国际贸易实务

Chapter 1 International Trade

2)Economic Reasons

The principle of absolute advantage :

It then follows that each country will benefit from specialization in those commodities in which it has an "absolute advantage",(i.e.,being able to produce at a lower real cost than other country ),exporting them and importing other commodities which it produces at a higher real cost than another country .

What is the principle of comparative advantage ?

David Ricardo ,in his work On the Principle of Political Economy and Taxation (1817),showed that absolute cost advantage are not a necessary condition for the two nations to gain from trade with each other .Instead ,trade will benefit both nations provided only that their relative costs ,that is ,the ratios of their costs measured by labor-hour or another commodity ,are different for two or more commodities .In short, trade depends on differences in comparative cost or opportunity cost,and one nation can probably trade with another even though its real costs are higher (or lower)in every commodities .

3)What are some of the forms of trade restrictions ?What is a tariff barrier and what is a non-tariff ?

Tariffs :

A tariff is a duty or fee levied on goods being imported into a country .It can be a revenue tariff ,which is collected mainly for income purpose ,or a protection tariff ,which is collected in order to protect the domestic market.However ,it is sometimes difficult to distinguish the two since both may have the role of the other .

Non-tariff barriers :in addition to tariff ,countries also use other methods to make import more difficult and costly ,these methods ,not collecting tariffs ,are called non-tariff barriers .

Quota :This is a quantitative restriction or upper limit in terms of physical quantity or value . Import license :an import license is a permit for import issued by the government to control the import of the goods the have strategic importance to the importing country .

Voluntary export restrains :it enable country o force onto another country through bilateral agreement a low rate of increase in export volume.

Foreign exchange control:the currency restriction intends to control import by preventing domestic residents from acquiring sufficient foreign currency to pay for imports.

State monopoly of import and export:with this of barrier ,import and export are restricted by giving exclusive authorities of import and export to only limited number of state companies that are well under the control of the government .

Government procurement policy :this policy stipulate that government organizations must use local products unless some conditions are met.

Advanced deposit :this barrier increases the cost of imports by forcing importers to deposit a percentage of total value of the imports for a period of time without interest or with a very low interest .

Technical standards :by imposing technical standards that foreign exporters are not familiar with or have difficulties to meet ,the volume of import is controlled.

Health ＆sanitary regulations :these regulations can also discourage imports ,especially when the regulations imposed by the importing country are different from that of the exporting country .

Packaging and labeling regulations:these regulations represent still another barrier.Importing countries can have sophisticated regulations packaging and labeling in terms of the information contained ,sizes of letters ,languages used ,and even orders in which different languages are used .

Minimum price:minimum price is the lowest price set by an importing country for imported goods.

4)surtax:

General speaking, import surtax is additional ,temporary ,and discriminatory against goods from a particular country .It is often collected to cope with international payment difficulties ,maintain balance of trade ,and prevent dumping .

It has three forms :countervailing duty ;anti-dumping duty ;variable levy.

Anti-dumping duty :is collected when importing country believes that there is a dumping ( a not universally defined concept that can mean the selling price in a foreign country is below domestic selling price ,world market price ,or production cost ).

5)Filling in the missing words in the following paragraph

Many large multinational firms with numerous manufactureing subsidiaries all the world began their foreign operations by exporting . As this stage became successful ,they established sales companies overseas to market their exports.Where the sales company was able to develop sufficiently large market, a plant to assemble imported parts was set up .Finally, the complete products was manufactured locally .However ,this sequence should not be construed as the only way to become involved in foreign markets .In some countries ,conditions may require that a complete manufacturing plant be the means of initial entry.Multinational firms today are employing all of these methods simultaneously to reach their worldwide markets.

Chapter 2 Terms of Delivery

1)International Rules for the International of Trade Terms:commonly referred to as Incoterms ,are such a set of commercial terms .

It aims to provide such a set of standardized terms which mean exactly the same to both parties to a contract and which will be interpreted in exactly the same way by courts in every country .

2)Carrier :means any person who, in a contract of carriage ,undertakes to perform (performing carrier )or to procure (contracting carrier)the performance of carriage by rail,road ,sea ,air ,inland

waterway ,or by a combination of such modes .

