自考商务英语05844 课后问答题答案.

自考商务英语05844 课后问答题答案. Lesson1 1. what does international business refer to?Please tell the difference between international business and domestic business.? International business refer to transaction between parties from different countries.Sometimes business across the borders of different customs areas of the country is also regarded as import and export,such as business between Hongkong and Taiwan. International business takes place between countries while domestic business takes place in the same country. 2. Please explain the differences between visible trade and invisible trade. which is becoming more and more important and accounts for an increasing proportion in international trade? Visible trade refer to the from of commodity trade, i.e. exporting and importing goods produced or manufactured in one country for consumption or manufactured in one country for consumption or resale in another. Invisible trade refers to the kind of trade in the form of transportation, communication, banking insurance , consulting, information etc. The latter is becoming more and more important and accounts for an increasing proportion in international trade. 3. Can you cite some examples to illustrate cultural differences in international business? Yes,I can. In business activities, Americans are more informal than Europeans. Americans are pleased to be called their first names to close the relationship. Europeans will think it impolite to be called the first names, especially the first time they meet. 4. Please elaborate on the two categories of international investment. What is their major difference? International investment can be classified into two categories,that is ,foreign direct investment(FDI) and portfolio investment. The major difference between them is that FDI is made for returns through controlling the enterprises or assets invested in a host country. Portfolio investment refers to purchases of foreign financial assets for a purpose other than controlling. 5. What is licensing? Why do firms sometimes choose it as a means of entering a foreign market? In licensing, a firm leases the right to use its intellectual property to a firm in another country. Firms choose licensing because they do not have to make cash payments to start business, and can simply receive income in the form of royalty. Beside, they can benefit from locational advantages of foreign operation without any obligations in ownership or management. 6. What is franchising? How is different from licensing? Franchising can be regarded as a special form of licensing. Under franchising, a firm, called the franchisee, is allowed to operate the 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 management contract? Under what conditions is it most applicable? 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 is most applicable. 8. what is an international turnkey project? In what way is its variant BOT from it ? 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. For BOT,B stands for build, O for operate and T for transfer. BOT is a popular variant of the turkey project. For a BOT project,a firm operate 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 project. Lesson2 1. Explain the concepts of GNP and GDP respectively and point out their major difference.Can we use them interchangeably? GNP and GDP are two important concepts used to indicate a country’s total income. GNP refers to the market value of goods and services produced by the property and labor owned by the residents of an economy. GDP measures the market value of all goods and services produced within the geographic area of an economy. The major difference between GNP and GDP is that the former focuss on ownership of the factors of production which the latter concentrates on the place where production takes place. 2. what are meant by high income,middle income,and low income countries according to the World Bank?Cite some examples for each group. High –income countries refer to those with annual per capita income of $9,386 and above , e.g. the united states . Middle income countries refer to those with annual per capita income of below $9,386 but above $765, e.g. Greece. Low—income countries refer to those with annual per capita income of only $765 or below , e.g.most African countries. 3. Why are high income countries important to trade and investment?Should we neglect low income countries in international business? Because high—income countries often have good infrastructure, high purchasing power, advanced technology, efficient management , and favorable environment for trade and investment .They offer prime markets for expensive consumer goods and both attractive aources and destinations of investment. But lower income countries should not be neglected in international business activities , because they constitutle markets for lower—priced staple goods , provide cheap labor and are often rich in resources . Besides, market is something to be developed. 4. In what different ways are GDP and per capita income significant in assessing the potential of a particular market? Total GDP indicates the overall size of an economy, which is important in market assessment for durable equipment or bulk goods such as grain, steel ,or cement. Per capita GDP reveals the average income level of consumers, which is important when marketing consumer durables. 5. Was china a low—income country a few years ago? How about now ? China was a low—income country a few years ago, but now a middle—income country. 6. What does the term”Triad”refer to ?what is meant by Quad? Triad refers to the three richest regions of the world ,the United States ,the European Union and Japan that offer the most important business opportunities. Quad extends the scope of Triad to include Canada. 7. How much do you know about OECD?Please make a brief account. OECD stands for Organization for Economic Cooperation and Development . An organization that acts as a meeting ground for 30 countries which believe strongly in the free market system .The OECD provides a forum for discussing issues and reaching agreements ,some of which are legally binding. 