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Chapter One International Trade1

1.1 International Trade1

1.2 Definition of International Trade2

1.3 Reasons for International Trade2

1.3.1 Resource Reasons2

1.3.2 Economic Reasons3

1.3.3 Other Reasons3

1.4 The Differences Between International Trade and Domestic Trade4

1.5 Forms of International Trade4

1.5.1 Export Trade,Import Trade and Transit Trade5

1.5.2 Direct Trade,Indirect Trade and Entrepot Trade5

1.5.3 Visible Goods Trade and Invisible Goods Trade5

1.5.4 Barter Trade and Free-liquidation Trade6

1.6 Benefits from International Trade7

1.6.1 Economic Growth7

1.6.2 Cheaper Goods and Services7

1.6.3 Greater Variety7

Technical Terms8

Exercises8

Chapter Two International Business Correspondence10

2.1 The Essence of Business Letters10

2.2 Elements of Business Letters11

2.2.1 Letterhead12

2.2.2 Reference12

2.2.3 Date13

2.2.4 Inside Address13

2.2.5 Attention Line14

2.2.6 Salutation15

2.2.7 Subject Line15

2.2.8 Body of a Letter16

2.2.9 Complimentary Close16

2.2.10 Signature16

2.2.11 IEC(Initials,Enclosures and Carbon Copies Block)17

2.2.12 Postscript17

2.3 Envelope Addressing18

2.4 Business Letter Format and Outline19

2.4.1 Format19

2.4.2 Outline21

2.5 Basic Principles for Business Letters22

Specimen Letters24

Technical Terms24

Exercises25

Chapter Three International Trade Terms26

3.1 Components of Trade Terms26

3.2 INCOTERMS27

3.2.1 Scope of INCOTERMS28

3.2.2 Structure of INCOTERMS 200028

3.2.3 Common Issues29

3.3 Interpretation of Trade Terms in INCOTERMS 200030

3.3.1 Group E—Departure30

3.3.2 Group F—Main Carriage Unpaid(by Seller)30

3.3.3 Group C—Main Carriage Paid(by Seller)32

3.3.4 Group D—Arrival34

3.4 Contrasts between FOB,CFR and CIF36

3.5 Considerations for Choosing Trade Terms36

Technical Terms37

Exercises37

Chapter Four Establishing Business Relations39

4.1 The Significance of Establishing Business Relations39

4.2 The Channels of Establishing Business Relations40

4.3 Information Collection of the Prospective Clients40

4.4 Some Skills in Establishing Business Relations41

4.4.1 Skills for Writing a First Letter to a Prospective Corporation41

4.4.2 Skills for Replying a Letter42

Specimen Letters43

Skill Training47

Technical Terms50

Exercises51

Chapter Five Enquiry and Offer54

5.1 Enquiry55

5.2 Offer56

5.2.1 Firm Offer56

5.2.2 Non-firm Offer57

5.2.3 Proforma Invoice:a Special Offer58

5.3 Counter-Offer59

5.4 Counter-Counter-Offer60

Specimen Letters61

Skill Training66

Technical Terms68

Exercises69

Chapter Six Acceptance,Order and Business Contract72

6.1 Acceptance72

6.2 Order73

6.3 Business Contract75

6.3.1 Contracts75

6.3.2 Confirmation79

6.3.3 Significance and Function of Contract81

Specimen Letters81

Skill Training86

Technical Terms88

Exercises89

Chapter Seven International Payment91

7.1 Nature of International Payment91

7.2 Instruments of International Payment92

7.2.1 Draft92

7.2.2 Promissory Note94

7.2.3 Check95

7.3 Methods of International Payment96

7.3.1 Cash in Advance96

7.3.2 Documentary Letter of Credit98

7.3.3 Documentary Collection101

7.3.4 Open Account103

Specimen Letters104

Skill Training107

Technical Terms110

Exercises111

Chapter Eight Letter of Credit114

8.1 Nature of Letters of Credit114

8.2 Procedures of Letter of Credit Operations115

8.2.1 Issuance of Letter of Credit115

8.2.2 Amendment of Letters of Credit118

8.2.3 Utilization of Letters of Credit120

8.3 Considerations in Using L/C121

8.3.1 Points for Attention in Using L/C121

8.3.2 L/C Risks and L/C Risk Prevention121

Specimen Letters122

Skill Training127

Technical Terms130

Exercises130

Chapter Nine International Cargo Transportation135

9.1 Ocean Transportation135

9.1.1 Liner Transportation135

9.1.2 Charter Transportation137

9.2 Shipping Documents139

9.2.1 Packing List139

9.2.2 Booking Note140

9.2.3 Shipping Order142

9.2.4 Mate's Receipt143

9.2.5 Bill of Lading144

9.3 Clause of Shipment150

9.3.1 Packing and Marking150

9.3.2 Time of Shipment and Time of Delivery153

9.3.3 Port of Shipment and Port of Destination153

9.3.4 Partial Shipment and Transshipment154

9.3.5 Shipping Instruction and Shipping Advice155

9.4 Other Modes of Transportation155

Specimen Letters157

Skill Training159

Technical Terms161

Exercises162

Chapter Ten Insurance165

10.1 Fundamental Principles of Cargo Insurance165

10.2 Risks and Losses in Cargo Transport167

10.2.1 Risks167

10.2.2 Losses168

10.2.3 Expenses169

10.3 Ocean Marine Insurance under C.I.C169

10.3.1 Basic Risks Coverage169

10.3.2 Additional Risks Coverage170

10.4 Insurance Practice of International Trade172

10.4.1 Insured Amount173

10.4.2 Insurance Premium173

10.4.3 Insurance Document173

Specimen Letters175

Skill Training180

Technical Terms183

Exercises184

Chapter Eleven Inspection,Claim,Force Majeure and Arbitration190

11.1 Commodity Inspection190

11.1.1 Place and Time of Inspection191

11.1.2 Inspection Bodies191

11.1.3 Inspection Standards192

11.1.4 Major Inspection Certificates193

11.1.5 Inspection Clause in the Sales Contracts194

11.2 Complaints and Claims194

11.2.1 Types of Claim195

11.2.2 Claim Clause in Sales Contracts195

11.3 Force Majeure196

11.3.1 Consequences of Force Majeure196

11.3.2 Force Majeure Clause in Sales Contracts196

11.4 Arbitration197

11.4.1 The Definition of Arbitration197

11.4.2 Features of the Arbitration198

11.4.3 Arbitration Procedures198

11.4.4 Arbitration Clause in Sales Contracts200

Specimen Letters200

Skill Training204

Technical Terms206

Exercises207

Chapter Twelve Import and Export Procedures209

12.1 General Procedures of Export Transaction209

12.1.1 Preparations for Exporting209

12.1.2 Negotiation of a Sales Contract211

12.1.3 Performance of the Contract212

12.1.4 Settlement of Disputes215

12.1.5 Flowchart of Export Procedure215

12.2 General Procedures of Import Transaction216

12.2.1 Preparations for Importing216

12.2.2 Trade Negotiation216

12.2.3 Performance of the Contract217

12.2.4 Settlement of Disputes218

12.3 Export Documentation218

12.3.1 Role of Documentation218

12.3.2 Export Documents219

Technical Terms229

Exercises230

参考文献231