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1）What are the reasons for international trade?
2）What is trade protectionism? Can you list some of them?
3）How many types of international trade do you know from Chapter 1, and what are they?
1）International trade refers to the exchange of goods between nations only.
2）Exchange rate fluctuations are not likely to create many problems in international trade transactions.
3）It becomes difficult for an exporter to verify the creditworthiness and reputation of an importer or a buyer because of the long distance.
4）Government subsidies mainly mean indirect subsidies which come in the form of special savings such as interest-free loans and tax breaks.
5）Middlemen have become almost a necessity in international trade because of their complexity.
1）economy of scale
2）innovation
3）credit risk
4）unforeseen risk
5）import quota
6）tariff
7）government subsidy
8）currency manipulation
9）entrepot trade
10）scientific tariff
11）peril point import tariff
12）retaliatory tariff
13）dumping
14）embargo
15）direct subsidy
16）indirect subsidy
17）consignment business
18）indent firm
19）merchant shipper
20）forwarding agent