3)Decide whether the following statements are true of false :

1.The purpose of Incoterms is to totally eliminate the uncertainties of different interpretations of delivery terms and thus misunderstandings ,disputes , and litigation. ( F )

2.Incoterms are part of national or international law. ( F )

3.The scope of Incoterms is limited to matters relating to the rights and obligations of the parties to the contract of sales with respect to the delivery of tangible goods sold. ( T )

4.Incoterms deal with all aspects of a sales contract. ( F )

5.Incoterms can also be used for the sale of goods within purely domestic market. ( T )

6.Incoterms also deal with the consequences of breach of contract .( F )

4)Fill in the missing word in the following paragraph .

Incoterms are the international standard used in the sales transaction and shipping documentation.Incoterms define the seller's and buyer's responsibilities by providing generally three basic pieces of information: information to the transfer of risks information on the division of costs ,and information on the documents .When parties decide on a given Incoterm ,they are implicitly agreeing to a set of obligations and these obligations need not be referred to again in the sales contract. Since Incoterms are not law ,they must be written into a sales contract in order to be bound to a contract. It should be noted that Incoterms are flexible and can be further defined to suit the mutual interest of the buyer and seller.

Chapter 3 Cargo Packaging Stowage ＆Marking

1)Cargo Packaging is needed for four main reasons :

?First and foremost ,protective function:involves protecting the contents from the environment and vice versa .

?Secondly,loading and transport function.

?Thirdly, stowage function: Packaging must thus also fulfill a storage function to facilitate stowage and distribution by proper quantity /weight and with proper marking.

?Fourthly ,promotion function:Cargo packaging may also promote sales if promotional material placed on the packaging is intended to attract the potential purchaser's attention and to have a positive impact upon the purchasing decision.

2)Types of packaging :

Bale : a bale is a heap of material pressed together and tied with rope or mental wire . It is an effective ,low-cost and easy-to-handle mode of packaging，but it only offers limited protection to cargoes .

Bags :bags can be mode of cotton ,plastic ,paper or jute.They are ideal for cement, fertilizer, flour ,chemicals and many consumer products.The advantage is low cost and the disadvantage is their vulnerability to damage by water, sweat ,leakage and breakage.

Barrel /Drum :t his type of container is made of wood ,plastic,or metal .It is used for liquid or greasy cargoes .The advantage is the resale value in some counties .and the disadvantage is

that a metal drum can get rusty and result in leakage if container is not sealed properly.

Boxes /Case:a case is made of wood and varies in size ,some cases are lined to create airtight packing.The advantage are its resale value in some countries ,its reliable protection for expensive cargoes such as equipment .The disadvantage is its high costs .

Glass container :this type of packaging is often used for dangerous liquid cargoes such as acids,it protects workers and transport vehicles but require more careful handling.

Carton:are now a very common form of packaging with the development of containerization and palletization ,particular for consumer products .It has several advantages :they are relatively inexpensive ;they are also expandable and therefore easy to handle and stow .Carton also aid marketing as words can be printed on them .The disadvantage is their susceptibility to crushing and pilferage .

Crate /Skeleton case: this form of packaging is halfway between a bale and a case and has a wooden structure .It is often used for lightweight goods of large cubic capacity such as machinery and domestic appliances .

3)The purpose of Stowage of Cargo :

?Good stowage of cargo serves a number of purpose .

?It protects cargo ,transport vehicles and personnel .

?It increases handling efficiency .

?It maximizes the utilization of the available space .

?ultimately it helps promote sales .

What purposes does correct and complete marking serve?

Correct and complete marking of packages helps prevent incorrect handling, accidents, incorrect delivery, losses of weight and volume and Customs fines.

General principle of cargo stowage :

?All cargoes should be stowed and secured in such a way that the transport vehicles and

persons on board are not put at risk .

?The safe stowage and securing of cargoes depend on proper planning execution and

supervision.

?Personnel commissioned to tasks of cargo stowage and secureing should be properly

qualified and experienced .

?Personnel planning and supervision the stowage and secureing of cargo should have a sound

practical knowledge of the application and content of the relevant rules .

4)What are the main factors influencing types if cargo packaging?

Nature of cargo :packaging should be designed according to the need of the cargo .

Transport

Customs or statutory requirements: this is relevant to the dangerous cargoes to which strict regulations apply concerning acceptance ,packaging, stowage ,documentation ,marking and carrier liability .

Insurance acceptance conditions: packaging must meet the prescribed packaging specifications for particularly fragile cargoes and cargoes with a bad record of damage and pilferage .

Cost: packaging should be economical as well as adequate.

Ease of handling and stowage .

5)Marking of cargo:

Correct and complete marking of packages helps prevent incorrect handling ,accidents ,incorrect delivery ,losses of weight and volume and Customs Fines .Marking must be clear and precise.

