A brief discussion on international trade

Overview of international trade

1. What is international trade

International Trade (International Trade) is Refers to the exchange of goods and services between different countries (and/or regions). International trade is the international transfer of goods and services. International trade is also called world trade.

International trade consists of two parts: import trade (Import Trade) and export trade (Export Trade), so it is sometimes called import and export trade.

Looking at international trade from a country's perspective is foreign trade.

2. How did international trade come about?

International trade emerged and developed under certain historical conditions. The two basic conditions for the formation of international trade are:

(1) The development of social productive forces;

(2) The formation of a country.

The development of social productivity produces surplus commodities for exchange. These surplus commodities are exchanged between countries, resulting in international trade.

3. The difference between international trade and foreign trade

Foreign trade refers to the exchange of goods, technology and services between one country (or region) and other countries (or regions) Activity. Therefore, when referring to foreign trade, specific countries are identified. For example, China's foreign trade, etc.; some island countries such as the United Kingdom and Japan also call foreign trade overseas trade.

[Edit this paragraph] Classification of international trade

1. According to the direction of movement of goods, international trade can be divided into

1. Import Trade (Import Trade) : Importing foreign goods or services into the domestic market for sale.

2. Export Trade: Exporting domestic goods or services to foreign markets for sale.

3. Transit Trade: The goods of country A are transported to the market of country B for sale through the territory of country C. For country C

it is transit trade. Due to the hindering effect of transit trade on international trade, currently, WTO member states do not engage in transit trade with each other.

2. International trade can be divided according to the form of goods

1. Visible Trade: the import and export of goods in physical form.

2. Invisible Trade: the import and export of technology and services without physical form. For example, machines, equipment, furniture, etc. are all commodities in physical form, and the import and export of these commodities is called tangible trade. The transfer of patent rights, tourism, and the cross-border provision of services by financial and insurance companies are all commodities without physical form, and their import and export are called invisible trade.

3. According to the relationship between producing countries and consuming countries in trade, international trade can be divided into

1. Direct Trade (Direct Trade): refers to the relationship between commodity producing countries and commodity consuming countries. The act of buying and selling goods through a third country. The exporting country side of trade is called direct exports and the importing country side is called direct imports.

2. Indirect Trade and Transit Trade: refer to the behavior of commodity producing countries and commodity consuming countries buying and selling goods through a third country. The producing country in indirect trade is called indirect export. The consumer country is called the indirect importing country, while the third country is the re-export trading country. What the third country is engaged in is re-export trade.

For example, there are some business opportunities in post-war Iraq, but the risks are also great. When some Chinese companies export goods to Iraq, most of them first sell the goods to Iraq's neighboring countries, and then re-export them to Iraq from Iraq's neighboring countries.

[Edit this paragraph] The main characteristics of international trade

International trade in goods falls within the scope of commodity exchange and is no different in nature from domestic trade. However, because it occurs in different countries or It is carried out between regions, so compared with domestic trade, it has the following characteristics:

1. International trade in goods involves possible differences and conflicts in policy measures and legal systems between different countries or regions, as well as differences in language, culture, and social customs. The issues involved are far more complex than domestic trade.

2. The transaction volume and amount of international trade in goods are generally larger, the transportation distance is longer, and the fulfillment time is longer. Therefore, the risks borne by both parties to the transaction are much greater than in domestic trade.

3. International trade in goods is easily affected by political and economic changes, bilateral relations, changes in the international situation and other conditions in the countries where both parties to the transaction are located.

4. In addition to both parties to the transaction, international trade in goods also requires collaboration and cooperation from transportation, insurance, banking, commodity inspection, customs and other departments. The process is much more complicated than domestic trade.

Here, we mainly compare international trade with domestic trade. International trade and domestic trade have both similarities and differences. International trade is more complex than domestic trade.

1. The similarities between international trade and domestic trade

1. The status in social reproduction is the same;

2. There are similarities The way commodities move;

3. The basic functions are the same, and they are all affected and restricted by the laws of commodity economics.

2. The difference between international trade and domestic trade

1. Different countries have different economic policies;

2. Different languages, laws and customs;

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3. Currencies, weights and measures, customs systems, etc. are different between countries;

4. The commercial risks of international trade are greater than domestic trade.

In summary, international trade is more complex than domestic trade.