8. What is the best policy for China to develop business opportunities? The best policy for china to develop business opportunities is that we should pay particular attention to the markets around the four tigers ,the ASEAN countries, Russia , India,and a bit farther away Australia ,at the same tiem, do not neglect other markets. It is not a good idea to tie one’s business to only a few markets. Lesson3 1. what is free trade area?Make a brief account of the most notable free trade area in the world. In the free trade area, members remove barriers to the flow of goods and services among themselves while each 2. In what way is a customs union different from a free trade area? 3. What are the characteristics of a common market? Which organization remained a common market for some years in the past? 4. How much do you know about an economic union? Can members of an economic union keep all of their national soveignty? 5. Make a brief account of the origin and development of the EU. 6. What is the most powerful institution of the EU? What is the executive body of the EU?How does it operate? 7. Explain briefly the five layer organizational structure of Asia—Pacific Economic Cooperation. 8. What are the tenet and objectives of APEC? What is meant by its two wheels? 9. What are the nature and objectives of OPEC? Lesson4 1. What are the basic feature and major role of economic globalization? 2. Mention some of the pros and cons of economic globalization.what is the right attitude towards it ? 3. What is the formal definition of a multinational enterprise?How can you tell whether a multinational corporation is a parent or just an affiliate? 4. Describe briefly the characteristics of MNEs. 5. What is the commonly recognized recognized objective of MNEs. 6. Why is seurity so important to MNEs? 7. Do you think “wide geographical spread”of MNEs play a very important role in the development of their business?Why? 8. What is the relationship between MNEs and their host countries? 9. What are the four types of multinational enterprises?Describe each of therm briefly. 10. Are there many world companies at present?Imagine their future role in complete globalization? Lesson5 1. How would you define international trade? 2. Why did international trade first begin? 3. What is the new incentive for trade that arose with the development of manufacturing and technology? 4. According to the theory of absolute advantage,trade occurs only when a country has an absolute advantage over another.Is that always true? 5. Who introduced the theory of comparative advantage? Which theory makes more sense,absolute advantage or comparative advantage? 6. Explain briefly why trade to exploit comparative advantage promotes efficiency among countries. 7. IS comparative advantage somethingstagic?Is it purely decided by the endowments of nature>?Give examples to show the development of comparative advantage by certain countries. Lesson6 1. Are there other bases for trade when there are no differences among countries in production conditions? Mention some of the bases. 2. What is economy of scale? What is the relation between economy of scale and trade? 3. What does the theory of international specialization seek to answer? 4. Will complete specialization occur in reality?Why? 5. What is tariff barriers?What is a customs area and what is a customs union>? 6. What is most favoured nation treatment? Is it a very special treatment ? Why? 7. What is the most common form of non-tariff barriers? Explain it in a few words. 8. what are the differences between visible trade and invisible trade?Give a few examples of invisible trade. 9.Explain briefly the different kinds of tariffs. Lesson7 1. What sort of risks can arise when goods are being moved from one place to another?If risks do occur ,what consequences would they bring about? 2. Why is it necessary to have incoterms? And what is the purpose of making amendments and additions to incoterms? 3. Do you know anything about container transport ?Is it a revolutionary innovation in transportation techniques? Give your reasons. 4. Can you explain the world “negotiable”in the phrase “negotiable transport document”? 5. what are the four different categories of terms in incomes 2000? 6. what are the four different categories of term in incoterms2000? 7. how do you understand the first sentence of paragraph 6?Try to put it into Chinese and then paraphrase it in English. 8. why should the compilers of Incoterms 2000 take the trouble to set forth in detail the division of dutises,taxes,costs and charges etc.of both sellers and buyers,as some of therm are irrelevant to either the seller or the buyer? 9. Explain briefly the term FOB,CFR and CIF. 10. In what areas are substantive changes made with Incomterms 2000? Lesson8 1. what is a contract ? what may happen if a contracting party fails to fulfill his obligations? 2. Mention the two types of business negotiations,and give examples of each. 3. Is an inquiry binding on the inquirer? What is first inquiry,and what information should be given in it ? 4. What is a firm offer? What contents should be included in a firm offer>? 5. Is a counter offer an acceptance or a refusal of the original offer? What happens to the offer once a counter offer is made? 6. Is a written contract a must internationally for the conclusion of a transaction ? what is the case in china? What are the functions of a written contract? 7. what is the difference between a sales contract and purchase contract, and between a contract and a confirmation? 8. Give me major items of the contract proper. 9. Are the stipulations on the back of the contract its constituent parts ? Are they binding on the contracting parties? Lesson9 1. what is counter trade ?why has it attracted so much attention? 2. hwo did counter trade originate? And what was the nature of early counter trade? 3. whay should Britain use bilateral clearing arrangements atter world war 2? 4. what are the main features of the current counter trade? Can you summarize the categories briefly under counter trade? 5. what are the major differences between counter purchase and buyback? 