《International Trade Practice》
Curriculum syllabus
Heng Wang
Course Chinese name：国际贸易实务
Course English Name: International Trade Practice
course code： 5300451
Number of Hours： 32
Credits： 3
prerequisite course：International Economics, International Trade Theory, International Marketing
Applicable major: International Economy and Trade
一、Course Description
International Trade Practice, which is one of the basic courses for college students majoring in International Trade and Business, intends to study the business related to international trade. Nowadays, the international trade is coming through a great change, i.e. the Economic Globalization and Regional Economic Integration. With the unceasing update of the contents of the international trade, many new modes, laws and practices of the international trade come into being. For this regard, the purpose of this course has been designed to high qualified international trade specialists, who will possess necessary knowledge in both international trade theories and practices. During the class, the students will learn a comprehensive knowledge system consisting of international sales contract clauses, the INCOTERMS, the conclusion and performance of the international import and export contracts, traditional and new trade forms in the international business. The focus of the course is on the practical operation of various international trade theories and customs.
二、Course Content
Chapter 1 Introduction to Foreign Trade
Teaching objectives and requirements:
After learning this chapter you will be able to provide the students with a general profile of this course by briefly introducing the development of international trade, the main contents and methods of teaching, the significances and ways of international trade, so as to arouse their interest in learning this course and lay a solid foundation for further teaching and studying.
Teaching focus and difficulty:
Focus：Characteristics and significance of international trade; Related laws and practices involved in international trade; Basic principles for doing international trade.
Difficulty：Related laws and practices involved in international trade.
1.1 Brief introduction to the course of International Trade Practice
1.1.1 What is international trade (concept) and why do nations trade?
1.2 Characteristics of international trade
1.3 Related laws and practices involved in international trade
1.3.1 Domestic laws
1.3.2 International trade practice
1.3.3 International treaty
1.4 Basic principles for trading internationally
1.4.1 Equality
1.4.2 Free intention
1.4.3 Fairness
1.4.4 Faithfulness
1.4.5 Legality
1.5 Main contents of this course
1.6 Basic content of an international contract
1.7 General procedures of international trade
1.7.1 For export trade
1.7.2 For import trade
1.8 Ways of teaching and learning this course
1.9 Reference books and websites
Chapter 2 Subject Matter of an International Sales Contract
Teaching objectives and requirements:：
After learning this chapter you will be able to explain the different ways of quality stipulation, outline the quantity measurement units and systems, describe the approaches to weight calculation, understand the functions and features of different types of export packaging, identify marking on the packing of goods for international sales, compose quality, quantity and packing clause properly.
Teaching focus and difficulty：
Focus：Ways of naming a commodity; Methods for specifying the quality of goods; Quality latitude and tolerance; Methods of calculating weight; Shipping Package (outer package); Neutral Packing and Appointed Trade-Mark.
Difficulty：Methods for specifying the quality of goods; Methods of calculating weight; Neutral Packing and Appointed Trade-Mark.