[Edit this paragraph] Statistical analysis indicators of international trade and foreign trade

1. Trade volume and trade volume

Trade volume is trade expressed in currency The trade volume is the trade volume after excluding the impact of price changes. The trade volume allows the trade scale in different periods to be compared. There are three concepts to master here.

(1) Value of Foreign Trade: It is the sum of a country’s total imports and total exports in a certain period.

Generally expressed in the national currency, it can also be expressed in the currency commonly used internationally; the foreign trade volume of various countries in the world released by the United Nations is expressed in US dollars; when countries count tangible commodities, the export volume is calculated based on the FOB price , the import amount is calculated based on CIF price; intangible goods are not declared and the customs does not have statistics.

(2) International trade volume: (Value of International Trade) is the comprehensive foreign trade value of all countries in the world expressed in currency, also known as international trade value. It is equal to the sum of the export trade volume of all countries in the world calculated using FOB prices within a certain period of time.

(3) Trade volume: Trade volume is an indicator established in order to eliminate the impact of price changes and accurately reflect the actual volume of international trade or a country's foreign trade. When calculating, the trade volume in the reporting period is removed from the price index determined based on a fixed year. The result is the trade volume equivalent to the trade volume calculated at constant prices (excluding the impact of price changes). This value is called the trade volume in the reporting period. Trade volume.

Trade volume can be divided into international trade volume and foreign trade volume, as well as export trade volume and import trade volume.

2. Trade balance

The balance of trade refers to the difference between a country's total exports and total imports within a certain period of time (usually one year).

(1) Favorable Balance of Trade, our country also calls it Excess of Export over Import: It means that the export value is greater than the import value in a certain period.

(2) Unfavorable Balance of Trade, which our country also calls Excess of Import over Export and deficit, means that the export volume is less than the import volume in a certain period.

(3) Trade balance: It means that the export volume in a certain period is equal to the import volume.

It is generally believed that trade surplus can promote economic growth and increase employment, so all countries pursue trade surplus. However, large surpluses often lead to trade disputes. For example, the Japan-US automobile trade war, etc.

3. International Trade Terms

International Trade Terms (Terms of International Trade): It is the comparative relationship between the price of export commodities and the price of imported commodities, also known as import price comparison or exchange price comparison. It indicates how many units of imported goods can be exchanged for one unit of exported goods. Obviously, the more imported goods that are exchanged, the more advantageous it is. Changes in the terms of trade in different periods are usually expressed by the terms of trade index. The terms of trade index is the ratio of the export price index and the import price index. The calculation formula is: the export price index divided by the import price index, then multiplied by 100 (assuming the base period The terms of trade index is 100).

The terms of trade index in the reporting period is greater than 100, indicating that the terms of trade have improved compared with the base period.

The terms of trade index in the reporting period is less than 100, indicating that the terms of trade have deteriorated compared with the base period.

4. Commodity structure of trade

Commodity structure of trade (Composition of Trade) is the proportion of various commodities in the total value of trade. This involves a product classification issue, and there are generally two classification methods.

(1) The Standard International Trade Classification (SITC) of the United Nations Secretariat: tangible commodities are divided into 10 categories, among which commodities in categories 0 to 4 are called primary goods, and commodities in categories 5 to 8 are Goods are called manufactured goods, and Class 9 is other goods without classification. The proportion of primary products and finished products in imported and exported commodities represents the commodity structure of trade.

(2) It is classified according to the production factors input into the production of a certain commodity, which can be divided into certain production factor-intensive commodities such as labor-intensive commodities and capital-intensive commodities.

5. Geographic direction of trade

(1) Geographic direction of foreign trade (Direction of Foreign Trade)

The geographical direction of foreign trade refers to the country’s imports The distribution of commodity originating countries and export commodity consuming countries shows the degree of economic and trade connections between the country and various regions and countries in the world.

