The Difference Between International Trade And Foreign Trade

International trade, also known as "world trade", refers to the exchange of goods and services (or goods, knowledge and services) internationally.

It is constituted by the foreign trade of each country (region), and is the sum total of the foreign trade of all countries in the world.

International trade took place in slave society and feudal society, and gradually expanded with the development of production.

To the capitalist society, its scale has expanded unprecedentedly and is cosmopolitan.

Foreign trade, also known as "foreign trade" or "import and export trade", refers to the exchange of goods and services between a country (region) and another country (region).

This trade consists of two parts: import and export.

For countries or regions where goods or services are imported, they are imports; for exporting countries or regions where goods or services are exported, they are exports.

This began to develop and develop in slave society and feudal society, and developed rapidly in capitalist society.

Its nature and function are determined by different social systems.

Value of foreign trade and foreign trade volume

Value of Foreign Trade)

The value of foreign trade is the amount of trade expressed in currency.

The total value of goods imported from abroad by a country in a given period is called total import volume or total import volume. The total value of a country's exports to foreign countries in a given period is called total export volume or total export volume.

The sum of them is the total import and export volume or total import and export volume, which is an important index reflecting the scale of a country's foreign trade.

Generally speaking, it is expressed in domestic currency and also used in international currency.

The statistics compiled by the United Nations for the value of foreign trade of various countries in the world are expressed in US dollars.

The total import or export volume of all countries in the world is converted into the same currency, and the total import volume of the world or the total export volume of the world is added together.

In terms of international trade, the export of one country is the import of another country. If the value of imports and exports is added to each country as the total value of international trade, it is a repeated calculation.

Therefore, the value of imports and exports of countries is generally added as the value of international trade.

As countries generally calculate export based on FOB (FOB, FOB price, excluding freight and insurance premium), the amount of imports is calculated on the basis of CIF (CIF, i.e., cost, insurance and freight).

Therefore, the total export volume of the world is slightly less than that of world imports.

(Quantum of Foreign Trade)

The value of foreign trade expressed in currency is often affected by price changes, so it can not accurately reflect the actual scale of a country's foreign trade, nor can it directly compare the value of foreign trade in different periods.

In order to reflect the actual scale of import and export trade, it is usually expressed by trade index. The method is to calculate the trade value of each period according to a fixed price standard. The import and export price index, except the import and export value, obtains the trade value calculated at constant prices, excluding the price change factor, that is, the volume of trade.

Then, by comparing the trade volume index of a certain period with the trade volume index of each period, we can get a trade volume index that accurately reflects the actual scale of trade.

(1) total trade (General Trade)

Total trade is the symmetry of "specialized trade", which refers to the import and export trade based on the national boundaries.

All goods that enter the country are listed as total imports. All goods leaving the border are listed as general exports.

Exports of domestic products and exports of unprocessed imports are also included in the total exports.

The total import volume plus total export volume is the total trade volume of a country.

The United States, Japan, the United Kingdom, Canada, Australia, China, the former Soviet Union, Eastern Europe and other countries adopt this classification standard.

(two) specialized trade (Special Trade)

Specialized trade is the symmetry of "total trade", which refers to the import and export trade defined by customs.

Only imported goods from foreign countries and goods stored in bonded warehouses will be imported exclusively.

When foreign goods enter the country, they are temporarily stored in bonded warehouses and not entered the customs territory. They are not listed as specialized imports.

The export of domestic products from the mainland and the commercial ports that are processed and shipped out of the border are listed as special exports.

Specialized imports plus specialized exports are called specialized trade volume.

Germany, Italy and other countries adopt this classification standard.

(1) direct trade (Direct Trade)

Direct trade is the symmetry of "indirect trade". It refers to the direct sale of goods by commodity producing countries and commodity consuming countries.

(two) indirect trade (Indirect Trade)

Indirect trade is the symmetry of "direct trade". It refers to the behavior of commodity producing countries and commodity consuming countries buying and selling commodities through third countries.

Among them, the producer country is indirect export; the consumer country is indirect import; the third country is re export.

Entrepot Trade refers to trade between producers and consumers through third countries.

Even if the goods are directly pported from the country of production to the consumer countries, there is no direct paction relationship between them, but the pshipment relationship between the third country's reproducers and the producer and consumer countries is still in the scope of entrepot trade.

(1) Visible Trade

Visible trade is the symmetry of "invisible trade", which refers to the import and export trade of commodities.

Because commercial outlets are visible tangible goods, the import and export of commodities is known as visible import and export, that is, visible trade.

There are many types of visible goods in international trade. In order to facilitate statistics, the Secretary of the United Nations drafted the "United Nations classification of international trade standards" in 1950, which was revised in 1960 and 1974 respectively.

In the 1974 revision, international trade commodities were divided into 10 categories, 63 chapters, 233 groups, 786 subgroups and 1924 basic items.

These 10 categories of commodities are: Food and main living animals (0); beverages and tobacco (1); non edible crude raw materials (2) other than fuel; mineral fuels, lubricants and related raw materials (3); animal and vegetable fats and oils (4); unnamed chemicals and related products (5); finished products (6) mainly classified by raw materials; machinery and pport equipment (7); miscellaneous products (8); unclassified commodities (9).

