International Trade
Practice
陈 霜 华
School of International Economy & Trade (SIET)
Shanghai Finance University
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Contact Information
T:68682161(O)
50218899-8520(O)
E-mail: chenshh@shfc.edu.cn
Office hours：
8:20 - 12:00am Tuesday
E-mail preferred
Location： SIET Office（Room 5401,4nd floor ）
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How ?
How to Evaluation
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Class participation ：10%
Attendance ：10%
Middle exam, Homework & quiz :10%
Experiment ：10%
Final exam ：60%
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Awards
(1-3 bonus points each time)
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take presentations
give a speech
class attendance seriously
actively raise your hands to speak
meaningfully contribute to group
discussions
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disciplines and code of
conduct
‧Not be late for classes (1 point deducted each time)
‧Not leave or be absent from classes without excuses
(2 points
deducted each time, 10 points is the highest；miss the class more than 1/3 meet class
will not be allowed to sit for the final examination）
‧No food in the classroom(1 point deducted each time)
‧No cell phone call and short message during the lecture
(2
points deducted each time)
‧No talking in class except presentation, discussion, Q&A
‧No move around in classroom
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reference
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主流外贸B2B平台:
– Globalsources.Com
– Made-in-China.Com
– www.alibaba.com
– Ec21.Com, Ecplaza.Net
– ECVV.Com
– Tradekey.Com
– eBay
– iOffer.Com
– DHgate.com
– www.bmbtob.com
– www.Wordbid.com
– www.Europages.com
– www.Compass.com
– www.Fuzing.com
– Diytrade.com
– Tpage.com
国际商务桥 http://www.ibb.cn
外贸论坛
ICC ( International Chamber of Commerce) http://www.iccwbo.org
U.S.Chamber of Commerce http://www.uschamber.org/default.htm
吴百福主编，《进出口贸易实务教程》，上海人民出版社2007
爱德华.G.辛克尔曼著，《国际贸易双解词典—全球贸易手册》世界科学出版社2002
周瑞琪，《国际贸易实务》（英语版）,对外经济贸易大学出版社，2007年版
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Prepare for a deal
Apply for license
market survey
make plan
negotiation
inquiry
make an offer
counter-offer
accept
sign contract
fulfill contract
stock Rushing Establishment of L/C
charter
pack
Examination of L/C
insurance
Book
shipment
amend
the
L/C
inspection
delivery documents making
foreign exchange settlem
declare
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交易前准备
申领许可证
市场调查
拟定方案
交易磋商
询盘
还盘
发盘
接受
合同的签订
合同的履行
备货
包装
商检
催证
审证
改证
租船
订仓
办理
保险
发货
报关
制单
结汇
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Chapter 1 Introduction to International Trade
ƒ What is international trade?
ƒ What is the origin of international trade?
ƒ Why trade with other nations?
ƒ What are traded internationally?
ƒ How to measure international trade?
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Section 1: What is international trade
• International trade is a business whose activities
involve the crossing of national borders. All
business transactions involve two or more
countries.
• It deals with :
• Flow of goods and services
• policies regulating the flow
• effects on national welfare
• economic interdependence among nations
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Section 1: What is international trade?
ƒ International trade is the fair and
deliberate exchange of goods and
services across national boundaries
(textbook).
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International trade vs. foreign trade
ƒ International trade, also called “world trade”,
generally refers to the exchange of goods and
services among different countries. It is the
aggregate of the import and export of all the
nations.
ƒ Foreign trade refers to the exchange of goods
and services of one country (region) with
another country (region). It comprises two parts
- import and export.
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Section 2: What is the origin of international trade?
The story of the caveman takes place
on an international basis.
