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Unit 6 International Trade Contents The main types of transport in international trade Incoterm The process of doing international trade Doing business in telephone Expressions of exchanging information The main types of transport in international trade Look at the picture, how many types of transport can you identify? And can you tell the advantage of each of them? By sea By air By road By train By pump Land bridge transport International multimodal transport Incoterm(International Commercial Terms) INCOTERM 1990, ICC Publication No. 460 Category Acronym Full form Chinese translation “E” terms EXW EX-Works EX-Warehouse 工厂交货价 仓库交货价 “F” terms FAS FOB Free Alongside Ship Free On Board 船边交货价 船上交货价 “F” terms CFR(CF) CIF Cost and Freight Cost, Insurance and Freight 成本加运费 成本加保险费加运费 “P” terms DCP CIP DDP Delivered Carriage Paid Carriage and Insurance Paid Delivered Duty Paid 货物运费付至 运费、保险费付至 完税后交货 The Shifts of Risks and Costs between Seller and Buyer Think about it: Why should we have incoterm? To set the price To define the respective responsibilities of the seller and the buyer To eliminate any possibility of misunderstanding and subsequent dispute The process of doing international trade Enquiry Offer (Answering enquiries) Counter Offer Firm Order How to make an enquiry? Let’s see the situation first. P55 Contents of a typical enquiry letter. P57 Ex. Read the enquiry letter from Mr. North to Jacques Roget, an old friend in the battery business, and try to identity the six parts of an enquiry letter. Make a phone call to Mr. Dale. Read the answering letter from Artemis. What would you recommend to Mr. North? Writing Task Please write a recommendation report to Mr. North and try to give your suggestions based on your analysis to the following points: Should Broadway Autos have more than one supplier? Or should it have a sole supplier? If Arcolite agree to drop their price to the same level as Rex, should
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