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chapter 01.ppt
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3. whether the third country / region middleman is involved in the transaction

3 kinds: direct trade, indirect trade, entrepot trade

(1) direct trade

It refers to the direct transaction between a commodity-producing country and a commodity-consuming country.

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(2) indirect trade

The trade between a commodity-producing country and a commodity-consuming country via a third country / region for commodities trading business is called indirect trade.

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(3) entrepot trade

A country / region imports goods from a commodity-producing country, and exports them to a third country, this type of trade is known as entrepot trade.

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4. border and customs territory

3 categories: general trade, special trade, frontier trade

(1) general trade

General trading system is based on import and export of goods to the border as the division standard. Accordingly, all goods entering its border be included in the imports, as general imports; all leaving its border be included in the export of goods, known as the general exports. A certain period of general imports and general exports, called the general trade.

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(2) special trade

Special trade system refers to the customs territory of the standards for the import and export division. All the goods entering the customs territory are regarded as imports, known as special imports; leave the customs territory as exports, known as special exports. Accordingly, the special trade is the sum of the special imports and exports.

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(3) frontier trade

It means according to the agreement between two neighboring countries, in bordering areas (usually within 15 km on each side of the border) it allows local residents to trade daily necessities and production materials in the designated markets and border ports, in accordance with the provisions of the amount and variety.

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5. settlement tool

2 kinds: free-liquidation trade batter trade

(1) free-liquidation trade

It refers to the international trade in which the currency is the settlement tool. Also it’s known as cash trade.

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(2) batter trade

It refer to the international trade in which the pricing goods are regarded as settlement tool each other. Also it’s known as the replacement trade.

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6. economic development level of countries / regions participated in international trade

2 kinds: horizontal trade vertical trade

(1) horizontal trade

It refers to the international trade between countries on the close level of economic development.

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(2) vertical trade

It refers to the international trade between countries at the different level of economic development.

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