a house worth $200 000.In the case of business enterprises, the values exposed to loss(likely to suffer loss) are usually much higher, and the premium charged(paid) is likely to be substantially (very much) higher than that for a house. Even in those circumstances the majority of (most of)firms prefer to pay a known cost or premium for the transfer of risk, rather thanface the uncertainty of carrying the risk of loss.The insured’s premium is received by the insurer into a fund or pool for that type of risk, and the claims of those suffering losses are paid out of this common pool. Because of the large number of clients in any particular fund or pool the insurance company can predict, with reasonable accuracy (precision), the amount of claims likely to be incurred in the coming year.There will be some variation(difference) in claims costs from year to year and the premiums include a small margin (remainder 剩余) to build up a reserve (储备) upon which the company can draw (提取)in bad years.The main stimulus (motive 动机) to enterprise is the release of funds (腾出资金), now available for investment in the productive side of a business, which would otherwise need to be held in easily accessible reserves(留作随时可用的储备金)if the firm had nottransferred the risk to an insurer. Medium and large firms would probably create reserve funds for emergencies (应急储备金)which might put their whole future viability(surviving capability) in jeopardy(put … in danger). The premium payable (应付的保险金) to an insurer, however, would only be a small proportion of the fund (reserve funds for emergencies)required because of the pooling arrangements (共同基金的设立), and so most of this money could beinvested in new plants, buildings or stock.In overseas trade the geographical gaps(distance between port of shipment and port of destination) are great(地理间距大), and the transport (is) multi-modal–that is to say, we must combine road, rail, sea and air in almost all cargo movements to some extent. Similarly the time lag (time between production and consumption) is great(时间间隔长) between production andconsumption. In bridging (connect or reduce the distance between) both the geographical gap and the time gap serious risks have to be run (当跨越这些地理间距和时间间隔时要冒很大的风险). And it is in this framework that the insurance underwriters (保险商,承诺支付者)operate to carry the risks which otherwise would have to be borne(bear负担)by the producers.Cargo insurance is one of themain branches of insurance. These are usually listed as fire, marine, life and accident. The term “marine (insurance)” used to refer to the insurance of ships and their cargoes. Today the movement of cargoes is frequently effected (carry out; done) partly by other modes of transport(运输方式). Where cargo is concerned, “transportation insurance”seems a better term to use today than marine insurance. Goods do not go overseas solely(only) by sea –airtransport takes an increasing share of cargo these days. Similarly export cargo moves to the docks by road, rail and inland waterway (内陆水道), while import cargo moves to the hinterland in the same way.Cargo insurance therefore is an activity (which is) aimed at moving(remove) the burden of risk from the shoulders of the exporters and importers, and placing (putting) it upon the shoulders of specialist (具有专门知识的) risk-bearing underwriters. The important point to realize about transportation insurance is that it is “the handmaiden (侍女) of commerce”(serve commerce 为商业服务). Trade would not cease (stop)if there were no method of insurance available, but the losses would be suffered by those who were unfortunate(unlucky), and not shared out equally among all traders. By paying a premium into an insurance pool, the assured earns the right to claimcompensation (索赔) from the pool should he suffer loss (if he should suffer loss). He does not want to “scoop the pool”(get money from the pool - claim) – he would prefer his cargoes to reach their destination safely –but being insured he feels easier (安心的;无忧虑的) about trading: his risks are covered to some extent at least. Cover – v. 对…进行保险:Insurance companies try to persuade them to cover themselves against fire.保险公司试图劝说他们保火险。
国际商务英语课文电子版lesson (9)
The bulk of (most of)international trade is done in the general mode of buying and selling of goods and services by means of money and the market. Under specific conditions, however, special modes of transactions may be adopted (used) to better realize one’s business purposes. Among them, counter trade and its variants (different forms) are perhaps the most popular modes of trade.Counter trade is a peculiar form of transaction allegedly (据说) popular in less developed countries and in centrally planned economies(中央计划型经济). It has become the generic term to describe a set of cross-border contracts that link a seller’s exports to imports from the buyer, and it is often associated with policy objectives of relevant economies like dealing with foreign exchange shortages and promotion of exports(扩大出口).MethodologyMathematicsphotographThe terminology counter trade employed (used) today can be traced to(date back) the pre-World War II years when normal trade relationswere breaking down (Great Depression). Following German hyperinflation,competitive devaluations (竞争性贬值)and protectionism meant a global collapse in trade and in international financial and banking markets. Unwilling to see Germany cut off from its traditional raw material supplies in the Balkans(巴尔干地区), the Reichsbank agreed to the establishment of a clearing system (清算系统)that settled(结算)only net positions (实际头寸)- and only once a year - a measure that permitted traditional trade flowsbetween Germany and the Balkans to continue. These arrangements were called compensation trade. Another term used in the context of such bilateral clearing operations was “counter trade”. During and after World War II, when financial markets were in disarray(in disorder), Britain used similar bilateral arrangements, as did Western Europe when setting up the European Payment Union. Subsequently (later) the countries of centrally planned economies copied such clearing systems and used them among themselves and also in tradewith neighboring countries like Finland. Conceptually, all these arrangements are trade credit accounts (贸易信贷往来账户) between familiar trading partners exchanging unrelated goods.In the 1970s and 1980s counter trade was different from the old practice although some similarities(likeliness)remained. Current counter trade partners are not necessarily familiar partners and goods exchanged are sometimes vertically related. Current counter trade can be categorized as follows: Barter(易货贸易): The directexchange of goods and services which is completed in a short period of time, e. g., an exchange of frozen lamb from New Zealand for Iran crude oil.Counter purchase(互购贸易;反向购买): The assumption(assume 承担)by an exporter of a transferable obligation through separate but linked contract to accept as full or partial payment goods and services from the importer or importing country. The contract is usually stipulated to be fulfilled within a given period of time, e. g. , 5 years, and the goods or servicesreceived in return are usually pre-specified in a list and are subject to availability and changes made by the original importing country. In essence, then, counter purchase is an inter-temporal direct exchange of goods and services. For example, in 1977 V olkswagen sold 10,000 cars to the former East Germany and agreed to purchase goods from a list set up by the importer over the next 2 years, up to the value of the cars sold to the former East Germany.Buyback:(回购)An agreement by an exporter of plant and equipment(成套装置和设备)to take back in the future part of the output(产品)produced by these goods as full or partial payment. The important difference between counter purchase and buyback is that in buyback the goods and services taken back(buy back)are tied to (捆绑) the original goods exported whereas that is not the case in counter purchase. Another important difference is that a buyback deal usually stretches over (cover; extend 延伸) a longer period of time (as long as 15 to 20 years) than a counter purchase deal. For instance, the Xerox Corporation sold to Chinathe plant and technology for the production of low-volume photocopying machines, and contractually committed to repurchase a very large portion of the photocopy machines produced in the Chinese plant.The intriguing (interesting) features common to barter, counter purchase, and buyback is “bundling (捆绑)”: the exchanges of good s and services are bundled together (the exchanges are implemented either concurrently同时or inter-temporally不同时). In normal market transaction buying andselling of goods and services is unbundled (不捆绑), an arrangement made possible by the use of money and the “market” as an institution (手段). Thus, an individual can sell goods and services to obtain monetary income and can then use the income for other desired goods and services. Such unbundling greatly facilitates(便利;促进)transaction and allows more efficient economic exchanges.While counter trade does not represent an extreme form of bundling, and money as a unit of account(记账单位)is not totallybypassed - in many counter trade deals, only a fraction of (a small part of) the initial (最初的) purchase is paid for in goods and services - the question remains why a significant (quite big)part of the buying and selling of goods and services should be bundled together.The impression one gets is that bundled trade takes place where the market institution(system) is imperfect. It can be said to generally take place between mature market economies and economies with a less sophisticated(mature)market system. Under such circumstancethere are several presumed (被公认的) advantages in counter trade:1.Counter trade is implemented (carry out) because it helps a country to deal with foreign exchange shortages.2.Counter trade can be used to promote exports.3.Counter trade can be used to reduce uncertainty regarding export receipts. (income, earnings)4.Counter trade is used to bypas s (避开) an international price agreement like, for example, that of OPEC (cartel).5.Counter trade may help thosenations with serious debt problems (debtor nation 债务国)to continue to import goods while, in effect, conceal ing (隐瞒) export earnings from creditors (债权人).However, counter trade can be very risky business. By conceal ing the real prices and costs of transactions it may conceal and help perpetuate(使永久存在)economic inefficiencies in the market place. Companies may suffer losses because they could not get rid of (sell)products of poor quality. Finally, counter trade may be considered as a form ofprotectionism.Among other modes of trade are processing trade, consignment, leasing trade, agency etc.。
国际商务英语课文电子版lesson (17)
Lesson 17 The International Monetary System and ExchangeRateThe earliest internationalchange their paper currencies into gold when requested to do so. The gold standard created a fixed exchange rate system as each country pegged (fix挂钩) the value of its currency to gold to establish its par value (平价/票面价值) (face value). For most of the 19th century till the end of the First World War,major trading countries followed this system and the British Pound was the most important currency in international business as a result of the economic, political and military power of the United Kingdom, hence the term sterling-based gold standard. (pound sterling)The pressure caused by the First World War on economy coupled with(together with连同) the impact of the Great Depression (大萧条)put an end to(结束)the fixed exchange rate system. The Bank of England was no longer able to redeem (赎回,兑换)itspaper currency for gold at par value(以面值) (无力将其纸币以平价兑换成黄金) and allowed its value to be determined by supply and demand (market). With Britain abandoning (放弃)the gold standard, there appeared different areas in the world. Some countries pegged their currencies to the sterling(英镑), some countries to the US dollar and some to the French Franc, forming the “sterling area”, “dollar area” and “franc area”. This period witnessed the degeneration(衰落)of the international monetary system as some major countries vied(vie -compete)to(竞相)devaluate their currencies to make their export goods more competitive.(竞争性贬值) (这一时期,世界货币体系不断恶化,各主要贸易国家竞相将其货币贬值以提高他们出口物品的竞争力) The be nefits brought about by their devaluation were, needless to say (不用说), offset(抵消)by what their competitors did. International trade con t racted (shrink收缩) and economic conflict finally led to the Second World War.Towards the end of the Second World War (1944) representativesof 44 countries gathered at Bretton Woods (布雷顿森林)to renew(更新)the gold standard on a greatly modified basis(在修改较大的基础上). One important fruit of the conference is the creation (establishment创立) of the International Bank for Reconstruction and Development (IBRD)and the International Monetary Fund. (1944)The Bretton Woods Conference established a US dollar based gold standard. Because of the dominating (主导性的) economic and political influenceof the United States, the dollar replaced the sterling(英镑)as the major vehicle(工具)for international settlement(国际结算). 由于美国在国际经济、政治中的统治性影响,美元替代英镑成了国际结算中的主要工具。
