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1、Teaching Methods Lecture Presentation Group discussion tutorialContents of LectureI. Overall objectives of the CourseLanguage, Knowledge of international trade, tips to cross-culture business practice and other objectives1. Language:-Good command of the layout, format and other features of business

2、letters. (e.g. style, tone, usual practice etc)-Good command of the language features of business writing. Wording/ diction (levels of wordsbuy/purchase/place an order with, tell/let know/inform/advice/inform/instruct, meaning of words -decline/refuse) ; sentence (short and simple sentenceempathetic

3、, strong, easy, good for presentation of important facts and ideas; long and complex sentenceprecise, clear, suitable for explanation of views and theories) Paragraph (one topic one paragraph)Passage (concise, correct, clear, courteous) -Understanding of basic terms in international trade Special wo

4、rds: arbitration, transshipment, seaworthy, Common words: inquiry, offer, sight draftAbbreviations: price terms, payment method, Insurance terms, etc.2. Knowledge of international trade-Preliminary knowledge of international business and trade-Definition, Category, Policy, trade barriers and encoura

5、gement policy, etc.-Basic knowledge of general procedures of export and import-Inquiry, Offer, Counter-offer, Conclusion of business, etc. 3. Tips to cross-culture business practice -customs, usual practice in different countries, communication styles, cross-culture business, business etiquette (bus

6、iness card, dressing code, dining code, etc.)Other objectives -introduction to job interviews, CV, etc -contrast & comparison between Chinese and English-translation techniques II. Introduction to the text book 1st part: Chapter one2nd part: Chapter 2-53rd Part: Chapter 6-10III. Introduction to clas

7、s activities Lecture, Translation, Discussion, Note-takingIV. Introduction to the Exam Translation of terms, words, phrases, sentences, letters; Test on knowledge concerning international business Letter composition Lecture 2 International Business and Policies General picture of global economy Unde

8、rstanding of international business International trade organization and policies International trade policies Trade barriers Export encouragement policiesI. Some key words Globalization/integration of world economy全球化/世界经济一体化 -FDI外国直接投资(China 2005 US$60.3 billion) -Outsourcing外包(manufacture outsour

9、cing in China, service outsourcing in India, etc.) -Transitional economy转轨经济(from Central controlled to market economy, e.g. China, East European countries; 51 countries in 2005 acknowledge market economy status of China) -Oligopoly, monopoly寡头垄断II. Some key figures GDP: the market value of all fina

10、l goods and services produced within a country during a given time period. (Investment + consume+ net export).GDP Ranking (official exchange rate)1. USA $12.77 trillion (agriculture 1% , manufacture 20.79%, service 78.3%)2. Japan $4.955 trillion3. Germany $2.83 trillion4. China $2.25 trillion (10%,

11、50%, 40%)GDP Ranking (purchase power parity)1. USA $12.37 trillion2. China $8.158 trillion 3. Japan $3.867 trillion4. Germany $2.446 trillion Import & Export Value (in US$ billion)1. USA import 1,127, export 927.5, total 2654.52. Germany import 801, export 1,016, total 1,8173. China import 660.1, ex

12、port 762, total 142214. Japan import 455.1, export 550.5, total 10016(China: more than 50% of exp. & imp. Value generated from processing trade. E.g. a US$20 Barbie Doll, processing fee only 35 cents.)III. International Business /Trade 1. Definition of International BusinessAll business transactions

13、 that involve two or more countries.2. The Major Categories of International Business国际贸易的主要类别Merchandise/Commodity exports and imports. (商品的进出口)Tangible goods sent out of and brought in countries. They sometimes are referred to as visible exports and imports. Exporting or importing is usually the f

14、irst type of foreign operation a company undertakes. This is because at an early stage of international involvement, exporting or importing requires the least commitment of and the least risk of the companys resources, such as capital, personnel, equipment and production facilities.Based on the way

15、and purpose of export and import goods, it can be further classified as Sole Agency(代理), Sole Distributorship(经销,专卖),Processing and Assembling Trade (processing with imported materials, processing according to supplied samples and assembling with supplied parts/components) and Compensation Trade (pr

