lesson 1 International Business

1、Lesson 1: International BusinessnBusiness Knowledge:nThe major differences between international business and domestic businessnDifferences in legal systemsnDifferences in currenciesnDifferences in cultural backgroundnDifferent in natural and economic conditionsThe major types of international busin

2、essnA. Traden Commodity traden Service tradenB. Investmentn Foreign direct investmentn Portfolio investmentnCommodity trade:nCommodity trade refers to exporting and importing goods produced or manufactured in one country for consumption or resale in another . It is also referred to as visible trade.

3、nService trade:nService trade refers to the trade of transportation, communication, banking, insurance, consulting, information etc. This type of trade is also called invisible trade.nC. Other typesnLicensing and franchisingnManagement contract and contract manufacturingnTurnkey project and BOTnInte

4、rnational business refers to transaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country is also regarded as import, such as business between Hong Kong and Taiwan. nInternational business involves more factors and thus is

5、 more complicated than domestic business. The followings are some major differences between the two: n1. The countries involved often have different legal systems, and one or more parties will have to adjust themselves to operate in compliance with the foreign law. n2. Different countries usually us

6、e different currencies and the parties will have to decide which currency to use and do everything necessary as regards conversion etc. Uncertainties and even risks are often involved in the use of a foreign currency. n3. Cultural differences including language, customs, traditions, religion, value,

7、 behavior etc. often constitute challenges and even traps for people engaged in international business. n4. Countries vary in natural and economic conditions and may have different policies towards foreign trade and investment, making international business more complex than domestic business. nWith

8、 the development of economic globalization, few people or companies can completely stay away from international business. Some knowledge in this respect is necessary both for the benefit of enterprises and personal advancement. nInternational business first took the form of commodity trade, i.e. exp

9、orting and importing goods produced or manufactured in one country for consumption or resale( Resell vt. 轉(zhuǎn)售轉(zhuǎn)售) in another. This form of trade is also referred to as visible trade. Later a different kind of trade in the form of transportation, communication, banking, insurance, consulting, informatio

10、n etc. gradually became more and more important. This type of trade is called invisible trade. Today, they constitute over 60% of their gross domestic products and account for an increasing proportion of world trade. nAnother important form of international business is supplying capital by residents

11、 of one country to another, known as international investment. Such investments can be classified into two categories. The first kind of investments, foreign direct investments or FDI for short is made for returns through controlling the enterprises or assets invested in a host country. nThe host co

12、untry is a foreign country where the investor operates, while the country where the headquarters of investor is located is called the home country. The second kind of investment, portfolio investment, refers to purchases of foreign financial assets for a purpose other than controlling. Such financia

13、l assets may be stocks, bonds or certificate of deposit. Stocks are also called capital stocks or bonds. Bonds are papers issued by a government or a firm with promise to pay back the money lent or invested together with interest. The maturity period of a bond is at least one year, often longer, for

14、 example five, or even ten years. Certificates of deposit generally involve large amounts, say 25 thousand US dollars. nBesides trade and investment, international licensing and franchising are sometimes taken as a means of entering a foreign market. In licensing, a firm leases the right to use its

15、intellectual property to a firm in another country. Such intellectual property(知識(shí)知識(shí)產(chǎn)權(quán)產(chǎn)權(quán)) may be trademarks, patents, brand names, copyrights or technology. Firms choose licensing is because they dont have to make cash payment to start business, and can simply receive income in the form of royalty. n

16、Besides, they can benefit from location advantages of foreign operation without any obligation in ownership or management. The use of licensing is particularly encouraged by high customs duty and non-tariff barriers on the part of the host country. However it is not advisable to use licensing agreem

17、ent in countries with weak intellectual property protection since the licensor may have difficulty in enforcing licensing agreement. nFranchising can be regarded as a special form of licensing. Under franchising, a firm, called the franchisee, is allowed to operate in the name of another, called the

