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1、~~Unit1AbriefintroductiontointernationaltradeKeyI.Answermyquestions1.Internationaltradeisbusinesswhoseactivitiesinvolvethecrossingofnationalborders.Itincludesnotonlyinternationaltradeandforeignmanufacturingbutalsoencompassesthegrowingservicesindustryinareassuchastransportati
2、on,tourism,banking,advertising,construction,retailing,wholesaling,andmasscommunications.Itincludesallbusinesstransactionsthatinvolvetwoormorecountries.Suchbusinessrelationshipmaybeprivateorgovernmental.2.Salesexpansion,resourceacquisitionanddiversificationofsalesandsupplies.
3、3.Togainprofit.4.Toseejoutforeignmarketsandprocurement.5.Therearefourmajorformswhicharethefollowing:MerchandiseexportsandImports,ServiceExportsandImports,InvestmentandMultinationalEnterprise.6.Itistheaccountwhichisasummarystatementoftheflowofallinternationaleconomicandfinanc
4、ialtransactionsbetweenonenation(eg.theUnitedStates)andtherestoftheworldoversomeperiodoftime,usuallyoneyear.7.MerchandiseExportingandImporting.8.Yes.Therearegreatdifferencesbetweenthem.1)directinvestmenttakesplacewhencontrolfollowstheinvestment.Itusuallymeanshighcommitmentofc
5、apital,personnel,andtechnologyabroad.Itaimsatgainingofforeignresourcesandforeignmarkets.Directinvestmentmayoftengethigherforeignsalesthanexporting.Andsometimesitinvolvestwoormoreparties.2)Whileportfolioinvestmentsarenotundercontrol.Andtheyareusedprimarilyforfinancialpurposes
6、.Treasuresofcompanies,forexample,routinelymorefundsfromonecountrytoanothertogetahigheryieldonshortterminvestments.9.MNEistheabbreviationofthemultinationalenterprise.ItssynonymsareNNC(themultinationalcorporation)andTNC(transnationalcorporation).10.Examplesaretravel,transport,
7、fee,royalties,dividendsandinterest.11.Thechoiceofformsisinfluencedbytheobjectivebeingpursuedandtheenvironmentsinwhichthecompanymustoperate.12.Itislimitedbythenumberofpeopleinterestedinafirm’sproductsandservicesandbycustomers’capacitytomakepurchase.13.Thisisbecauseatanearlyst
8、ageofinternationalinvolvementtheseoperationsusuallytaketheleastcommitmentan