Short answer questions on international trade practice of self-taught examination

1. What are the functions of trade terms?

a becomes the code of conduct for engaging in international trade, and defines the risks, responsibilities and expenses that should be borne by each other in the delivery of goods. This greatly simplifies the transaction procedures and shortens the negotiation time, thus saving expenses.

b is beneficial for both parties to compare prices and strengthen cost accounting.

C is conducive to the proper settlement of trade disputes.

second, what are the characteristics of liner shipping?

a: 1. The shipping routes and ports of call are fixed;

2. The ship sails according to the schedule, and the sailing and arrival time of the ship are relatively fixed;

3. The shipping company collects the freight according to the pre-published liner tariff, and the freight rate is relatively fixed;

4. Loading and unloading charges are included in the liner freight, which shall be borne by the ship;

5. Liners are more flexible in carrying goods. No matter how many goods there are, they can accept shipment (small quantities and groceries) as long as there is space.

3. What is the nature and function of the bill of lading?

a: 1. It is the goods receipt issued by the carrier or its agent, which proves that it received the goods from the shipper as recorded in the bill of lading;

2. It is a certificate representing the ownership of the goods;

3. It is the proof of the transport contract concluded by the carrier and the shipper.

4. What is the difference between multimodal transport documents and multimodal transport bills of lading?

distinguish the scope of use, issuer's risks and responsibilities

multimodal transport documents, all kinds of transport, multimodal transport operators' whole journey

combined transport carrier, captain and shipowner's first journey by sea and other means

5. Important contents of China's basic risks exclusion liability?

A: 1. Losses caused by intentional acts or negligence of the insured;

2. Losses caused by the responsibilities of the consignor;

3. Before the insurance liability begins, the insured goods are of poor quality or short quantity;

4. Losses caused by natural wear and tear, essential defects, characteristics, falling market price and transportation delay of the insured goods;

5. Responsibilities and exclusions stipulated in the War Risk Clause and the Strike Risk Clause.

VI. What factors affect the transaction price?

a: 1. the quality and grade of the goods;

2. Transportation distance;

3. Place and conditions of delivery;

4. Changes in seasonal needs;

5. Number of transactions;

6. Risk of payment terms and exchange rate changes;

7, the trend of international market prices;

8. The distance of delivery, marketing habits and consumers' hobbies.

VII. What are the actual total losses?

1. The subject matter insured is completely lost;

2. Loss of the subject-matter insured (control right-piracy);

3. The subject matter insured has changed qualitatively and lost its original use value;

4. The ship has been missing for a certain period.

8. What are the advantages and disadvantages of collection settlement?

a: 1. Profit-it is beneficial to arouse the enthusiasm of the buyer to order goods, which is beneficial to the seller to expand exports.

2. Disadvantages-As the collection is a commercial credit, there is a risk that the payment cannot be recovered, especially the risk of D/A in the collection method is greater, so the seller should be cautious in adopting this method.

3. Precautions:

A. To truly understand the buyer's credit status and business style, the transaction amount should not exceed its credit level;

B. Understand the trade control and foreign exchange control regulations of the importing country, so as to avoid undue losses caused by the fact that the goods are not allowed to be imported or the foreign exchange is not received upon arrival;

C. Understand the business practices of importing countries, so as not to affect the safe and rapid collection of foreign exchange due to local practices;

D. We should try to conclude the transaction on CIF terms, and we should cover the seller's interest insurance in addition to the freight insurance;

e. establish a sound management system for collection transactions, conduct regular inspections, promptly collect and clean up, and take immediate measures when problems are found, so as to avoid or reduce possible losses.

IX. Procedures for using the letter of credit?

a: 1. The buyer and the seller agreed in the contract to pay by letter of credit;

2. The buyer applies to the local bank to open the L/C, and fills in the L/C application form, pays the L/C deposit or provides other guarantees according to the contract.

3. The issuing bank will open the L/C according to the contents of the application and deliver it to the beneficiary through the advising bank;

4. After receiving the letter of credit, the seller will deliver the goods according to the requirements of the letter of credit if it is verified correctly, and draw a draft and prepare various documents to negotiate the payment with the relevant bank;

5. The negotiating bank says that bills of exchange and documents will be sent to the issuing bank or the paying bank designated by the letter of credit for claim;

6. Upon receipt of the documents, the issuing bank will notify the buyer to pay the redemption order.

1. What is the difference between deferred payment and installment payment?

Differentiate the payment for goods and transfer the interest

Payment by installment is paid or basically paid at the time of delivery. As long as the last payment is paid, the ownership will be transferred. The buyer did not use the seller's funds, and there is no interest problem

Most of the payment for goods is paid in installments for a long time after delivery. Generally, the ownership of the goods will be transferred at the time of delivery, and the buyer will use the seller's funds, so there is a problem that the buyer needs to pay interest.