In international trade, 0 to 4 commodities are generally called primary products, and 5 to 8 commodities are called finished products.

(two) invisible trade (Invisible Trade)

Invisible trade is the symmetry of "visible trade", which refers to the income and expenditure incurred by the import and export of labor or other non physical commodities.

It mainly includes: (1) the revenue and expenditure of all subordinate expenses related to the import and export of goods, such as pportation, insurance, commodity processing and loading and unloading fees; and (2) other receipts and payments which are not related to the import and export of goods, such as international tourism expenses, diplomatic personnel expenses, remittance of overseas nationals, royalties for use of patents, dividends and dividends received from foreign investment, income and expenses of foreign companies or individuals in foreign countries, etc.

The above mentioned income is called "invisible export", and the above expenditure is called "invisible import".

Visible trade is due to customs clearance, so its amount is displayed in customs statistics of a country. Invisible trade is not processed by customs, and its amount is not reflected in customs statistics, but it is shown on the balance of payments table of a country.

(I) re export (Re-export)

The re export refers to the unprocessed and exported products after the import of foreign commercial ports, also known as re exports.

To a large extent, the re export is related to the re export trade.

(two) re import (Re-import)

Re import means that domestic goods are exported to foreign countries, and they are imported and imported without processing.

Multiple imports are caused by casual reasons, such as export returns.

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Terms of Trade is also known as exchange rate or trade parity, that is, the ratio between export price and import price, that is to say, the number of imported products that a unit can export can be exchanged.

It is calculated by the export price index and the import price index.

The formula is: export price index / import price index X100.

Taking a certain period as the base period, the ratio of import and export price of the base period is calculated first, and then the import and export price ratio of the period is calculated as 100, and then compared with the base period, if the ratio is greater than 100, it indicates that the terms of trade are favorable than the base period. If less than 100, it indicates that the terms of trade are unfavorable than the base period, and the exchange benefit is inferior to the base period.

The direction of foreign trade and international trade

(1) geographical orientation of foreign trade

The geographical direction of foreign trade, also known as the regional distribution or national structure of foreign trade, refers to the status of each country or regional group in a country's foreign trade in a certain period of time, usually expressed in proportion to the total import and export volume or total import volume of the country.

The geographical direction of foreign trade indicates the whereabouts of a country's exports and the source of its imports, so as to reflect the degree of economic and trade links between a country and other countries or regional groups.

The geographical orientation of a country's foreign trade is usually influenced by economic complementarity, international division of labor and trade policy.

(two) geographical orientation of international trade

The geographical direction of international trade, also known as the "International Trade by Region", is used to show the status of all continents, countries or regional groups in international trade.

Calculating the proportion of countries in international trade can not only calculate the proportion of imports and exports of each country in the total import and export volume of the world, but also calculate the total import and export volume of each country in the total volume of international trade (the total import and export volume of the world).

Since foreign trade is a commodity exchange between one country and another country, it is of great significance to identify and classify foreign trade according to commodity classification and national classification, that is, combining the study of commodity structure and geographical orientation, we can identify the whereabouts of different categories of commodities in a country's exports and the sources of different types of commodities imported.

The structure of foreign trade commodities refers to the composition of various commodities in a country's import and export trade in a certain period, that is, the ratio of the import and export trade of a large category or a certain commodity to the total volume of import and export trade, represented by shares.

The structure of international trade commodities refers to the composition of commodities or commodities in the whole international trade in a certain period, that is, the trade volume of major commodities or certain commodities is expressed in proportion to the total export volume of the whole world.

To facilitate analysis and comparison, the world and the United Nations have analyzed and compared the structure of international trade and foreign trade commodities published by the United Nations international trade commodity classification (SITC).

The structure of foreign trade commodities of a country can reflect the level of economic development, the industrial structure and the level of scientific and technological development.

The structure of international trade commodities can reflect the economic development level, industrial structure and technological development level of the whole world.

According to the agreement on trade related aspects of intellectual property rights concluded by the URA round of GATT, intellectual property includes the following contents: copyright, patent, trademark, geographical indication, industrial design, integrated circuit, and appearance design (distribution map), etc. it is an important intangible property protected by special law.

According to the GATT agreement reached in the Uruguay round, the service trade refers to "providing services to any other member within a member's territory; providing services to the service consumers in any member's territory to any other member; a member's service provider providing services in the presence of commercial presence in any other member; a member's service provider provides services in the territory of any other member with the presence of natural persons."

The service sector includes: commercial services, communications services, construction and related engineering services, sales and services, educational services, environmental services, financial services, health and social services, tourism related services, entertainment, cultural and sports services, and pport services.

Balance of Trade is the difference between the total value of exports and the total value of imports of a country in a certain period (such as a year, a half year, a quarter, a month).

When the total value of exports is equal to the total value of imports, it is called "trade balance".

When the total value of exports is greater than the total value of imports, there is a trade surplus, which is called "trade surplus" or "surplus".

When the total value of imports is greater than the total value of exports, there is a trade deficit, which is called "trade deficit" or "surplus".

Usually, the trade surplus is positive, and the trade deficit is negative.