国际商务英语课文电子版lesson (13)
One of the major differences between domestic trade and foreign trade is documentation (单据的使用). Every shipment must be accompanied by a number of correct documents. If they are not the correct ones, the importer will have difficulties in taking delivery of 提货the goods, and delays caused by incorrect documentation may affect future business relations between the trading partners. In the case of documentary letter of credit, any discrepancy不同, even in minordetails, between the documents presented and those specified in the credit may lead to refusal by the bank to make payment. Different documents are required for different transactions, depending on the nature of the deal, the term of delivery, the type of commodity, stipulations of credit, regulations and practices in different countries, etc. However, most transactions require the following major documents.The commercial invoice:Generally called “the invoice” forshort, this document is the general description of the quality and quantity of the goods and the unit and total price. It constitutes the basis on which other documents are to be prepared制作, and the banks check the conformity between credit terms and documents 单证一致and the conformity between the documents单单一致. A commercial invoice normally include the following contents: Invoice number and the date; name and address of the buyer and the seller; contractnumber and credit number; description of the goods including name of the commodity, quantity, specifications, etc.; unit price, total price, price terms, and commission and discount if any; terms of delivery and terms of payment; packing, shipping marks唛头, etc.; and seal or signature of the exporter. It should be noted that the description of the goods in the invoice must comply with the credit while in other documents the goods can be described in general terms,and that the total invoice value should not exceed the total amount of the covering(适用的)L/C.The packing list (is a document that)gives information such as the number, date, name and description of the goods, shipping marks, packing, number of packages, specific contents of each package and its net weight and gross weight etc. Sometimes the credit stipulates for specification list规格清单which is similar to the packing list but emphasizes the description of thespecifications of the goods.The weight list, weight note, or weight memo are also similar to the packing list in content and function but emphasis on the weight of the goods and are generally used for goods which are based on the weight for price calculation.The Bill of lading is one of the most important documents and has three major functions: 1. It serves as a cargo receipt signed by the carrier and issued to the shipper or consignor; 2. It constitutes acontract of carriage(transport)between the carrier and the consignor; 3. It is a document of title 所有权to the goods,and the legal holder 合法持有人of the bill of lading is the owner of the goods it covers.The major contents of the bill of lading include: 1. the carrier, i. e. the shipping company; 2. the shipper or consignor, it is normally the exporter; 3. the consignee收货人. It is generally either the importer or made out “to order”; 4.the notifyparty, i. e. the party to be advised通知after arrival of the goods at the port of destination. It is often the agent of the consignee or the consignee himself. 5. a general description of the goods including the name, number of packages, weight,measurement 尺寸etc. 6. shipping marks; 7. the port of shipment and the port of destination;8. the freight运费, for CIF and CFR it should be “freight prepaid”, or “freight paid”, for FOB it should be “freight to collect”, or “freight to bepaid”, or “freight payable at destination”. 9. the place where the bill of lading is issued; 10. the date when the bill of lading is issued which is regarded as the time of shipment交货时间(time of delivery) and can by no means (never) be later than that stipulated in the credit.There are quite a few types of bills of lading classified in several ways. However, most letters of creditlading”.one which states (indicate) that the goods have been shipped in apparent (表面上) good order and condition. It is meant that the document is devoid of没有any qualifying remarks 批注性话语concerning the packing and the outer appearance of the goods. And the carrier admits full liability承担全部责任for the goods described in the bill of lading and is bound to有责任carry the goods and deliver them in like (similar) condition in which he hasreceived them.Traditionally, this has been the only acceptable type to be presented by the seller under the term CFR and CIF.The document similar to the ocean bill of lading海运提单is called airway bill for air transportation and railway bill, cargo receipt etc. for railway transportation.The insurance policy and the insurance certificate are similar in function, the only difference being that the latter is a bit simpler than the former. The main contents of such insurance documents include: 1. the insured. Under CIF terms, the insured is generally the beneficiary of the credit unless otherwise specified, while under CFR and FOB terms,the insured is usually the importer. 2. cargo description including name, quantity, weight, shipping marks etc . 3. the amountinsured and the risks covered 险别. It should be noted that the currency of the amount insured should be the same as that of the credit. 4. contents concerning transportation including the carrying vessel, the port of shipment and the port of destination, the sailing date起航日期etc. 5. the place where claims are to be settled (settle a claim索赔地点). Unless otherwise specified in the credit, the port of destination is taken as the place for settling claims. 6. the date on which the document is issued. Itcan be made earlier but by no means later than the date of the bill of lading.Various certificates may be required depending on the nature of the commodity and the stipulations of the specific countries. The major types are certificate of quality; certificate of weight; certificate of quantity; certificate of health; certificate of disinfection; veterinary certificate; certificate of origin(原)产地证明; etc.Other documents that may berequired are customs invoice, consular invoice, consular visa, shipping advice装船通知etc.。
国际商务英语课文电子版lesson (16)
Lesson 16 Insurance (II) Transportation insurance, like all forms of insurance, conforms to (follow遵守) certain basic principles. When firms seek cover (保险)for goods and units of carriage(运载工具)they must follow these principles. There are three main principles of insurance, two subsidiary(次要)principles and a doctrine(原理).thing insured is preserved (protected)he will derive a benefitits preservation (protection), but if it is in any way damaged or lost the assured will be adversely affected(受到不利的影响). You can insure your own car, for if it is damaged you will have to pay for it to be repaired and consequently(因此)you will suffer a loss. You cannot insure your neighbor’s car, for if it is damaged you will not suffer any loss. For this reason the insuring of anything by people who are not ―interested‖in it is held (thought被认为) to be ―againstpublic policy‖(违反公共政策). This means that crime would be encouraged.Every contract of insurance requires an insurable interest to support it, or otherwise it is invalid (无效的)and any claim made upon it(based on it 依据保险合同)will not be entertained(accept 接受,受理)(by the insurer). The time of an event may be crucial to the question of insurable interest. The interest passes (转移) with the documents. In cargo insurance we know who has an interest in the cargo at any particular point of time,if we know the terms of sale (price terms / terms of payment –FOB..) which have been arranged. We can work out who will suffer loss by discovering at what point the property passes from one person to another. The person who is going to suffer the loss is the one who has the insurable interest at any moment. This means that goods may be shipped at the port of origin(货物原产地港口)by a shipper or freight forwarder (consignor) under a policy(保单)taken out to cover them, and the buyer takes over the policy whichhas been issued when he takes over the ownership of the goods. If they fail to complete the voyage(旅程)(journey/transportation) undamaged, he(buyer) can claim on the insurance even though it was not in his name.Utmost good faith(最在诚信原则)is a very important principle. The people who decide what premium is fair公正的for a particular cover(某一笔保险)do (决定多少保费是公平的)so on the basis of written statements made in a proposal form投保单(by the insured). If this statement is untrue,then the premium agreed on will not be a fair one. Suppose I say that a crate板条箱contains copper, when in fact it contains platinum (铂金). The premium required to cover the cheaper metal will be an unfair premium for the more valuable cargo. The mis-statement is a fraud(欺骗), and the policy is voidable(可取消的)(can be avoided/revoked)by the party who is misled (误导)(the insurer). Even if the mis-statement was unintentional (非故意的), the underwriter would still be deceived and the policy voidable.third-hand Ford car will receive sufficient (enough) compensation to buy another third-hand Ford car, not enough to buy a brand-new (崭新的) Ford car. This principle cannot apply to life(寿险)or personal accident insurance(人身意外保险)—for of course a life, or a limb, cannot be restored.In a normal policy of insurancethe compensation payable(可支付赔偿)is sufficient only to restore the insured to the position he was in before the loss occurred—not to a better position. Cargo policies are often issued for an agreed value(商定的价值)and are therefore called ―valued‖ policies(有价保单). The idea is that the compensation payable will be at an agreed figure (商定的数值), often at invoiced cost(invoice value)plus freight (主运费) and forwarding charges (转运费)plus the insurance premium plus an agreed percentage such as 10 percent.(发票金额+主运费+转运运费+保费+10%)This (10%)represents a profit that could have been earned on the capital tied up(被占用)in the transaction.Contribution(损失分摊)is a sub-principle(under indemnity)which is associated with indemnity. It holds that a person cannot be allowed to insure twice for the same risk, and claim compensation from both insurers. To do so would amount to (be equal to相当于) restoring the insured to a better position than he was in when the loss occurred. It would be a breach(violation违背) of indemnity, and against public policy. Therefore, if two policies do cover the same event, the insurance companies contribute pro rata(按比例)to(分摊)the loss, and the insured is only restored to the indemnity position (损失发生以前的状态). This is unlikely to happen very frequently in cargo insurance.Subrogation(代位追偿), the sub-principle, also relating to indemnity, is of enormous importance in cargo insurance. The word ―subrogate‖means ―to take the place of another‖. Imagine asituation where A has insured his cargo with B and it is damaged by C’s negligence (carelessness疏忽大意). A will naturally claim against B, who will pay up for the loss suffered. However, because C was negligent, a legal action (法律诉讼) by A against C would almost certainly lead to an award (a grant made by a law court判决) of damage against C (判决C承担损害责任). A would thus be compensated twice, and this would be a breach of the principle of indemnity. To prevent this happening, B, the insurer, issubstituted for (replace替代) A, the assured, in any legal action against C. The insurer is entitled to (享有…权力或利益) the advantage (interest利益) of every right of the assured, which will diminish (reduce) the loss he (insurer) has been forced to bear.The doctrine of proximate cause (近因原则)—when an insurance policy is made out to cover a certain risk, a claim becomes payable only if that risk occurred as the proximate (closest) cause of the loss suffered. The proximate cause is the direct cause of the loss.Notes:Conform to 遵守Most people are willing to conform to the custom of society.大多数人都愿意遵循社会习俗。
国际商务英语课文电子版lesson (11)
