International Business EnglishLesson 1International BusinessBusiness Knowledge:The major differences between international business and domestic businessA. Differences in legal systemsB. Differences in currenciesC. Differences in cultural backgroundD.DifferentinnaturalandeconomicconditionsThe major types of international businessA. Trademodity tradeb.Service tradeB. Investmenta.Foreign direct investmentb. Portfolio investmentC. Other typesa.Licensing and franchisingb.Management contract and contract manufacturingc. Turnkey project and BOTAnswer the following questions:1.Whatdoesinternationalbusinessreferto?Pleasetellthedifferencebetweeninternationalbusinessanddo mestic business.A:Internationalbusinessreferstotransactionbetweenpartiesfromdifferentcountries.Sometimes businessacrossthebordersofdifferentcustomsareasofthesamecountryis alsoregardedasimportandexport.Some major differences between international business and domesticbusiness is following:(1)Differences in legal systems(2)Differences in currencies(3)Differences in cultural background(4)Different in natural and economic conditions2.Pleaseexplainthedifferencesbetweenvisibletradeandinvisibletrade.Whichisbecomingmoreandmore important andaccounts for anincreasingproportionininternationaltrade?A:Visibletradeistheformofcommoditytrade.Theformoftransportation,communication,banking,insur ance,consulting,informationetc.iscalledinvisibletradeorserviceindustries.Thelater is becomemore andmoreimportant.3.Canyoucitesomeexamplestoillustrateculturaldifferencesininternationalbusiness?A:Culturaldifferencesincludinglanguage,customs,traditions,religion,value,behavioretc.4.Please elaborate on the two categories of international investment. What is their major difference?A:FDI(Foreigndirectinvestment)ismadeforreturnsthroughcontrollingtheenterprisesorassetsinvestedi ninahostcountry.Portfolioinvestmentreferstopurchasesof foreignfinancialassetsfora purposeotherth ancontrolling.Suchfinancialassetsmaybe stocks,bonds orcertificatesofdeposit.5.Whatislicensing?Whydo firmssometimes choose it as a means ofenteringaforeign market?A:Inlicensing,afirmleasestherighttouseitsintellectualpropertytoafirminanothercountry.Theychooselic ensingbecausetheydonothavetomakecashpaymentstostatbusiness,andcansimplyreceiveincomeinthef ormofroyalty.Besides,they can benefit fromlocationaladvantagesofforeignoperationwithoutanyobligationsinownershipormanagement.The useoflicensingisparticularlyencouragedby highcustomsdutyandnon-tariffbarriersonthe partofthe hos t country.6.What is franchising? How is it different from licensing?A:Underfranchising,franchiseeisallowedtooperateinthenameofanother,franchiserwhoprovidesthe formerwithtrademarks,brandnames,logosandoperatingtechniq uesforroyalty.Incomparisonwiththerelationbetweenthelicenserandthelicensee,thefranchiserhasmore controloverand providesmoresupport for the franchisee.7.What is a management contract? Under what conditions is it most applicable?A:Underamanagementcontract,onecompanyoffersmanagerialorotherspecializedservicestoanotherwi thinaparticularperiodforaflatpaymentorapercentageoftherelevantbusinessvolume.Whenagovernmen tforbidsforeignownershipincertainindustriesitconsiderstobeofstrategic importance but lacks the expertise for operation, management contracts maybe a practical choice enabling a foreign company to operate in the industry without owning the assets.8.What is an international turnkey project? In what way is its variant BOT different from it?A:Foraninternationalturnkeyproject,afirmsignsacontractwithaforeignpurchaserandundertakesallthed esigning,contractingandfacilityequippingbeforehandingitovertothelatterupon completion.ForaBOT project, a firm operates a facility for a period of time after building it up before finally transferring it to a foreign company. Making profit from operating the project for aperiodisthemajordifferencebetweenBOTandthecommonturnkeyprojectTranslate the following sentences into English:1.国际贸易一般指不同国家的当事人进行的交易，它涉及到许多因素，因而比国内贸易要复杂得多。

Internationalbusinessreferstotransactionbetweenpartiesformdifferentcountries.Itinvolvesmorefacto rsandthusismorecomplicatedthedomestic business.2.随着经济一体化进程的发展，很少人和公司能完全独立于国际商务之外而存在。

因此，在此方面具有一定的知识是十分必要的，这既有益于企业的发展又有益于个人的进步。

Withthedevelopmentofeconomicglobalization,fewpeopleorcompaniescancompletelystayawayfromi nternationalbusiness.Therefore,someknowledgeinthisrespectisnecessarybothforthebenefitofenterpri sesandpersonaladvancement.3.其他参与国际贸易的形式有管理合同、承包生产和“交钥匙”工程。