6. what is meant by bundling? What is the opposite way of doing business? 7. since bunding is not an efficient way of getting business done,why should a significant part of the international trade of goods as well as services still be bundled? 8. what are the advantages and disadvantages of counter trade? 9. what are the basic conditions for countertrade to exist? 10. what are the other modes of trade mentioned in the next? Lesson10 1. why is it difficult to effect payment in a straight forware manner in international trade? 2. mention somer of the risks the exporter and the importer may face in trade. 3. explain briefly the following methods of payment:cash in advance; open account; consignment transactions. 4. what is a draft?Does it have another name? what are the relevant parties in relation to a draft? 5. what is the difference between a sight draft and a usance draft and what is the difference between a clean draft and a documentary draft ? 6. what is documents against payment? What are D/Pat slight and D/P after sight? Which is more favourable for the exporter? When does the importer get the shipping documents in the case of D/P after sight? 7. what is the different between D/A and D/P after sight? Which is safter for the exporter? 8. Is payment by collection very common in international trade? Mention some cases when collection is used. Lesson11 1. what constitutes conflicting problems for international trade in respect of payment ? why? 2. what is the unique feature of the letter of credit? How does it offer security to the buyer and the seller? 3. when was the modern letter or credit introduced and when did it have substantial development ? what are the other names of the letter of credit ? 4. Explain briefly the following terms: A.applicant; principal ; B.opening bank ; issuing bank ; establishing bank ; C benefically; D.advising bank ; E. confirming bank. 5. why does the exporter sometimes require a confirmed letter of credit ? who usually adds confirmation to the credit? 6. what are the main conternts of a letter of credit ? Mention at least 10 items. 7. what are the banks concerned with in credit operations? Does a credit guarantee that the goods invoiced are those purchased ? 8. In case of problems with the quality or quantity of the goods, who shall the buyer contact so long as the documents comply with the terms and conditions of the credit? Lesson12 1. Explain the difference between clean credit and documentary credit .where is the former generally used? 2. what is an irrevocable letter of credit ? If a credit is not specified as revocable or irrevocable ,what type should it be regarded ? 3. By whom is confirmation undertaken in the case of a confirmed letter of credit? 4. Since a confirmed credit provides the greatest degree of security to the beneficiary,it should be used for all transactions .Is this statement right ? why? 5. what is the advantage of a sight letter of credit to the beneficiary? 6. what does the beneficiary do in the case of a usance credit of he wishes to get payment before the maturity of the draft ? 7. how many times and to how many parties can a credit be transferred.? 8. in what situation is a revolving letter of credit most useful? 9. Can the letter of credit provide absolute security for the contracting parties? What losses may the seller or the buyer still sustain? 10. what is a non- draft credit? How many types can it be classified into? Lesson13 1. what are the possible consequences of incorrect documentation? 2. what factors decide the types of documents required for a particular transaction? 3. what is commercial invoice? What is relation between the commercial invoice and other documents? Mention some of the major contents to be included in a commercial invoice. 4. Mention 2 types of shipping documents that are similar in function to the packing list. What is the difference between them and the packing list . 5. what are the 3major functions of the bill of lading? 6. define the meeting of “the consignee”. Who is possilbly to be the consignee in a bill of lading? 7. what is a clean on board bill of lading? Is a foul (not clean)bill of lading acceptable? 8. Give the names of counterparts of the ocean bill of lading in the case of air transportation and railway transportation. 9. In what currency should the goods be insured? Where are insurance claims to be settled? 10. Is it acceptable for the date of the insurance document to be later than the date of the bill of lading? Why? Lesson14 1. do you agree that a society without an advanced transportation system would remain primitive? Can you give one example? 2. what are the major modes of the modern freight transportation system? 3. what is “contract carriers”? 4. what is the most important contribution of tansportation to the society ? 5. what is the difference between domestic transportation and international transportation mentioned in the text? 6. what are the factors that determine the amount of documentation required? 7. what are the major reasons for the trend among business firms to provide their own transportation capability? 8. can you summarize briefly the factors that have caused the changes in the ransportation industry? 9. what is the meaning of transportation deregulation? Give one of the results of the deregulation. 10. The globalization of business has not only made transportation more important but also promoted the development of this industry. Do you agree to the above statement? Could you give some examples to illustrate the viewpoint? Lesson15 1. what is meant by “potential loss” in the second paragraph? 2. without insurance what kind of uncertainty may be experienced by an individual or an enterprise? 3. “There will be some variation in claim costs from year to year and the premiums include a small margin to build up a reserve upon which the company can draw in bad years .”Paraphrase the above sentence and explain especially the implication of “bad years”. 4. what are the functions of insurance? 5. what is transportation insurance ? why is it so important? 