進出口實務(wù)與操作（英文版）chapter1IntroductiontoInternationalTradePractices.ppt

Chapter 1,Introduction to International Trade Practices,Learning Objectives,After completing this chapter, students should ensure their understanding of the following: different modes of international business a background knowledge of the international trading environment the general procedures of export transaction with letter of credit payment parties involved in an import-export transaction,Chapter Structure,Section One Modes of International Business Section Two International Trading Environment Section Three General Procedures of an Import-Export Transaction Section Four Introducing the Parties to an Import-Export Transaction,Section One Modes of International Business,Definition: International business is all commercial transactions - private and governmental-between two or more countries Private companies undertake such transactions for profit; governments may or may not do the same in their transactions.,Section One Modes of International Business,Why Companies Engage in International Business? Expand Sales Higher sales mean higher profits，assuming that each unit sold has the same markup So increased sales are a major motive for a companys expansion into international business. Many of the worlds largest companies derive over half their sales from outside their home countries,Section One Modes of International Business,Acquire Resources Manufacturers and distributors seek out products, services，and components produced in foreign countriesThey also look for foreign capital，technologies，and information that they can use at home Sometimes they do this to reduce their costs, sometimes to acquire something not readily available in its home country.,Section One Modes of International Business,Minimize Risk To minimize swings in sales and profits, companies may seek out foreign markets to take advantage of business cycle-recessions and expansions-differences among countries,Section One Modes of International Business,1.1 Merchandise Exports and Imports Merchandise exports are tangible products-goods-sent out of a country；merchandise imports are goods brought into a country These goods can be seen leaving and entering a country，they are also called visible exports and importsThe terms exports and imports in this book apply to merchandise, not to a service,Section One Modes of International Business,Direct exporting refers to selling goods or services straight to a buyer outside of the sellers home country Indirect exporting involves the use of trade services provided by third-party intermediaries for exporting goods and services,Section One Modes of International Business,Indirect Exporting Exclusive Sales : An exporter and an exclusive sales distributor establish a principal-principal relationship in the sense that the exporter is the seller，and the distributor is the buyer Under exclusive sales, the exporter confers the rights of a certain product or a type of products to a party in an area within a specified period of timeThe exporter and the distributor usually sign an exclusive sales agreement,Section One Modes of International Business, Agency: In international trade，an exporter confers overseas agents the right to sell exporting goods on his behalf By acting within the scope of their authority, agents are entitled to receive commission for their service，and all the expenses and losses will be borne by the exporter,Section One Modes of International Business, A consignment sales agreement is a type of agency contract An exporter forms a principal-agent relationship with an export agent or consigneeWhen an exporter ships on consignment，the title of cargo remains with the exporter，but the cargo will be placed under the agents custody, and the exporter agrees to wait for payment until the goods are sold.,Section One Modes of International Business,An auction is a public sale in which products are sold through a formal bidding process It has three formats：English auction，Dutch auction，and sealed-bid auction Given different auction formats, the same auction item is likely to yield different sales proceeds for the seller,Section One Modes of International Business,Direct Exporting A fair or trade show is an exhibition for promotion and sale of products There are two main types of trade showsOne is a horizontal fair in which a wide variety of commodities are displayedIt is often large in scope and rich in content. The other is a vertical fair that exhibits industry-specific products Computer Trade Show and Textile Exhibition are examples of specialty fairs,Section One Modes of International Business, Tenders and biddings are widely used in international contracting projects and procurement programs by government agencies，large companies. There are three basic forms：negotiated bidding，competitive bidding，and two-stage bidding,Section One Modes of International Business,1.2 Service Exports and Imports Service exports and imports generate non-product international earnings The company or individual receiving payment is making a service export. The company or individual paying is making a service import. Service exports and imports take many forms,Section One Modes of International Business, International tourism and transportation are important sources of revenue for airlines，shipping companies，travel agencies, and hotels Some countries economies depend heavily on revenue from these economic sectors,Section One Modes of International Business, Performance of Services Some services -banking，insurance，rentals ，engineering，management services，and so on-net companies earnings in the form of fees (i.e., payments for the performance of those services),Section One Modes of International Business,Use of Assets When companies allow others to use their assets, such as trademarks，patents，copyrights，or expertise under contracts, also known as licensing agreements，they receive earnings called royalties,Section