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Lesson 1 International Business Questions ? 1.What does international trade refer to? Please tell the difference between international business and domestic business. 2. What are the major types of international business? Please illustrate them in details. Business Knowledge The major differences between international business and domestic business ? Differences in legal systems ? Differences in currencies ? Differences in cultural background ? Different in natural and economic conditions The major types of international business ? A. Trade ? Commodity trade ? Service trade ? B. Investment ? Foreign direct investment ? Portfolio investment ? C. Other types ? Licensing and franchising ? Management contract and contract manufacturing ? Turnkey project and BOT Related words ? Transaction 交易 ? Resale 转售 ? Customs area 关税区 ? customs 海关 Customs 海关部门 ? Customs duty /duties 关税 ? Tariff 关税 ? Non-tariff barrier ? Conversion 货币兑换 ? Budget 预算 ? Return 收益 ? Visible trade 有形贸易 : It takes the form of commodity trade, i.e. exporting and importing goods produced or manufactured in one country for consumption or resale in another. ? Invisible trade 无形贸易 : It refers to a kind of trade in the form of transportation, communication, banking, insurance, consulting, information, etc. gradually became more and more important. Two kinds of international trade International investment . ? FDI 外国直接投资 : Foreign direct investment or FDI for short is made for returns through controlling the enterprises or assets invested in a host country. (host country 东 道 国 VS. home country 投资国 ) ? Portfolio investment 证 券 投 资 : It refers to purchases of foreign financial assets for a purpose other than controlling, such financial assets may be stocks, bonds, certificates of deposit. Portfolio investment ? Stocks : 股票 ? Bonds: 债券 ? Certi
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