Import and Export/Countertrade Paper
Kelly
This paper includes the role of the government in the import and export environment, as well as some issues about counter trade.I think the role of the government in the import and export environment is mainly to protect domestic industries from foreign competitors and maintain domestic economic growth and balance of payments.But there are also the following points: 1.Actively help enterprises open the market and protect the equal circulation of goods in each others market.2.This is the most basic and important role that the government should play in foreign trade.2.Use financial support means to promote the healthy development of foreign trade.3.Establish a world business information network to provide enterprises with fast and accurate economic intelligence.4.Effectively improve product quality and increase the export proportion of products with high added value.5.Help enterprises establish advantageous projects and monopolize the market.6.Expand the radiation of export products and carry out all-round trade.7.Strengthen the construction of customs and do a good job in the fight against smuggling and counterfeiting.8.Actively create conditions for accession to the WTO at an early date.Reverse trade refers to counter trade, also known as “offset trade” and “reciprocal trade”, which refers to the trade mode in which the import and export of intangible property such as goods or services, industrial property rights and know-how are combined and mutually conditional.Both sides of the counter trade trade have their own import and export, and each side obtains the balance of revenue and expenditure or basic balance in a transaction.The basic forms of counter trade include barter, bookkeeping trade There are mainly three kinds of trade modes: barter trade, mutual purchase trade, entrepot trade and compensation trade.Barter trade refers to the trade in which the payment settlement adopts the method of exchange of goods, that is, the goods are exchanged after pricing, so as to supplement the trade with insufficient cash exchange.Intergovernmental barter trade, also known as agreement trade, needs to sign trade agreements and payment agreements.Folk barter trade includes compensation trade, and can also be combined with some spot exchange and some barter.17 years ago, in 2000, PepsiCo and Yahoo jointly announced an online and offline joint promotion plan.According to the negotiation, PepsiCo will print Yahoos logo on 1.5 billion beverage bottles and sell them publicly in 50000 stores in the United States;At the same time, Yahoo has opened a new website for Pepsi Cola company to promote Pepsi Cola products, and all Pepsi beverage bottle caps will have exchange codes, so that consumers can exchange through the network and get corresponding discounts.This is a win-win game.Interestingly, both sides of the game dont have to pay.They just exchange resources and cooperate through barter.In this transaction, Yahoos benefit is equivalent to free advertising for 150 consecutive days on a TV station with an average audience of 10 million;On the other hand, because of Yahoos huge influence and astronomical click through rate, Pepsi Cola has gained greater benefits.Yahoos joining also makes Pepsi Colas website promotion activities more exciting and interactive.Mutual purchase trade, also known as reciprocal trade and parallel trade, refers to that both parties sign two independent and related contracts: one is to agree that the importing party will first purchase the other partys goods with spot exchange;The other is that the first exporting party promises to buy the other partys goods within a certain period of time.That is, the exporting party undertakes to purchase products equivalent to a certain proportion of his export value from the importing party.China is proposing one belt, one road.“Since this major cooperation initiative, the cumulative amount of mutually beneficial trade with countries along the line has reached US $9.2 trillion, and some achievements have been made in trade, investment, foreign contracted projects, green infrastructure, promoting trade and investment liberalization and facilitation.China has signed 7 free trade agreements with 13 countries along the line, established a working group on smooth trade with 14 countries, and cooperated with 12 countries China has established an investment cooperation working group, established an e-commerce cooperation mechanism with 22 countries, established a service trade cooperation mechanism with 14 countries, and signed a third-party market cooperation document with another 14 countries.Entrepot trade, also known as transit trade, refers to the business of import and export goods in international trade, which is not carried out directly between producer and consumer countries, but through the change of hands of a third country.This kind of trade is transit trade for transit countries.Trade goods can be transported from the exporting country to the third country, and then sold to the consuming country without processing in the third country(conversion of packaging, classification, selection, packing, etc.);It can also be transported directly from the producer country to the consumer country without passing through a third country, but there is no trade link between the producer country and the consumer country, but the transit country trades with the producer country and the consumer country respectively.In recent years, an endless stream of trade barriers from developed and developing