2.1 Name of commodity
2.1.1 Name of commodity
2.1.2 Ways of naming a commodity
2.2 Quality of goods
2.2.1 Concept
2.2.2 Methods for specifying the quality of goods
2.2.2.1 Sales by Sample
2.2.2.2 Sales by specification
2.2.2.3 Sales by grade
2.2.2.4 Sales by Standard
2.2.2.5 Sale by Brand or trademark
2.2.2.6 Sale by name of origin,
2.2.2.7 Sale by description, drawing or diagram
2.2.3 Quality latitude and tolerance
2.2.3.1 Quality Latitude
2.2.3.2 Quality Tolerance
2.3 Quantity of Goods
2.3.1 Measurement systems in international trade
2.3.1.1 Metric System
2.3.1.2 U.S. System
2.3.1.3 British System
2.3.1.4 International System of Units
2.3.2 Measuring Unites of Quantity of Goods
2.3.2.1 Weight
2.3.2.2 Numbers
2.3.2.3 Length
2.3.2.4 Area
2.3.2.5 Volume
2.3.2.6 Capacity
2.3.3 Methods of calculating weight
2.3.3.1 Gross Weight
2.3.3.2 Net Weight
2.3.3.3 Conditioned Weight
2.3.3.4 Theoretical Weight
2.3.3.5 Legal Weight and Net Net Weight
2.2.4 Terms of quantity in a contract
2.2.4.1 Contents of terms of quantity
2.2.4.2 Quantity Latitude
2.4 Packing of goods
2.4.1 Functions of Packing
2.4.2 Basic packing forms of goods
2.4.2.1 Bulk Cargo
2.4.2.2 Nude Cargo
2.4.2.3 Packed Cargo
2.4.3 Types of Package
2.4.3.1 Shipping Package (outer package)
2.4.3.2 Sales Package (inner package)
2.4.4 Cargo Marking for Shipment
2.4.4.1 Shipping Marks
2.4.4.2 Indicative Marks
2.4.4.3 Warning Marks
2.4.4.4 Additional Marks
2.4.5 Neutral Packing and Appointed Trade-Mark
2.4.6 Terms of Packing in a Contract
Chapter 3 Trade Terms and Pricing
Teaching objectives and requirements：
After learning this chapter you will be able to master at least the most frequently used three terms: FOB, CFR and CIF in international trade and other three newer terms: FCA, CPT and CIP which are becoming more and more popular in world trade. Students should be able to use these terms freely and make offers correctly in accordance with the international trade practices.
Teaching focus and difficulty：
Focus：Three influential int’l trade practices; six main international trade terms in INCOTERMS 2010; Pricing and Quotation of exports.
Difficulty：Six main international trade terms in INCOTERMS 2010; Pricing and Quotation of exports; Cost Calculation, Commission and Discount.
3.1 International convention of Trade Terms
3.1.1 Role of int’l trade terms
3.1.2 Three influential int’l trade practices
3.2 Six main international trade terms in INCOTERMS 2010
3.2.1 FOB
3.2.2 CFR
3.2.3 CIF
3.2.4 FCA
3.2.5 CPT
3.2.6 CIP
3.3 Other five trade terms
3.3.1 EXW
3.3.2 FAS
3.3.3 DAT
3.3.4 DAP
3.3.5 DDP
3.4 Pricing and Quotation of exports
3.4.1 Principle of Pricing
3.4.2 Ways of Pricing
3.4.3 Cost Calculation, Commission and Discount
3.5 Setting of price clause in a sales contract
3.5.1 Currency Selection
3.5.2 Trade Terms Selection
Chapter 4 Delivery of goods
Teaching objectives and requirements：
After learning this chapter you will be able to learn knowledge about different modes of transportation, calculation of freight, shipping documents and procedures in effecting international trade.
Teaching focus and difficulty：
Focus：Ocean Transport; Container Transport; International Multi-modal Transport; Ocean bill of lading, B/L; Multimodal Transportation Document; Shipment and Delivery; Partial Shipment and Transshipment.
Difficulty：Calculation of Liner Freight; Container Transport; Functions and types of B/L; Partial Shipment and Transshipment.
4.1 Modes of transportation
4.1.1 Ocean Transport
4.1.1.1 Liner Shipping
⑴ Characteristic of Liner Shipping
⑵ Liner Freight
4.1.1.2 Charter Shipping
⑴ Ways of Chartering the Ships
⑵ Freight of Charter Shipping
4.1.2 Rail Transport
4.1.3 Air Transport
4.1.4 Container Transport
4.1.5 International Multi-modal Transport
4.2 Shipping documents
4.2.1 Ocean bill of lading, B/L
4.2.1.1 Functions of B/L
4.2.1.2 Types of B/L
4.2.1.3 Contents of Ocean B/L
4.2.2 Sea Waybill (Ocean Waybill)
4.2.3 Air Waybill
4.2.4 Rail waybill
4.2.5 Combined Transportation Document
4.2.6 Multimodal Transportation Document
4.3 Terms of Shipment in a Contract
4.3.1 Shipment and Delivery
4.3.2 Time of Shipment
4.3.3 Port of shipment and port of destination
4.3.4 Shipping Advice
4.3.5 Partial Shipment and Transshipment
4.3.6 Terms of Shipment
Chapter 5 International Cargo Transportation Insurance
Teaching objectives and requirements：
•After learning this chapter you will be able to master the character of insurance, different liabilities of different coverage of risks, procedures of taking insurance and premium calculation.
