1、unit 2 INTERNATIONAL Business Practice,Review,1 What is international trade?2 What are the major motivations for firms to operate international business?3 What measures do most companies usually adopt to avoid wild swings in the sales and profits?4 Please give the four major operation forms chosen b
2、y most companies.,Review,1. International trade is business whose activities involve the crossing of national borders. It includes not only international trade and foreign manufacturing but also encompasses the growing services industry in areas such as transportation, tourism, banking, advertising,
3、 construction, retailing, wholesaling, and mass communications. It includes all business transactions that involve two or more countries. Such business relationship may be private or governmental.,Review,2. Sales expansion, resource acquisition and diversification of sales and supplies.3. To seek ou
4、t foreign markets and procurement.4. There are four major forms which are the following: Merchandise exports and Imports, Service Exports and Imports, Investment and Multinational Enterprise.,Chapter 2 General Procedures of Export and Import Transaction,Main Points in this Unit,Section One Procedure
5、s of Export and Import Transaction（进出口贸易的步骤）,Section Two Business Negotiation（交易的磋商）,1 What is Exporting Theaters sell entertainment; insurance companies sell financial protection against future loss, ideas urging actions can be sold too. Exporting is the process of earning money by providing the ri
6、ght product at the right price,at the right time,in the right place beyond your home boundary. The ultimate goal is to make sure that the exporter is to be paid for the goods he sells.,Section One Procedures of Export and Import Transaction,1 What is Exporting The procedures of an export or import b
7、usiness are so complicated that it may take quite a long time to conclude a transaction.Four stages: preparing for exporting or importing business negotiation implementation of the contract settlement of disputes(if any),Section One Procedures of Export and Import Transaction,Export Procedurers,3 Wh
8、at is Importing Is referred to the purchase activities of foreign products produced in the world market or those services provided by foreign companies.Procedures of import transaction1.Conduct market investigation2;Formulate import plans for a certain commodity3.Send enquiries to the prospective se
9、llers overseas4.Compare and analyze the offers or quotations时价 received5.Make counter-offers and decide on which offer is most beneficial6.Sign a purchase contract,Section One Procedures of Export and Import Transaction,3 What is Importing 7.Apply to a bank for opening a letter of credit8.Book shipp
10、ing space or charter a carrying vessel for taking over the cargoes, if the contract is in terms of FOB.9.Effect insurance with the insurance company upon receipt of shipping advice装运通知10.Apply for inspection if necessary11.Attend to customs formalities报关单 to clear the goods through the customs12.Ent
11、rust forwarding agents委托承运人 with all the transport arrangements from the port to the end users warehouse13.Settle disputes(if any),Section One Procedures of Export and Import Transaction,Procedures of Import Transaction,Market Research,Any exporter who wants to sell his products in a foreign country
12、 or countries must first conduct a lot of market research. Market research is a process of conducting research into a specific market for a particular product. Export market research, in particular, is a study of a given market abroad to determine the needs of that market and the methods by which th
13、e products can be supplied. The exporter needs to know which foreign companies are likely to use his products or might be interested in marketing and distributing the products in their country.,Marketing concept营销理念,The marketing concept We must produce what people want, not what we want to produce,
14、This means that we put the customers first We organize the company so that this happens,We must find out what the customer wants We carry out market research,We must supply exactly what the customer wants,Marketing concept,We can do this by offering the right marketing mix销售组合策略-The Four Ps1.The rig
15、ht product2.The right price3.Available through the right channels of distribution: place4.Presrnted in the right way :promotion,the exporters* the railway (in some cases)in the exporters country出口商所在国家的铁路部门the road hauler (in some cases) in the exporters country出口商所在国家的陆运承运人 the port authority 港口当局
16、* the shipping company (for sea freight)港务公司（ 对海洋运输）the airline (for air freight) * the insurance company or brokers经纪人 * the exporters bank * the importers bank* the railways (in some cases) in the importer countrythe road hauler 陆运承运人( in some case) in the importer country * the shipping agent at