18、 franchiser who provides the former with trademarks, brand names, logos, and operating techniques for royalty. In comparison with the relation between the licenser and the licensee, the franchiser has more control over and provides more support for the franchisee. nThe franchiser can develop interna

19、tionally and gain access to useful information about the local market with little risk and cost, and the franchisee can easily get into a business with established products or services. Franchising is fairly popular especially in hotel and restaurant business. nOther forms for participating in inter

20、national business are management contract, contract manufacturing, and turnkey project. nUnder a management contract, one company offers managerial or other specialized services to another within a particular period for a flat (fixed) payment or a percentage of the relevant business volume. Sometime

21、s bonuses based on profitability or sales growth are also specialized (specified) in management contracts. nWhen a government forbids foreign ownership in certain industries it considers to be of strategic importance but lacks the expertise for operation, management contracts may be a practical choi

22、ces enabling a foreign company to operate in the industry without owning the assets. nBy contract manufacturing, a firm can concentrate on their strongest part in the value chain, e. g. marketing, while contracting with foreign companies for the manufacture of their products. Such firms can reduce t

23、he amount of their resources devoted to manufacture and benefit from location advantages from production in host counties. However, loss of control over the producing process may give rise to problems in respect of quality and time of delivery. nFor an international turnkey project, a firm signs a c

24、ontract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion. Such projects are often large and complex and take a long period to complete. Payment for a turnkey project may be made at a fixed total price o

25、r on a cost plus basis. The latter way of payment shifts the burden of possible additional cost over the original budget onto the purchaser. nBOT is a popular variant of the turnkey project where B stands for build, O for operate and T for transfer. For a BOT project, a firm operates a facility for

26、a period of time after building it up before finally transferring it to a foreign company. Making profit from operating the project for a period is the major difference between BOT and the common turnkey project. Needless to say, the contractor has to bear the financial and other risks that may occu

27、r in the period of operation. nInternational business國(guó)際商務(wù)國(guó)際商務(wù): nTransaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country is also regarded as import and export.ntransaction: n. a) a piece of business n（一件）事物，（一筆）交易（一件）事

28、物，（一筆）交易 nThe bank charges a fixed rate for each transaction. 銀行對(duì)辦理的每件業(yè)務(wù)收取一定費(fèi)用。銀行對(duì)辦理的每件業(yè)務(wù)收取一定費(fèi)用。 n b) the act of transacting 辦理，執(zhí)行辦理，執(zhí)行 n the transaction of business 業(yè)務(wù)處理業(yè)務(wù)處理 n transact: v. carry out (especially a piece of business or trade) 處理，辦理，做處理，辦理，做（尤指一筆交易）（尤指一筆交易）nMake/ carry out/ conduct tr

29、ansactionnCash/ online transactionnCustoms area關(guān)稅區(qū)關(guān)稅區(qū):nthe area in which customs department is established and its function is carried out independently 指獨(dú)立設(shè)置并行使海關(guān)指獨(dú)立設(shè)置并行使海關(guān)職能的地區(qū)職能的地區(qū)n customs n. 海關(guān)；風(fēng)俗海關(guān)；風(fēng)俗（custom的復(fù)的復(fù)數(shù)）；習(xí)慣；關(guān)稅數(shù)）；習(xí)慣；關(guān)稅 ncustoms: 海關(guān)海關(guān)|關(guān)稅關(guān)稅|習(xí)俗習(xí)俗 ncustoms duties: 關(guān)稅關(guān)稅|海關(guān)稅海關(guān)稅|進(jìn)口稅進(jìn)口稅 ncust

30、oms barrier: 關(guān)稅壁壘關(guān)稅壁壘|關(guān)卡關(guān)卡|關(guān)口關(guān)口nCustoms-free area 免稅區(qū)免稅區(qū)nIn compliance with: in the state of obedience to a rule, agreement, demand, etc.服從；遵守服從；遵守 n The company said that it had always acted in compliance with environmental laws. 公司說(shuō)它一向遵守公司說(shuō)它一向遵守環(huán)境法。環(huán)境法。ntrap: n. a stratagem for catching or trickin