In international trade it is almost impossible to mach payment with physical delivery(实际交货) of the goods, which constitutes conflicting problems for trade, since the exporter prefers to get paid before releasing the goods and the importer prefers to gain control over the goods before paying the money. The letter of credit is an effective means to solve these problems. Its objective is to facilitate international payment by means of the credit-worthiness of the bank. This method of payment offers security to both the seller and the buyer. The former has thesecurity to get paid provided (假如) he presents impeccable(没有缺陷的)documents while the latter has the security to get the goods required through the documents he stipulates in the credit. This bilateral security is the unique and characteristic feature of the letter of credit.“Letter of credit” is often shortened as L/C or L.C. and is sometimes referred to as “banker’s commercial letter of credit”, “banker’s credit”, “commercial credit” or simply “credit”. Modern credits were introduced开始采用in the second half of the 19th century and hadsubstantial development after the First World War. The credit is a letter issued by a bank at the request of the importer in which the bank promises to pay upon presentation of theIt is actually a conditional bank undertaking(承诺)of payment.The operation of the letter of credit starts with the importer. He instructs his bank to issue an L/C in favor of the seller(以…为收益人)for the amount of the purchase. Here the importer is called the applicant (开证申请人), or opener, principal etc., the bank that issues the credit iscalled the opening bank, the issuing bank or the establishing bank, (开证行) and the exporter in whose favor the credit is opened is called the beneficiary(受益人). The opening bank sends the credit to its correspondent bank(往来行)in the exporter’s country, who will, after examining(检查)the credit, advise (通知)the exporter of its receipt. Here the correspondent bank is called the advising bank(通知行). The exporter or beneficiary will make a careful examination(仔细检查)of all the contents of the credit and will request the opener to makeamendments修改to any discrepancies (不一致)in the credit so as to ensure safe and timely payment. Sometimes the exporter may require a confirmed letter of credit (保兑信用证) either because the credit amount is too large, or because he does not fully trust the opening bank. The bank that adds its confirmation(保兑)to the credit is called the confirming bank which is undertaken(承担)either by the advising bank or another prime (big)bank. When everything with the credit is in order, the exporter will prepare the relevant documentsbased on the credit and dispatch the goods to the importer. Then he will present the draft and the accompanying documents to the advising bank that pays or accepts (承兑) or negotiates(议付)the bill of exchange. The advising bank then also becomes the paying bank which acts as the agent of the opening bank and gets reimbursed(pay back)by the opening bank after paying the beneficiary. If a bank, either nominated (指定)by the opening bank or at its own choice, buys the exporter’s draft submitted to it under a credit, it is called a negotiatingbank (议付行). The draft and the documents will then be sent to the opening bank for reimbursement(偿付).Letters of credit are varied in form, length, language, and stipulations. Generally speaking, however, they include the following contents:1. The number of the credit and the place and time of its establishment.2. The type of the credit.3. The contract on which it is based.4. The major parties relevant to the credit, such as the applicant, opening bank, beneficiary, advising bank. etc.5. The amount or value of the credit.6. The place and date on which the credit expires(失效).7. The description of the goods including name of commodity, quantity, specifications, packing, unit price, price terms, etc.8. Transportation clause(条款)including the port of shipment, the port of destination, the time of shipment, whether allowing partial shipments or transshipment(转船).9. Stipulations relating to the draft.10. Stipulations concerning the shipping documents required.11. Certain special clauses if any.e.g. restrictions on the carryingvessel(承运船只)and the route.12. Instructions to the negotiating bank.13. The seal or signature of the opening bank.14. Whether the credit follows “the uniform customs and practice for documentary credits”.The letter of credit provides security to both the exporter and the importer. However, it only assures payment to the beneficiary provided the terms and conditions of the credit are fulfilled. It does not guarantee that the goods purchased will be those invoiced or shipped. It isstipulated in Article 4 of the uniform customs and practice for documentary credit that “in credit operations all parties concerned deal in documents, and not in goods, services and/or other performance to which the documents may relate”. That is to say the banks are only concerned with the documents representing the goods instead of the underlying contracts. They have no legal obligation whether the goods comply with the contract. They will be considered as having fulfilled their responsibility so long as all the documents comply with thestipulations of the credit. The quality and quantity of merchandise shipped, although specified in the documents, ultimately depend on the seller who has manufactured, packaged, and arranged shipment for the goods.If the importer finds any problems with the goods, e.g. inferior quality or insufficient quantity, he has to contact or even take legal action against the exporter instead of the bank so long as the documents are “proper” on their face.。
国际商务英语课文电子版lesson (5)
International trade can be defined as the exchange of goods and services produced in one country with those produced in another. In the complex economic world, no country can be completely self-sufficient. The distribution of natural resources is uneven. Some countries are abundant in resources, while elsewhere reserves are scarce or even nonexistent. And a country may be rich in some resources but poor in others. For instance, Britain has large reserves of coal but lackssome metal reserves. Kuwait has vast oil deposits but little farm produce. And Japan relies heavily on import for most of the primary commodities. That is the reason why international trade first began.With the development of manufacturing and technology, there arose another incentive (stimulating factor) for trade, i. e. international specialization—one country producing more of a commodity than it uses itself and selling the remainder to other countries. Suchspecialization constitutes an important basis for international trade.Absolute advantage and comparative advantage are two theories of international specialization. Both theories attempt to determine which goods a country should produce for itself and export to other countries and which goods it should import from other countries.The theory of absolute advantage holds that a commodity will be produced in the countrywhere it costs least in terms of resources(capital, land, and labor). This theory is illustrated in the following table. To be more illustrative, let us assume there are only two countries producing two commodities under perfect competition:Output per man-year of labourCountry A Country B Computers5010 Cars2040From the above table, we can see that a man in Country A canproduce 50 computers in a year but only 10 in Country B. On the other hand, one man in Country B can produce 40 cars in a year but only 20 in Country A. So Country A is more efficient in producing computers than Country B, and we say the former has an absolute advantage over the latter. Similarly, Country B is more efficient with cars and has an absolute advantage over Country A. As a result, Country A would specialize in the production of computers and trade some of themfor Country B’s cars, and Country B would s pecialize in cars and exchange some of them for Country A’s computers. Both countries will gain benefits through specialization and trade.But, according to the above theory, trade occurs only when each country has an absolute advantage over the other in the production of one commodity. In reality, it is not rare that one country has no absolute advantage in any commodity. Will trade occur in these cases? Thetheory of comparative advantage has offered a satisfactory answer to this question.The theory of comparative advantage holds that even if a country is less efficient than another in the production of both commodities, i. e. it has absolute disadvantage in producing both commodities, there is still a basis for mutually beneficial trade. The first country should specialize in the production and export of the commodity in which its absolutedisadvantage is smaller, i. e. the commodity of its comparative advantage, and import the commodity in which its absolute disadvantage is greater, i. e. the commodity of its comparative disadvantage. The above theory can be illustrated in this table:Output per man-year of labour Country A Country B Computer5010Cars4020The difference between this table and the previous one is thatCountry B has absolute disadvantage in the production of both computers and cars. Nevertheless, it still has a comparative advantage in cars since it is half as efficient in cars but 5 times less efficient in computers in comparison with Country A. On the other hand, Country A has absolute advantage over Country B in both computers and cars. However, we say it has comparative advantage in computers since it has greater absolute advantage in the commodity than in cars with respect to CountryB. According to the theory, both countries can gain if A specializes in computers and B specializes in cars. Where comparative advantage exists, two trading partners are both able to share in the gains from trade. Trade to exploit(tap) comparative advantage promotes efficiency among countries, since it can make one country better off (well-off - richer) without making another worse off.(poorer)Comparative advantage is not a static concept. A country maydevelop a particular comparative advantage purely through its own actions, independent of (without the influence of) the endowments of nature (natural resources). Switzerland’s comparative advantage in watch-making is a typical example. Similarly, the United States has developed comparative advantage in many lines (fields) that use the most up-to-date technology.The idea of absolute advantage as the basis for economicspecialization has a strong intuitive appeal. But the idea of comparative advantage introduced by the English economist David Ricardo makes more sense. Indeed it has become the cornerstone of modern thinking on international trade.。
国际商务英语课文电子版
Lesson 1 International Business(国际商务)★International business refers to transaction between parties(当事人、参与者)from different countries.Sometimes business across the borders of different customs areas (关税区)of the same country is also regarded as import and export, such as business between Hong Kong and Taiwan.International business involves more factors and thus is more complicated than domestic business. The followings(下列各项) are some major differences between the two:★ 1. The countries involved often have different legal systems(不同的法律体系), and one or more parties will have to adjust themselves to operate in compliance with(遵照、遵从) the foreign law.2. Different countries usually use different currencies(不同的货币) and the parties will have to decide which currency to use and do everything necessary as regards(关于) conversion (兑换) etc. Uncertainties and even risks are often involved in the use of a foreign currency.3.including language, customs,traditions, religion, value, behavior etc. often constitute challenges and even traps for people engaged in international business. 4. Countries vary in natural and economic conditions and may have different policies towards foreign trade and investment, making international business more complex than domestic business.With the development ofeconomic globalization(经济全球化),few people or companies can completely stay away from(置身于外)international business. Some knowledge in this respect(方面) is necessary both for the benefit of enterprises and personal advancement(个人进步).International business first took the form of commodity trade(商品贸易),.(即)exporting andimporting goods produced or manufactured in one country for consumption or resale(消费或转售) in another. This form of trade is also referred to as(被称为)visible trade(有形贸易). Later a different kind of trade in the form of transportation, communication, banking, insurance, consulting(咨询), information(信息业) etc. gradually became more andmore important. This type of trade is called invisible trade(无形贸易). Today, the contribution of service industries(服务业) of the developed countries constitutes over 60% of their gross domestic products(国内生产总值)and account for(占…) an increasing proportion of world trade. ★Another important form of international business is supplying capital byresidents of one country to another, known ascan be classified into two categories. The first kind of investments, foreign direct investments(外国直接投资)or FDI for short is made for returns(回报)through controlling the enterprises or assets invested in in a host country(东道国).The host country is a foreigncountry where the investor operates, while the country where the headquarters of investor is located is called the home country(投资国). The second kind of investment, portfolio investment(证券投资), refers to purchases of foreign financial assets(金融资产) for a purpose other than controlling.Such financial assets may be stocks(股票), bonds(债券)or certificate of deposit(大额存单). Stocks are also called capital stocks or bonds(股本或股份).★Bonds are papers issued by a government or a firm with promise to pay back the money lent or invested together with interest. The maturity period(到期时间)of a bond is at least one year, often longer, for example five, or even ten years. Certificates of deposit generally involve large amounts, say 25thousand US dollars.