• 3rd country earns profit by imposing imp. and exp. duties
Indirect transit trade
• Commodities first placed in the bonded warehouse before being transported further without any processing
trade realize the importance of contract
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Concept of international trade
International trade / world trade / foreign trade / overseas trade
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1.3 Classification of international trade
From the direction of cargo flow
Export trade
domestic market →international market for sale
Import trade
• 3rd country earns warehousing charges + imp. and exp. duties
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1.3 Classification of international trade
From the number of participants involved
international rules foreign currencies higher risks: Political risks, Commercial risks,
Financial risks, and Transportation risks more complex business procedures broader range of management skills
Guangdong Univቤተ መጻሕፍቲ ባይዱrsity of Foreign Studies
Chapter One
General Introduction
Learning Objectives
After learning this chapter, you should be able to
define what is meant by international trade explain the reasons for engaging in international trade identify the benefits of international trade tell the differences between domestic and international trade understand the major procedure involved in international
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1.1 Reasons for international trade
Resource reasons
Natural resources Human resources Technology
Economic reasons
Benefits Comparative advantage (David Ricardo) Economies of scale
国际贸易实务（英文版）
周瑞琪 王小鸥 徐月芳 编著
对外经济贸易大学出版社
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INTERNATIONAL TRADE
PRACTICE
By Zhou Ruiqi Wang Xiaoou Xuyuefang
of School of English for International Business
Types of transit trade
Direct transit trade
• Commodities further transported toward outside along the domestic transportation line without being placed in the bonded warehouse
Other reasons
Political reasons Different taste and preference
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1.2 Differences from domestic trade
International trade involves
foreign languages and different cultures foreign laws, customs and regulations or
Direct trade
Two parties involved: the importer and the exporter
Indirect trade
Three parties involved: the exporter, the importer and the intermediate party
foreign countries → domestic market for sale
Transit trade
producing countries →via a third country →consuming country
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1.3 Classification of international trade
The fair and deliberate exchange of goods and services across national boundaries.
Concerning trade operations of both import and export
Including the purchase and sale of both visible and invisible goods.