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World Trade and World GDP
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1. Overview
2. Trade by region
3. Leading traders
4. Bilateral trade of leading traders
5. Regional Trade Agreements
6. Least-developed countries
7. Foreign Affiliates Trade in Services
http://www.wto.org/english/res_e/statis_e/its
2011_e/its11_world_trade_dev_e.htm
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Figure 1.1
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2011年世界各国GDP及人均GDP排名
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【GDP总量（以国际汇率计算）】 from IMF
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GDP前十名：
1 United States 14,624,184 美国
2 People’s Republic of China 5,745,133 中国
3 Japan 5,390,897 日本
4 Germany 3,305,898 德国
5 France 2,555,439 法国
6 United Kingdom 2,258,565 英国
7 Italy 2,036,687 意大利
8 Brazil 2,023,528 巴西
9 Canada 1,563,664 加拿大
10 Russia 1,476,912 俄罗斯
— World 61,963,429[4] 世界总计
— European Union 16,106,896[4] 欧盟
中国按国际汇率计算的GDP已经超过日本名列第二，相当于美国的39.3%。
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2011年世界各国GDP及人均GDP排名
• 【GDP总量（以购买力平价计算）】
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前十名：
1 United States 14,624,184 美国
2 People’s Republic of China 10,084,369 中国
3 Japan 4,308,627 日本
4 India 4,001,103 印度
5 Germany 2,932,036 德国
6 Russia 2,218,764 俄罗斯
7 Brazil 2,181,677 巴西
8 United Kingdom 2,181,069 英国
9 France 2,146,283 法国
10 Italy 1,771,140 意大利
— World 74,004,249 世界总计
— European Union 15,150,667 欧盟
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中国按购买力平价计算的GDP已经达到美国的69.0%。
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2011年世界各国GDP及人均GDP排名
• 【人均GDP（以国际汇率计算）】182个国家
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1 Luxembourg 104,390 卢森堡
2 Norway 84,543 挪威
3 Qatar[4] 74,422 卡塔尔
4 Switzerland 67,074 瑞士
5 Denmark 55,113 丹麦
6 Australia 54,869 澳大利亚
7 Sweden 47,667 瑞典
8 United Arab Emirates 47,406 阿联酋
9 United States 47,132 美国
10 Netherlands 46,418 荷兰
37 Taiwan (Republic of China) 18,303 中国台湾
— World 8,985 世界平均
95 China, People’s Republic of 4,283 中国
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2011年世界各国GDP及人均GDP排名
• 【人均GDP（以购买力平价计算）】
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1 Qatar 88,232 卡塔尔
2 Luxembourg 80,304 卢森堡
3 Singapore 57,238 新加坡
4 Norway 52,238 挪威
5 Brunei 47,200 文莱
6 United States 47,123 美国
7 Switzerland 41,765 瑞士
8 Netherlands 40,777 荷兰
9 Australia 39,692 澳大利亚
10 Austria 39,454 奥地利
21 Republic of China (Taiwan) 34,743 中国台湾
24 Japan 33,828 日本
25 South Korea29,791 南韩
93 People’s Republic of China 7,518 中国
— World[5] 10,725 世界平均（182个国家）
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Growth in the volume of world merchandise exports and production, 2005-2010
(Annual percentage change)
2005-10
2008
2009
2010
World merchandise exports
3.5
2.5
-12.0
14.0
Agricultural products
3.5
2.5
-2.5
7.5
Fuels and mining products
1.5
1.0
-5.5
5.5
Manufactures
4.0
2.5
-15.0
18.0
World merchandise production
2.0
1.0
-2.5
4.0
Agriculture
2.0
3.5
0.5
0.0
Mining
0.5
1.5
-1.5
2.0
Manufacturing
2.5
0.0
-4.0
5.5
World GDP
2.0
1.5
-2.5
3.5
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Note : See the Metadata for the estimation of world aggregates of merchandise exports, production
and GDP.
Growth in the volume of world merchandise trade by selected region and economy, 2005-2010
(Annual percentage change)
Exports
Imports
2005-10
2009
2010
2005-10
2009
2010
3.5
-12.0
14.0
World
3.0
-13.0
13.5
2.5
-15.0
15.0
North America
0.5
-17.0
15.5
-3.0
-17.5
9.0
Canada
1.5
-16.0
14.5
3.5
-14.5
21.5
Mexico
3.0
-20.0
23.5
4.0
-14.0
15.5
United States
-0.5
-16.5
15.0
1.0
-8.0
5.5
South and Central America
9.5
-16.5
23.5
1.5
-14.0
11.0
Europe
1.0
-14.0
9.5
1.5
-14.5
11.5
European Union (27)
1.0
-14.0
9.5
-1.5
-3.0
-3.0
Norway
3.5
-13.5
9.0
2.0
-15.5
9.0
Switzerland
2.5
-10.5
9.5
3.0
-5.0
6.0
Commonwealth of Independent States (CIS)
7.5
-28.0
18.5
8.0
-11.0
23.0
Asia
6.0
-7.0
17.5
3.5
-4.5
12.5
Australia
5.5
-11.0
10.0
13.0
-10.5
28.5
China
11.5
3.0
22.0
-7.5
-1.0
-16.5
Hong Kong, China
5.0
-5.5
17.5
11.5
-6.0
22.0
India
13.5
3.5
13.0
3.5
-25.0
27.5
Japan
0.0
-12.0
7.0
-7.5
20.0
Six East Asian traders a
4.0
-13.0
10.0 20
19.5
Section 3: Why trade with other
nations? Advantages
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International trade leads to more efficient and increased
world production, thus allowing countries (and individuals)
to consume a larger and more diverse bundle of goods.