★Besides trade and investment, international licensing(国际许可)and franchising(特许经营) are sometimes taken as a means of entering a foreign market. In licensing, a firm leases(出租)the right to use its intellectual property(知识产权) to a firm in another country. Such intellectual property may be trademarks (商标), brand names(品牌),patents(专利), copyrights (版权) or technology(技术). Firms choose licensing is because they don’t have to make cash payment to start business, and can simply receive income in the form of royalty(知识产权/专利使用费). Besides, they can benefit from locational advantages of foreign operation(当地经营优势) without any obligation in ownership or management. Theuse of licensing is particularly encouraged by high customs duty(关税) and non-tariff barriers(非关税壁垒) on the part of the host country. However it is not advisable to use licensing agreement in countries with weak intellectual property protection(知识产权保护)since the licensor(许可方)may have difficulty in enforcing licensing agreement(执行许可协议).Franchising can be regarded as a special form of licensing. Under franchising, a firm, called the franchisee (特许使用方), is allowed to operate in the name of another, called the franchiser(特许授予方) who provides the former with trademarks, brand names, logos(公司标志), and operating techniques(经营技巧) for royalty(特许使用费). In comparison with therelation between the licenser(许可授予方) and the licensee(许可使用方), the franchiser has more control over and provides more support for the franchisee.★The franchiser can develop internationally and gain access to useful information about the local market with little risk and cost, and the franchisee can easily get into a businesswith established(已获认可的)products or services. Franchising is fairly popular especially in hotel and restaurant business. Other forms for participating in international business are management contract(管理合同), contract manufacturing (生产合同), and turnkey project(“交钥匙”工程). Under a management contract, one company offersmanagerial or other specialized services to another within a particular period for a flat payment(固定费用) or a percentage of the relevant business volume(相关业务总价值). ★Sometimes bonuses(分红)based on profitability or sales growth are also specialized (注明) in management contracts. When a government forbids foreign ownership in certainindustries it considers to be of strategic importance but lacks the expertise for operation, management contracts may be a practical (切实可行的)choices enabling a foreign company to operate in the industry without owning the assets. By contract manufacturing, a firm can concentrate on their strongest part in the value chain(价值链), e. g. marketing, while contractingwith foreign companies for the manufacture of their products. Such firms can reduce the amount of their resources devoted to manufacture and benefit from location advantages(当地优势) from production in host counties. ★However, loss of control over the producing process may give rise to(产生) problems in respect of quality and time of delivery (交货期).For an international turnkey project, a firm signs a contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion.Such projects are often large and complex and take a long period to complete. Payment for a turnkey project may be made at a fixed total price or on a cost plus basis(在实际成本之外收取一定费用). The latter way of payment shifts the burden of possible additional cost over the original budget onto the purchaser.★BOT(建设、经营、移交)is a popular variant of the turnkey project where B stands for build, O for operate and T for transfer. For a BOT project, a firm operates a facility for a period of time after buildingit up before finally transferring it to a foreign company. Making profit from operating the project for a period is the major difference between BOT and the common turnkey project. Needless to say, the contractor has to bear the financial and other risks that may occur in the period of operation.。
国际商务英语课文电子版lesson(10)
国际商务英语课⽂电⼦版lesson(10)Lesson10 International Payment Generally speaking, it is not very difficult for buyers and sellers in domestic trade to get to know each other’s financial status and other information, and payment is likely to be made in a straightforward manner,say(for example)by remittance or by debiting the debtor’s account. In international trade, however, things are far more complicated. Purchase and sale of goods and services are carried out beyond national boundaries, which make it ratherdifficult for the parties concerned in the transaction to get adequate information about each other’s financial standing and creditworthiness (资信;信誉). Therefore, mutual trust is hard to build. Both the exporter and importer face risks as there is always the possibility that the other party may not fulfill the contract.For the exporter there is the risk of buyer default(不按期付款). The importer might fail to pay in full for the goods. He might go bankrupt.His government might, for various reasons, ban(禁⽌)trade with the exporting country or ban imports of certain commodities. The buyer might run into difficulties getting the foreign exchange to pay for the goods. It is even possible that the buyer is not reliable and simply refuses to pay the agreed amount on various excuses.On the part of the importer, there is the risk that the shipment will be delayed, and he might only receive them long after payment.The delay may be caused by problems in production or transportation, and such delays may lead to loss of business. There is also a risk that wrong goods might be sent as a result of negligence(疏忽⼤意)of the exporter or simply because of his lack of integrity (honesty).Political risks such as war, quotas, foreign exchange control; commercial risks like market change and exchange rate fluctuations(波动); and even language barriers all add upto(increase)the problems in international trade. Because of these problems and risks, exporters are hesitant to release their goods before receiving payment, while importers prefer to have control over the goods before parting with their money. Various methods of payment have been developed to cope with different situations in international trade. When the political and economic situation in the importing country makes payment uncertain or when the buyer’s credit standing isdubious (doubtful), the exporter may prefer cash in advance or partial cash in advance. In this case, the importer has no guarantee that the exporter will fulfill his obligations once he has made payment by cash. If the buyer and the seller know each other well, they may decide to trade on open account. This means that no documents are involved and that legally (in terms of law) the buyer can pay anytime. The seller loses all control over the goods once they have been shipped. Sales on thisbasis are usually paid for by periodic payment, and obviously the exporter must have sufficient financial strength经济实⼒to carry the cost of the goods until receiving payment. If the exporter wishes to retain(保留)title or ownership(所有权)to the goods, he can enter into consignment transactions. This means the exporter has to send his goods abroad and will not get payment until the goods are sold. If not sold, the goods can be shipped back. Therefore, this arrangementshould only be made with full understanding of the risks involved and is preferably to be limited to stable countries where the exporter has a trusted agent to look after his interest.A lot of international transactions are paid for by means of the draft(汇票), which, also referred to as the bill of exchange, is an unconditional(⽆条件的)order to a bank or a customer to pay a sum of money to someone on demand(⽴即)or at a fixed time in the future.The person who draws(开⽴)the draft,usually the exporter, is called the drawer(出票⼈), and the person to whom the draft is drawn is called the drawee(受票⼈). There is yet another party payee(收款⼈), i.e. the person receiving the payment, who and the drawer are generally but not necessarily the same person, as the drawer can instruct the drawee either to pay “to the order of ourselves” or to the order of someone else, for instance, the bank.A draft is either a sight draft ora usance draft (also called tenor draft or term draft). The former calls for (needs)immediate payment on presentation(提⽰) to the drawee while the latter is payable at a later date, e.g. 30, 45, 60, or 90 days after sight or date. A draft is either clean (clean draft 光票) (without documents) or documentary (documentary draft跟单汇票). In the latter case, the draft is accompanied (attached)by the relevant documents such as the bill of lading, the invoice, the insurance policy etc.In documentary collection ( 跟单托收), the exporter sends the draft and the shipping documents运输单据representing title tothe goods to his bank, which forwards (sends)them to another bank in the importer’s country, which in turn contacts the customer (importer). In the case of documents against payment (D/P)付款交单, documents will not be released to the importer until payment is effected执⾏. There are D/P at sight and D/P after sight. The former requires immediate paymentby the importer to get hold of the documents. The latter gives the importer a certain period after presentation of the documents, but documents are not released to him until he actually pays for the merchandise货物. In the case of documents against acceptance (D/A)承兑交单, documents are handed over to the importer upon his acceptance(承兑)of the bill of exchange drawn by the exporter. Payment will not be made until a later date. D/A is always after sight.So far as the exporter’s interest is concerned, D/P at sight is more favorable than D/P after sight, and D/P is more favorable than D/A. In actual trade, payment by collection should be accepted with discretion (⼩⼼). It is usually used when the financial standing of the importer is sound(良好的), or when the exporter wishes to push the sale of his goods, or when the transaction involves only a small quantity. Otherwise, the letter of credit is generally preferred.。
国际商务英语课文电子版lesson (3)
The past decades witnessed growing importance of regional economic integration. To better enjoy the benefit of tree flow of goods, services, capital, labour and other resources, countries have signed various agreements to liberalize trade among themselves while possibly putting up barriers to economic activities with non-members.Regional economic integration falls under four types given below in the order fromleast to most integrative:The first and loosest form is the free trade area. Members of a free trade area removes barriers to the flow of goods and services among themselves while each member still adopts its own policy as regards to trade with outsiders (non-members). In other words different members may have different tariff rates or quota restrictions. Consequently, non-member countries may take advantage of this situation andtry to enter the market of the area from the member country with the lowest barrier before selling the goods to a member with a higher barrier. The most notable free trade area is the North American Free Trade Agreement (NAFTA), the largest free market formed by the United States, Canada and Mexico in 1991 with over 360 million consumers and a total GDP of more than 6 trillion US dollars.The second form is theCustoms Union that goes a step further by adopting the same trade policy for all the members toward countries outside their organization in addition to abolishing (removing) trade barriers among themselves. Since imports from other countries are subject to the same tariff no matter which member they export to, it is impossible for non-members to get into the market of the customs union in a detour as they possibly do in thecase of trade with a free trade area. Such an example is Mercosur formed by Argentina, Brazil, Paraguay and Uruguay in 1991.The common market is further up the scale of regional economic integration. Besides free movement of goods and services and adoption of common external trade policy, factors of production such as labour, capital and technology are free to move amongmembers so that they can be utilized in a more efficient and productive way. The overall benefit enjoyed by all the members as a whole is quite obvious, but it is hard to say individual members will always benefit, still less to expect them to enjoy the advantage of factor mobility (movement; flow) to the same degree. In the past, the European Community remained a common market for some years.The highest form of economic integration is called the economic union which is characterized by integration of the domestic policies of its members in respect of economy, finance etc. in addition to absence of trade barriers, practice of common external policy and free production factor mobility. The members of an Economic Union are required not only to harmonize their taxation, government expenditure,industry policies, etc, but also use the same currency. With the adoption of the single European currency euro by most members of the EU, we can say it is well on its way towards the realization of an economic union.It can be seen that the member countries of an economic union are required to surrender some of their national sovereignty, which is eroding the tradition of the world politicalsystem based on the autonomy and supreme power of sovereign states.So people begin to talk about a still higher form of integration ——the political union, members of which will not only be integrated economically, but also harmonize their foreign policy and national defence. With that realized, the members would more or less come together and form a new political entity.The European Union is sofar the most prominent (outstanding) example of regional economic integration in the world. Its history dates back to the early post-war years. The first community, the European Coal and Steel Community (ECSC) was established in 1952, which set the stage for more ambitious integration efforts. The signing of the monumental Treaty of Rome in 1957 marks the establishment of the European Economic Communitywith the aim of gradually realizing the free movement of goods, services, labor and capital as well as the integration of economic policies of the member countries. Ten years later in 1967, the European Community was formed by merging EEC, ECSC and the European Atomic Energy Community (EURATOM). 