For example, in 2003, my country's top ten import sources were Japan, the European Union, Taiwan Province, ASEAN, South Korea, the United States, Hong Kong, Russia, Australia and Brazil. In 2003, my country's top ten export markets were the United States, Hong Kong, the European Union, Japan, ASEAN, South Korea, Taiwan Province, Australia, Russia and Canada. As a result, my country's top ten trading partners in 2003 (determined based on total import and export volume) were Japan, the United States, the European Union, Hong Kong, ASEAN, South Korea, Taiwan Province, Russia, Australia and Canada.

(2) The geographical direction of international trade (Direction of International Trade)

Refers to the regional distribution and commodity flow of international trade, that is, the positions of various regions and countries in international trade. occupy a position. It is usually expressed as the proportion of their export value (or import value) to the world's total export trade (or total import trade).

For example, the top eight countries or regions in the world's commodity exports in 2003 were the United States, Germany, Japan, France, China, the United Kingdom, Canada, and Italy. The top eight countries or regions in the world's commodity imports in 2003 were the United States, Germany, the United Kingdom, Japan, France, China, Italy, and Canada.

6. Foreign Trade Dependence

Foreign Dependence Degree is a basic indicator that measures the degree of export-oriented national economy of a country (or region).

It refers to the proportion of foreign trade volume in the country's national income or gross national product.

[Edit this paragraph] Exploitation hidden in the exchange rate mechanism in international trade

Young scholar Liu Zhou discovered the current international exchange rate mechanism in his article "The Biggest Capital in the Age of Capital" Exploitation contained in. Revealed the secrets of exploitation hidden in the international exchange rate mechanism. The article believes:

The current international exchange rate mechanism is an important part of the current unequal international economic and trade order. It is an exchange rate mechanism that benefits "a few countries that exploit the whole world."

For example, the exchange rate is 7.5 RMB per US dollar. It is relatively common in the United States for an American to have $8,000. However, this American takes the 8,000 U.S. dollars to China and converts it into RMB, which is 60,000 RMB. Under the conditions of extremely low prices in China and extremely high prices in the United States, the value of physical goods purchased in China with 60,000 yuan is many times higher than that purchased in the United States with US$8,000. This means that when the American comes to China with the US$8,000, he does not need to produce, work, or take any investment risks. The US$8,000 will achieve doubled capital appreciation and double the value of the investment. capital profits. Where does this value-added profit come from? It is achieved by appropriating the blood and sweat of the Chinese people for free. The relationship between China and the United States is like this, and the relationship between all developing countries in the world and Western developed countries is basically the same - that is, developing countries have low commodity prices and currency exchange rates, while developed countries have high commodity prices and currency exchange rates (in the case of Japan, The difference is that the exchange rate of the yen is low but prices in Japan are extremely high. Therefore, people from European and American countries feel very rich when they arrive in Japan. However, people from European and American countries feel very rich when they arrive in developing countries like China. On the one hand, the local currency they carry can be exchanged for double the currency of the destination country. On the other hand, the prices in the destination country are horribly lower than the prices in the home country, so they can only buy a match in their home country when they arrive in developing countries. You can buy a box of matches, or even more. This is the basic reality of this era). Therefore, the current international monetary exchange rate mechanism is an extremely reactionary exchange rate mechanism. It is a very hidden tool used by Western developed countries to exploit the vast number of developing countries. The real basis for its existence is international power relations, and its basic content is determined and gradually evolved from the colonial plunder relations in the colonial era. Together with other parts of the unequal international economic and trade order, it has become a tool for developed countries to peacefully plunder developing countries. This so-called peaceful plunder is a continuation of armed plunder in the colonial era. (A truly equal exchange rate mechanism should basically use the price index of each country as the main basic indicator. Because lower prices mean that its currency contains more physical objects, so its exchange rate should be relatively higher; and higher prices It means that its currency contains less physical quantity, so its exchange rate should be relatively low. This is a very understandable reason).