31、gnan unwary person 陷阱，圈套陷阱，圈套nThe police set a trap for the thieves. 警警察設(shè)下了圈套捉小偷。察設(shè)下了圈套捉小偷。nLay/ set a trap for sb.nFall/ walk into a trapncommodity trade （商品貿(mào)易）（商品貿(mào)易）: Commodity trade refers to exporting and importing goods produced or manufactured in one country for consumption or resale in anothe

32、r. It is also referred to as visible trade. n商品貿(mào)易指在一國(guó)生產(chǎn)或制造的商品，出口或進(jìn)口到另一商品貿(mào)易指在一國(guó)生產(chǎn)或制造的商品，出口或進(jìn)口到另一國(guó)消費(fèi)或轉(zhuǎn)售。這種貿(mào)易形式也稱作有形貿(mào)易。國(guó)消費(fèi)或轉(zhuǎn)售。這種貿(mào)易形式也稱作有形貿(mào)易。nVisible trade有形貿(mào)易有形貿(mào)易: The form of commodity trade, i.e. exporting and importing goods produced or manufactured in one country for consumption or resale in anothe

33、r. (including cash transaction-by means of money and market, and counter trade)nInvisible trade無(wú)形貿(mào)易無(wú)形貿(mào)易: The form of transportation, communication, banking, insurance, consulting, information etc. is called invisible trade or service industries.nGross domestic product (國(guó)內(nèi)生產(chǎn)總值國(guó)內(nèi)生產(chǎn)總值): nGDP measures t

34、he market value of all goods and services produced within the geographic area of an economy nGDP指一個(gè)區(qū)域所有商品和服務(wù)的市場(chǎng)價(jià)指一個(gè)區(qū)域所有商品和服務(wù)的市場(chǎng)價(jià)值值nGNP: gross national product (國(guó)民生產(chǎn)國(guó)民生產(chǎn)總值總值)nGNP refers to the market value of goods and services produced by the property and labor owned by the residents of an economy.n

35、International investment國(guó)際投資國(guó)際投資: nSupplying capital by residents of one country to another.nFDI外國(guó)直接投資外國(guó)直接投資: Foreign direct investments. Returns through controlling the enterprises or assets invested in a host country. n P.256. One country acquires assets in a foreign country for the purpose of con

36、trolling and managing them.nfor short: as a shorter way of saying it 簡(jiǎn)略簡(jiǎn)稱簡(jiǎn)略簡(jiǎn)稱 通常放在句尾通常放在句尾 n My name is David, or Dave for short. n 我的名字叫戴維或簡(jiǎn)稱戴夫。我的名字叫戴維或簡(jiǎn)稱戴夫。nPortfolio investment證券投資證券投資: nRefers to Purchases of foreign financial assets for a purpose other than controlling. Such financial assets ma

37、y be stocks, bonds or certificates of deposit.nStocks股票股票: Capital stocks or bonds.nBonds債券債券: The papers issued by a government or a firm with promise to pay back the money lent or invested together with interest.由政府或公司發(fā)行的，保由政府或公司發(fā)行的，保證一到將來(lái)明確的日期歸還本金和利息的債務(wù)憑證證一到將來(lái)明確的日期歸還本金和利息的債務(wù)憑證ncertificate of depo

38、sit (存折存折): a certificate from a bank stating that the named party has a specified sum on deposit, usually for a given period of time at a fixed rate of interest n銀行開具的證明開戶人有確定數(shù)額存款的銀行開具的證明開戶人有確定數(shù)額存款的證書，通常按固定利率存一定的期限證書，通常按固定利率存一定的期限nMaturity(票據(jù)或證券等的到期時(shí)間票據(jù)或證券等的到期時(shí)間): nthe time at which a note or bond

