Chapter 1 An Overview of the International Trade 1
Section Ⅰ Reasons for the International Trade 2
1．Resources Reasons 2
2．Economic Reasons 2
3．Other Reasons 4
Section Ⅱ The International Trade Policy 5
1．Gains from Free Trade 5
2．Different Means of Protection 6
Section Ⅲ The History and Role of the Chinese International Trade 9
1．The Period between 1950—1976 9
2．The Period after 1976 10
Practical Drills 12
Case Study—Favorable Balance of Trade vs.Unfavorable Balance of Trade 12
Role Play—Establishing Business Relations 13
Extended Activities 14
Chapter 2 The International Trade Forms 17
Section Ⅰ Selling Agent,Distribution,Consignment and International Subcontracting 18
1．Selling Agent 18
2．Distribution 18
3．Consignment 18
4．International Subcontracting 19
Section Ⅱ Tender 19
1．Invitation for Bids 20
2．Submission of Bids 21
Section Ⅲ International Counter-trade 22
1．Barter Trade 23
2．Compensation Agreement 23
3．Buy Back 24
4．Counter-purchase 24
Section Ⅳ International Technology Transfer and International Technology Licensing 25
1．International Technology Transfer 25
2．International Technology Licensing 25
Practical Drills 27
Case Study—Confirming Offer 28
Role Play—Tender and Biding 28
Extended Activities 29
Chapter 3 General Introduction to International Trade Practices 32
Section Ⅰ The Definition of Export Transaction 33
1．Reasons for Exporting 33
2．Definition of Exporting 33
Section Ⅱ The Conduct of Export Transaction 34
1．Preparation for Exporting 34
2．Business Negotiation 35
3．Implementation of Contract 35
4．Settlement of Disputes 36
Section Ⅲ The Parties and Means in the Export Transaction 37
1．Basic Parties in the Export Transaction 37
2．Other Major Parties and Means in the Export Transaction 37
Practical Drills 39
Case Study—Compensation Trade 40
Role Play—Talking with a Potential Client 40
Extended Activities 41
Chapter 4 International Trade Terms 45
Section Ⅰ Brief Explanations of Trade Terms 46
1．International Trade Terms 46
2．International Rules and Practices on Trade Terms 47
Section Ⅱ Contents of Trade Terms 48
1．An Overview of the Structure of Incoterms 2000 48
2．A Brief Explanation of Terms in Incoterms 2000 49
3．Comparison between FCA/CPT/CIP and the Traditional FOB/CFR/CIF 53
Section Ⅲ Expression and Choice of Trade Terms 53
1．Expression of Trade Terms 54
2．Choice of Trade Terms 54
Practical Drills 56
Case Study 1—FOB(Incoterms 2000) 56
Case Study 2—Why to Send Shipping Advice? 56
Role Play—Price Negotiation 57
Extended Activities 57
Chapter 5 International Sales Contract 61
Section Ⅰ Definition and Contents of International Sales Contracts 62
1．Definition of International Sales Contracts 62
2．Contents of a Sales Contract 63
3．Major Terms of a Sales Contract 64
Section Ⅱ Formation of International Sales Contract 66
1．Inquiry 67
2．Offer 67
3．Counter-offer 68
4．Acceptance 69
5．Signing of the Contract 69
Section Ⅲ Implementation of the Contract 70
1．Cargo Readiness 71
2．Examination of L/C and Amendment to L/C 71
Practical Drills 74
Case Study 1—Offer 74
Case Study 2—Acceptance 75
Role Play—On Terms and Conditions of the Contract 75
Extended Activities 77
Chapter 6 Terms of Commodity 81
Section Ⅰ Name of Commodity 82
Section Ⅱ Quality of Commodity 83
1．Sales by Seller's Sample and Sales by Buyer's Sample 83
2．Sales by Description 84
Section Ⅲ Quantities of Commodity 85
1．Units of Measurement 85