The article also believes that capitalists in developed countries (especially capitalists in multinational consortiums) ostensibly rely on their own capital and management methods to make profits in the international market. But the vast majority of their profits are actually achieved mainly through unequal international trade mechanisms. We know that the current unequal international trade mechanism is the result of history. It is the product of military conquest by colonial powers in history, and it is still maintained by force until now. Therefore, there is no doubt that when capitalists in developed countries peacefully make profits in the international market, they are essentially engaging in a kind of peaceful plunder; when they engage in this hypocritical peaceful plunder, they are essentially It is engaging in armed plunder in a completely new sense. In essence, it is participating in a bloody and dirty plundering war that spans historical eras. Capitalists are the beneficiaries and instigators of this dirty war. Their profits rely on the historical force of their respective countries and also rely on the current force. Therefore, in the final analysis, they are making money by force, and what they make is still war wealth. Therefore, the greatest capital in the era of capital is not capital but violence.

[Edit this paragraph] Parallel import issues in international trade

In recent years, as the relationship between intellectual property and international trade has become closer, the intersection of international trade and international protection of intellectual property has Many complex issues arise in the field.

Parallel import is a typical international trade issue caused by intellectual property protection.

The so-called parallel import generally refers to the issue of whether the intellectual property rights holder or exclusive licensee has the right to prohibit the import of legally produced products from abroad. That is, in international trade, the legal holder of intellectual property rights products A party imports and sells the product through legal channels to a country where the intellectual property rights are protected without the consent of the relevant intellectual property right holder in the importing country. The parallel import issue essentially reflects the conflict between intellectual property trade and goods trade, as well as the contradiction between intellectual property protection and international trade liberalization. It is gradually becoming a hot topic that attracts much attention and controversy.

In fact, my country’s legal regulations on parallel imports are still in an immature state, both from the perspective of legal provisions and judicial protection. At the international level, our country is a party to the World Trade Organization and the World Intellectual Property Organization, and has concluded and participated in the Berne Convention for the Protection of Literary and Artistic Works, the Madrid Agreement for the International Registration of Trademarks, the Paris Convention for the Protection of Industrial Property, A series of important international intellectual property protection treaties such as the Agreement on Trade-Related Aspects of Intellectual Property Rights. These treaties basically do not address the issue of parallel imports or leave this part of the issue to each contracting party to stipulate on its own. In this way, my country's legal issues related to parallel imports are mainly resolved based on domestic laws. However, my country’s three basic intellectual property laws, namely the Patent Law, the Copyright Law and the Trademark Law, do not involve the issue of “parallel import”. Similarly, my country's Anti-Unfair Competition Law, Foreign Trade Law, Customs Law and other laws that should cover parallel imports do not cover issues in this field.

Since our country currently lacks legal basis for parallel imports, the phenomenon of parallel imports that occurs in real life is far more than the number of lawsuits filed in courts. Intellectual property rights holders suffer from the difficulty of defining the scope of their rights, and also There is no way of knowing my country’s attitude towards parallel imports. In the past few years, because my country is a developing country with low production costs and has always adopted a high tariff policy on imported goods, cases of parallel imports to China have been rare. However, judging from the development trend of international trade, parallel imports are now more and more likely. For example, the reduction of my country's trade barriers will open the door to existing products with potential parallel import trends. The substantial reduction in tariffs and quotas has, on the one hand, greatly reduced the transaction costs for parallel importers and increased the possibility of parallel imports; on the other hand, it has also enabled parallel imported products that previously entered the country through smuggling channels to be transferred to formal channels, increasing the number of parallel imports. Parallel import traffic. In addition, due to the weakening of import quota licenses and market access, the foreign trade management rights of enterprises will be realized, which also prepares the institutional prerequisites for the occurrence of parallel imports in our country. Moreover, from a global perspective, there are also many parallel import disputes caused by Chinese companies exporting intellectual property products to foreign countries. Therefore, enterprises must pay sufficient attention to the issue of parallel imports in international trade. It is an inevitable trend for my country's development to institutionally identify and regulate parallel imports. Before the system is established, enterprises should have the necessary understanding of the basic meaning and possible consequences of parallel imports so that they can make reasonable business decisions based on fully estimating various market risks.