countries have hindered the procurement behavior of buyers of Chinas export products.In the past, the competitive advantage of ”made in China“ in the world was to enjoy the reputation of ”low price and high quality".The price advantage is very obvious.Under the action of the above domestic factors, the price advantage of Chinese products is weakening.When different products encounter anti-dumping and various trade barriers, in order to maintain the overseas market, some Chinese enterprises curve their goods into the destination country through the entrepot trade of a third country, so as to reasonably avoid trade barriers.A large Chinese retailer purchases daily necessities and food from Japan and South Korea and enters the export bonded warehouse in Japan or South Korea.According to the orders of national retail malls in the United States, it is loaded and shipped to the United States, or directly distributed to the retailers warehouse.Compensation trade refers to a trade mode in which the buyer imports machinery, equipment, technology and some raw materials from foreign manufacturers on the basis of credit and agrees to repay with products or services within a certain period of time.For countries that lack technology and foreign exchange, this trade method can be used to buy advanced technology and equipment with foreign capital, so as to accelerate national economic development and enhance export capacity.Zhu Xinli, head of Huiyuan Juice Group, was interested in German equipment at that time, but he didnt have enough money.Therefore, he signed an import contract worth US $8 million with German merchants at one go, introduced German equipment and produced products at home, on the condition that the products would be sold back to Germany within a certain period of time, and the payment for the equipment would be repaid in installments or at one time with part or all of his income.At that time, Zhu Xinli promised the foreign party to resell the products in five years and partially repay the loan.Favorable factors for counter trade:
1.It is a powerful means to develop a countrys foreign trade without or with less foreign exchange.2.In the contemporary era of trade protectionism, counter trade is helpful to break the trade barriers of western countries and open the market for domestic products, especially the industrial products of developing countries.3.Some methods, such as product repurchase(compensation trade)or offset trade, not only have the function of balancing the balance of payments of general counter trade, but also have the function of financing funds and absorbing foreign capital inflows.4.As the counter trade adopts the method of combining import and export, its economic benefits can be calculated from the combination of import and export.For example, import profit and export loss, but as long as the former is greater than the latter, it is still profitable.In addition, counter trade is conducted privately by both sides of the transaction, which increases the flexibility and concealment in determining the price, which is not easy to be noticed by others, so as to subsidize exports without retaliation.5.From the perspective of developed countries, through counter trade, commitment to buy back and provision of credit or investment, it can not only enhance their market competitiveness, but also help to promote some products and technologies that are difficult to sell in cash, so as to obtain some cheap raw materials or parts for supply.Adverse factors of counter trade:
1.Counter trade has a strong bilateral and closed nature.In fact, it opposes protectionism with restrictive measures, which increases the atmosphere of trade protectionism.2.Under the above model, the main factor determining the transaction is not the price and quality of the commodity, but the commitment to repurchase,The comprehensive use of counter trade is an effective way for us to strengthen economic ties with multinational corporations.In order to help economic and trade enterprises master the basic situation of multinational corporations counter trade and understand whether enterprises are suitable for counter trade, I will make some preliminary discussions from the main motivation, important characteristics and special circumstances of multinational corporations development of counter trade.Motives for multinational corporations to carry out counter trade:
1.Use counter trade to deal with unsalable goods.2.Use counter trade to enter new markets.3.Use counter trade to appease trading partners.4.Use counter trade to obtain cheap goods.5.Use counter trade to ensure payment recovery.Characteristics of counter trade carried out by multinational corporations:
1.Diversified objects.2.The counter sale commodities are mainly capital goods.3.The transaction scale is large.What multinational companies should pay attention to in counter trade:
1.Grasp the market information and appropriately select counter trade products.To carry out counter trade and transit trade, we should grasp the information content of the market, and better grasp the current policies, trade requirements, market demand and customer specific conditions of relevant countries(or regions), so as to timely adjust and formulate marketing strategies.2.Apply a variety of trading methods to reduce the occupation of funds, so as to do business with as little funds as possible.3.Carefully organize the transportation and reduce the transit cycle time as much as possible, so as to improve the turnover rate and obtain relatively large profits.
点击咨询