17、the port or airport of discharge装卸港或机场的运输经纪人* the importers,Parties involved in export and import transaction进出口贸易所涉及的当事人,Parties Involved in Exp. & Imp. Transaction,* the exporters,* the importers,* the port authority,* the shipping company (for sea freight),* the airline (for air freight),* the in
18、surance company or brokers,* the exporters bank,* the importers bank,* the railways (in some cases) in the importer country,* the road hauler ( in some case) in the importer country,* the road hauler ( in some case) in the importer country,* the shipping agent at the port or airport of discharge,* t
19、he shipping agents at the port or airport of loading,* the railway (in some cases)in the exporters country,* the road hauler (in some cases) in the exporters country,Specialists involved in export and import transactions出口和进口贸易所涉及的专业人员,A shipping agent and /or foreign forwarder (forwarding agent) 转运
20、商will take responsibility for the documentation and arrange for the goods to be shipped by air, sea, rail or road. Theses services may be carried out by the suppliers own export department, if they have the expertise.,Airlines, shipping lines, railway companies or haulage contractors （货物承运商）will act
21、ual transport the goods.,Both the importers and exporters banks will be involved in arranging payments if a letter of credit or bill of exchange is used.,Customs and Excise officers 征税官员may need to examine the goods, check import or export licences and charge duty and /or VAT(value added tax增值税).,A
22、chamber of Commerce may need to issue a certificate of origin, if this is required by the importers country.,An insurance company insures goods in transit. A lawyer if a special contract has to be drawn up.,An import/export transaction usually requires a lot of complicated documents because it is di
23、fficult to make many different arrangements when one firm is dealing with another on the other side of the world. The number and type of documents needed depend on the specific requirements of the exporter and importer. Generally, the documents needed include: 1). Bill of Lading提货单 2). Commercial In
24、voice商务发票 3). Proforma Invoice形式发票 4). Consular Invoice领事发票 5). Packing List装箱单 6). Weight Memo重量单 7). Certificate of Inspection检验证书 8). Certificate of Origin原产地证 9). Insurance Policy (Certificate)保险凭证 10). Sales Contract销售合同 11). Sales Confirmation销售确认书,Basic Documents needed in Export and Import T
25、ransaction,Review 1 General Procedures of Export and Import Transaction 2 What is export? 3 What is import? 4 Parties involved in export and import transaction 5 Specialists involved in export and import transaction 6 Basic documents needed in export and import transaction,Section Two Business Negot
26、iation,Business Negotiation,What is business negotiation?,Business Negotiation is a bargaining situation in which two or more players have a common interest to cooperate, but at the same time have conflicting interests over exactly how to share.,Features of Business NegotiationIn negotiations, both
27、parties should know the followingWhy they negotiate; 为什么谈判Who they negotiate with; 与谁谈判What they negotiate about; 谈判的内容Where they negotiate; 谈判的地方When they negotiate; 谈判的时间How they negotiate; 谈判的方式,Features of Business NegotiationBusiness negotiation can be a very trying process that is full of conf
28、rontation and concession.for the most part, it comes to the interaction between two sides with a common goal but divergent methods. These methods must be negotiated to the satisfaction of both parties. Business negotiation proceed through four stages:1.Non-task sounding开局前的试探2.task-related exchange
29、of information交换与探班目标有关的信息3.persuasion说服4.concessions and agreement让步与同意,Business Negotiation,The negotiation consist of the following links:EnquiryOfferCounter-offerAcceptanceConclusion of Contract,indispensable link,indispensable link,Offer, and acceptance are two indispensable links for reaching
30、an agreement and concluding a contract.,The ways of Negotiation: Oral Written (letter, fax, email, telex, etc.),To improve the success rate of the transction,the following preparations shouldo be made before the business negotiation.1.arrange sound trade negotiations personnel.2.select target market
31、3.select transaction object 4.work out import and export mangagement plan.,What should be negotiated while negotiating includes all the terms based on which the contract is going to be concluded: the name of the commodity, quality or specifications,quantity,packing, price,shipment,insurance,payment,
32、inspection,claims,adjustment, force majeure,etc.,Contents to be Negotiated,the essential terms in a transactions PricePacking InsurancePayment ShipmentQuantity Name Quality or specifications规格,Contract,Name of commodity,Quality,Quantity,Package,Price,Payment,Transport and insurance,The time limit an