39、is duenLicensing(許可經(jīng)營(yíng)許可經(jīng)營(yíng)): nIn licensing, a firm leases the right to use its intellectual property to a firm in another country. They choose licensing because they do not have to make cash payments to stat business, and can simply receive income in the form of royalty.nFranchising(特許經(jīng)營(yíng)特許經(jīng)營(yíng)): nUnder

40、 franchising, franchisee is allowed to operate in the name of another, franchiser who provides the former with trademarks, brand names, logos and operating techniques for royalty.nTrade Mark商標(biāo)商標(biāo)na name, symbol, or other device identifying a product, officially registered and legally restricted to th

41、e use of the owner or manufacturer 標(biāo)明產(chǎn)標(biāo)明產(chǎn)品的名字、符號(hào)或其他設(shè)計(jì)，經(jīng)過(guò)正式注冊(cè)，品的名字、符號(hào)或其他設(shè)計(jì)，經(jīng)過(guò)正式注冊(cè)，并只合法地限于其擁有者或制造商使用并只合法地限于其擁有者或制造商使用nPatent專利專利na grant made by a government that confers upon the creator of an invention the sole right to make, use, and sell that invention for a set period of time 政府授予發(fā)政府授予發(fā)明者在一定時(shí)期內(nèi)制造

42、、使用和銷售其發(fā)明品的唯一的權(quán)力明者在一定時(shí)期內(nèi)制造、使用和銷售其發(fā)明品的唯一的權(quán)力nRoyalty專利（許可）使用費(fèi)，版稅專利（許可）使用費(fèi)，版稅nmoney paid to the owner of a copyright for permission to publish copy right material and to the owner of a patent for permission to use a patented design, usu. at an agreed percentage of the selling price of the product 版稅即為獲

43、得其版權(quán)版稅即為獲得其版權(quán)使用許可支付給版權(quán)所有者或?qū)＠姓叩馁M(fèi)用，通常以商品售價(jià)的使用許可支付給版權(quán)所有者或?qū)＠姓叩馁M(fèi)用，通常以商品售價(jià)的百分比計(jì)算百分比計(jì)算nCopyright版權(quán)版權(quán)nthe legal right granted to an author, a composer, a playwright, a publisher, or a distributor to exclusive publication, production, sale, or distribution of a literary, musical, dramatic, or artistic wo

44、rk 授予文學(xué)、音樂、戲劇或藝術(shù)作品的作者、作曲者、劇作者、授予文學(xué)、音樂、戲劇或藝術(shù)作品的作者、作曲者、劇作者、出版商或獨(dú)家經(jīng)營(yíng)出版、生產(chǎn)或銷售的批發(fā)商的合法權(quán)利出版商或獨(dú)家經(jīng)營(yíng)出版、生產(chǎn)或銷售的批發(fā)商的合法權(quán)利nadvisable: adj. wise, worthy of being recommended or suggested 明智的，可明智的，可取的取的nIt is not advisable just to sit there brooding about the unpleasant bygones.n老是坐在那里悶悶不樂地想著過(guò)去那些不老是坐在那里悶悶不樂地想著過(guò)去那些不愉

45、快的事情并不好。愉快的事情并不好。 nIt is advisable to do=youd better do nlicenser (許可證頒發(fā)者許可證頒發(fā)者/ 給予許可的人給予許可的人): one who grants a licensenLicensee(許可證持有人許可證持有人/接受許可的人接受許可的人): one to whom or to which a license is grantednFranchiser特許方特許方(授予特權(quán)者授予特權(quán)者): A firm who provides the franchisee with trademarks, brand names, lo

46、gos and operating techniques for royalty.nFranchisee被特許方被特許方(特許經(jīng)營(yíng)者特許經(jīng)營(yíng)者): A firm is allowed to operate in the name of another.nManagement contract管理合同管理合同: nUnder a management contract, one company offers managerial or other specialized services to another within a particular period for a flat payme