1992 was a landmark year in the development of the EC when it became a true common market as envisaged by the SingleEuropean Act. Then on January 1, 1994 the European Union (EU) came into being on the strength of the Maastricht Treaty. By then EU had 12 members including the six signatories of the Treaty of Rome. France, Germany, Italy, the Benelux countries and six other countries that joined later. (Britain, Ireland and Denmark in 1973, Greece in 1981, Spain and Portugal in 1986). The membership increased to 15 with the participation of Austria,Finland and Sweden in 1995. From the beginning of 1999 most of the members began to use the common European currency for accounting and settlement and in 2002, euro banknotes and coins were put into circulation.The European Union is a full-fledged entity.Its executive body is the European Commission composed of 20 commissioners overseeing (supervise) 23 departments incharge of different affairs. Though appointed by member governments, the commissioners are responsible to the Union instead of their home country.The most powerful institution (body) of the EU is the Council of Ministers. It has the final say on all important matters. Decisions of the council are made by votes allocated to member countries on the basis of their size. Different ministers attend the council meetingsdepending on the matters discussed. The council even has the power to pass legislation, which is quite different from the case of all the major countries of the world.The European Parliament, despite the title, is but an advisory body with limited power. However, it is empowered to veto EU membership application and trade agreements with non-members. And it is believedthe European Parliament will be more powerful in the future.The successful integration of European economies eliminated (remove) the cost of cross-border transactions, realized better economies of scale and made the European companies more efficient through more intense competition. The European Union has become an economic rival of the United States. Its total GDP has exceeded that ofthe American country. And though still a long way to go towards political union, the EU members have begun to harmonize their foreign and security policies. It is no exaggeration to say EU will play an important role in the multi-polarization of the world.Asia-Pacific Economic Co-operation (APEC) has caught more and more attention for the past decade, especially in China since the country is playing anactive role in it.APEC was set up at the Ministerial Meeting held in the Australian capital Canberra attended by 12 members of Australia, the United States, Canada, Japan, Republic of Korea, New Zealand and six ASEAN countries. As put by the “Seoul Declaration” passed in 1991, its tenet and objectives are “inter-dependence, mutual benefits, adhering to an open and multilateral trading system andreduction of regional trade barriers”. In 1991, China joined APEC as a sovereign state while Chinese Taipei and Hong Kong joined it as territory economies. Now APEC has altogether 21 members including all the major Pacific Rim countries and regions.APEC has a five-layer organisational structure. The first is the Informal Meeting of Economic leaders held annually. China hosted the 2001 meetingin Shanghai and made a great success. The second is the Dual-Ministerial Meeting attended by foreign ministers (excluding Chinese Taipei and Hong Kong) and ministers in charge of foreign trade. The third is the Meeting for Ministers responsible for Trade. The fourth is the Senior Officials Meeting (SOM) attended by vice ministers, departmental directors or ambassadors to implement (carry out) decisions byeconomic leaders and ministerial meetings. The fifth layer refers to the four subordinate committees under SOM, i.e. committee of Trade and Investment, Economic Committee, Economic and Technical Cooperation Sub-committee of SOM and Budget Management Committee. As its name suggests, APEC was not exactly an organization but an official forum, though the Chinese translation used thatterm. However, it has been developing towards being an organization since the establishment of its secretariat in Singapore that serves as an auxiliary body. APEC co-operation concentrates on trade and investment liberation and facilitation (TILF)and economic and technical cooperation (ECOTECH)that are commonly termed as “the two wheels of APEC”.Besides regional economicintegration, countries may form a commodity cartel to control the production, pricing and sale of particular goods so as to seek higher and more stable prices for the relevant goods. The most influential commodity cartel is the Organization of Petroleum Exporting Countries (OPEC) composed of thirteen members established in 1960 with headquarters at Vienna. By assigning production quotas among its members, OPEC triedto limit the overall crude oil supply of the world for the purpose of maintaining higher oil prices. Despite internal contradictions and competition from non-OPEC oil producing countries, the influence on oil prices by OPEC that accounts for 40% of the global oil production is something the world cannot afford to neglect.。
国际商务英语5844课文
LESSON 1 International BusinessTHE STRUCTURE OF THE ARTICLE:了解国际商务与内商务的区别,熟悉贸易、投资及其他际商务活动的含义、特点、运作方式等。
ⅠMajor difference between international business and domestic business.A. differences in legal systemB. differences in currenciesC. differences in cultural backgroundD. differences in natural and economic conditionsⅡMajor types of international business.A. tradea. commodity tradeb. service tradeB. investmenta. foreign direct investmentb. portfolio investmentC. other typesa. licensing and franchisingb. management contract and contract manufacturingc. turnkey project and BOTTEXT:International business refers to transaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country is also regarded as import and export, such as business between Hong Kong and Taiwan.International business involves more factors and thus is more complicated than domestic business. The followings are some major differences between the two:1.The countries involved often have different legal systems, and one or more parties will have to adjust themselves to operate in compliance with the foreign law.2.Different counties usually use different currencies and the parties concerned will have to decide which currency to use and do everything necessary as regards conversion etc. Uncertainties and even risks are often involved in the use of a foreign currency.3.Cultural differences including language, customs, traditions, religion, value, behavior etc. Often constitute challenges and even traps for people engaged in international business.4.Countries vary in natural and economic conditions and may have different policies towards foreign trade and investment, making international business more complex than domestic business.With the development of economic globalisation, few people or companies can completely stay away from international business. Some knowledge in this respect is necessary both for the benefit of enterprises and personal advancement. International business first took the form of commodity trade, i. e. exporting and importing goods produced or manufactured in one countryfor consumption or resale in another. This form of trade is also referred to as visible trade.Later a different kind of trade in the form of transportation, communication, banking, insurance, consulting, information etc. gradually became more and more important. This type of trade is called invisible trade(无形贸易). Today, the contribution of service industries of the developed countries constitutes over 60 %of their gross domestic products and account for an increasing proportion of world trade.Another important form of international business is supplying capital by residents of one country to another, known as international investment. Such investments can be classified into two categories. The first kind of investments, foreign direct investments or FDI for short is made for returns through controlling the enterprises or assets invested in in a host country. The host country is a foreign country where the investor operates, while the country where the headquarters of the investor is located is called the home country. The second kind of investment, portfolio investment(证券投资) refers to purchases of foreign financial assets for a purpose other than controlling. Such financial assets may be stocks , bonds or certificates of deposit. Stocks are also called capital stocks or bonds. Bonds are papers issued by a government or a firm with promise to pay back the money lent or invested together with interest. The maturity period of a bond is at least one year, often longer, for example five, or even ten years. Certificates of deposit generally involve large amounts, say 25 thousand US dollars.Besides trade and investment, international licensing and franchising are sometimes taken as a means of entering a foreign market. In licensing, a firm leases the right to use its intellectual property (知识产权)to a firm in another country. Such intellectual property may be trademarks (商标), brand names (品牌), patents (专利), copyrights (版权) or technology. Firms choose licensing because they do not have to make cash payments to start business, and can simply receive income in the form of royalty. Besides, they can benefit from locational advantages of foreign operation without any obligations in ownership or management. The use of licensing is particularly encouraged by high customs duty and non-tariff barriers on the part of the host country. However it is not advisable to use licensing in countries with weak intellectual property protection since the licensor may have difficulty in enforcing licensing agreement.Franchising can be regarded as a special form of licensing. Under franchising, a firm, called the franchisee, is allowed to operate in the name of another, called the franchiser who provides the former with trademarks, brand names, logos, and operating techniques for royalty. In comparison with the relation between the licenser and the licensee, the franchiser has more control over and provides more support for the franchisee.The franchiser can develop internationally and gain access to useful information about the local market with little risk and cost, and the franchisee can easily get into a business with established products or services. Franchising is fairly popular especially in hotel and restaurant business. Other forms for participating in international business are management contract, contract manufacturing, and turnkey project.Under a management contract, one company offers managerial or other specialized services to another within a particular period for a flat payment or a percentage of the relevant business volume. Sometimes bonuses based on profitability or sales growth are also specialized in management contracts. Government policies often have a lot to do with management contracts. When a government forbids foreign ownership in certain industries it considers to be of strategic importance but lacks the expertise for operation, management contracts may be a practical choiceenabling a foreign company to operate in the industry without owning the assets.By contract manufacturing, a firm can concentrate on their strongest part in the value chain, e. g. marketing, while contracting with foreign companies for the manufacture of their products. Such firms can reduce the amount of their resources devoted to manufacture and benefit from location advantages from production in host countries. However, loss of control over the production process may give rise to problems in respect of quality and time of delivery.For an international turnkey project, a firm signs a contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion. Such projects are often large and complex and take a long period to complete. Payment for a turnkey project may be made at fixed total price or on a cost plus basis. The latter way of payment shifts the burden of possible additional cost over the original budget onto the purchaser.BOT is a popular variant of the turnkey project where B stands for build, O for operate and T for transfer. For a BOT project, a firm operates a facility for a period of time after building it up before finally transferring it to a foreign company. Making profit from operating the project for a period is the major difference between BOT and the common turnkey project. Needless to say, the contractor has to bear the financial and other risks that may occur in the period of operation.2 income level and the world market ——————————————————————————————————————————————掌握国内生产总值,国民生产总值,人均收入等概念的含义。
