1
International Business English
Lesson 1
International Business
Business Knowledge:
The major differences between international business and domestic business
A.
Differences in legal systems
B.
Differences in currencies
C.
Differences in cultural background
D.
Different in natural and economic conditions
The major types of international business
A. Trade
a.
Commodity trade
b.
Service trade
B. Investment
a.
Foreign direct investment
b.
Portfolio investment
C. Other types
a.
Licensing and franchising
b.
Management contract and contract manufacturing
c.
Turnkey project and BOT
Trade Terms:
1.
Customs area
鍏崇◣鍖?/p>
:
2.
Conversion
璐у竵鍏戞崲
3.
Visible
trade
鏈夊舰璐告槗
:
The
form
of
commodity
trade,
i.e.
exporting
and
importing
goods
produced 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
鏃犲舰璐告槗
:
The
form
of
transportation,
communication,
banking,
insurance,
consulting, information etc. is called invisible trade or service industries.
5.
FDI
澶栧浗鐩存帴鎶曡祫
: Foreign direct investments. Returns through controlling the enterprises or
assets 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
璇佸埜鎶曡祫
: Purchases of foreign financial assets for a purpose other than
controlling.
7.
Stocks
鑲＄エ
: Capital stocks or bonds.
8.
Bonds
鍊哄埜
: The papers issued by a government or a firm with promise to pay back the money
lent or invested together with interest.
9.
Maturity
锛堢エ鎹瓑锛夊埌鏈?/p>
10.
Certificate of deposit
澶ч瀛樺崟
11.
Licensing
璁稿彲缁忚惀
: 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.
12.
Franchising
鐗硅缁忚惀
:
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
鍟嗘爣
14.
Patent
涓撳埄
15.
Royalty
涓撳埄锛堣鍙級浣跨敤璐癸紝鐗堢◣
16.
Copyright
鐗堟潈
17.
Licenser
璁稿彲鏂?/p>
18.
Licensee
琚鍙柟
19.
Franchiser
鐗硅鏂?/p>
: A firm who provides the franchisee with trademarks, brand names, logos
and operating techniques for royalty.
20.
Franchisee
琚壒璁告柟
: A firm is allowed to operate in the name of another.
21.
Management
contract
绠?/p>
鐞?/p>
鍚?/p>
鍚?/p>
:
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.
22.
Value chain
浠峰�奸摼
23.
Turnkey project
鈥滀氦閽ュ寵鈥濆伐绋?/p>
: For an international turnkey project, a firm signs a contract
with
a
foreign
purchaser
and
undertakes
all
the
designing,
contracting
and
facility
equipping
before handing it over to the latter upon completion.
24.
BOT
寤鸿銆佺粡钀ュ拰绉讳氦
: Build, Operate, Transfer
25.
Expertise
涓撻棬鐭ヨ瘑