Xi. What are the advantages of using arbitration to settle trade disputes?

A: 1. Arbitration has certain flexibility, and on the basis of both parties' willingness, the parties agree on an arbitration institution and choose their own arbitrators;

2. The procedure is relatively simple. Arbitrators are generally experts or celebrities who are familiar with international trade business, so arbitration can solve problems quickly.

3. The arbitration fee is lower than the litigation fee;

4. The relaxation of the arbitration atmosphere will not affect the continued development of trade relations between the disputing parties;

5. Arbitration is final, and the losing party may not appeal, but must implement the award.

(Litigation-compulsory, complicated in procedure, harmful and harmful to the future development of trade relations between the two sides, and high in cost)

12. What is the function of the commodity inspection certificate?

a: 1. as a basis to prove whether the quality, weight (quantity), packaging and sanitary conditions of the goods delivered by the seller conform to the contract;

2. As the evidence for the buyer to raise objections to the quality, weight, packaging and other conditions, reject the goods, claim for compensation and settle disputes;

3. As one of the documents for the seller to negotiate the payment with the bank;

4, as a certificate of customs clearance.

XIII. What are the prerequisites for making an offer?

a: 1. The offer should be made to one or more specific people;

2. The contents of the offer must be very clear (indicating the name of the goods, specifying the quantity of the goods explicitly or implicitly, specifying the price of the goods explicitly or implicitly, or determining the price);

3. It must be made clear that the offeror is bound by his offer once it is accepted by the recipient.

XIV. What are the termination of the validity of the offer?

a: 1. it is not accepted within the validity period specified in the offer, or it is not accepted within a reasonable time although the validity period is not specified;

2. The offer is revoked by the offeror according to law;

3. After being rejected or counteroffered by the closing party;

4. After the offer, a force majeure event occurred;

5. The offeror or the offeree loses capacity before the offer is accepted.

15. what are the characteristics of international factoring?

a: 1. It must be the accounts receivable from the sales and production of goods between commercial organizations, which are not personal or family consumption or similar use;

2. The commercial institution must transfer the rights of accounts receivable to the factor;

3. Functions that the factor must perform: financing the supplier in the form of loans or prepayments, managing accounts related to accounts receivable, collecting accounts receivable, and providing bad debt guarantees for debtors' refusal to pay;

4. The notice of assignment of accounts receivable must be sent to the debtor.

XVI. What are the conditions for the establishment of liability for damages in civil law?

a: 1. there must be damage facts (generally, the party requesting damage compensation must issue a certificate);

2. There must be a reason to be attributed to the debtor (this is the basic principle and prerequisite for civil law to bear the liability for breach of contract);

3. There must be a causal relationship between the cause of the damage and the damage (the damage is caused by the debtor's responsibility).

XVII. What are the characteristics, advantages and disadvantages of consignment?

a: 1. characteristics: the relationship between the consignor and the consignment agent is consignment;

is a spot transaction conducted in kind;

the consignor does not bear any risk expenses, and all risk expenses before the goods are sold are borne by the consignor.

2. Advantages: For the consignor, it is conducive to opening up the market and expanding sales, and it can also grasp the favorable

promotion opportunity according to the market supply and demand;

It is beneficial to arouse the enthusiasm of those customers who have sales promotion ability and good business style, but lack of funds;

It greatly saves trading time, reduces risks and expenses, and provides convenience for buyers.

3. Disadvantages: high trade risk;

the capital turnover period is long and the foreign exchange collection is not safe enough.

XVIII. What are the characteristics and advantages of the exhibition?

a: characteristics-organically combine the exhibition and promotion of export commodities, and sell them while exhibiting, focusing on sales.

a little: 1. It is conducive to promoting export commodities, expanding influence, attracting potential buyers and promoting transactions;

2. It is beneficial to establish and develop customer relationship and expand sales area and scope.

3. It is conducive to conducting market research, listening to consumers' opinions, improving product quality and enhancing export competitiveness.

XIX. What are the characteristics of auction?

a: 1. It is a spot transaction of public bidding;

2. It is organized in a certain institution;

3. It has its own unique laws and regulations.

2. What are the characteristics of futures trading?

a: 1. take the standard futures contract as the target of the transaction;

2. Special liquidation system;

3. Strict deposit system.

21. What are the characteristics of compensation trade?

A: 1. It is carried out on the basis of credit, and the equipment importer has to bear the interest;

2. The equipment supplier must promise to buy back the other party's products or services;

3. It is a trading method that can utilize foreign capital through commodity trading.

22. What are the advantages and disadvantages of counter trade?

Answer: Advantages-It is beneficial for developing countries to break through trade barriers, expand exports, and exchange urgently needed technology, equipment and materials without increasing foreign debts. Developed countries can also obtain raw materials at more favorable prices through counter-selling trade.