Teaching focus and difficulty：
Focus：Risks covered by marine transportation insurance; loses and fees; insurance categories undertaken by PICC and ICC; premium calculation, warehouse to warehouse clause.
Difficulty：Risks covered by marine transportation insurance; loses and fees; insurance categories undertaken by PICC and ICC.
5.1 Basic Principles of Insurance
5.1.1 Principle of Insurable Interest
5.1.2 Principle of Utmost Good Faith
5.1.3 Principle of Indemnity
5.1.4 Principle of Proximate Cause
5.2 Risks, Losses and Expenses in Marine Insurance
5.2.1 Risks covered by marine insurance
5.2.1.1 Perils of Sea
5.2.1.2 Extraneous Risks
5.2.2 Losses and expenses covered by marine insurance
5.2.2.1 Losses that suffered from perils of the sea
(1)Total Loss
(2)Partial Loss
5.2.2.2 Expenses
(1)Sue and labor expenses
(2)Salvage charges
5.2.2.3 Losses that suffered from extraneous risks
5.3 Terms and coverage of cargo insurance in China
5.3.1 Basic Coverage and Terms of CIC
5.3.1.1 FPA
5.3.1.2 WPA
5.3.1.3 All Risks
5.4 Institute Cargo Clause, ICC
5.4.1 ICC(A)
5.4.2 ICC(B)
5.4.3 ICC(C)
5.5 Cargo Insurance Practice in Import and Export Business
5.5.1 To determine Insurance Amout
5.5.2 To Make an Application and Pay Insurance Premium
5.5.3 To Obtain an Insurance Document
5.5.3.1 Insurance Policy
5.5.3.2 Insurance certificate
5.5.3.3 Open policy
5.5.3.4 Endorsement
5.5.4 Claim
5.5.4.1 Notice of damage
5.5.4.2 To lodge an insurance claim against the carrier for damage in transit
5.5.4.3 Take reasonable measures for salvage
5.5.4.4 Get documents for claim
5.5.4.5 Right of subrogation
5.6 Terms of insurance in a contract
Chapter 6 International Payment of Goods
Teaching objectives and requirements：
•After learning this chapter you will be able to have a thorough knowledge of the different terms of payment, including their characteristics and usual practices as well as the stipulations of a payment clause in a contract.
Teaching focus and difficulty：
•Focus：Payment Instruments, Payment methods, Types of L/C, Characteristics of L/C, The chief contents of L/C:
Difficulty：A bill of exchange, Collection: D/P at sight, after Sight, Characteristics of L/C, Types of L/C
6.1 Aim of teaching and requirement
6.2 Payment Instruments
6.2.1 A bill of exchange
6.2.2 Check:
6.2.3 A promissory note
6.3 Payment methods
6.3.1 Remittance:
6.3.2 Collection: D/P at sight, after sight, D/A
6.3.2.1 Parties involved under collection
6.3.3 Letter of credit
6.3.3.1 The chief contents of L/C
6.3.3.2 Characteristics of L/C
6.3.3.3 Types of L/C
6.3.4 Factoring
6.3.5 Forfeiting
Chapter 7 Inspection, claims, arbitration and Force Majeure
Teaching objectives and requirements：
•After learning this chapter you will be able to understand the provisions and some knowledge on inspection, claims arbitration and Force Majeure which are usually included in the sales contract as clauses. Students are required to have a thorough and good understanding of all the regulation and practices on the above clauses
•Teaching focus and difficulty：
Focus：Inspection of commodities, Arbitration, Force Majeure clause in the contract
Difficulty：The authentication of inspection, claims and settlement of claims, Force Majeure clause
7.1 Inspection of commodities
7.1 Concept of commodity inspection
7.2 function of Commodity inspection certificates
7.3 Compulsory inspection
7.4 Where and when commodity inspection is done
7.5 Surveyors or organizations, companies that may issue inspection certificates
7.6 Certificates commonly issued in China
7.7 Contents of an inspection clause in the international sales contract
7.2 Claims
7.2.1 Types of breaching a contract
7.2.2 Evidence for lodging a claim
7.2.3 Time limit for lodging a claim
7.2.4 Principles on compensation of a claim
7.2.5 Discrepancy and claim clause
7.3 Force Majeure
7.3.1 Content of Force Majeure clause in the contract
7.3.2 Settlement of breaching a contract due to force majeure
7.4 Arbitration
7.4.1 Approaches for settling an international business dispute
Chapter 8 Business Negotiation and Conclusion of international sales contract
Teaching objectives and requirements：
•After learning this chapter you will be able to learn the techniques and skills of business negotiation and all the legal procedures and practices in concluding an international sales contract.
