Table of Contents

Unit 1 An Overview of International Trade1

Project I Reasons for International Trade2

Module 1 Resources Reasons2

Module 2 Economic Reasons2

Module 3 Other Reasons4

Project II The International Trade Policy5

Module 1 Gains from Free Trade5

Module 2 Reasons for Trade Protectionism6

Module 3 Different Means of Protection7

Case Remark11

Practice13

Unit 2 International Trade Terms17

Project I Brief Explanations of Trade Terms17

Module 1 International Trade Terms18

Module 2 International Rules Practices on Trade Terms19

Project II Contents of Trade Terms 20

Module 1 An Overview of Incoterms 201020

Module 2 Difference between Incoterms 2000 and Incoterms 201021

Module 3 A Brief Explanation of the Terms in Incoterms 201021

Module 4 Clauses Commonly Used about the Trade Terms in Contracts26

Project III Expression and Choice of Trade Terms26

Module 1 Expression of Trade Terms27

Module 2 Choice of Trade Terms27

Case Remark29

Practice30

Unit 3 Terms of Commodity35

Project I Name of Commodity36

Project II Quality of Commodity36

Module 1 Sale by Sample37

Module 2 Sale by Description38

Project III Quantity of Commodity39

Module 1 Units of Measurement39

Module 2 Calculation of Weight39

Module 3 More or Less Clause40

Project IV Packing of Commodity40

Module 1 Functions of Packing40

Module 2 Types of Packing41

Project V Marking of Commodity41

Module 1 Shipping Marks42

Module 2 Indicative / Warning Marks42

Module 3 Additional Marks43

Case Remark45

Practice45

Unit 4 International Cargo Transportation49

Project I Ocean Freight50

Module 1 Major Types of Cargo Vessels50

Module 2 Major Modes of Ocean Vessels51

Project II Air Transport53

Module 1 Characteristics of Air Transportation53

Module 2 Types of Air Transportation53

Project III Other Means of International Cargo Transportation54

Module 1 Road Transport54

Module 2 Rail Transport54

Module 3 Inland Waterway Transport54

Module 4 Containerization55

Module 5 Palletization55

Module 6 Pipelines55

Module 7 International Multimodal Transport56

Project IV Transportation Documents56

Module 1 Bill of Lading56

Module 2 Other Types of Transportation Documents60

Project V Clause of Shipment in the Sales Contract61

Module 1 Time of Shipment61

Module 2 Port of Shipment and Port of Destination61

Module 3 Shipping Advice62

Module 4 Partial Shipment and Transshipment62

Case Remark65

Practice66

Unit 5 International Trade Payment and Settlement69

Project I Payment Instruments of International Trade70

Module 1 Bill of Exchange70

Module 2 Promissory Notes72

Module 3 Checks73

Project II Methods of Payment73

Module 1 Remittance73

Module 2 Collection75

Module 3 Letter of Credit77

Case Remark82

Practice83

Unit 6 International Cargo Transportation Insurance87

Project I Fundamental Concepts in International Cargo Insurance88

Module 1 Parties Involved88

Module 2 Some Concepts89

Project II Marine Transportation Insurance90

Module 1 Risks Covered by Marine Insurance90

Module 2 Losses Covered by Marine Insurance91

Module 3 Expenses Incurred for the Rescue of Insured Cargo 92

Module 4 Major Categories of General Insurance Coverage92

Module 5 Procedures of Marine Insurance 93

Case Remark97

Practice97

Unit 7 Inspection Force Majeure103

Project I Commodity Inspection104

Module 1 Importance of Commodity Inspection105

Module 2 Inspection Agency and Certificate105

Module 3 Inspection Operation106

Project II Force Majeure108

Module 1 Definition of Force Majeure109

Module 2 Consequences of Force Majeure109

Module 3 Force Majeure Clause109

Case Remark112

Practice113

Unit 8 Claim Arbitration117

Project I Claim118

Module 1 Liabilities of Breach of Contract118

Module 2 The Claim Clause in the Contract119

Module 3 Settlement of Claim120

Project II Arbitration 120

Module 1 Definition of Arbitration121

Module 2 Procedure of Arbitration121

Module 3 Arbitration Clause122

Case Remark125

Practice125

Unit 9 Export Import Documentations129

Project I Role of and Requirements for Documentation 130

Module 1 Role of Documentation 130

Moudle 2 Requirements for Documentation 130

Project II Official Documents131

Module 1 Export License131

Module 2 Import License and Foreign Authorization131

Module 3 Certificate of Origin132

Module 4 Certificate of Inspection132

Module 5 Consular Invoice132

Module 6 Customs Invoice133

Project III Commercial Documents133

Module 1 Pro Forma Invoice133

Module 2 Commercial Invoice133

Module 3 Quality Certificate134

Module 4 Weight Certificate135

Project IV Financial Documents135

Module 1 Application Form for International Money Transfer135

Module 2 Draft135

Module 3 Promissory Notes 136

Module 4 Application for Documentary Letter of Credit136

Module 5 Letter of Credit136

Project V Transportation Documents137

Module 1 Bill of Lading137

Module 2 Shipping Note/Advice137

Module 3 Packing List138

Module 4 Air Waybill 138

Project VI Insurance Documents138

Module 1 Insurance Policy139

Module 2 Insurance Certificate139

Module 3 Open Policy139

Case Remark145

Practice145

Unit 10 E-commerce149

Project I E-commerce and Its Historical Development150

Module 1 Definition of E-commerce150

Module 2 Historical Development of E-commerce150

Project II Categories of E-commerce151

Project III Business Process and Models of E-commerce154

Module 1 Business Process of E-commerce154

Module 2 Business Models of E-commerce154

Project IV Advantages of E-commerce155

Project V Limitations of E-commerce157

Case Remark159

Practice161

Bibliography163