Disadvantages: 1. It is carried out under the principle of reciprocity, which makes it very difficult to choose the transaction object, reach the transaction and perform the contract.

2. Under the mode of counter-trade, the role of market mechanism has been greatly weakened, and the price often deviates greatly from the normal price, so it is difficult for a country to obtain the greatest savings of social labor.

23. in China, what are the characteristics of international e-commerce compared with general e-commerce?

a: 1. international e-commerce is mainly aimed at international economic and trade e-commerce activities;

2. International e-commerce generally involves government administrative departments, trading partners and relevant commercial departments; The behavior and process of trading itself are not directly aimed at consumers in the market;

3. The specific operation of international e-commerce involves more departments and scope than general e-commerce, and its related coordination work and legal practices are international;

4. The development of international business in China will have social linkage and demonstration effect.

source: explanation of key terms in international trade practice

1. trade terms-special terms produced in the long-term international trade practice, which are used to show the price composition of goods and explain the related risks, responsibilities and expenses in the process of goods handover.

2. Symbolic delivery of goods-As long as the seller completes the shipment at the agreed place on time and submits the relevant documents stipulated in the contract, including the goods title certificate, it is deemed that the seller has fulfilled the obligation of delivery, and there is no need to guarantee the arrival of the goods. Seller's voucher delivery, buyer's cash against documents.

3. Good average quality-the average quality level of exported goods in a certain period, generally referring to medium goods. (it refers to the average quality of the same commodity shipped at the place of shipment in a certain quarter or a certain month of shipment)

4. Quality tolerance-internationally recognized error in product quality. In the production process of industrial finished products, it is sometimes inevitable that there will be some errors in product quality indicators.

5. quality flexibility-the quality of some primary products is unstable. in order to facilitate the smooth transaction, a certain quality flexibility can be set at the same time as its quality indicators, allowing the quality indicators of the goods delivered by the seller to be flexible within a certain range.

6. Overshipment and Shortage Clause-The seller may pay a certain percentage more or less according to the quantity in the contract at the time of delivery, and he usually adds it in the quantity clause. (bulk goods: grain, ore, etc.)

7. Neutral packaging-that is, packaging that does not indicate the country of production, place names, manufacturer names, or trademarks or brands. (Unlicensed neutral packaging, branded neutral packaging)

8. Branding-The seller indicates the trademark or brand designated by the buyer on the goods or packaging he sells according to the buyer's requirements.

9. demurrage-if the party responsible for loading and unloading the goods fails to complete the task according to the agreed loading and unloading time and rate, it needs to pay the ship a fine for delaying the shipment.

1. Dispatch fee-If the party responsible for loading and unloading the goods completes the task ahead of schedule within the agreed loading and unloading time, which is conducive to speeding up the ship's turnover, you can get a bonus from the ship.

11. OCP clause-the place that land transportation can usually reach. The OCP area is bounded by the Rocky Mountains, and the east of it is designated as the inland area. If the goods exported from the Far East to the OCP area of the United States are traded according to the OCP terms, the export can enjoy the lower OCP shipping preferential rate, and the importer can also enjoy the OCP preferential rate in inland transportation.

12. Bill of Lading (B/L) is a document issued to the shipper by the carrier or its agent after receiving the goods, which embodies the relationship between the carrier and the shipper.

13. through bill of lading-used in combined transportation consisting of sea transportation and other modes of transportation. It is the carrier (or its agent) who issues the bill of lading for the final destination of the goods at the place of departure and collects the whole freight.

14. expired bill of lading-the bill of lading arrives at the destination port later than the goods; The time for presenting documents to the bank exceeds the date of issuance of the bill of lading by 21 days.

15. multimodal transport documents-documents evidencing the multimodal transport contract and proving that the multimodal transport operator has taken over the goods and is responsible for delivering the goods according to the terms of the contract, which are issued by the multimodal transport operator. Such documents shall be negotiable or non-negotiable at the option of the consignor.

16. * * General Average (GA)-The ship carrying cargo encounters disasters and accidents at sea, which threaten the safety of cargo and other aspects. In order to remove this threat and maintain the safety of cargo, the ship will continue to complete the voyage and take conscious and reasonable measures.