商务英语阅读：Lesson 1

Which country tops No.1 in invisible trade of international business ?
Service exporting of the U.S ranks the first in the world. In 2003, 84 of 100 world most popular films came from America. Disneyland of U.S.A. has become the most important invisible exporting product.
国内商务
现金交易 关税区 货币兑换
domestic business
transaction in cash
customs areas ( currency ) conversion

What does international business refer to ?
- 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
ቤተ መጻሕፍቲ ባይዱ

Licensing
A leases intellectual property to B.
Licensor Party A Licensee Party B
A receives income in the form of royalty.
Licensor : one who grants a license. (给予许可的人） Licensee : one who receives a licence. (接受许可的人）
FDI


It is made for returns by controlling the enterprises or assets invested in in a host country . 通过控制其在他国的企业和资产获得回报。
return : profit from a transaction 赢利，收益
C. Differences in cultural background
D. Differences in natural and economic conditions
Read Aloud Paragraph 7 ( With the development of …)

Questions: Why is international business necessary ?
证券是由政府或公司发行的凭证、政府或 公司承诺偿还债券购买者所借贷亦即所投资的 本金并利息。 the money lent or invested: 所借贷/所投资的钱
issued by a government or a firm
issue : publish (books, articles,etc)or put into circulation (stamps, banknotes, shares,etc.) 出
Small profit but quick returns, service comes first.
薄利多销，服务第一。
FDI

host country
a foreign country where the investor operates 投资者进行经营活动的国家称为东道国

home country

Now, Read Aloud Paragraph 9.

The residents of one country supply
capital
to another. Foreign Direct Investment
(FDI for short )
Two Categories Portfolio Investment
China became the 4th economic power in 2006, the 3rd exporter globally and the first supplier of the EU. China now accounts for 5% of world trade. By 2030 it is expected to rise to 15%. By the end of the decade China will be the world's biggest exporter.
Major Types of International Business
1. Visible Trade ( Commodity trade ) It refers to exporting and importing goods ( produced or manufactured in one country ) for consumption or resale in another
(3) 她生活中的主要爱好是音乐、网球、和烹饪。
1）do sth. (just ) for interest ； 2）a person of wide interests; 3）Her main interests are music, tennis and cooking.
Key
Interest
Notes to text

Bonds are papers (issued by a government or a firm) with promise to pay back the money (lent or invested) together with interest .(Para5)
Advantages of Licensing

Besides, they can benefit from locational advantages of foreign operation without any obligations in ownership or management.
Advantages of Licensing
author„s royalties copyright royalties industrial royalties mining royalty patent royalty running royalty 著者版税, 作者稿酬 版税, 稿费, 版权费 工业特许使用费 矿区使用费 专利权使用费 按产量支付的专利费
躲开，避开
stay away from
在这个方面
in this respect / aspect
个人晋升
personal advancement / promotion
Now, Read Aloud Paragraph 8 (International Business first took the form of …)
版或者发行（书、文章）；发行（邮票、钞票、股 票等）
eg. The government issues money and stamp. 政府发行货币及邮票。
interest
(1) 兴趣，好奇心（U, sing.）（2） 令人感兴趣的事物或 者爱好（C，pl.)
Practice
(1) 因为有兴趣而做某事; (2) 兴趣广泛的人
where the headquarters of the investor is located
投资者总部所在的国家称为投资国
Portfolio Investment


It refers to purchases of foreign financial assets for a purpose rather than controlling Such financial assets may be stocks, bonds, or certificates of deposit. 证券投资是以不控制为目的而购买国外的金融资 本，这样的金融资产可以是股票、债券、或者是定期 存款。
Key
(1) 他处处为你着想。 (2) 无息贷款 (3) 利率
What is the difference between FDI ( foreign direct investment ) and portfolio investment ?

FDI often refers to “ the purchase of physical assets or a significant amount of ownership (stock) of a company in another country in order to gain management control.” Portfolio investment does not involve obtaining a degree of control in a company.


Why should we learn something about international business ?
Read Paragraph 7 once again and translate the following expressions:
经济全球化
economic globalization
Advantages of Licensing

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. 一些公司选择许可经营，因为他们可以直接收取 知识产权使用费，而不必支付现金去开办业务。
3）a charge for a loan, usually a percentage of the amount loaned 利息 (U) 4）benefit or advantage 好处，利益；福利（C, pl)
Practice
(1) He has your best interests at heart . (2) the interest-free loan (3) the rate of interest / the interest rate
Fill in the blanks

Major differences between international business and domestic business : A. Differences in legal systems
B. Differences in currencies
2. Invisible Trade
It includes transportation, communication, banking, insurance, consulting, information and so on.
Complementary Information
China and International Trade

Now, please read Paragraph 10 and answer the following questions:
What does international licensing mean?

Why do firms choose international licensing ? Under what conditions do you think international licensing is advisable and unadvisable ?