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.Different in natural and economic conditionsThe major types of international businessA.Trademodity tradeb.Service tradeB.In vestmenta.Foreign direct investmentb.Portfolio investmentC.Other typesa.Licensing and franchisingb.Management contract and contract manufacturingc.Turnkey project and BOTTrade Terms:1.Customs area 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 consumption 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 夕卜国直接投资:Foreign direct investments. Returns through controlling the enterprises orassets invested in a host country・ / P.256. One country acquires assets in a foreign countiy forthe purpose of controlling and managing （hem.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.& Bonds 债券:The papers issued by a government or a firm with promise to pay back the money lent or invested together with interest.9.Maturity （票据等）到期10.Certificate of deposit 人额存单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.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18.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 anothe匚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 han ding it over to the latter upon completion ・p4. [B OT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2& International investment 国际投资：Supplying capital by residents of one county to another.29.Contract manufacturing 承包生产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, insurancc, consulting, information etc. is called invisible trade or service industries・ Thelater is become more and more important.3.Can you cite some examples to illustrate cultural differences in international business?A: Cultural differences including language, customs, traditions, religion, value, behavior etc.4.Please elaborate on the two categories of international investment. What is their majordifference?A: FDI (Foreign direct investment) is made for returns through controlling the enterprises or assets invested in in a host country・ Portfolio investment refers to purchases of foreign financial assets for a purpose other than controlling・ Such financial assets may be stocks, bonds or certificates of deposit ・5.What is licensing? Why do firms sometimes choose it as a means of entering a foreign market? A: In licensing, a firm leases the right to use its intellectual property to a firm in 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. Besides, they can benefit from locational advantages of foreign operation without any obligations in ownership or nlanagcment. The use of licensing is particularly encouraged by high customs duty and non-tariff barriers on the part of the host country.6.What is franchising? How is it different from licensing?A: Under franchising, franchisee is allowed to operate in the namc of another, franchiser who provides the former with trademarks, brand names, logos and operating techniques for royalty. In comparison with the relation between the licenser and the licensee, the franchiser has more control over and provides more support for the franchisee・7.What is a management contract? Under what conditions is it most applicable?A: Under a management contract, one company offers managerial or other specialized services to another within a particular period for a flat payment or a percentage of the relevant business volume・When a government forbids foreign ownership in certain industries it considers to be of strategic 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.& What is an international turnkey project? In what way is its variant BOT different from it? A: For an in tcrnational turnkey project, a firm signs a con tract with a foreign purchaser and undertakes all the designing, contracting and facility equipping before handing it over to the latter upon completion. For a BOT 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 a period is the major difference between BOT and the common turnkey projectTranslate 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。