Busiess English 2.ppt

Practical English for International Business 2 Financing International Trade I.Why is an international trade a higher risk than a domestic trade? Abroad the trading picture is a complex one. Abroad a company or a bank is no longer familiar with the people, laws and business practices of the foreign country. Different risks carried in different countries Tariff barriers and non-tariff barriers To be less dependent on foreign countries both economically and politically To protect vital industries, closely related to stability and economic development/crucial Infant industry/new industry needs to be protected until the labor force is trained, the production techniques are mastered and the operation becomes large enough /mature industry Domestic jobs need to be protected from cheap foreign labor 1. Political risks Political risks, for example, relate to such varied factors as treaties, war, (1)import quotas, (2)import license, and(3) foreign exchange restrictions. Quota: a quantitative restriction or upper limit in terms of physical quantity or value）an absolute quota : one that cannot be exceeded(绝对配额) a tariff quota：one that requires low or no duties below the limit but high duties or penalty above the limit Import License进口许可证 a permit for import, which can be independent or combined with quotas Foreign exchange control/restrictions: This barrier tends to control import by limiting the access to foreign money that is needed for imports. Tariff Barriers Definition: A tariff is a duty or fee levied on goods being imported into a country. Function: a revenue tariff财政性税收(collected for income purpose)\a protection tariff (for market protecting) Time of collection： import duty\ export duty（import surtax） Import surtax [‘s?:t?ks] 进口附加税 retaining balance of trade and preventing dumping, discriminatory [diskrimin?t?ri] against a particular country Import surtax has three forms: Countervailing duty 反补贴税（collected against bounty优惠 or grant during production, tran