6)What are the main types of marking ?

Shipping mark :the marks and numbers of a shipment are analogous to the identification card of a person .

Information mark :country of origin -- the country of origin must be stated in accordance with the provisions of the particular country . Weight and dimensions of the package .We should also remember that direct naming of the content .

Indicative mark :indicative marks are "handling marks :that help ensure that the greater care is taken with cargo handling.

Warning mark :when dangerous cargoes are shipped ,warning marks are used to avoid any possible harm to workers and damage to the transport vehicles.

7)Filling in the missing works in the following paragraph

Goods shipped for export require substantially greater handling than domestic shipments .The exporter must pack the goods to ensure that :

The weight and measurements are kept to a minimum.

Breakage is avoided.

The container is theft-proof ;and

The goods do not suffer the stresses of ocean shipment ,such as excess moisture.

In addition to proper packing ,the exporter should be aware that certain markings are necessary on goods transported internationally .Some countries require that the country of origin be marked on the outside of the container ,and even have regulations as to how the mark of origin should appear .For good and drugs ,there may be special labeling requirement as determined by the laws of the country of destination. Moreover ,certain shipping marks must appear on the outside of the package The weight and dimensions should be visible and any special instructions should be shown,and you may want to repeat these instructions in the language of the importer's country.

If you business is not equipped to package your goods for export ,there are export packaging companies ,which can perform this service fro you.

Chapter 4 Transport

Ocean Transport

1) Advantages and disvantages

Ocean transport has many advantages.

The first advantage is the easy passage since about 70% of the earth is covered by water.

Secondly, ocean transport has a large capacity. For example, the deadweight of the largest oil tanker can be up to 500,000 tons.

Thirdly, because of such large capacity, the unit distribution cost is reduced. And finally, ocean transport has good adaptability to cargoes of different size, weight, shape, etc.

Of course, there are also disvantages,

one of which is the slow passage.

In addition, ocean transport is also vulnerable to bad weather and less punctual if compared with road or air transport.

Ocean Bill of Lading (B\L)

1)Function of (B\L)

B\L is the most important document when shipping goods by ocean freight. It serves three main functions:

?It is evidence that a valid contract of carriage exists between the carrier and the sipper, and it may incorporate the full terms of the contract between them.

?It is a receipt signed by the carrier confirming whether goods matching the contract description have been received from the shipper in good condition.

?It is also a document of title, creating ownership of the goods shipped.

2)Types of B/L

Clean B\L 清洁提单

A clean bill of lading bears an indication that the goods are received without damage, irregularities or short shipment. Usually, the words “apparent good order and condition”, “clean on board” or the like are indicated on the B\L.

Dirty B\L 不清洁提单

A dirty B\L is also called an unclean bill of lading, a foul bill of lading, or a claused bill of lading. It is the opposite of the clean bill of lading. It bears an indication that the goods are received with damage, irregularities or short shipment. Usually the words “unclean on board “ or the like are indication on the B\L such as “insufficient packing”, “missing safety seal” and “one carton short”. Through B\L 联运提单

A through bill of lading involves the use of at least two or more carriers of different modes of transport from sea, road, rail, air and river, such as sea-land or sea-river. It is therefore a “multimodal bill of lading”. Such as B\L does not always provide for responsibilities of the issuer for loss or damage to cargo from point of origin to destination.

Combined Transport Document (CTD) 联合运输单据

CTD is issued when multimodal transport is used. The main features of a multimodal transport are:

?The carriage of goods by two or more modes of transport;

?Under one contract;

?One document;

?One responsible party (CTO—combined transport operator) for the entire carriage, who might subcontract the performance of some, or all modes, of the carriage to other carriers.

The liability of the CTO starts at the place of receipt and ends at the place of delivery. This is the major difference between a CTD and a Through B\L.

Partial shipment and transshipment

?Partial shipment means shipping the commodity under one contract by more than one shipment. The clause of shipment must specify whether partial shipment is allowed by using

a phrase such as “Partial shipment (not) to be allowed “.

?Transshipment means the cargo being shipped will change ships before reaching the port of

destination. If the bill of lading incorporates clauses stating that the carrier reserve the right to transship, then the transshipment is allowed even if the letter of credit prohibits transshipment.

The clause must also specify whether transshipment is allowed by using a phrase such as “To be transshipment at xxx” or “Transshipment not to be allowed”.

