自考国际商务英语1-4课课后问答题答案

Lesson 1

International Business

1.What does international business refer to? Please tell the difference between international business and

domestic business.

A: 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.

Some major differences between international business and domestic business is following:

(1)Differences in legal systems

(2)Differences in currencies

(3)Differences in cultural background

(4)Different in natural and economic conditions

2.Please explain the differences between visible trade and invisible trade. Which is becoming more and

more important and accounts for an increasing proportion in international trade?

A: Visible trade is the form of commodity trade. The form of transportation, communication, banking, insurance, consulting, information etc. is called invisible trade or service industries. The later is become more and more important.

3.Can you cite some examples to illustrate cultural differences in international business?

A: Cultural differences including language, customs, traditions, religion, value, behavior etc.

4.Please elaborate on the two categories of international investment. What is their major difference?

A: FDI (Foreign direct investment) is made for returns through controlling the enterprises or assets invested in in a host country. Portfolio investment refers to purchases of foreign financial assets for a purpose other than controlling. Such financial assets may be stocks, bonds or certificates of deposit.

5.What is licensing? Why do firms sometimes choose it as a means of entering a foreign market?

A: In licensing, a firm leases the right to use its intellectual property to a firm in another country. They choose licensing because they do not have to make cash payments to stat 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.

6.What is franchising? How is it different from licensing?

A: Under franchising, franchisee is allowed to operate in the name of another, 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.

7.What is a management contract? Under what conditions is it most applicable?

A: 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. When a government forbids foreign ownership in certain industries it considers to be of strategic importance but lacks the expertise for operation, management contracts maybe a practical choice enabling a foreign company to operate in the industry

without owning the assets.

8.What is an international turnkey project? In what way is its variant BOT different from it?

A: 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. 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

Lesson 2

Income Level and the W orld Market

1. Explain the concepts of GNP and GDP respectively and point out their major difference. Can we use them interchangeably?

A: GNP (Gross national Product) refers to the market value of goods and services produced by the property and labor owned by the residents of an economy. GDP (Gross Domestic Product) measures the market value of all goods and services produced within the geographic area of an economy. The difference between them is that GNP focuses on ownership of the factors of production while GDP concentrates on the place where production takes place. The difference between GNP and GDP can be ignored since it very small in most cases. Therefore, we can use them interchangeably.

2. In what different ways are GDP and per capita income significant in assessing the potential of a particular market?

A: Total GDP indicates the overall size of an economy, which is important in market assessment for durable equipment or bulk goods (grain, steel or cement). Per capita GDP reveals the average income level of consumers, which is important when marketing consumer durables.

3. What are meant by high income, middle income, and low-income countries according to the W orld Bank? Cite some examples for each group.

A: High-income countries: those enjoying annual per capita income of $9386 and above. In this group comprise three types of countries; most members of OECD, rich oil producing countries of the Middle East, small-industrialized countries or regions.

Middle-income countries: those with annual per capita income below $9386 but above $765. Included in this category is most East European countries and most members of the Commonwealth of Independent States, six OECD members, quite a number of Latin American countries and some comparatively developed countries in Asia, South Africa and oil-producing countries in African.

Low-income countries: 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.

4. Why are high-income countries important to trade and investment? Should we neglect low-income countries in international business?

A:High-income countries often have good infrastructure, high purchasing power, and 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.

In international trade the low-income countries should not be neglected, because they constitute markets for

lower-priced staple goods, provide cheap labor and are often rich in resources. Once tapped, the business potential of these countries will one day become real business opportunities.

5.W as China a low-income country a few years ago? How about now?

A: 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.

6.What does the term “Triad” refers to? What is meant by Quad?

A: 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. The scope of Triad to include Canada and name the broadened grouping Quad.

7. How much do you know about OECD? Please make a brief account.

A:OECD means Organization for Economic Cooperation and Development. The organization is included 29 members, 23 of them are high-income countries and 6 are middle-income countries. The headquarters is in Paris.

8. What is the best policy for China to develop business opportunities?

A: 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. And their geographical proximity to China is a great advantage for us in developing business relations with them.

Lesson 3

Regional Economic Integration

1.What is a free trade area? Make a brief account of the most notable free trade area in the world.

A: Free trade area is the loosest form in the regional economic integration. Members in this form 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. The most notable one 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 total GDP of more than 6 trillion US dollars.

2.In what way is a customs union different from a free trade area?

A: The Customs Union goes a step further by adopting the same trade policy for all the members toward countries outside their organization in addition to abolishing trade barriers among themselves. Imports from other countries are subject to the same tariff.

3.What are the characteristics of a common market? Which organization remained a common market

for some years in the past?

A: 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 labor, capital and technology are free to move among members so that they can be utilized in a more efficient and productive way. In the past, the European Community remained a common market for some years.