A nation possessing limited natural resources is able to
produce and consume more than it otherwise could.
the establishment of international trade expands the
number of potential markets in which a country can sell its
goods.
The increased international demand for goods translates
into greater production and more extensive use of raw
materials and labor, which in turn leads to growth in
domestic employment.
Competition from international trade can also force
domestic firms to become more efficient through
modernization and innovation.
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Why Trade With Other Nations?
Importance
ƒ Some nations export only to expand their
domestic market or to aid economically
depressed sectors within the home economy.
ƒ Other nations depend on trade for a large part of
their national income and to supply goods for
domestic consumption.
ƒ In recent years foreign trade has also been
viewed as a means to promote growth within a
nation's economy. Developing countries and
international organizations have increasingly
emphasized such trade.
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Section 4: What
are traded
internationally?
Merchandise Exports and Imports
They are also referred to as visible exports and imports because their
movements across international borders are visible to observers.
They constitute a crucial link in the international economy and are the
major source of international revenue and expenditure for most
countries.
ƒ Exports and Imports of services
They are also referred to as invisibles and include all sales other than
visible goods.
As consumption of services has risen steadily in recent decades, there
has been an explosive growth in service trade.
Trade in services generally requires a greater level of commitment
and sophistication than that required by merchandise trade. This is
because the service trade often requires components of training and
technology transfer that demand support from the vendor over time.
Growth in service trade is expected to exceed that of merchandise
trade.
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Give some examples of each type.
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Invisible Trade
Revenue and expenditure incurred by exchange of
services and other nonmaterial commodities.
ƒ Income and expenses concerning the import and export
of commodities, e.g. freight, premium, processing
charges.
ƒ Income and expenses irrelevant to the import and export
of commodities, e.g. traveling expenses, diplomatic
agent expenses, overseas remittances, franchise fees,
dividends paid to foreign investors, etc.
ƒ As invisibles do not go through customs clearance, they
are not indicated in customs statistics, but on a country’s
statement of balance of payments.
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Section 5: How to measure
international trade?
The balance of trade
The balance of trade is a nation’s relationship of exports to
imports.
A favorable balance of trade = trade surplus
an unfavorable balance of trade = trade deficit
ƒ The balance of payment
The balance of payment = the difference between money
coming into a country and money going out of the country
+ money flows coming into or leaving a country from other
factors.
favorable balance of payments VS unfavorable balance of
payments
„ About FDI
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The Balance of Payment
relationship between the amount of money a nation spends
abroad and the income it receives from other nations. The
balance of payments is officially known as the Statement of
International Transactions and includes two main accounts:
The first, the current account, tracks activity in
merchandise trade—exporting and importing; income
earned from investments abroad; money paid to foreign
investors; and transactions on which the government
expects no returns.
The second, the capital account, tracks both loans given to
foreigners and loans received by citizens.
ƒ Because the balance of payments is one reflection of a
nation's financial stability in the world market, the
International Monetary Fund (IMF) uses these accounts to
make decisions such as qualifying a country for a loan. The
IMF also provides the information to its members so that
they can make informed decisions about investments and
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trade.
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ƒ The balance of payments can be used as an
indicator of a nation's economic stability. Changes
in the balance of payments can affect the
exchange rate of a country's currency. For
example, a deficit in merchandise trade means
that the currency of that nation is flooding the
world economy, since it is being used to buy the
imports that cause the deficit. Unless government
controls are used, the value of the currency will
most likely depreciate.