47、nt or a percentage of the relevant business volume.nTurnkey project“交鑰匙交鑰匙”工程工程: nFor an international turnkey project, a firm signs a contract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion.nValue ch

48、ain價(jià)值鏈價(jià)值鏈:nthe chain of activities by which a company buys in materials, creates a good or service, markets it, and provides services after a sale is made. Each step creates more value for the consumer 價(jià)值鏈?zhǔn)且粋€(gè)企業(yè)購(gòu)進(jìn)材料、生產(chǎn)、銷售、價(jià)值鏈?zhǔn)且粋€(gè)企業(yè)購(gòu)進(jìn)材料、生產(chǎn)、銷售、售后服務(wù)等一系列活動(dòng)所構(gòu)成的活動(dòng)鏈條，每一個(gè)環(huán)節(jié)都售后服務(wù)等一系列活動(dòng)所構(gòu)成的活動(dòng)鏈條，每一個(gè)環(huán)節(jié)都為顧客創(chuàng)造更多的價(jià)值

49、為顧客創(chuàng)造更多的價(jià)值 nBOT建設(shè)、經(jīng)營(yíng)和移交建設(shè)、經(jīng)營(yíng)和移交: nBuild, Operate, Transfernstand for: na) to represent; symbolize代表；象征代表；象征nWhat does the B stand for? B代表什么？代表什么？nb) to advocate or support 倡導(dǎo)或者支持倡導(dǎo)或者支持nstand for freedom of the press 倡導(dǎo)新聞倡導(dǎo)新聞自由自由nc) to put up with; tolerate接受；容忍接受；容忍nWe will not stand for impertinen

50、t behaviorKey pointsn1) major differences between international business and domestic business (國(guó)際商務(wù)國(guó)際商務(wù)與國(guó)內(nèi)商務(wù)的主要不同點(diǎn)與國(guó)內(nèi)商務(wù)的主要不同點(diǎn))n International business refers to transaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country

51、 is also regarded as import and export, such as business between Hong Kong and Taiwan. International business takes place between countries while domestic business takes place in the same country. nA. differences in legal system (法律體系的法律體系的不同不同): The countries involved often have different legal sys

52、tems, and one or more parties will have to adjust themselves to operate in compliance with the foreign law. n不同的國(guó)家通常擁有不同的法律體系，參與商務(wù)的一方或幾不同的國(guó)家通常擁有不同的法律體系，參與商務(wù)的一方或幾方不得不根據(jù)外國(guó)的法律來(lái)調(diào)整自己的經(jīng)營(yíng)活動(dòng)。方不得不根據(jù)外國(guó)的法律來(lái)調(diào)整自己的經(jīng)營(yíng)活動(dòng)。nB. differences in currencies（貨幣的不（貨幣的不同）同）: Different countries usually use different currenci

53、es and the parties concerned will have to decide which currency to use and do everything necessary as regards conversion etc.n不同的國(guó)家通常使用不同的貨幣，參與商務(wù)的有關(guān)方必須不同的國(guó)家通常使用不同的貨幣，參與商務(wù)的有關(guān)方必須選擇使用哪種貨幣，就兌換等事宜作好一切必要的工作。選擇使用哪種貨幣，就兌換等事宜作好一切必要的工作。nC. differences in cultural background（文化背景的不同）（文化背景的不同）: Cultural differe

54、nces including language, customs, traditions, religion, value, behavior etc. often constitute challenges and even traps for people engaged in international business. n文化差異包括語(yǔ)言、習(xí)俗、傳統(tǒng)、宗教、價(jià)值觀和行為方文化差異包括語(yǔ)言、習(xí)俗、傳統(tǒng)、宗教、價(jià)值觀和行為方式的不同，往往給從事商務(wù)的人構(gòu)成挑戰(zhàn)甚至陷阱。式的不同，往往給從事商務(wù)的人構(gòu)成挑戰(zhàn)甚至陷阱。nD. differences in natural and econom

