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Chapter 1 Introduction 1

Section 1.1 Definition and Role of International Trade 1

Section 1.2 Differences between International Trade and Domestic Trade 3

Section 1.3 Laws and Practices Applicable to International Trade 4

Section 1.4 Procedures for International Trade 5

Summary 7

Key Terms 8

Exercises 8

Chapter 2 Terms of Commodity 10

Section 2.1 Name of Commodity 10

Section 2.2 Quality of Commodity 12

Section 2.3 Quantity of Commodity 19

Section 2.4 Packaging of Goods 25

Summary 35

Key Terms 35

Exercises 36

Chapter 3 International Trade Terms and Customs 40

Section 3.1 Definitions and Functions of International Trade Terms 40

Section 3.2 Rules for Sea and Inland Waterway Transport 47

Section 3.3 Rules for Any Mode or Modes of Transport 59

Section 3.4 How Best to Incorporate the INCOTERMS? 2020 78

Summary 79

Key Terms 79

Exercises 80

Chapter 4 Price of Commodity 84

Section 4.1 Price Components in International Trade 85

Section 4.2 Commission and Discount 86

Section 4.3 Understanding the Price 88

Section 4.4 Export Quotation Accounting Practice 90

Section 4.5 Pricing Considerations 91

Section 4.6 Clause of Price 93

Summary 94

Key Terms 94

Exercises 94

Chapter 5 International Cargo Transportation 96

Section 5.1 Ocean Transport 96

Section 5.2 Other Modes of Transport 105

Section 5.3 Clause of Shipment 110

Summary 113

Key Terms 113

Exercises 113

Chapter 6 International Cargo Transportation Insurance 117

Section 6.1 Parties to the Insurance 117

Section 6.2 Fundamental Principles of Cargo Insurance 118

Section 6.3 Marine Insurance 121

Section 6.4 Other Types of Cargo Insurance 126

Section 6.5 Institute Cargo Clauses 128

Section 6.6 Insurance Terms in Sales Contract 129

Section 6.7 Insurance Practice of China Export Companies 129

Summary 133

Key Terms 134

Exercises 134

Chapter 7 International Payment 138

Section 7.1 Instruments of Payment 139

Section 7.2 Modes of International Payment 150

Section 7.3 Usage of Different Payment Modes 176

Summary 178

Key Terms 179

Exercises 179

Chapter 8 Commodity Inspection and Claim 186

Section 8.1 Inspection of Commodity 186

Section 8.2 Dispute and Claims 193

Summary 196

Key Terms 197

Exercises 197

Chapter 9 Force Majeure and Arbitration 200

Section 9.1 Force Majeure 200

Section 9.2 Arbitration 204

Summary 208

Key Terms 209

Exercises 209

Chapter 10 Business Negotiation 213

Section 10.1 The General Process of Export and Import Transaction 213

Section 10.2 Enquiry (Inquiry) 214

Section 10.3 Offer 215

Section 10.4 Counter Offer 221

Section 10.5 Acceptance 222

Summary 226

Key Terms 226

Exercises 226

Chapter 11 International Business Contract 230

Section 11.1 Establishment of Contract 230

Section 11.2 The Format of a Contract 233

Summary 239

Key Terms 239

Exercises 240

Chapter 12 Implementation of Sales Contract 241

Section 12.1 Performance of Export Contract 241

Section 12.2 Performance of Import Contract 254

Summary 256

Key Terms 257

Exercises 257

References 260