33、d place of performance 履行地,The prevention and handling of dispute预防与处理,The rest are general transaction terms, which can be printed on the back of the contract. Such as inspection . claims, arbitration , force majeure.,Enquiry,What is an enquiry?,An enquiry is a request for business information, suc
34、h as price lists, catalogue, samples, and details about the goods or trade terms(贸易条款determine at what points the seller has fulfilled his obligations so that the goods in legal sense could be said to have been delivered to the buyers). It can be made by either the importer or the exporter. On recei
35、ving the enquiry, it is a regular practice that the exporter should reply to it without delay.,The seller and the buyer both can make an inquiry. Usually, the inquiry made by the buyer is also called bid递盘, and the inquiry made by the seller is also called selling inquiry索盘. Inquiry will not bind up
36、on both parties, but usually when you receive an inquiry, you should reply it as soon as possible,Offer,（1）The meaning of an offer,* An offer is a proposal made by sellers to buyers in order to enter into a contract. In other words, it refers to trading terms（ 交易条件）put forward by offerers（发盘人 ）to of
37、ferees（受盘人）, on which the offerers are willing to conclude business with the offerers. There are two kinds of offers, one is the firm offer, the other, non-firm offer.,* The party who makes an offer is called an offeror发盘方, in the case of the seller, the offer is called a selling offer卖方发盘, while in
38、 the case of the buyer, and it is called a buying offer买方发盘 or a bid.,firm offer实盘,non-firm offer虚盘,（2）The basic conditions of an offer,I ) The offer shall be made to one or more specific persons The offer shall be the definite representation in which the offeror expresses that he shall conclude tra
39、nsaction on the terms and conditions stipulated therein.,II) Contents of the offer shall be sufficiently definite, i.e., trade terms of the offer shall be complete, clear and final,* The “Convention” stipulates that a sufficiently definite offer should include three basic elements: name, quantity an
40、d price * In our foreign trade practice, a complete offer shall include the quality, quantity, packing, price, terms of delivery of the goods and terms of payment and so on.,III) The offer shall indicate the intention of the offeror to be bound in case of acceptance,* This intention may be indicated
41、 by terms as “firm” offer, “offer with engagement”实盘, etc.* If the offer has a restrictive condition, i.e., “subject to取决于 our final confirmation”, then its a non-firm offer regarded as an invitation for offer邀请发盘.,The term of validity is not an indispensable condition of an offer （1）Stipulate the l
42、atest date for acceptance. For example: This offer is subject to your reply reaching here on or before 29, June （2）Stipulate a period of time for acceptance As to this method, there is a question of computing validity time.,(3) Time of Validity or Duration of Offer,(4) Time that an offer becomes eff
43、ective,Different views of the time that a written form offer becomes effective ：1. Despatch Theory投递主义，发信主义2. Arrival Theory到达主义 授信主义Both “convention”公约 and our “contract law” adopt arrival theory.,(5) Withdrawal or revocation of an offer,Withdrawal （撤回）Definition of the withdrawal of an offer:The w
44、ithdrawal of an offer means the offerors intent indication to make an offer invalid before the offer gets its effectiveness.B. Revocation（撤销） Definition of the revocation of an offer: The revocation of an offer means the offerors intent indication to make an offer invalid after the offer gets its ef
45、fectiveness.,(6) Termination of an offer 发盘的失效,In the following cases, an offer is terminated:1.The offeree has already made it counter-offer.2.The offer has been lawfully withdrawn or revoked by the offeror.3.The offer has been overdue.4. There appears force majeure,namely war, government prohibiti
46、on,the party in question is in incapacity, bankruptcy or death.,A reply to an offer which purports to be an acceptance but contains additions, limitations or other modifications is a rejection of the offer and constitutes a counter offer. (1) A reply to an offer which alter the terms of the offer ma
47、terially constitutes a counter-offer (2) An acceptance with restrictive conditions is another form of counter-offer, such as “subject to our final confirmation”. (3) If offeree accepts the original offer after he made a counter-offer, the contract is invalid.,3. Counter-Offer,4. Acceptance,An accept
48、ance or a confirmation is an unreserved assent（完全，无条件地同意） of the buyers or the sellers, who after mutual negotiations are willing to enter into a contract in accordance with terms and conditions agreed upon.,What is an acceptance,In light of（按照，根据 ）the usual practice in foreign trade, an acceptance should abide by the following requirements:,