国际商务英语课文电子版lesson (2)
In assessing (evaluate) the potential of a market, people often look at its income level since it provides clues (ideas) about the purchasing power of its residents. The concepts national income and national product have roughly the same value and can be used interchangeably if our interest is in their sum total which is measured as the market value of the total output of goods and services of an economy in a given period, usually a year. The difference is only in their emphasis. The former stresses the income generated (produced) by turning out the products while the latter, the value of the productsthemselves. GNP (Gross National Product) and GDP (Gross Domestic Product) are two important concepts used to indicate a country’s total income.GNP refers to the market value of goods and services produced by the property and labor owned by the residents of an economy. This term was used by most government before the 1990s. GDP measures the market value of all goods and services produced within the geographic area of an economy. It has been preferred by most countries since the 1990s.The difference between GNP and GDP is that the former focuses on ownership of the factors of production while the latter concentrates on the place where production takes place. For example, the dividend returned by the subsidiary of Microsoft in China is included in the US GNP but not in its GDP. And the production of the same subsidiary is included in China’s GDP but not in its GNP. The difference between GNP and GDP can be ignored since it is very small in most cases. People can use whichever term that ismore easily available and they can compare a country’s GNP and another country’s GDP without worrying that the result would be terribly distorted. For instance, in 1996, the US GNP was 7,637.7 billion US Dollars and its GDP was 7,636 billion US Dollar, a difference of only 0.02%. And in 1996, China’s GNP was 8,042.28 billion yuan Renminbi and its GDP was 8,191.09 billion yuan, with a difference of 1. 8%, still insignificant though larger than the US figure.In assessing the potential of a country as a market, people often look at per capita income. Similar to the case of national income and national product, per capita income and per capita GDP do not have much difference. So let’s use per capita GDP to illustrate an economy’s income level. It is calculated by dividing its total GDP by its population. Total GDP indicates the overall size of an economy, which is important in market assessment for durable equipment or bulk goods such as grain, steel, or cement. Per capital GDP reveals (shows) the average income level of consumers, which is important when marketing consumer durables. For example, China has a large GDP of roughly USD 1. 4 trillion in 2003, being the seventh largest economy in the world. If adjusted by PPP, the figure would probably be as large as USD 6. 4 trillion, accounting for 12% of the world’s total and ranking the second only after the USA. So china is not only a newly emerging producer but also a newly emerging market. However its per capital GDP is still fairly low, just a bit over USD 1 100. Though $1 000 per capital income is believed by experts to be level at whichconsumerism begins to emerge (form), the Chinese figure is still rather low, ranking only the 111th in the world. In contrast, Singapore has a GDP of roughly a bit over $100 billion, but a per capital income as high as $32 810. Obviously China and Singapore represent two different kinds of market.Business people are also concerned about the income distribution of a market, i. e. the proportions of its rich, middle income and poor people. Producers of quality electrical appliances such as color TVs are interested in the size of a country’s middle class, while manufacturers of expensive cars such as Rolls-Royces may want to know the number of its millionaires.Countries of the world are divided by the World Bank into three categories of high-income, middle-income and low-income economies. Those enjoying annual per capital income of $9 386 and above are classified as high-income countries. This group comprises(is made up of)three types of countries. The first type includes most members of the Organization for Economic Cooperation and Development (OECD). The second type are rich oil producing countries of the Middle East such as Kuwait, Saudi Arabia, and the United Arab Emirates. The third type consists of small-industrialized countries or regions such as Israel, Singapore, Hong Kong and Taiwan. High-income countries often have good infrastructure, high purchasing power, advanced technology, efficient management, and favorable environment for trade and investment. They offer prime markets for expensive consumer goods and are both attractive sources and destinations of investment.Countries with annual per capita income below $9,386 but above $765 are regarded as middle-income countries. Included in this category are most East European countries and most members of the Commonwealth of Independent States, six OECD members that are not up to the level of high income countries, quite a number of Latin American countries and some comparatively developed countries in Asia, such as Indonesia, Malaysia, the Philippines, and Thailand. Among the African countries, South Africa and oil-producing Libya, Nigeria and Algeria belong to this category. China with a per capita income of over $1100 is a middle-income country though it was a low income country just a few years ago.Lower income countries are those that have per capita incomes of only $765 or even less. Most African countries, some Asian countries and a few Latin American countries are included in this group. These countries usually have poor infrastructure, low consumer demand and unfavorable business environment. But that does not mean they should be neglected in international business activities, because they constitute markets for lower-priced staple goods, provide cheap labor and are often rich in resources. What is more important, market is something to be developed. Once tapped, the business potential of these countries will one day become real business opportunities.The term Triad refers to the three richest regions of the world the United States, the European Union and Japan that offer the most important business opportunities. Any international enterprise must bear Triad in mind if they wantto be successful in the increasingly competitive world market.With a per capita income of about $30,000, the United States is the richest country in the Western Hemisphere. Though the per capita income of a few small countries like Switzerland is much higher than that of the United States, the overall size of the U.S economy of about $10 trillion GDP, roughly a quarter of the world total, coupled with its political stability puts the country on a unique position in the world. It accounts for about 15% of world visible and invisible trade. The U.S. dollar is the invoicing currency for about half of the international transactions and is an important component of foreign currency reserves of the world. The United States has been regarded by many people as a safe haven who tend to keep their wealth in US dollar when they lose confidence in the value of their own currency. And for many years the country remained the largest recipient (destination) of foreign investment. Over 160 of the world’s 500 largest corporations have their headquarters in the United States including 24 of the top 100. The country’s large middle class make it an attractive market for enterprises all around the globe.The second component of Triad is Western Europe that mainly refers to the European Union. With an average per capita income of over $20,000, all the members before its eastward expansion are classified as high income countries. Its total GDP of over 10 trillion US dollars is the largest, larger than that of the United States. Germany, France, Britain and Italy are the 4 richest, most populous and developed countries of EU. These countries are each anattractive market, and combined they constitute the largest rich market in the world. In the present intensely competing world, it is necessary and beneficial to diversify our major markets, and the importance of EU as one leg of Triad cannot be overstressed.Japan is the third component of Triad and the second largest economy of the world. It is an important supplier of high-tech products and a major importer of raw materials. While exports have greatly spur red (stimulated) Japan’s development, trade only accounts for a relatively small proportion of its GDP. Japan remained a target of criticism for engaging in unfair trade practices. The large trade surplus has enabled it to invest heavily abroad and for years it has been the largest creditor country (debtor country) of the world. With mutually complementary economy, Japan and China are major trade partners, and the two countries are close neighbours separated only by a strip of water. Sino-Japanese business relations are therefore of great importance to both countries.Some people extend the scope of Triad to include Canada and name the broadened grouping Quad.With the world’s second largest territory, Canada is rich in natural resources and its export accounts for nearly 40% of its GDP. The percentage is much higher than those of other members of t he Group of Seven and suffices (be enough) to show the importance of trade to the country. Sharing a very long common border along which most of the Canadian people live, Canada and the United States, with their respective rich market, enjoy thelargest single bilateral trade in the world.So far as China is concerned, other markets we should pay particular attention to are those around us: the Four Tigers, the ASEAN countries, Russia, India, and a bit farther away Australia. These countries or regions either have rich consumers and offer good business opportunities or are developing fast with very promising market potential. (Bric – Brazil, Russia, India, China) And their geographical proximity to China is a great advantage for us in developing business relations with them. Despite the above observations, it does not mean we can neglect other markets. Different markets offer different opportunities and it is not a good idea to tie one’s business to only a few markets. The best policy is to develop business opportunities wherever advantageous while keeping in mind the key markets.。
国际商务英语课文电子版lesson (4)
The term “economic globalization” is now being used with increasing frequency in newspapers, magazines, seminars and international conferences. With the basic feature of free flow of commodity, capital, technology, service, and information in the global context for optimized allocation, economic globalization is giving new impetus and providing opportunities to world economic development and meanwhile making the various economies more and more interdependent and interactive. Economy is not the only elementinvolved in globalization since it also has an important bearing on politics, culture, value and way of life. While many people are acclaiming the benefits brought about by economic globalization, there are also loud voices of opposition, since different countries and peoples do not enjoy balanced benefits. Economic integration enables countries benefit from the boom(prosperity)of other countries but also makes them more vulnerable to the adverse events across the globe. Maybe we can say few topics are as controversial asglobalization. But like it or not, it has become an objective trend in world economic development.The best policy for us is to follow the trend closely, availing the opportunities it offers to develop ourselves and avoiding its possible impacts.Such world organizations as the WTO, the World Bank and the International Monetary Fund which we shall discuss in later lessons, are, in a sense, champions (supporters) of economic globalization, while the multinational corporations are directly engaged in the trend andtheir operations constitute the major content of economic globalization. Some knowledge of the multinationals will help us gain a better understanding of the global trend.Before World War Ⅱthere were already a number of companies t hat would be described as multinationals. They were, however, comparatively small in number and scale (size). The first step in the internationalization of business after the War was simply a very rapid growth in fairly traditional terms, in the sense that more and morecompanies in one developed country set up their own, or bought over existing, manufacturing facilities in other countries.As development of such business activities grew rapidly, they had not only been variously (differently) defined