2．Calculation of Weight 85
Section Ⅳ Packing of Commodity 86
1．Outer Packing 86
2．Inner Packing 88
Section Ⅴ Marking of Commodity 89
1．Shipping Marks 89
2．Indicative and Warning Marks 90
3．Additional Marks 91
Practical Drills 92
Case Study—Dealing with Cartons Damaged 92
Role Play—Packing 93
Extended Activities 94
Chapter 7 Export and Import Documentations 96
Section Ⅰ Role and Requirements of Documentation 97
1．Role of Documentation 97
2．Requirements for Documentation 97
Section Ⅱ Official Documents 98
1．Export License 98
2．Import License and Foreign Authorization 99
3．Certificate of Origin 99
4．Certificate of Inspection 99
5．Consular Invoice 100
6．Customs Invoice 100
Section Ⅲ Commercial Documents 100
1．Pro Forma Invoice 100
2．Commercial Invoice 101
3．Quality Certificate 101
4．Weight Certificate 102
Section Ⅳ Financial Documents 102
1．Application Form for International Money Transfer 102
2．Drafts 103
3．Application for Documentary Letter of Credit 104
4．Letter of Credit 104
Section Ⅴ Transportation Documents 104
1．Bill of Lading 105
2．Shipping Note 105
3．Packing List 105
4．Rail Consignment Note 106
5．Road Consignment Note 106
6．Air Waybill 107
7．Combined Transport Document 107
8．Arrival Notification 107
Section Ⅵ Insurance Documents 107
1．Insurance Policy 108
2．Insurance Certificate 108
3．Open Policy 108
Section Ⅶ Specimens 109
1．Import and Export Licenses 109
2．Certificate of Origin 110
3．Certificate of Inspection 111
4．Pro Forma Invoice 112
5．Commercial Invoice 113
6．Draft(Bill of Exchange) 114
7．Bill of Lading 115
8．Packing List 116
9．Insurance Policy/Certificate 117
10．Customs Declaration Form 118
Practical Drills 121
Case Study—The Advising Bank's Refusal 121
Role Play—Talking about Credit Card 122
Extended Activities 123
Chapter 8 International Cargo Transportation 126
Section Ⅰ Ocean Freight 127
1．Conference Shipping 127
2．Non-conference Line Vessels 128
3．Tramp Ships 128
4．Chartered Ships 129
Section Ⅱ Air Transport 130
1．Scheduled Airlines 130
2．Chartered Carriers 130
3．Consolidated Consignments 131
Section Ⅲ Other Means of International Cargo Transportation 131
1．Road Transport 131
2．Rail Transport 131
3．Inland Waterway Transport 132
4．Containerization 132
5．Palletization 132
6．Pipelines 133
7．International Multimodal Transport 133
Practical Drills 135
Case Study—What Would the Exporter Do? 135
Role Play—Late Delivery 135
Extended Activities 136
Chapter 9 International Cargo Transportation Insurance 138
Section Ⅰ Fundamental Concepts in the International Cargo Insurance 139
1．Parties Involved 139
2．Insured Amount 140
3．Premium 140
4．Insurance Policy 140
Section Ⅱ Marine Transportation Insurance 141
1．Risks Covered by Marine Insurance 141
2．Losses Covered by Marine Insurance 141
3．Expenses Incurred for the Rescue of Insured Cargo 142
4．Major Categories of General Insurance Coverage 142
5．Procedures of Marine Insurance 143
Section Ⅲ Insurance of Land,Air and Postal Transportation 145
1．Insurance Coverage for Land Transportation 145
2．Insurance Coverage for Air Transportation 145
3．Parcel Post Insurance 146
Practical Drills 147
Case Study—Refusal of Compensation 147
Role Play—An Exporter Discusses Insurance of an Order with a Buyer 148
Extended Activities 149
Chapter 10 International Trade Payment 152
Section Ⅰ Payment Instruments of International Trade 153
1．Bill of Exchange 153
2．Promissory Notes 154
3．Cheques 154