16、oduction and technology provided by foreign investors or purchased with foreign export credit are utilized by Chinese enterprises for production, and the products thereof are to be sold back to the foreign party as payment). Service exports and imports. International earnings other than those derive

17、d from the exporting and importing of tangible goods, often referred to as invisibles. Service exports and imports take many forms, such as travel, tourism, transportation, labour services such as teacher, consultant, chef, doctor etc, contract for construction projects, and the use of assets.Invest

18、ment. Foreign investment involves ownership of foreign property in exchange for financial return. FDI.3. Motivations of Companies Engagement in International Business. To expand their sales. Higher sales means higher profits e.g. Microsoft: Economy of Scales e.g. capital/technology intensive enterpr

19、ises, such as auto, pharmaceutical, information, oil refinery etc.; Large market share means above normal profit e.g. Microsoft, Intel, or Instant coffee (MNCs like Nestle, Philip Morris, Unilever 70% market share, only 15 to 20 p of 1 pound spent on coffee goes to product countries.)To acquire reso

20、urces. They look for foreign capital, technologies, labour and natural resources not available with the companys home country or to reduce their cost.To diversify their sources of sales and supplies. Ericsson, China market is its bottom line because it loses money in other markets.IV. International

21、Trade Policies1. Overview概述International trade may benefit its practicing nations generally. However, to protect infant industry and to prevent domestic markets from being occupied too much by foreign products, all the governments in the world make some policies to encourage export and discourage im

22、port.To encourage export, free trade zones, export subsidies, return of product tax and some other methods are often used. To discourage import, tariff and non-tariff trade barriers are often resorted to. And this sometimes result in trade disputes between nations which calls for the establishment o

23、f an international organization to coordinate the policies of various nations.2. GATT and WTO (关贸总协定和WTO)GATT, the General Agreement on Tariff and Trade, the worlds major trade liberalization organization, began in 1947 with 23 members and by 1993 had 117 members. It changed its name to WTO on Jan.

24、1st, 1995, with its headquarter located in Geneva. By the end of 2001, WTO had 143 members inclusing China that entered into WTO on Dec. 11th, 2001. WTO is so far the only global international organization dealing with the rules of trade between nations.The goal of WTO is to help producers of goods

25、and services, exporter and importers conduct their business. Its roles can be briefly defined as: Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade polices Technical assistance and training for developing countries Cooperation with othe

26、r international organizations3. Generalized System of Preference (GSP) 普惠制To help the economic development of the developing nations, GSP has been endorsed. It is a preferential treatment, under which, developed nations should offer tariff preferences to the less developed and developing nations.4.

27、Most-Favoured-Nation Clause (MFN)最惠国条款(最惠国待遇). In 1998 it was changed to NTR (Normal Trade Relation), since MFN was deceiving as most nations have this trade status. The products from all countries that have been given NTR are subject to the same tariffs. According to GATT, countries must adhere to

28、the MFN Clause. This clause requires that if a country grants a tariff reduction to one country, it must grant the same concession to all other countries. The MFN clause also applies to quotas and licenses. 5. Trade Barriers贸易壁垒Tariffs 关税 (duty, tax collected by a government on the goods imported.)

29、Revenue tariff.收入关税 To increase the revenue income of the government. Protective tariff.保护性关税 Higher than the average increased value-added tax, to increase revenue and to weaken the competitive power of the imported goods. (Tariff on imported cars are supposed to reduced from more than 100% before

30、WTO to 25% on July 1, 2006 in China.) Prohibitive tariff and retaliatory tariff 报复性关税. Very high tariff to make the import of certain goods unprofitable or with little profits. This may cause the country to raise importing duty to discourage exports of the country that has initiated the prohibitive tariff. This is so-called retaliatory tariff.(2001, Japan, Prohibitive tariff on Chinese agriculture products. China retaliatory tariff on Japanese car 200%, mobile phone

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