One Modes of International Business,Under an international licensing contract，a licensor grants a foreign licensee the rights to use the licensors intangible asset . In exchange, the licensee will pay the licensor a fee or royalty based on the returns from using the intangible property,Section One Modes of International Business,Royalties also come from franchise contractsFranchising is a special form of licensing. A franchiser does not only grant the foreign franchisee rights to use the franchisers intangible asset like a trademark，but also requires the franchisee to operate according to the standards and rules of the franchiser,Section One Modes of International Business,1.3 Investments Foreign investment means ownership of foreign property in exchange for a financial return，such as interest and dividends Two forms：direct and portfolio,Section One Modes of International Business,Direct Investment A direct investment is one that gives the investor a controlling interest in a foreign companySuch a direct investment is also a foreign direct investment (FDI) When a multinational enterprise (MNE) has a controlling interest in a foreign firm，this foreign firm becomes the subsidiary of the MNE,Section One Modes of International Business,Through such a FDI，the MNE is able to avoid tariffs and quota barriers，gain access to the local market，and maintain a tight control of foreign operations,Section One Modes of International Business,When two or more companies share ownership of an FDI，the operation is a joint venture FDI，the operation is called a mixed venture. There are various forms of joint ventures, such as buyback joint venture, and multistage joint venture.,Section One Modes of International Business,Portfolio Investment A portfolio investment is a non-controlling interest in a company or ownership of a loan to another partyA portfolio investment usually takes one of two forms：stock in a company or loans to a company or country in the form of bonds，bills，or notes that the investor purchases,A Comparison of Entry Modes,Section One Modes of International Business,A comparison of various entry modes can be made in four dimensions：time，control, flexibility, and risk Each mode of international business has its own advantages and disadvantages Mode selection is a fundamental strategic issue for an enterprise to move beyond its national boundary The full value of international operations cannot be realized unless the right mode is employed in the right time and at the right place,Section One Modes of International Business,In terms of time and risk，exporting is the fastest and least risky，and establishing a subsidiary is likely to take the longest process，and involves the highest risks As for the control and flexibility of overseas business，indirect exporting offers the least power for the firm to control，but most leeway to change its international operations A subsidiary or joint venture is the most direct extension of the firms control and management，but provides the least latitude due to its long-term commitment of substantial resources,Section One Modes of International Business,The modes of international business can be used individually or jointly,Section Two The International Trading Environment,International trade is the exchange of goods and services across national boundaries. It is the most traditional form of international business activity and has played a major role in shaping world historyAll countries engage in international trade in goods and services to some extent. Trade is an important vehicle of economic growth and development for countries.,Section Two The International Trading Environment,Section Two The International Trading Environment,New Trends: Trade is increasingly intra-firm and we are seeing significant growth in the trade of services, of intermediate as opposed to final goods, and increasing intra-industry trade in manufactured goods. Trade in services has risen dramatically due to developments in transport and technological advances facilitating the transmission of knowledge and other services output.,Section Two The International Trading Environment,Two basic tenets of the GATT/WTO rules are: Most Favoured Nation (MFN) Status, whereby countries cannot discriminate in Terms of Concessions offered to countries; The agreement that foreign companies should be treated similarly to local companies by all governments (National Treatment).,Section Two The International Trading Environment,These developments have meant that many policy issues are not defined in terms of individual nation states, but are influenced by a myriad of international factors. It is important to understand and explore the relationships among the various players in the international economic arena.,Section Three General Procedures of an Import- Export Transaction,From the very beginning to the end of the transaction, the whole operation generally undergoes four stages: preparing for exporting or importing, business negotiation, implementing the contract, and settlement of disputes (if any). Each stage covers some specific steps.,Section Three General Procedures of an Import- Export Transaction,Consider a Chinese firm exporting to a buyer in FranceDue to the lack of trust between the two parties，each has his or her own preferences as to how they would like the transaction to be configured,Section Three General Procedures of an Import- Export Transaction,Section Three General Procedures of an Import- Export Transaction,The problem could be solved by using a third party trusted by both-normally a reputable bank-to act as an intermediary Typical Procedures of an International Trade Transaction:,Section Three General Procedures of an Import- Export Transaction,Stage One: Preparing for exporting (or importing). Stage Two: Making a deal. 1The French importer places an order with the Chinese exporter and asks the Chinese if he would be willing to ship under a letter of credit 2The Chinese exporter agrees to ship under a letter of credit and specifies relevant information such as prices and delivery terms Stage Three: Fulfill the contract. 