Section Ⅱ Methods of Payment 155
1．Remittance 155
2．Collection 157
3．Letter of Credit 159
4．Banker's Letter of Guarantee 161
Section Ⅲ Terms of Payment in the Sales Contract 161
1．Payment by Remittance 161
2．Payment by Collection 162
3．Payment by the Letter of Credit 162
Practical Drills 163
Case Study 1—A FOB Contract 164
Case Study 2—Letter of Credit 164
Role Play—Decision on Mode of Payment 166
Extended Activities 166
Chapter 11 Inspection,Force Majeure,Claim and Arbitration 170
Section Ⅰ Commodity Inspection 171
1．Necessity of Commodity Inspection 171
2．Time and Place of Inspection 171
3．Inspection Agency and Certificate 173
Section Ⅱ Force Majeure 173
1．Concept of Force Majeure 173
2．Consequences of Force Majeure 174
Section Ⅲ Claim 174
1．The Definition of Claim 174
2．Settlement of Claim 175
Section Ⅳ Arbitration 175
1．Procedures of Arbitration 175
2．Cost of Arbitration 176
Practical Drills 178
Case Study—Arbitration of Dispute 178
Role Play—Damage 179
Extended Activities 179
Chapter 12 Marketing Organizations Abroad 182
Section Ⅰ Agency Arrangements 183
1．Self-employed Agents Abroad 183
2．The Nature of the Contract of Agency 183
3．The Agent's Authority 184
4．Rights and Obligations of the Agent and the Principal 185
5．Special Types of the Agents 186
Section Ⅱ Branch Offices and Subsidiaries Abroad 188
1．General Understanding of Branch Offices and Subsidiaries Abroad 188
2．Dealings between Branch Offices Abroad 189
3．Subsidiary Companies Abroad 189
Section Ⅲ Sole Distribution Agreements,Licensing Agreements and Franchising 190
1．Sole Distribution Agreements 191
2．Licensing Agreements 193
3．Franchising 193
Practical Drills 195
Case Study—Sole Agency Agreement 195
Role Play—Joint Venture 197
Extended Activities 197
Chapter 13 E-commerce 200
Section Ⅰ E-commerce and Its Historical Development 201
1．E-commerce 201
2．Historical Development of E-commerce 201
Section Ⅱ Major Categories of E-commerce 202
1．Business-to-business(B2B)E-commerce 202
2．Business-to-consumer E-commerce 202
3．Consumer-to-consumer E-commerce 202
4．Consumer-to-business E-commerce 203
5．Government-to-citizen E-commerce 203
6．Government-to-business E-commerce 203
Section Ⅲ Business Process and Models of E-commerce 203
1．Business Process of E-commerce 203
2．Business Models of E-commerce 204
Section Ⅳ Advantages of E-commerce 205
1．Low Operating Cost 205
2．Large Purchase Per Transaction 206
3．Integration of Business Procedures 206
4．Flexibility and Availability of Information 206
5．Improved Interactions 206
Section Ⅴ Limitations of E-commerce 207
1．Technical Limitations 207
2．Non-technical Limitations 207
Practical Drills 210
Case Study—Dell Computer:E-commerce in Action 210
Role Play—Talking about Order On-line 211
Extended Activities 211
Chapter 14 Fundamentals of GATT and WTO 214
Section Ⅰ A Brief Introduction to GATT 214
Section Ⅱ A Brief Introduction to WTO 216
1．Objectives,Functions and Basic Principles of WTO 216
2．WTO Structure 218
3．An Outline of the WTO Agreements 221
Practical Drills 223
Case Study—China and WTO 223
Role Play—At the Trade Show 224
Extended Activities 225
Keys 228
Appendix 244
Appendix 1-1 Sales Contract 244
Appendix 1-2 Purchase Contract 245
Appendix 2-1 Shifeng Double-Star Tire CO.,LTD 248
Appendix 2-2 Commercial Invoice 249
Appendix 3 Proforma Invoice 250
Appendix 4 Bill of Lading 251
Appendix 5 Letter of Credit 252
Bibliography 253