Key Knowledge Points Summary in Foreign Trade Business

Essential Knowledge Points for Foreign Trade

I. Basic Knowledge of International Trade

1. Definition of International Trade It refers to the exchange activities of goods, services, and technology between different countries or regions.

2. Classification of International Trade According to the direction of trade, it can be divided into import and export; according to the mode of transaction, it can be divided into general trade and processing trade; according to the form of commodities, it can be divided into tangible trade and intangible trade.

3. International Trade Terms These terms specify the conditions for the delivery of goods in contracts between buyers and sellers, involving the division of risks, costs, and responsibilities. Common international trade terms include FOB Free On Board, CIF Cost, Insurance, and Freight, and CFR Cost and Freight.

II. International Trade Policies and Regulations

1. Tariffs This is a tax levied on imported and exported goods, used to regulate domestic prices and increase national fiscal revenue.

2. Non-Tariff Barriers These are various measures other than tariffs that restrict imports, such as technical trade barriers, health quarantine measures, intellectual property protection, etc.

3. Trade Agreements These are agreements signed between two or more countries regarding trade policies, tariffs, market access, etc. Common trade agreements include free trade agreements and customs union agreements.

4. WTO Rules The World Trade Organization WTO is an international organization responsible for coordinating and managing global trade, and its rules involve aspects such as trade liberalization, fair trade, and intellectual property protection.

III. International Logistics and Supply Chain Management

1. Definition of International Logistics It refers to the physical flow process of goods, services, and technology between two countries.

2. Logistics Costs The costs of international logistics include transportation costs, warehousing costs, insurance costs, etc., with transportation costs being the largest expense.

3. Transport Mode Selection Air transport, sea transport, and land transport can all serve as modes of international trade transportation. Different transport methods have varying prices, speeds, risks, and suitable products, requiring selection based on specific circumstances.

4. Supply Chain Management It involves coordinating and managing various stages of the supply chain, including suppliers, manufacturers, logistics companies, etc., to ensure timely and efficient delivery of goods and services to their destinations.

IV. Foreign Exchange and Currency Knowledge

1. Foreign Exchange It refers to the currency used for international settlement, including major currencies like the US dollar, euro, yen, etc., as well as national currencies.

2. Exchange Rate It is the ratio of one country's currency to another country's currency, and changes in the exchange rate will affect the prices and competitiveness of imported and exported goods.

3. Exchange Rate Risk It refers to the economic loss caused by changes in exchange rates for enterprises or countries. To guard against exchange rate risk, enterprises can use financial tools such as forward foreign exchange transactions and foreign exchange options for risk management.

4. Currency Conversion Before conducting international trade, it is necessary to understand the exchange rates and conversion rules of different countries to ensure successful currency conversion.

V. E-commerce and Digital Trade

1. E-commerce It refers to the transaction activities of goods or services conducted through the Internet, including B2B, B2C, C2C, and other forms.

2. Digital Trade It refers to a new form of trade dominated by digital products and services, such as online tourism, digital music, digital advertising, etc.

3. Cross-border E-commerce It refers to commercial activities where goods or services are sold to other countries through the Internet. Platforms like Amazon and AliExpress are important channels for cross-border e-commerce.

4. Digital Payment With the popularity of mobile payments, digital payment has become an indispensable part of international trade. Payment methods like Alipay and WeChat Pay are widely used in cross-border transactions.

In summary, personnel engaged in foreign trade need to master knowledge about basic international trade, policies and regulations, international logistics and supply chain management, foreign exchange and currency knowledge, as well as e-commerce and digital trade, in order to better cope with the complex environment of international trade.