1070301 Martin Chens Chpter 1(student PDF) (1).pdf

1070301 Martin Chens Chpter 1(student PDF) (1).pdf -...

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International Trade Practice Martin, Ming-Hsiang Chen March 01, 2018
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Chapter 1: Introduction of International Trade
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Chapter 1: Introduction of International Trade Section 1. The Characteristics of International Trade Section 2. The Type of International Trade Section 3. International Trade Theory
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Section 1: The characteristics of International Trade 1. Territorial specialization 2. International competition 3. Separation of sellers from buyers 4. Long chain of middlemen 5. Mutually acceptable currency 6. International rules and regulations 7. Government control 8. higher difficulty in market and credit investigation 9. more complicated in the procedure of cargo transportation 10. higher risks
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Section 2: The Type of International Trade(1 ) 1. Merchandise Trade 2. Services Trade
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1. Merchandise Trade (1) The definition and meaning of merchandise trade tangible/visible trade, in economics, is the importing and exporting of physical goods, products that you can touch. The product being traded could be a raw material such as coal, oil or wood, or the finished product, such as a car or smartphone. Visible trade refers to the exchange of physical goods in every stage of production. They are also known as international merchandise transactions.
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1. Merchandise Trade (2)-1 The definition of merchandise trade under the OECD. Goods which add or subtract from the stock of material resources of a country by entering (imports) or leaving (exports) its economic territory. Goods simply being transported through a country (goods in transit) or temporarily admitted or withdrawn (except for goods for inward or outward processing) do not add to or subtract from the stock of material resources of a country and are not included in the international merchandise trade statistics. In many cases, a country's economic territory largely coincides with its customs territory, which is the territory in which the customs law of a country applies in full.
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1. Merchandise Trade (2)-2 The Background of the OECD The Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation with 35 member countries, founded in 1961 to stimulate economic progress and world trade. It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seeking answers to common problems, identify good practices and coordinate domestic and international policies of its members. Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries. OECD is an official United Nations Observer.
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2. Services Trade (1) Trade in Services refers to the sale and delivery of an intangible product, called a service, between a producer and consumer. Trade in services takes place between a producer and consumer that are, in legal terms, based in different countries, or economies, this is called International Trade in Services.
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