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1、Unit1AbriefintroductiontointernationaltradeKeyI.Answermyquestions1.Internationaltradeisbusinesswhoseactivitiesinvolvethecrossingofnationalborders.Itincludesnotonlyinternationaltradeandforeignmanufacturingbutalsoencompassesthegrowingservicesindustryinareassuchastransportation,tourism,bankin
2、g,advertising,construction,retailing,wholesaling,andmasscommunications.Itincludesallbusinesstransactionsthatinvolvetwoormorecountries.Suchbusinessrelationshipmaybeprivateorgovernmental.2.Salesexpansion,resourceacquisitionanddiversificationofsalesandsupplies.3.Togainprofit.4.Toseejoutforeig
3、nmarketsandprocurement.5.Therearefourmajorformswhicharethefollowing:MerchandiseexportsandImports,ServiceExportsandImports,InvestmentandMultinationalEnterprise.6.Itistheaccountwhichisasummarystatementoftheflowofallinternationaleconomicandfinancialtransactionsbetweenonenation(eg.theUnitedSta
4、tes)andtherestoftheworldoversomeperiodoftime,usuallyoneyear.7.MerchandiseExportingandImporting.8.Yes.Therearegreatdifferencesbetweenthem.1)directinvestmenttakesplacewhencontrolfollowstheinvestment.Itusuallymeanshighcommitmentofcapital,personnel,andtechnologyabroad.Itaimsatgainingofforeignr
5、esourcesandforeignmarkets.Directinvestmentmayoftengethigherforeignsalesthanexporting.Andsometimesitinvolvestwoormoreparties.2)Whileportfolioinvestmentsarenotundercontrol.Andtheyareusedprimarilyforfinancialpurposes.Treasuresofcompanies,forexample,routinelymorefundsfromonecountrytoanothertog
6、etahigheryieldonshortterminvestments.9.MNEistheabbreviationofthemultinationalenterprise.ItssynonymsareNNC(themultinationalcorporation)andTNC(transnationalcorporation).10.Examplesaretravel,transport,fee,royalties,dividendsandinterest.11.Thechoiceofformsisinfluencedbytheobjectivebeingpursued
7、andtheenvironmentsinwhichthecompanymustoperate.12.Itislimitedbythenumberofpeopleinterestedinafirm’sproductsandservicesandbycustomers’capacitytomakepurchase.13.Thisisbecauseatanearlystageofinternationalinvolvementtheseoperationsusuallytaketheleastcommitmentandl