6. Do you think it is necessary to change the term ”marine insurance “ into “transportation insurance:”? why and why not? 7. why do businessmen like to pay a premium into an insurance pool even though trade did exist when there was no method of insurance available in the past? 8. Explain the underlined expression in the sentence “He does not want to scoop the pool” Lesson16 1. what are the basic principles of insurance that firms must follow when they seek cover for goods? 2. Can you give some examples to illustrate “insurable interest”? 3. how important is insurable interest? 4. what is the most important fact about “utmost good faith”? 5. how are cargo policies usually calculated for values to be covered? 6. can you briefly describe subrogation? 7. will the insurer compensate the claim for loss for which the risk covered is not the proximate cause? Lesson17 1. Explain briefly the meaning of the gold standard? What kind of exchange rate system did it create? 2. How much can you tell about the Bretton Woods Conference? What is meant by “adjustable peg “? 3. what is the Special Drawing Right ? How was it created ? 4. what are the major factors that may influence the exchange rate ?Explain briefly. 5. what is meant by clean float and dirty float? What are the common measures taken for intervention in exchange rate ? 6. illustrate the respectie advantages and disadvantages of the flexible exchange rate system and the fixed exchange rate system. 7. How are exchange rates published daily? what quote does china use ?How about the other major countries? 8. what are the three types of foreign exchange price? Where are the buying rate and the selling rate marked in the respective case of direct quote and indirect quote? Lesson18 1. what institutions does the World Bank Group consist of ? 2. what are the principles governing the leading of the international Bank for Reconstruction and Development? 3. what is meant by hard loans and soft loans ? what institutions are they associated with respectively? 4. why are the funds used by IDA called credits ?what are the major sources of the credits? 5. what is the function of IFC? What is the prerequistite for a country to be a member of IFC? 6. what is MIGA? What are its functions?> 7. Please find out from the text the paramount task of the World Bank? 8. in what aspects does the World Bank make efforts to reduce the poverty of developing countries? 9. what is the objective of the international Monetary Fund? what is the relation between the IMFand the United Nations? 10. what is the quota of the International Monetary Fund? Is it important ? why? 11. Explain briefly how a member borrows from the International Monetary Fund? Lesson19 1. How do you understand FDI? Please explain it with one or two specific examples. 2. what are the possible factors on the supply side that influence a firm’s decision on undertake FDI? 3. Is controlling costs a major motivation for firms to undertake FDI? Why ? 4. Are there any factors on the demand side encouraging enterprises to make investment abroad ? what are they ? 5. what is meant by JIT? How does it affect the turnover of the supply of the goods? 6. Does a firm have to put the political factors into consideration when making choice of investment overseas ? what are these factors ? 7. Illustrate with examples what “the Greenfield strategy” is ? 8. what is acquisition ? what is a joint venture ? please explain their respective advantages and pitfalls? Lesson20 1. what is capital—raising market ? Can you give it an appropriate definition? 2. what is meant by “ investment instruments”? 3. Is the market floor still as significant as it used to be ? How is most business done today? 4. How are the investors protected if they choose to do business with the International Stock Exchange? 5. In what way do the International Stock Exchange member firms enroll their employees? 6. Can you explain the phrase “to raise capital on a cost—effective basis”? 7. what makes it necessary for a government to be involved in securities business? 8. what does “to balance the books”mean? What does the word “books ”refer to ? 9. what does “option”mean? 10. what does “foreign equities: refer to ? Is it becoming an important part of securities business? Lesson21 1. make a brief account of the origin and development of WTO (including its predecessor). When did it formally start operation? 2. what is the cumulative effect of all the GATT negotiations in respect of tariffs ? 3. Explain the principles of GSP. How and when was it established? 4. how many rounds of negotiations were held under GATT? What important decision was made before the conclusion of Urguay Round? 5. what are the three major objectives of WTO ? 6. Is the WTO a mere replacement of GATT? How does WTO differ from its predecessor ? 7. what has China done to honour its commitments for gaining accession to theWTO? 8. Does it pay for China to devote such a lot of efforts for WTO membership ? Mention some of its major performances in respect of trade and investment. 9. Are all the worries before China’s entry into WTO groundless ? What major challenges does china still face despite all its achievements? Lesson22 1. Why should the developing countries urge the creation of a new institution when ECOSOC and GATT had already been there? 2. What is the meaning of non—discrimination principle? 3. What does “commodity” exactly refer to in the following sentence::”Although in 1963 there were 43 international organizations dealing with commodity and other trade problems…”? th4. What is the theme of the 11 session of UNCTAD? 5. Could the developed countries benefit from giving adid to developing countries ? why ? 6. What do you know about the Group of 77? 7. How do you understand th sentence “support along these lines might be some kind of compensation for the “exploitation ”of former colonies”? 8. What are the specific aims of developing countries’ demand for more cash and trade concessions from the developed countries? 9. What is the meaning of “at their disposal”? Could you find a similar expression to replace it ? 10. How are conference decisions and board decisions made?