55、ic conditions（自然條件與經(jīng)濟(jì)條件的不（自然條件與經(jīng)濟(jì)條件的不同）同）: Countries vary in natural and economic conditions and may have different policies towards foreign trade and investment, making international business more complex than domestic business. n不同的國(guó)家自然條件和經(jīng)濟(jì)狀況不同，對(duì)待外國(guó)貿(mào)易和投不同的國(guó)家自然條件和經(jīng)濟(jì)狀況不同，對(duì)待外國(guó)貿(mào)易和投資的政策不同，這也使國(guó)際商務(wù)比國(guó)內(nèi)商務(wù)

56、更加復(fù)雜。資的政策不同，這也使國(guó)際商務(wù)比國(guó)內(nèi)商務(wù)更加復(fù)雜。 n2) major types of international business (國(guó)際商務(wù)的主要類型國(guó)際商務(wù)的主要類型)nA. trade （貿(mào)易）（貿(mào)易）na. commodity trade （商品貿(mào)易）（商品貿(mào)易）: Commodity trade refers to exporting and importing goods produced or manufactured in one country for consumption or resale in another. It is also referred to

57、 as visible trade. n商品貿(mào)易指在一國(guó)生產(chǎn)或制造的商品，出口或進(jìn)口到另一商品貿(mào)易指在一國(guó)生產(chǎn)或制造的商品，出口或進(jìn)口到另一國(guó)消費(fèi)或轉(zhuǎn)售。這種貿(mào)易形式也稱作有形貿(mào)易。國(guó)消費(fèi)或轉(zhuǎn)售。這種貿(mào)易形式也稱作有形貿(mào)易。nb. service trade （服務(wù)貿(mào)易）（服務(wù)貿(mào)易）: Service trade refers to trade of transportation, communication, banking, insurance, consulting, information etc. n服務(wù)貿(mào)易是一種以運(yùn)輸、通訊、銀行業(yè)、服務(wù)貿(mào)易是一種以運(yùn)輸、通訊、銀行業(yè)、保險(xiǎn)、咨詢、

58、信息業(yè)等出現(xiàn)的貿(mào)易形式。保險(xiǎn)、咨詢、信息業(yè)等出現(xiàn)的貿(mào)易形式。這種貿(mào)易形式也稱作無(wú)形貿(mào)易。這種貿(mào)易形式也稱作無(wú)形貿(mào)易。nB. investment （投資）（投資）na. foreign direct investment （外國(guó)直接（外國(guó)直接投資）投資）: Foreign direct investment is made for returns through controlling the enterprises or assets invested in in a host country. n外國(guó)直接投資通過(guò)控制其投資在他國(guó)的企外國(guó)直接投資通過(guò)控制其投資在他國(guó)的企業(yè)和資產(chǎn)獲得回報(bào)。業(yè)和

59、資產(chǎn)獲得回報(bào)。nb. portfolio investment （證券投資）（證券投資）: Portfolio investment refers to purchases of foreign financial assets for a purpose other than controlling. Such financial assets may be stocks, bonds or certificates of deposit. n證券投資指不以控制為目的而購(gòu)買國(guó)外的證券投資指不以控制為目的而購(gòu)買國(guó)外的金融資產(chǎn)，這樣的金融資產(chǎn)可以是股票、金融資產(chǎn)，這樣的金融資產(chǎn)可以是股票、債券或

60、定期存款單。債券或定期存款單。nC. other types （其他類型）（其他類型）na. licensing and franchising （國(guó)際許可和（國(guó)際許可和特許經(jīng)營(yíng)）特許經(jīng)營(yíng)）: In licensing, a firm leases the right to use its intellectual property to a firm in another country. Such intellectual property may be trademarks, brand names, patents, copyrights or technology. Under fr