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FDI
Foreign Direct Investment (FDI) is the buying of permanent
property and business in foreign nations. It can take the
form of either direct or portfolio investment. Direct
investment occurs when acquisition of equity interest in a
foreign company is made. This interest may vary between
a small percentage and a controlling interest of a
company’s equity. (Ownership of more than 50% is not
necessary in securing a controlling interest in a company).
Controlling interest in a foreign company represents a high
level of commitment to foreign operations and is usually
accompanied by personnel and technology transfers
abroad. The appeal of direct investment lies with the
access to market and resources as well as rationalization
of global production afforded by such an arrangement.
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portfolio or indirect investments
portfolio or indirect investments, are chiefly motivated by
short- to medium-term profits. They may include equity
investments that do not involve an active role in
management or bonds and other debt instruments
issued by foreign companies and governments. As
financial markets around the world become increasingly
integrated in recent years, international portfolio
investments have become popular with investors as a
vehicle of diversification further hastening the process of
international financial integration.
More…
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The Reasons for FDI
ƒ The decline of barriers to foreign ownership
in most countries of the world.
ƒ Liberalization of trade and financial markets
ƒ Decline in transportation and communication
costs that resulted from technological
breakthroughs.
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The Reactions to FDI
FDI has historically been controversial,
especially in the receiving country’s point of
view.
ƒ Radical views
ƒ Middle-ground views
ƒ Positive views
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ƒ Radical views: (This has to do with the experience of many
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former colonies of the Western industrial countries. )
Contractual terms based on unequal bargaining situations.
Create dependence of the emerging country on the market
knowledge and technology of the foreign investor.
Middle-ground views: welcome the technology and skills
transfer but watchful to avoid some of the costs. (e.g. the
loss of influence as decisions are made abroad regarding
the dismissal of workers or the closure of a plant.)
Positive views: encourages free trade; transfers new
technologies; serves as a channel for local firms to
internationalize indirectly; generates positive spillover of
ideas, including opening of new channels of information
flows; increases competition, hence innovation and
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productivity.
summary
• 1.International trade, is the fair and
deliberate exchange of goods and/or
services across national boundaries.
• It concerns trade operations of both import
and export and includes the purchase and
sale of both visible and invisible goods.
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summary
• 2. In today’s complex economic world, neither
individuals nor nations are self-sufficient.
• Nations participates in the international trade for
many reasons.
• As to the economic reasons (land, labor and
capital) that it needs to develop its economy and
culture item sufficient enough to meet its needs.
• As for the preference reasons, international
trade takes place because of innovation of style.
• Besides, every nation can specialize in a certain
field and enjoy a comparative advantage in
some particular area in terms of trade so that
they need to do business with each other to
make use of resources more efficient and
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effectively.
summary
• 3. International trade includes exports and
imports of merchandise and services .The
former is referred to as visible exports and
imports, the latter is referred to as
invisibles exports and imports and include
all sales other than visible goods.
• 4. In measuring the effectiveness of global
trade, nations carefully follow two key
indicators, namely, balance of trade and
balance of payments.
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summary
• 5. FDI, the abbreviation form foreign direct investment,
means buying of permanent property and business in
foreign nations.
• It occurs when acquisition of equity interest in a foreign
company is made.
• The great significance of FDI for China might be that:
FDI solve the problem of capital shortage for China so
that China may spend the money on importing advanced
equipment and technologies for its infrastructure,
national supporting industry, key projects, etc.
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Terms
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trade surplus 贸易顺差
export tax rebates 出口退税
excess Liquidity 流动性过剩
National Development and Reform Commission 国家发改委
international Trade 国际贸易
trade in goods 货物贸易
trade in services 服务贸易
modern barter 现代易货
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Terms
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Visible trade 有形贸易
Invisible trade 无形贸易
balance of trade 贸易差额
trade balance 贸易平衡
Trade surplus / favorable balance of trade贸易顺差
Trade deficit / unfavorable balance of trade 贸易逆差
balance of payments 国际收支
Favorable balance of payments 国际收支顺差
un Favorable balance of payments：国际收支逆差
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Terms
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IMF 国际货币基金组织
FDI：对外直接投资
Portfolio investment / indirect investment间接投资
Acquisition 收购
Self-sufficient 自给自足
Dumping 倾销
Exported –driven economic growth 出口型经济增长
host country 东道国
European Union 欧盟
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