International Business EnglishLesson 1International Business/国际商务Business Knowledge:The major differences between international business and domestic businessA.Differences in legal systems 法律体系B.Differences in currencies 货币C・ Differences in cultural backgroundD・ Different in natural and economic conditionsThe major types of international businessA.Trademodity trade 商品贸易b・ Service tradeB.In vestmenta.Foreign direct investmentb.Portfolio investment 证券投资C.Other typesa. Licensing and franchising许可经营和特许经营b・ Management contract and contract manufacturing 管理合同和承包生产c.Turnkey project and BOTTrade Terms:1.Customs iirea 关税区：2.Conversion货币兑换3.Visible trade 有形贸易：The form of commodity trade, i.c. exporting and importing goodsproduced or manufactured in one country for con sumption or resale in another, (including cash transaction-by means of money and market, and counter trade)4.Invisible trade 无形贸易：The form of transportation, communication, banking, insurance,consulting, information etc. is called invisible trade or service industries.5.FDI 外国直接投资：Foreign direct investments. Returns through controlling the enterprises orassets invested in a host country・ / P.256. One country acquires assets in a foreign country for the purpose of controlling and managing them.6.Portfolio investment 证券投资：Purchases of foreign financial assets for a purpose other thancontrolling ・7.Stocks 股票：Capital stocks or bonds.8.Bonds 债券：The papers issued by a government or a firm with promise to pay back the moneylent or invested together with interest.9.Maturity （票据等）到期10.Certificate of deposit 大额存单11 ・Licensing 许可经营：In licensing, a firm leases the right to use its intellectual property to a firmin 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 （许町费）・12.Franchising 特许经营：Under 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.13.Trade Mark 商标14.Patent 专利15.Royalty专利（许可）使用费，版税16.Copyright 版权17.Licenser 许可方I8・Licensee被许可方19.Franchiser 特许方：A firm who provides the franchisee with trademarks, brand names, logos andoperating techniques for royalty・20.Franchisee 被特许方：A firm is allowed to operate in the name of another.21.Management contract 管理合同:Under a management contract, one company offers managerialor other specialized services to another within a particular period for a flat payment or a percentage of the relevant business volume・22.Value chain 价值链23.Turnkey project "交钥匙" 工程：For an international turnkey project, a firm signs a contractwith a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion・24.BOT 建设.经营和移交：Build, Operate, Transfer25.Expertise专门知识26.Bonus红利、奖金、津贴27.Royalty许可使用费28.Internationa】investment 国际投资:Supplying capital by residents of one country to another.29.Contract manufacturing 承包空产30.GATT 关贸总协定：General Agreement on Tariffs and Trade31.International business 国际商务：Transaction 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・32.Intellectual property 知识产权33.Oil deposit:石油储备=oil reserves34.the reserves of natural resources 自然资源储备35.Personal advancement个人的晋升，个人素质的提高以及个人事业的进步等。
Answer the following questions:1.What does international business refer to? Please tell the difference between internationalbusiness and domestic business.A: International 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 and export・Some major differences between international business and domestic business is following:(1)Differences in legal systems(2)Differences in currencies(3)Differences in cultural background(4)Different in natural and economic conditions2.Please explain the differences between visible trade and invisible trade. Which is becomingmore and more important and accounts for an increasing proportion in internationaltrade?A: Visible trade is the form of commodity trade・ The form of transportation, communication, banking, insurance, consulting, information etc. is called invisible trade or service industries・ The later is become more and more important.3.Can you cite some examples to illustrate cultural differences in international business? A: Cultural differences including languagc, customs, traditions, religion, value, behavior etc.4.Please elaborate （详细说明）on the two categories （种类）of international investmentWhat is their major difference?A: FD1 （Foreign direct investment） is made for returns through controlling the enterprises or assets invested in in a host country・/外国宜接投资：通过控制其它投资在他国的企业和资产获得回报CPortfolio investment refers to purchases of foreign financial assets for a purpose other than control I ing. Such financial assets may be stocks, bonds or certificates of deposit・/证券投资：不以控制为H的而购买外国的金融资产，如：股票、债券和定期存款单。