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LessonOne:ModesofInternationalBusiness1.modesofoperationwhichcanbechosenfrombyenterprisesandgovernmentswhoareengagingin(carryingout)internationalbusinesstobeinvolvedininternationalbusinessactivitiesbymeansofimportandexportmerchandiseexportasamainsourceofinternationalrevenueserviceimportsisanincreasinglyimportantmeansofinternationalbusinessfordifferentcountries.tourismrevenuehasbecomeanimportantsourceofforeignexchangeincomefortheUSlicense(franchise)grantedtoadealer(franchisee)abroadforthesaleofproductstoreceiveroyaltiesbylicensingotherstousetheirassetssuchastrademarksWorldWarIIwitnessedarapiddevelopmentofForeignDirectInvestmentajointventurewiththemajoritystake(interest,shares)onthepartofthehostingcountryportfolioinvestmentisamajorformofforeignindirectinvestmentlocalenterprisesengaginginserviceimportsbydifferentmeansmultinationalenterprisestakeaglobalapproachtowardsglobalmarketmultinationalcorporationsplayedanactiveroleinthedevelopmentofinternationalbusinessafterthewarstudyofinternationalbusinessindifferentmodesconductedintheacademiccircle(academia,sector,community)1.Moreandmoreenterprisesandgovernmentwereinvolvedininternationalbusinessactivitiesinadditiontoimportandexporttrade.Tourisminthissceniccountryisofcriticalimportancetotheeconomicgrowthofthecountry,andislikelytodoubleitsforeignexchangeincomeintheyearstoThemultinationalcorporationdealinginautomobilesconductsitsproductionandsaleonaglobalbasis,andinrecentyears,itsoperationsinChinahasbeenintegratedintoitsglobaloperationscheme.ManyMNEsindevelopedcountrieshavetransferredtheirequipmentandstaff,alongwiththecapitalintolow-costdevelopingcountriestoreducethecostandboostforeignsalesCommerceministerlatelypointedoutthatwehavetoincreaseourexportasmuchaspossibleinexchangeformerchandisesandserviceswearepressingfor,andtakeactiveactionstoattractforeigninvestmenttopromoteLesson2:ReasonsforRecentInternationalBusinessGrowthI.Thespeedoftheincreaseofinternationalbusinessoflateiswellbeyondthatofglobalproduction.SharestakenbyforeignenterprisesindomesticproductioninChinaisincreasingReasonsforcompaniestoengageininternationalbusiness,suchasexpandingsalesandobtainingresourcesetc.Difficultiesininternationalbusinessarisingfromincreasedglobalcompetition.toliberalizelimitationoncrossboardermovementofcommoditiesandresourcesgovernmentpoliciestofacilitateinternationalcommodityandservicetrade.technological advancement (improvement) whichhastremendous impactinternationalbusiness.Improvement of business operation abroad resulting from development transportationtoinducecountriestolowertheirbarrierstothemovementofcommoditiesandservicesLiberalizationwillenablecompaniestotakebetteradvantageofinternationalbusinessopportunities.Bankshavedevelopedeffectivemeansforcompaniestoreceivepaymentfortheirforeignsales.Companieswillrespondquicklytoforeignmarketandproductionopportunities.Companiesexperiencedininternationalmarketcanshiftproductionquicklyforeigncountries.Manyfirmshavetobecomemoreglobaltomaintaincompetitiveness.II.Inrecentyears,owingtoforeigntradefacilitatedbypowerfuleconomicdevelopment,thevolumeofimportandexportincreasedby20%from1993to2003,ascomparedwith7.5%increasebetween1982and1992.Improvedtransportationresultingfromtechnologicaladvancementspeedsupthemovementofgoods,personnelandinformationamongdifferentcountries,bringingabouttherapidgrowthofinternationalbusiness.Nowadays,governmentsimposefewrestrictionsoncross-bordermovementscommoditiesandservices.Thisenablespeopleindifferentcountriestogetaccesstocommoditiesandservicesatlowerpricesanddomesticproducerstobecomemoreefficientasaresultofforeigncompetition.Companiesandgovernmentshavedevelopedservicestosupportandfacilitateinternationalbusiness,suchastheestablishmentofbankcreditagreements,clearingarrangementandtheconclusionofpostalagreementsamongcounties,toensuresmoothdevelopmentandexpansionofinternationalbusiness.Underthepressureofincreasedforeigncompetition,tomaintaincompetitivenessandstriveforitssurvivalanddevelopment,companieshavetoexpandtheirbusinessintointernationalmarketstorespondtooverseassalesopportunitiesandexpanditsinternationalbusinessactivities.Lesson5:TheExportProcess%I.toprocessexportordersasperestablishedcompanypolicies.tohaveacarefulcheckandlogoftheoriginofordersreceivedbytheexporterTheexportershouldbefullyawareofspecificrequirementsofcustomersabroad.toconductacarefulcheckoftheimporterwithregardtohis/hercredit.toobtainacreditreportrespectingcreditstandingofthebuyer.Thebuyerandthesellernegotiateonsalestermsandconditionsliabilitiesofbothpartiesstatedinthecontract(thecontractedliabilitiesofparties)Suchclausesasnameoftheproduct,price,deliverystipulatedinthecontractTheexportgoodsareproperlydeliveredatthenegotiatedpointofTheexportgoodsaredulyshippedatthenegotiatedpointofshipment.Titleoftheexportgoodstransfersatthepointofdelivery.toprocureimportlicensetomeetregulationsoftheimportingcountryThegoodspassthroughcustomsprocessuponarrivalatthedestination.tocompleteallthedocumentationnecessaryfortheexporttransaction.II.Toefficientlytransferthegoodstotheimportingcountry,theexportershouldperformthreenecessaryfunctionsinvolvedinaexporttransaction.Beforeanexporttransaction,theexportershouldeitherexaminefinancialandcreditpositionofthenewcustomersthroughaninternationalcreditreport,conductarecheck(doublecheck,revision)ofthecreditstandingandpaymentrecordofrepeatcustomers.Asanintegratepart(component)oftheexportprocess,theimporterandtheexportershouldnegotiateonissuescoveringsalestermsandconditions,obligationsofbothpartiesaswellasothertermsofthesalescontract.Theagreement(enteredinto)betweentheexporterandimporteronsalestermsandconditionsbecomesabindingcontract,andisaconfirmedcommitmentacceptabletobothsidesafterawrittenconfirmationbybotherparties.Intheprocessofexport,animportlicenseisrequiredfromthebuyer,aswellasaforeignexchangepermitsometime,toconformtoregulationsofthebuyingcountryforsuccessfularrivalofthegoodsattheimportingcountry.Lesson7:InternationalCommercialTermsI.Thesellertransfersthegoodstothebuyerathisownpremisesorwarehouse.Thesellershouldhandoverthegoodstothecarrierdesignatedbythebuyer.lossesofordamagetothegoodsarisingfromincidents(events)afterloadingdepartureofthevesseltobearallexpensesandtakeallrisksnecessarytoshipthegoodstothecountryofdestinationtopayallexpensesandfreightnecessarytoshipthegoodstothenamedportofdestinationtoprocuremarineinsuranceagainstlossesofordamagetothegoodsofthebuyerenroutethesellerdeliverswhenthegoodsareclearedforexportandhandedovertobuyerallrisksandexpensesonthepartoftheseller,inclusiveoftariff,taxiesandotherexpensesThesellerdeliverswhenthegoodspasstheship’srailatthenamedportofshipmentUnderCIPterms,thesellershouldprocuretheinsurancecontractandpaypremium10,000electroniccalculatorsatUS$10CIFManilaperpiecePleasemakeusanofferonCFRTianjintogetherwithalldetails.themostfavorablepriceonCIFGuangzhou,statingshipmentdateandp termsThepriceweofferedforPhoenixbrandbicyclesisUS$55CFRNewYourperpieceII.Tradeterms(commercialterms)areusedtospecifystructureof

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