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1、Unit1AbriefintroductiontointernationaltradeKeyI.Answermyquestions1.Internationaltradeisbusinesswhoseactivitiesinvolvethecrossingofnationalborders.Itincludesnotonlyinternationaltradeandforeignmanufacturingbutalsoencompassesthegrowingservicesindustryinareassuchastransportation,tourism,ban
2、king,advertising,construction,retailing,wholesaling,andmasscommunications.Itincludesallbusinesstransactionsthatinvolvetwoormorecountries.Suchbusinessrelationshipmaybeprivateorgovernmental.2.Salesexpansion,resourceacquisitionanddiversificationofsalesandsupplies.3.Togainprofit.4.Toseejout
3、foreignmarketsandprocurement.5.Therearefourmajorformswhicharethefollowing:MerchandiseexportsandImports,ServiceExportsandImports,InvestmentandMultinationalEnterprise.6.Itistheaccountwhichisasummarystatementoftheflowofallinternationaleconomicandfinancialtransactionsbetweenonenation(eg.the
4、UnitedStates)andtherestoftheworldoversomeperiodoftime,usuallyoneyear.7.MerchandiseExportingandImporting.8.Yes.Therearegreatdifferencesbetweenthem.1)directinvestmenttakesplacewhencontrolfollowstheinvestment.Itusuallymeanshighcommitmentofcapital,personnel,andtechnologyabroad.Itaimsatgaini
5、ngofforeignresourcesandforeignmarkets.Directinvestmentmayoftengethigherforeignsalesthanexporting.Andsometimesitinvolvestwoormoreparties.2)Whileportfolioinvestmentsarenotundercontrol.Andtheyareusedprimarilyforfinancialpurposes.Treasuresofcompanies,forexample,routinelymorefundsfromonecoun
6、trytoanothertogetahigheryieldonshortterminvestments.9.MNEistheabbreviationofthemultinationalenterprise.ItssynonymsareNNC(themultinationalcorporation)andTNC(transnationalcorporation).10.Examplesaretravel,transport,fee,royalties,dividendsandinterest.11.Thechoiceofformsisinfluencedbytheobj
7、ectivebeingpursuedandtheenvironmentsinwhichthecompanymustoperate.12.Itislimitedbythenumberofpeopleinterestedinafirm‟sproductsandservicesandbycustomers‟capacitytomakepurchase.13.Thisisbecauseatanearlystageofinternationalinvolvementtheseoperationsusuallytaketheleastcommitmentandl
