International Trade Practices A Bilingual Teaching NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY The course concerns international trade practices and trains the students’ ability of understanding the detailed concept concerning international import and export and get familiar with those practices so as to meet the demand of international business. It is mostly a practical course and may offer students concrete knowledge about international trade and enlarge their structure of knowledge. NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

The features of the book: 1. Broad and detailed subjects regarding international import and export, including terms of delivery, transport, foreign exchange, payment terms and insurance and so on. 2. International trade feature, subject of each chapter is similar to that of International Trade Major. 3. Language feature, up-to-date and typical business English language. NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

Chapter One: Introduction to International Trade What is International Trade? The fair and deliberate exchange of goods and services across national boundaries International trade is the exchange of goods and services produced in one country with those produced in another country. NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY Some basic concepts: 1 visible trade, invisible trade, 2 direct trade, indirect trade 3 import trade, export trade 4 free trade, protective trade NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

Relationships between Customs Territory and Territory １　订有关税同盟的情况下，关境大于国境 ２　在设有自由港、自由贸易区的国家，关境小于国境 ３　前２种情况都没有，两者相等 NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

Absolute Advantage –Adam Smith The theory holds a commodity will be produced in the country where it costs least in terms of resources. Assumption: There are two countries producing two same commodities under perfect competition. NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY Conclusion: Gains from trade will occur even in a country that has absolute advantage in all products because the country must give up less efficient output to produce more efficient output. NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

Comparative Advantage-David Ricardo The theory holds that even if a country is less than another in the production of 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 absolute disadvantage is smaller and import those its absolute disadvantage is greater. NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY ※◎※◎※◎ Comparative advantage and factor proportions theory are the corner-stone of modern thinking on international trade. NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY E-Commerce is doing business through electronic media. It means using simple, fast and low-cost electronic communications to transact, without face-to-face meeting between the two parties. Business-to-Business (B2B) Business-to-Consumer（B2C） Consumer-to-Consumer（C2C） Government to Citizen（G2C） Business-to-Government（B2G） NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY

NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY Term Translation self-sufficient economic resource import and export FDI (foreign direct investment) international payment commodity exchangecapital dumping currency host country balance of trade trade surplus/deficit European union a favorable/unfavorable balance of payment visible trade invisible trade trade in goods trade in services NORTH CHINA INSTITUTE OF SCIENCE AND TECHNOLOGY