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Some concepts: Foreign Trade(对外贸易): From the perspective of one country, international trade is also called ‘foreign trade’. Visible Trade(有形贸易): ?Trade in goods which can be actually seen passing through ports or airport, entering or leaving one country. Invisible Trade(无形贸易): Trade in services and technologies Tangible goods Intangible services Case Study Suppose that an America-based multinational company set up two subsidiaries in China. The parent company signed a sales contract with the subsidiaries, which stipulated that the parent company would make the delivery to one of the subsidiaries in Shanghai, which should forward some of the goods to another subsidiary at Chengdu. Question: Is the transaction between the parent company and the two subsidiaries an international trade? 国际性的判断标准 买卖双方当事人的营业地处于不同国家 当事人具有不同的国籍 订立合同的行为完成于不同国家 货物须由一国运往另一国 1.2 Why International Trade? Why do countries trade? Shouldn’t a strong country such as the United States produce all of the computers, television sets, automobiles and cameras it wants rather than import such products from Japan? Why do the Japanese and other countries buy wheat, corn, chemical products, aircraft, manufactured goods, and informational services from the United States? 1.2 Why International Trade? 1)Resources reasons Climate conditions and terrain Agricultural produce Colombia and Brazil Coffee beans\ coffee A big wheat exporter The US Great Plains states 北美中部大平原 1.2 Why International Trade? 1)Resources reasons (2) Natural resources Middle East : 70% world’s total oil reserve 40% world total output Over 2/3 of the oil that Western Europe and Japan consume 1.2 Why International Trade? 1)Resources reasons (3) Technologies and labor Importing advanced equipment from the US, Japan (4) Capital resources The lack of capital------- developing countries are unable to modernize their industries and economies with advanced machinery, equipment, and plant they are not yet able to m
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