Air transport

1)Benefits of air transport

1)Faster delivery 2)Better security

3 )Less packaging 4) Lower insurance

5) Faster settlement 6) Better service

7) Reduced stock 8) Expanded trade and new markets

2) Disvantages of air transport

Limited capacity, dimension and weight restriction;

Very high operating expense and high transport cost;

Vulnerable to disruption when weather id bad;

Expensive handing cost because of consignment tend not to be consolidated’

Sparsely located facilities.

containerization

1)Advantages of containerization 集装箱

Containerization is a method of transporting freight by placing it in large containers. It is an important cargo-moving technique developed in the 20th century.

1)Less handing of cargo and higher efficiency

2)More protection of cargo

3)Lower costs

Pipelines 管道

Pipelines networks are mainly used for the distribution of oil and gas. One advantage of the network is the low cost of distribution as very little labor is needed in the network, although the cost of installing such a system may be moderately high.

Another advantage is the 24-hour availability of the network. Besides, the network needs little maintenance during operation. From an environmental point of view, pipeline networks cause little disruption to the environment during installation and create no noise or fumes during distribution of cargo.

The disadvantage of pipeline networks is limited capacity. Until a new pipeline is installed, the market growth is somewhat inhibited.

International Multimodal Transport

International multimodal transport is the carriage of goods by at least two different modes of transport on the basis of a multimodal transport contract from a place in one country at which the goods are taken in charge by the multimodal transport operator to a place designated for delivery situated in a different country.

1) Multimodal transport document

Multimodal transport document is a document that evidences a multimodal transport contract, the

taking in charge of the goods by the multimodal transport operator, and an undertaking by him to deliver the goods in accordance with the terms of that contract.

What are the key differences between liners and tramps?

A liner operates over a regular route according to an advertised time-table but a tramp does not operate this way. Instead, a tramp is a vessel hired to pick up cargo from almost any port and go directly to the port of destination.

What key purposes does a B\L serve?

A B\L serves three key purposes.

First, it is evidence that a valid contract of carriage exists between the carrier and the shipper, and it may incorporate the full terms of the contract between them.

Second, it is a receipt signed by the carrier confirming whether goods matching the contract description have been received from the shipper in good condition.

Third, it is also a document of title, creating ownership of the goods shipped.

What is Air Waybill and what is the key difference between this document and an Ocean B\L？

An air waybill is a transport document issued by airlines or air cargo companies or their agents. The key difference between this document and an ocean B\L is that air waybill is not a title document. As a straight waybill, an air waybill is not transferable or negotiable and a shipper does not lose his ownership of the cargo by handing the air waybill to the airline. However, as the buyer is named the consignee on the waybill and he\she can claim the consignment from the carrier by simply showing proof of identity.

Fill in the missing words in the following paragraph :

Laytime is the total time (number of hours or days) allowed through an agreement between the ship-owner and character for loading and \or unloading the cargo. Within that time, the ship-owner bears the expense for the vessel to be on berth. Over that time, the character pays for any hours as demurrage, the cost of delaying a ship, to the ship-owner. If the loading and \or unloading can be completed in less time allowed in the voyage charter party, dispatch money is paid by the ship-owner to the charterer as an amount of compensation.;

Chapter 5

Foreign exchange 外汇

Foreign exchange is the currency of any foreign country which is the authorized instrument of settlement and the basis for record keeping in that country.

Foreign exchange rate 汇率

Like any other commodities, a foreign exchange has a price, which is expressed in another currency. Foreign exchange rate is the price relationship between the currencies of two countries or the price of one currency in terns of the other.

Quotation 报价

Quotation\Quote means a statement of willingness to buy or sell at announced price. A foreign exchange quotation can be made by only one middle rate. However, it is more often made by a bid rate and a selling rate, which refer to the rates at which the banks is willing to buy foreign exchange from and to sell foreign exchange to its customers.

Direct quotation 直接报价

Direct quotation is the home currency price of one unit of foreign currency. With direct quotation, the foreign currency is always in the unit of 1,100 and 10,000 etc.

Indirect quotation 间接报价

Indirect quotation is the foreign currency price of one unit of home currency.

A foreign exchange rate quoted as the foreign currency per unit of the domestic currency. In an indirect quote, the foreign currency is a variable amount and the domestic currency is fixed at one unit.

Choose T or F

1、The exchange rate is very important to determine the final earnings of an exporter. T

2、Importers should avoid the currency that is likely to become stranger at the time he mkes payment. T

3、Foreign exchange risk can be controlled in different ways. T