2016 International Trade Problem Set

2016 International Trade Problem Set

Part I.  Explain these terminologies (10 x 2 points = 20)

1) Opportunity Cost:

2) FTA

3) OBM

4) Incoterms

5) Counter-offer
6) L/C
7) ICC

8) UCP

9) CISG

10) Remittance

11) SWIFT
12) EXW

13) Bill of Exchange

14) OECD

15) Anti-dumping duty

Part II. (16 x 5 points = 80)

Chapter 1.

1. Explain the Theory of Comparative Advantage.

2. Under the current economic situation, what are the trend of International trade and China’s foreign trade?

3. On December 11, 2001, China became a member of WTO, what is the significance of China’s entry? Try to analyze this from your own perspective.

Chapter 2.

4. There are various kind of contracts in international trade, what are they?

Chapter 4.

5. Explain this sentence: “Unit Price: US $ 50 per M/T FOB Shanghai including 2% commission”.

6. Explain the difference between Incoterms 2000 and Incoterms 2010.

7. In Incoterms 2010, what is the principal to categorize the terms?

Chapter 5.

8. What are the basic modes in international payments? What are the advantages and disadvantages of each mode?