1、国际商务英语chapter1 Introduction to International TradeWhat is international trade?What is the origin of international trade?Why trade with other nations?What are traded internationally?How to measure international trade?What is international trade?International trade is the fair and deliberate exchange
2、of goods and services across national boundaries.International trade vs.foreign trade Free trade The movement of goods and services among nations without political or economic obstruction.Pros and Cons of free trade.International trade vs.foreign tradeInternational trade,also called“world trade”,gen
3、erally refers to the exchange of goods and services among different countries.It is the aggregate of the import and export of all the nations.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.Pros an
4、d Cons of Free TradeProsThe global market contains over 6 billion potential customers for goods and services.Productivity grows when countries produce goods and services in which they have a comparative advantage.Global competition and lower-cost imports keep prices down,so inflation should not curt
5、ail economic growth.Open trade encourages innovation,with fresh ideas coming from foreign marketsUninterrupted flow of capital gives countries access to foreign investments,which keeps interest rates low.ConsDomestic workers in manufacturing lose jobs due to increased imports or production shifts to
6、 global markets.Workers can face pay-cut demands from employers,who can threaten them with the possibility of sending jobs abroad.Competitive pressure often makes service and white-collar jobs vulnerable to operations moving overseas.Domestic companies can lose their comparative advantage when compe
7、titors build advanced production operations in low-wage countries.European Free Trade Zone The European Economic Area is the largest free trade zone in the world.It comprises the 15 members of the European Union(EU),plus Iceland,Liechtenstein,and Norway.North American Free Trade Zone Canada,Mexico,a
8、nd the United States comprise the North American Free Trade Zone,the worlds second largest free trade area with more than 365 million consumers.South American Free Trade Zone Argentina,Brazil,Paraguay,and Uruguay form Mercosur,the largest free trade zone in South America.Bolivia and Chile are associ
9、ate members of Mercosur.What is the origin of international trade?The story of the caveman takes place on an international basis.Global ProductionSwan OpticalDesignManufacturingGrowth of World Trade and World Output1950=100Figure 1.11-6Why trade with other nations?AdvantagesInternational trade leads
10、 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 th
11、e 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 for
12、ce domestic firms to become more efficient through modernization and innovation.Why Trade With Other Nations?ImportanceSome nations export only to expand their domestic market or to aid economically depressed sectors within the home economy.Other nations depend on trade for a large part of their nat
13、ional income and to supply goods for domestic consumption.In recent years foreign trade has also been viewed as a means to promote growth within a nations economy.Developing countries and international organizations have increasingly emphasized such trade.What are traded internationally?Merchandise
14、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.
15、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 commitmen
16、t 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.Give some examples of eac
17、h type.Invisible Trade Revenue and expenditure incurred by exchange of services and other nonmaterial commodities.Income and expenses concerning the import and export of commodities,e.g.freight,premium,processing charges.Income and expenses irrelevant to the import and export of commodities,e.g.trav
18、eling expenses,diplomatic agent expenses,overseas remittances,franchise fees,dividends paid to foreign investors,etc.As invisibles do not go through customs clearance,they are not indicated in customs statistics,but on a countrys statement of balance of payments.How to measure international trade?Th
19、e balance of trade The balance of trade is a nations relationship of exports to imports.A favorable balance of trade=trade surplus an unfavorable balance of trade=trade deficitThe balance of payment The balance of payment=the difference between money coming into a country and money going out of the
20、country+money flows coming into or leaving a country from other factors.favorable balance of payments VS unfavorable balance of paymentsnAbout FDIThe Balance of Paymentrelationship between the amount of money a nation spends abroad and the income it receives from other nations.The balance of payment
21、s is officially known as the Statement of International Transactions and includes two main accounts:The first,the current account,tracks activity in merchandise tradeexporting and importing;income earned from investments abroad;money paid to foreign investors;and transactions on which the government
22、 expects no returns.The second,the capital account,tracks both loans given to foreigners and loans received by citizens.Because the balance of payments is one reflection of a nations financial stability in the world market,the International Monetary Fund(IMF)uses these accounts to make decisions suc
23、h 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 trade.The balance of payments can be used as an indicator of a nations economic stability.Changes in the balance of payments can affect the exchang
24、e rate of a countrys 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.FDI
25、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
26、and a controlling interest of a companys 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 tr
27、ansfers 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.In contrast,portfolio or indirect investments,are chiefly motivated by short-to medium-term profits.They may include equity inve
28、stments 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 ve
29、hicle of diversification further hastening the process of international financial integration.MoreForeign direct investment is the buying of permanent property and businesses in foreign nations.In the 1980s,the surge in foreign direct investment by countries such as Japan caused much concern in the
30、United States.When the Japanese obtained American landmarks such as Rockefeller Center,Pebble Beach Golf Course,and Columbia Pictures,many Americans felt they were losing the“soul of our nation.”The simple fact was that U.S.property,buildings,and company stock were all more attractive than comparabl
31、e alternatives in other countries.In the late 1990s,Americans barely raised an eyebrow when foreign investors purchased companies such as Chrysler,Amoco(oil),and Random House(publishing).Foreign direct investment can be viewed as a sign of strength in a nations economy.The time to worry is when inve
32、stors no longer find a country attractive.FDI Inflows1980-1996$B1-11Figure 1.4Of the Top 260 in 1973Of the Top 500 in 1997United States126(48.4%)162(32.4%)Japan9(3.5%)126(25.2%)Britain49(18.8%)34(6.8%)France19(7.3%)42(8.4%)Germany21(8.1%)41(8.3%)The National Composition of the Largest Multinationals
33、1-12Table 1.3The Reasons for FDIThe decline of barriers to foreign ownership in most countries of the world.Liberalization of trade and financial marketsDecline in transportation and communication costs that resulted from technological breakthroughs.The Reactions to FDI FDI has historically been con
34、troversial,especially in the receiving countrys point of view.Radical viewsMiddle-ground viewsPositive viewsRadical views:(This has to do with the experience of many former colonies of the Western industrial countries.)Contractual terms based on unequal bargaining situations.Create dependence of the
35、 emerging country on the market knowledge and technology of the foreign investor.nMiddle-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.)nPositive 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 productivity.