in different studies, but also labeled with different names. However a typical multinational enterprise shall be defined as a business organization which owns(whether wholly or partly), controls and manages assets, often including productive resources, in more that one country, through itsmember companies incorporated separately in each of these countries. Each member company is known as a multinational corporation. Each MNC is purported to represent certain interests (or to fulfill certain goals)of the multinational enterprise and is linked to one another within the organizational framework of the same multinational enterprise. If the MNC is the original investing corporation, it is known as the parent MNC, which is normally also the international headquarters of the MNE. If the MNC is established as aresult of investments by the MNE, whether through the parent or through another of its already established MNC, it is an affiliate (subsidiary) MNC. An MNE may also have various regional or operational headquarters, in addition to its international headquarters.The multinationals have the following distinctive characteristics: Firstly, MNEs are generally enormous in size. For instance, General Electrics established in 1892 now has subsidiaries in over 100 countries and regions with more than 300,000 employees. In 2001 itsbusiness volume reached 126 billion US dollars. In China alone, it has 30 joint ventures or solely owned subsidiaries with over 8,000 employees. There is little doubt that the size of an MNE does indicate the amount of resources it controls even though the amount of resources located in particular countries may be small.Wide geographical spread is also characteristic of MNEs. (MNEs usually spread widely worldwide) Such geographical spread of MNEs enables them to have a wide range of options (choices) in terms ofdecisions in areas such as sourcing (get resource) and pricing (price fixing). They are also more able to take advantage of changes in the international economic environment. Such multi-nationality also enables MNEs to engage in worldwide integrated production and marketing giving rise to(leading to) extensive intra-MNE transactions which constitute a very significant proportion of total international trade.Another general characteristic of large MNEs is their longevity (long history) and rapid growth.Some MNEs have a history of many years and their double digit growth rate of revenue adjusted for inflation is higher than that of the GDP of many countriesThe behavior of MNEs is very much determined by their needs. These needs are often identified as goals. The purpose of organization is to facilitate the MNEs’ operations and the purpose of its operations is to achieve its organizational goals.Like most business organizations, MNEs are formed for profit. There is little doubt that the profit goal represents the basic needof the MNEs’ shareholders. It is also the need of all groups interested in the continued survival of the MNE. Yet this interest in the continued survival of the MNE expresses a second basic need—that of security.The importance of security to any MNE cannot be doubted. Profit is useless if it cannot be secured by the MNE and transferred wherever it so desires. Its assets and investments must be secured. A favorable business environment must also be secured. Without security, an MNE's survival can never be assured (guarantee). It is no wonder thatMNEs have embarked on (carry out; start) policies to grow into gigantic sizes, to control resources, and production and manufacturing processes in many countries, and even to intervene in the affairs of government in both the home and host countries, in order to ensure the security of its profits, assets, organizations and operations.The need for security includes the security of profits in the short-and-long-run, the security of the MNE’s assets and investment, and the security of other organizational needs, including afavorable business environment, the need for supplies of raw materials and other resource inputs for the production processes of the MNE, the need for effective organizational control and management, the need for transportation and communications, the need for technical improvements and the private needs of employees including managers.In our world today, the multinational enterprises are very important vehicles(means) for the transfer of resources across national boundaries. Given the organizationalunity of parent and affiliates within such enterprise, and the fact that they are situated (located) in different countries, intra-organizational resource transfers between parent and affiliate or between affiliates of the same enterprise are also international transfers. Technology, capital and ready markets are sort of benefits MNEs bring to less developed host countries. The MNE is considered to be the most effective vehicle for the promotion of global economic development.Typical parent which controls the typical MNE is owned in themain (mainly) by the home country's citizens or residents, in spite of the fact that the MNE is multinational in terms of the worldwide derivation of its profits,the high proportion of sales and investments in many foreign countries, the large numbers of employees in foreign affiliate MNCs and the multinational derivation of its finance. The absolute majority of the members of the board of directors also originate from (come from) the home country. Although the day-to-day running of corporate operations maybe decentralized to the affiliates, themajor decisions, such as those on corporate goals, new investments and their location, are made by the parent company (or its regional headquarters in the case of very large MNEs).It is a fact that host governments can and do wield power over MNCs located within their territories. MNCs are under the legal jurisdiction of their host governments which can impose various rules, regulations, and laws on the MNCs to the extent of nationalizing all their assets.Multinational Corporations can be classified into four different types according to their organization and way of operation.The first type is called multi-domestic corporation that is a group of relatively independent subsidiaries. The parent company delegates sufficient power to each subsidiary to manage the production and marketing in the host country for the needs of local customers. This is a useful approach(method) when there are distinct (clear) differences in the specific conditions of host countries.The second type is the global corporations which operates under an opposite principle from the first type and views the world market as an integrated whole. Power and responsibility are concentrated at the headquarters that manages production and marketing to achieve t he economies of scale as much as possible.The third type, the transnational corporation, aims to combine the advantages of the above two ways of operation so as to achieve both efficiency and flexibility. The activities and resources of thetransnational corporation are neither highly centralized as the second type nor decentralized as the first type but are integrated in an interdependent network of affiliates.The fourth type can be referred to as world companies as their national identities(nationality) are blurred (unclear) to a large extent. Very few companies, if any, have reached this level of internationalization. But they will be great movers of economic globalization. It is interesting to imagine the situation on the globe with the increase and growth ofworld companies. When such companies become dominating, the possibility of conflicts among sovereign states may be greatly reduced. Possibly they will be instrumental(helpful) to the realization of complete globalization.。
国际商务英语课文电子版lesson (22)
Lesson 22The United Nations Conferenceon Trade and Development(UNCTD)At the perennial insistence of the new states, the United Nations General Assembly proclaimed宣布the sixties as the first development decade, and in 1962 it decided to convene (召开) a United Nations Conference on Trade and Development.While the discussions could have taken place within the framework of ECOSOC or GATT, the less-developed countries urgedthe creation of a new institution. They argued that the problems discussed by these two bodies (机构)mainly concerned the economic interests of the developed countries and considered GATT as a “rich men’s club”. At that time the GATT rules were based on the non-discrimination principle(MFN). However, even after the principle of a differential treatment (GSP) had gradually come to be accepted, the less-developed countries criticisms did not cease. Although in 1963 there were 43 international organizations dealing withcommodity and other trade problems, the less-developed countries wanted a more satisfactory forum for an examination of their difficulties. Finally, the first United Nations Conference on Trade and Development was held in Geneva from 23 March to 16 June 1964.Although no specific objectives were laid down at the first conference, the general function of UNCTAD is to formulate, negotiate and implement measures to improve the development process.The specific standpoints and aims of the less-developed countriesor the majority of the participating countries may be summarized as follows:1. The share 份额of the less-developed countries in world trade is decreasing. Their terms of trade with the developed countries are constantly deteriorating(恶化). More commodity agreements therefore need to be concluded达成, but in a new spirit, with the primary intention of helping the new countries. In the absence of(在没有…情况下)effective agreements, compulsory强制的and automatic compensatory 补偿measures shouldbe introduced 采取as soon as there is a decline in export earnings; the resources for this purpose(补偿金)should be provided by the developed countries. In GATT, only the less-developed countries should be allowed to invoke援用escape clauses.2.In order to facilitate促进the industrialization of the less-developed countries, the western nations must open up their markets to the manufactured products of the new states, even to the extent of giving them preference over the products of the industrial countries.(Give A preference over B) (prefer A to B) The provisions规定of GATT need be adjusted in order to make this possible.3.Although the aid given by the developed countries to the less-developed countries has increased, the latter consider it to be inadequate. They need to be provided with 6,000 million dollars more each year. The western nations would, indeed, also have an economic interest in bringing greater prosperity繁荣to the low-income countries(使低收入国家越来越富裕), since their exports to theseterritorie国家 would thus be stepped up增加. Moreover, support along these lines might be some kind of compensation for the “exploitation” of the former colonies.In fact, the target at which the less-developed countries are aiming is what they describe as “a new international economic order”. As early as 1974, the UN General Assembly had drafted an action programme行动纲领for the establishment of such a “new order”(which would give more consideration to the interests of the less-developed countries). The newinternational economic order consists mainly in a demand for more cash and trade concessions from the developed countries. The international monetary system would have to be adapted in such a way that the less-developed countries would have more Special Drawing Rights at their disposal供他们使用. Aid to less-developed countries, however, has nothing to do with the international monetary system. Furthermore, the less-developed countries have insisted on a maximum of assistance with the industrialization process, e. g. bysupplying capital, transmitting technology and granting preferential customs tariffs.The Conference was established as a permanent organ组织 of the General Assembly. It is convened every 4 years. The eleventh and the latest session of the conference was held in June, 2004 in Sao Paulo, Brazil with the theme of coordinating development strategies for the promotion of the economic development of the world especially of the developing countries.All member states of the United Nations and of its specializedagencies专业机构are members of the Conference. China became a member of the Conference in 1972.The less-developed countries of UNCTAD are known as the “Group of 77” which was create d on 15th June 1964 and at present includes more than 130 members.Conference decisions require a two-thirds majority 三分之二多数but procedural matters a simple majority only. Board decisions are taken on a simple majority简单多数.A Trade and Development Board is the permanent organ of theConference. Its 126 members are elected at each conference on a geographical basis, but with representation of the principal trading countries ensured.The Board’s main committees examine commodities, manufactures, invisibles and financing related to trade, transfer of technology and economic cooperation among less-developed countries. There is also a special committee on preferences优惠待遇. An International Trade Center has been operated, jointly with WTO.A permanent Secretariat operates in Geneva.。