4.How much do you know about an economic union? Can members of an economic union keep all of

their national sovereignty?

A: The economic union is the highest form of economic integration, 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.

The member countries of an economic union are required to surrender some of their national sovereignty, which is eroding the tradition of the world political system based on the autonomy and supreme power of sovereign states.

5.Make a brief account of the origin and development of the EU.

A: 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 Community with the aim of gradually realizing the free movement of goods, services, labor and capital as well as the harmonization of economic policies of the member countries.

Ten years later in 1967, the European Community was formed by merging EEC, ECSC and European Atomic Energy Community (EURA TOM).

1992 it became a true common market as envisaged by the Single European Act. Then on January 1, 1994 the European Union (EU) came into being on the strength of the Maastricht Treaty.

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.

6.What is the most powerful institution of the EU? What is the executive body of the EU? How does it

operate?

A: The most powerful institution of the EU is the Council of Ministers.

Its executive body is the European Commission composed of 20 commissioners overseeing 23 departments in charge of different affairs.

Decisions of the council are made by votes allocated to member countries on the basis of their size. Different ministers attend the council meeting depending on the matters discussed. The council even has the power to pass legislation.

7.Explain briefly the five layer organizational structure of Asia-Pacific Economic Cooperation.

A: a. the Informal Meeting of Economic leaders

b. Dual-Ministerial Meeting

c. Ministers Responsible for Trade

d. The Senior Officials Meeting (SOM)

e. Subordinate committees under SOM: Committee of Trade and Investment, Economic Committee, Economic and Technical Cooperation Sub-committee of SOM and Budget Management Committee.

8.What are the tenet and objectives of APEC? What do its two wheels mean?

A: The tenet and objectives of APEC are inter-dependence, mutual benefits, adhering to an open and multilateral trading system and reduction of regional trade barriers.

Its two wheels mean trade and investment liberation and facilitation (TILF) and economic and technical cooperation (ECOTECH).

9.What are the nature and objectives of OPEC?

A:OPEC is a commodity cartel. It tried to limit the overall crude oil supply of the world for the purpose of maintaining higher oil prices.

Lesson 4

Economic Globalization

1. What are the basic feature and major role of economic globalization?

A:The basic feature of economic globalization is to free flow of commodity, capital, technology, service, and information in the global context for optimized allocation.

2. Mention some of the pros and cons of economic globalization. What is the right attitude towards it? (有利和不利方面)

A: The pros is that 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. While the cons of economic globalization is different countries and peoples do not enjoy balanced benefits.

The right attitude towards it is follow the trend closely, availing the opportunities it offers to develop ourselves and avoiding its possible impacts.

3. What is the formal definition of a multinational enterprise? How can you tell whether a multinational corporation is a parent or just an affiliate?

A: A multinational enterprise shall be defined as a business organization that owns (whether wholly or partly), controls and manages assets in more than one country.

If the MNC is the original investing corporation, it is known as the parent MNC, which is normally also t he international headquarters of the MNE. If the MNC is established as a result of investments by the MNE, whether through the parent or through another of its already established MNC, it is an affiliate MNC.

4. Describe briefly the characteristics of MNEs.

A: The characteristics of MNEs is as follow:

a.MNEs are generally enormous in size

b.Wide geographical spread

c.Longevity and rapid growth

5. What is the commonly recognized objective of MNEs?

A: MNEs are formed for profit, and the second basic need is security.

6. Why is security so important to MNEs?

A: Without security, an MNE’s survival can never be assured. The need of 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. Profit is useless if it cannot be secured by the MNE and transferred wherever it so desires.

7. Do you think “wide geographical spread”of MNEs plays a very important role in the development of their business? Why?

A: Y es, I do. MNEs enables them to have a wide range of options in terms of decisions in areas such as sourcing

and pricing. 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.

8. What is the relationship between MNEs and their host countries?

A: MNCs are under the legal jurisdiction of their host governments that can impose various rules, regulations, and laws on the MNCs to the extent of nationalizing all their assets.

9. What are the four types of multinational enterprises? Describe each of them briefly.

A: The four types of multinational enterprises is that:

d.Multi-domestic corporation: it 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.

e.Global corporation: it operates and views the world market as an integrated whole. Power and

responsibility are concentrated at the headquarters that manages production and marketing to achieve the economies of scale as much as possible.

f.Transnational Corporation: The activities and resources of the transnational corporation are highly

neither centralized as the second type nor decentralized as the first type but are integrated in an interdependent network of affiliates.

g.W orld Company: their national identities are blurred to a large extent.

10. Are there may world companies at present? Imagine their future role in complete globalization.

A: Now it is very few. When such companies become dominating, the possibility of conflicts among sovereign states may be greatly reduced. Possibly they will be instrumental to the realization of complete globalization.