General Introduction

General Introduction思维导图，内容有Differences between International Trade and Domestic Trade，欢迎查看更多。

General Introduction

• Reasons for international Trade
  • Definition---The exchange of goods or services between countries
  • Resources reasons
  • Economic reasons
    • Absolute advantage
    • Comparative advantage
  • Other reasons
    • Political reasons--Pakistan-China Economic corridor
    • Different tastes and preferences
• Benefits of International Trade
  • 1.Larger economic growth
  • 2.Cheaper goods or services
  • 3.Greater Variety of goods or services
• Differences between International Trade and Domestic Trade
  • Compared with domestic trade,international trade involves
    • 1.Different languages and Cultural s
    • 2.Foreign laws ,customs and regulations or international rules
    • 3.Foreign currencies
    • 4.Higher risks
      • Political risks,Commercial risks,Financial risks,and Transportation risks.
    • 5.More complex business procedures
    • 6.Broader range of management skills
• Classification of International Trade
  • 1.From the direction of cargo flow
    • Export trade
    • Import trade
    • Transit trade
      • producing countries-via a third country-consuning country
  • 2.Types of transit trade
    • Direct transit trade
    • Indirect transit trade
  • 3.From the number of participants involved
    • Direct trade
      • Two parties involved:the impoter and the expoter
    • Indirect trade
      • Three parties involved: the expoter,the impoter and the intermediate party
    • Entrepot trade
      • One party involved:who is the importer,the processor and also the expoter
  • 4.From the form of the goods
    • Visible trade/Tangible goods trade
      • Mostly consuming goods:cars,wines,shoes…
    • Invisible trade/Intangible goods trade
      • Services and technology
  • 5.From settlement instrument involved
    • Barter trade
      • Exchange of goods or services without an intervening medium of exchange or money.Cash ordest form of trade.
    • Free - liquidation trade
      • Exchange of goods or services with an interving medium of exchange or money.Cash trade is one form of it
  • 6.Form mode of transportation
    • Trade by Roadway/Seaway/Airway/Mail Order
• Export and Import Procedures
  • The Preparation of a Transaction
    • Selecting the right
    • Finding the potential partner
    • Studying creditability of the paetners
    • Applying for Export or Import License
  • The negotiation of the sales contract
    • Two forms of business negotiation
      • In word---face to face/by phone
      • In writing---business correspondence by letters,faxes,e-mail
    • Four main steps involved
      • Enquiry
        • asking for price by either seller or buyers
      • Offer
        • An answer to enquiry or initiated by either or buyer.Binding force upon the offeret within the validity
      • Counter-offer
        • addition,modification or refusal of the offer
      • Acceptance
  • The Performance of the Contract
    • Export procedure(business under CIF on L/C)
      • Examining L/C
      • Getting goods ready
      • Applying for mandatory inspection
      • Receiving importer's inspection before shipment
      • Booking shipping space after receiving L/C and getting
      • Clearing goods for export
      • Getting goods loaded
      • Obtaining insurance
      • Presenting documents for bank negotiation
    • Import procedure(business under FOB on L/C)
      • Opening L/C
      • Booking shipping space
      • Inspecting and supervising at the port of shipment
      • Obtaining insurance
      • Examining documents and making payment
      • Clearing the goods for import
      • Taking delivery and inspecting
    • The settlement of disputes
      • Negotiation
      • Mediation
      • Arbitration
      • Litigation

General Introduction

• Reasons for international Trade
  • Definition---The exchange of goods or services between countries
  • Resources reasons
  • Economic reasons
    • Absolute advantage
    • Comparative advantage
  • Other reasons
    • Political reasons--Pakistan-China Economic corridor
    • Different tastes and preferences
• Benefits of International Trade
  • 1.Larger economic growth
  • 2.Cheaper goods or services
  • 3.Greater Variety of goods or services
• Differences between International Trade and Domestic Trade
  • Compared with domestic trade,international trade involves
    • 1.Different languages and Cultural s
    • 2.Foreign laws ,customs and regulations or international rules
    • 3.Foreign currencies
    • 4.Higher risks
      • Political risks,Commercial risks,Financial risks,and Transportation risks.
    • 5.More complex business procedures
    • 6.Broader range of management skills
• Classification of International Trade
  • 1.From the direction of cargo flow
    • Export trade
    • Import trade
    • Transit trade
      • producing countries-via a third country-consuning country
  • 2.Types of transit trade
    • Direct transit trade
    • Indirect transit trade
  • 3.From the number of participants involved
    • Direct trade
      • Two parties involved:the impoter and the expoter
    • Indirect trade
      • Three parties involved: the expoter,the impoter and the intermediate party
    • Entrepot trade
      • One party involved:who is the importer,the processor and also the expoter
  • 4.From the form of the goods
    • Visible trade/Tangible goods trade
      • Mostly consuming goods:cars,wines,shoes…
    • Invisible trade/Intangible goods trade
      • Services and technology
  • 5.From settlement instrument involved
    • Barter trade
      • Exchange of goods or services without an intervening medium of exchange or money.Cash ordest form of trade.
    • Free - liquidation trade
      • Exchange of goods or services with an interving medium of exchange or money.Cash trade is one form of it
  • 6.Form mode of transportation
    • Trade by Roadway/Seaway/Airway/Mail Order
• Export and Import Procedures
  • The Preparation of a Transaction
    • Selecting the right
    • Finding the potential partner
    • Studying creditability of the paetners
    • Applying for Export or Import License
  • The negotiation of the sales contract
    • Two forms of business negotiation
      • In word---face to face/by phone
      • In writing---business correspondence by letters,faxes,e-mail
    • Four main steps involved
      • Enquiry
        • asking for price by either seller or buyers
      • Offer
        • An answer to enquiry or initiated by either or buyer.Binding force upon the offeret within the validity
      • Counter-offer
        • addition,modification or refusal of the offer
      • Acceptance
  • The Performance of the Contract
    • Export procedure(business under CIF on L/C)
      • Examining L/C
      • Getting goods ready
      • Applying for mandatory inspection
      • Receiving importer's inspection before shipment
      • Booking shipping space after receiving L/C and getting
      • Clearing goods for export
      • Getting goods loaded
      • Obtaining insurance
      • Presenting documents for bank negotiation
    • Import procedure(business under FOB on L/C)
      • Opening L/C
      • Booking shipping space
      • Inspecting and supervising at the port of shipment
      • Obtaining insurance
      • Examining documents and making payment
      • Clearing the goods for import
      • Taking delivery and inspecting
    • The settlement of disputes
      • Negotiation
      • Mediation
      • Arbitration
      • Litigation