Teaching focus and difficulty：
Focus：Procedures of business negotiation
Difficulty：Offer, Acceptance
8.1 Preparation before business negotiation
8.1.1 Market research
8.2 Procedures of business negotiation
8.1.1 Enquiry
8.1.2 Offer
8.1.3 Counter-offer
8.1.4 Acceptance
8.3 Conclusion of a Contract
Chapter 9 Performance of International Trade Contract
Teaching objectives and requirements：
•After learning this chapter you will be able to learn skills and knowledge about the contents of procedures and methods in execution of import and export contract.
Teaching focus and difficulty：
Focus：General Procedures of Export and Import Transaction
Difficulty：General Procedures of Export and Import Transaction
9.1 Execution of export contract
9.1.1 Getting the goods ready (including having the goods inspected)
9.1.2 Opening the L/C (including urging the buyer to open the L/C, checking the L/C and amendment of it)
9.1.3 Arranging shipment
9.1.4 Settlement of payment (including making out documents and presenting to the bank for negotiation)
9.2 Executing an import contract
9.2.1 Application for Import License
9.2.2 Opening L/C
9.2.3 Transportation Preparation
9.2.4 Marine Insurance and Payment
9.2.5 Import Inspection and Custom Clearance
三、Allocation schedule
Chapter |
Contents |
hours |
Remarks |
Chapter 1 |
Introduction to Foreign Trade |
1 |
|
Chapter 2 |
Subject Matter of an International Sales Contract |
3 |
|
Chapter 3 |
Trade Terms and Pricing |
4 |
|
Chapter 4 |
Delivery of goods |
2 |
|
Chapter 5 |
International Cargo Transportation Insurance |
2 |
|
Chapter 6 |
International Payment of Goods |
4 |
|
Chapter 7 |
Inspection, claims, arbitration and Force Majeure |
1 |
|
Chapter 8 |
Business Negotiation and Conclusion of international sales contract |
1 |
|
Chapter 9 |
Performance of International Trade Contract |
2 |
|
Chapter10 |
Simtrade(Simulated Business Operation) |
12 |
|
32 |
|
|
|
|
|
|
|
|
|
四、Suggested materials and main reference materials
1. Suggested materials
[1] HUANG Xiguang, WU Baokang.. International Trade Practice (English), Third Edition, Shanghai: Fudan University Press, 2011.
2. Main References
[1] Alan E.Branch，Export Pracitice and Management [M]. Cengage Learning Business Press，2000.
[2] Mark Ellis and Christine Johnson, Teaching Business English [M], Oxford: Oxford University Press, 1994
[3] Ellis, M. & C. Johnson Teaching Business English. Oxford: Oxford University Press.（Shanghai Foreign Language Education Press），1994.
[4] Shuai Jianlin: Case Study of International Trade Practices in English and Chinese. Beijing: University of International Business and Economics Press, 2006
[5] Li Xiaoxian, International Trade Practice (5th ed.), Beijing: Foreign Economic and Trade University Press, 2010
五、Course performance assessment
Course performance assessment
Assessment content |
The proportion of the total score |
Usually assessment |
Attendance, classroom questions, group discussions |
10% |
homework |
10% |
Final examination |
Paper or PPT |
80% |