国际商务英语课文电子版lesson (6)
Where there are no differences among countries in the basic capabilities at producing goods, other bases for trade among them may still exist. First, patterns of demand may differ among nations. For example, most consumers in one country may consider dog meat a delicacy(delicious food), while in another country the consumption of dog meat is abhorrent. In this case the second country may sell its dog meat to the first country. Trade will be based not on differences in theproduction capabilities of the two countries but on different consumption preferences.Second, trade may occur out of economies of scale,that is, the cost advantages of large-scale production. For example, Country A and Country B may have the same capability in producing cars and computers, but the cost for the production of both commodities will decrease if the goods are produced on a larger scale. Both countries might find it advantageous if eachwere to specialize completely in the production of one commodity and import the other.Third, trade takes place because of innovation or style.Even though Country A produces enough cars at reasonable costs to meet its own demand and even to export some, it may still import cars from other countries for innovation or variety of style.To summarize, the theory of international specialization seeks to answer the question which countrieswill produce what goods, with what trade patterns among them. Differences in production conditions, the element highlighted (stressed) by the theory of comparative advantage, provide the most important part of the answer. But a complete answer must also take into account other factors such as patterns of demand, economies of scale and innovation or style.In reality, however, complete specialization may never occur even when it is economicallyadvantageous. For strategic or domestic reasons, a country may continue to produce goods for which it does not have an advantage. The benefits of specialization may also be affected by transport cost. Goods and raw materials have to be transported around the world and the cost of the transport reduces the benefit of trade. The case will be more serious with transporting bulky or perishable goods. Protectionist measures which are often taken by governments are also barriers totrade, and typical examples are tariffs and quotas.Tariff barriers are the most common form of trade restriction. A tariff is a tax levied on a commodity when it crosses the boundary of a customs area which usually coincides with the area of a country.A customs area extending beyond national boundaries to include two or more independent nations is called a customs union. Import duties are tariffs levied on goods entering an (customs) area while export dutiesare taxes levied on goods leaving an (customs) area. The former type is more common than the latter as most nations want to expand exports and increase their foreign exchange earnings (income). Import duties may be either specific, or ad valorem, or a combination of the two –compound duties. The term drawback refers to duties paid on imported goods that are refunded if the goods are reexported. The term most-favored-nation (MFN) treatment refers to a tariff treatment.Under this treatment, a country is required to extend to all signatories (contracting parties) any tariff concessions(关税减让) granted (given) to any participating country. However, MFN treatment is not really special but is just normal trading status. It gives a country the lowest tariffs only within the tariff’s schedule, but it is still possible to have lower tariffs.Quotas or quantitative (quantity) restrictions are the most common form of non-tariff barriers. A quotalimits the imports or exports of a commodity during a given period of time. The limits may be in quantity or value terms, and quotas may be on a country basis or global, without reference to countries. They may be imposed unilaterally and can also be negotiated on a so-called voluntary basis. Obviously, exporting countries do not readily agree to limit their sales. Thus, the “voluntary” label generally means that the importing country has threatened to imposeeven worse restrictions if voluntary cooperation is not forthcoming.In addition to visible trade, which involves the import and export of goods, there is also invisible trade, which involves the exchange of services between countries.Transportation service across national boundaries is an important kind of invisible trade. International transportation involves different means of transport such as ocean ships, planes, trains, trucks andinland water vessels. However, the most important of them is maritime ships. When an exporter arranges shipment, he generally books space in the cargo compartment of a ship, or charter a whole vessel. Some countries such as Greece and Norway have large maritime fleets and earn a lot by way of this invisible trade.Insurance is another important kind of invisible trade. In the course of transportation, a cargo is vulnerable to many risks such ascollision, pilferage, fire, storm, explosion, and even war. Goods being transported in international trade must be insured against loss or damage. Large insurance companies provide service for international trade and earn fees for insuring other nation's foreign trade. Lloyd's of London is a leading exporter of this service.Tourism is yet another important form of invisible trade. Many countries may have beautiful scenery, wonderful attractions,places of historical interest, or merely a mild and sunny climate. These countries attract large numbers of tourists, who spend money for travelling, hotel accommodations, meals, taxis, and so on. Some countries depend heavily on tourism for their foreign exchange earnings, and many countries are making great efforts to develop their tourism.The fourth type of invisible trade meriting (deserving) attention is called immigrant remittance. Thisrefers to the money sent back to home countries by people working in a foreign land. Import and export of labour service may be undertaken by individuals, or organized by companies or even by states. And this is becoming an important kind of invisible trade for some countries.Invisible trade can be as important to some countries as visible trade is to others. In reality, the kinds of trade nations engage in are varied(various) and complex(complicated), often a mixture of visible and invisible trade.。
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Lesson 1 InternationalBusinessInternational business refers to transaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country is also regarded as import, such as business between Hong Kong and Taiwan. Internation business involves more factors andthus is more complicated than domestic business. The followings are some major differences between the two: 1. The countries involved often have different legal systems, and one or more parties will have to adjust themselves to operate in compliance with the foreign law.2. Different countries usually use differentand the partieswill have to decide which currency to use and do everything necessary as regards conversion etc. Uncertainties and even risks are often involved in the use of a foreign currency.3. Cultural differences including language, customs, traditions, religion, value, behavior etc. often constitute challenges and even traps for people engaged in international business.4. Countries vary in natural and economic conditions and may have different policies towards foreign trade and investment, making international business more complex than domestic business.With the development of economic globalization, few people or companies can completely stay away from international business. Some knowledge in this respect isnecessary both for the benefit of enterprises and personal advancement. International business first took the form of commodity trade, i.e. exporting and importing goods produced or manufactured in one country for consumption or resale in another. This form of trade is also referred to as visible trade. Later a different kind of trade inthe form of transportation, communication, banking, insurance, consulting, information etc. gradually became more and more important. This type of trade is called invisible trade. Today, they constitute over 60% of their gross domestic products and account for an increasing proportion of world trade.Another important form of international business issupplying capital by residents of one country to another, known as international investment. Such investments can be classified into two categories. The first kind of investments, foreign direct investments or FDI for short is made for returns through controlling the enterprises or assets invested in a host country.The host country is a foreign country where theinvestor operates, while the country where the headquarters of investor is located is called the home country. The second kind of investment, portfolio investment, refers to purchases of foreign financial assets for a purpose other than controlling. Such financial assets may be stocks, bonds or certificate of deposit. Stocks are also calledcapital stocks or bonds. Bonds are papers issued by a government or a firm with promise to pay back the money lent or invested together with interest. The maturity period of a bond is at least one year, often longer, for example five, or even ten years. Certificates of deposit generally involve large amounts, say 25 thousand US dollars. Besides trade andinvestment, international licensing and franchising are sometimes taken as a means of entering a foreign market. In licensing, a firm leases the right to use its intellectual property to a firm in another country. Such intellectual property may be trademarks, brand names, patents, copyrights or technology. Firms choose licensing is because they don’t have to make cashpayment to start business, and can simply receive income in the form of royalty. Besides, they can benefit from location advantages of foreign operation without any obligation in ownership or management. The use of licensing is particularly encouraged by high customs duty and non-tariff barriers on the part of the host country. However it is not advisable to use licensingagreement in countries with weak intellectual property protection since the licensor may have difficulty in enforcing licensing agreement.Franchising can be regarded as a special form of licensing. Under franchising, a firm, called the franchisee, is allowed to operate in the name of another, called the franchiser who provides the former with trademarks,brand names, logos, and operating techniques for royalty. In comparison with the relation between the licenser and the licensee, the franchiser has more control over and provides more support for the franchisee.The franchiser can develop internationally and gain access to useful information about the local market with little risk and cost, and thefranchisee can easily get into a business with established products or services. Franchising is fairly popular especially in hotel and restaurant business.Other forms for participating in international business are management contract, contract manufacturing, and turnkey project.Under a managementcontract, one company offers managerial or other specialized services to another within a particular period for a flat(fixed) payment or a percentage of the relevant business volume. Sometimes bonuses based on profitability or sales growth are also specialized (specified) in management contracts. When a government forbids foreign ownership in certain industries itconsiders to be of strategic importance but lacks the expertise for operation, management contracts may be a practical choices enabling a foreign company to operate in the industry without owning the assets.By contract manufacturing, a firm can concentrate on their strongest part in the value chain, e. g. marketing, while contracting with foreign companies for themanufacture of their products. Such firms can reduce the amount of their resources devoted to manufacture and benefit from location advantages from production in host counties. However, loss of control over the producing process may give rise to problems in respect of quality and time of delivery.For an international turnkey project, a firm signsa contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion.Such projects are often large and complex and take a long period to complete. Payment for a turnkey project may be made at a fixed total price or on a cost plus basis. The latter way of payment shifts the burden of possibleadditional cost over the original budget onto the purchaser.BOT is a popular variant of the turnkey project where B stands for build, O for operate and T for transfer. For a BOT project, a firm operates a facility for a period of time after building it up before finally transferring it to a foreign company. Making profit from operating the project for aperiod is the major difference between BOT and the common turnkey project. Needless to say, the contractor has to bear the financial and other risks that may occur in the period of operation.。