3The French importer applies to the Bank of Paris for a letter of credit to be issued in favor of the Chinese exporter for the merchandise the importer wishes to buy,Section Three General Procedures of an Import- Export Transaction,4The Bank of Paris issues a letter of credit in the French importers favor and sends it to the Chinese exporters bank, the Bank of China (Beijing Branch) 5The Bank of China (Beijing Branch) advises the exporter of the opening of a letter of credit in his favor 6The Chinese exporter ships the goods to the French importer on a common carrierAn official of the carrier gives the exporter a bill of lading,Section Three General Procedures of an Import- Export Transaction,7The Chinese exporter presents a 90-day time draft drawn on the Bank of Paris in accordance with its letter of credit and the bill of lading to the Bank of China (Beijing Branch)The exporter endorses the bill of lading so title to the goods is transferred to the Bank of China (Beijing Branch) 8. The Bank of China (Beijing Branch) sends the draft and bill of lading to the Bank of ParisThe Bank of Paris accepts the draft，taking possession of the documents and promising to pay the now-accepted draft in 90 days 9. The Bank of Paris returns the accepted draft to the Bank of China (Beijing Branch),Section Three General Procedures of an Import- Export Transaction,10. The Bank of China (Beijing Branch) tells the Chinese exporter that it has received the accepted bank draft，which is payable in 90 days 11. The exporter sells the draft to the Bank of China (Beijing Branch) at a discount from its face value and receives the discounted cash value of the draft in return 12. The Bank of Paris notifies the French importer of the arrival of the documentsShe agrees to pay the Bank of Paris in 90 daysThe Bank of Paris releases the documents so the importer can take possession of the shipment,Section Three General Procedures of an Import- Export Transaction,13. In 90 days, the Bank of Paris receives the importers payment, so it has funds to pay the maturing draft 14. In 90 days，the holder of the matured acceptance (in this case，the Bank of China, Beijing Branch) presents it to the Bank of Paris for paymentThe Bank of Paris pays Stage Four: Settlement of disputes (if any),Section Four Introducing the Parties to an Import-Export Transaction,The Exporter/Seller The Importer/Buyer The Country of Export (Export Authority) The Country of Import (Import Authority) The Freight Forwarder The Customs Broker The Freight Carrier,The Government Regulatory Agency The International Banks The Insurance Company The Attorney The Notary Public The Chamber of Commerce The Consular Office,Section Four Introducing the Parties to an Import-Export Transaction,4.1 The Buyer and the Seller The importer/buyer is an individual or company engaged in the business of purchasing raw materials，component parts，finished goods or services from the exporter/seller for import to a domestic market for manufacture，assembly，resale，or direct consumption The exporter/seller is an individual or company engaged in the business of manufacturing，selling，or brokering raw materials，component parts，finished goods or services to the importer/buyer for manufacture，assembly，resale or direct consumption,Section Four Introducing the Parties to an Import-Export Transaction,4.2 The Export Authority and the Import Authority/Customs The export authority or the import authority/customs has three major responsibilities： Law Enforcement To enforce the export and other laws and regulations of the country，and in the process regulate the flow of exported goods； Revenue Collection To collect export duties，tariffs and fees；and Census To collect statistical data on the countrys exports including the type，value and destination of exported products,Section Four Introducing the Parties to an Import-Export Transaction,4.3 The Freight Forwarder/Logistics Company International freight forwarders are in the business of moving goods from one country to another. Logistics firms are in the business of planning and controlling the flow of raw materials，work in progress，or finished products from point of origin to point of destinationThe destination can include a factory for further processing，a warehouse for storage，or the marketplace for sale In most countries，freight forwarders are required to be licensed by an agency of the national government,Section Four Introducing the Parties to an Import-Export Transaction,4.4 The Customs Broker A customs broker is an individual or company licensed by a government authority to act on behalf of others in customs (generally import) transactions. The customs broker assists in all aspects of clearing imported goods through customs. 4.5 The Freight Carrier (Shipping Line, Airline, Railroad, Barge Line, Courier) International freight “carriers” are in the business of moving cargo from one country to another. Carriers range from huge ocean shipping lines that move ship load quantities of crude oil or grain，to courier companies that handle small package shipments of less than one-half kilogram(1.1 pound),Section Four Introducing the Parties to an Import-Export Transaction,4.6 The Governmental Regulatory Agency Governmental regulatory agencies exist to enforce specific laws and regulations designed to protect the economic well-being in addition to the health and safety of their citizens For example, Food and Drug Administration (FDA) enforces laws regulating the import of food products and drugs.,Section Four Introducing the Parties to an Import-Export Transaction,4.7 The International Bank International banks handle all aspects of international payments for exporters and importers，including documentary collections and letters of credit In the course of fulfilling their responsi