Is traditional business and traditional international trade the same concept?

Is traditional business the same concept as traditional international trade?

International trade is a type of business activity.

Traditional business, traditional international trade, must not be the same concept. It is a subsidiary relationship.

Is international trade and foreign trade the same concept?

Yes, international trade and foreign trade is basically the same concept.

From the national point of view can be called foreign trade. From the international or world perspective, it is international trade or world trade.

PS: However, one point to be corrected is that international trade companies do not do foreign trade exclusively, some also do domestic trade.

International trade under e-commerce and traditional trade mode analysis

International trade under the e-commerce model has been innovated in many ways, which can be illustrated from the following aspects:

(a) international trade in the development of e-commerce changes

The birth and application of e-commerce has changed the history of cross-border trade, cross-border trade by the original in-kind, conservative, a single Buyers and sellers transactions into open, three-dimensional, diversified, network information-based entities and non-entities composed of the trade model, inspired by the historical changes in the theory of transnational trade, the birth of the theory of the virtual economy has given rise to a large number of traders in the deep thinking in the face of the traditional theory of international trade and e-commerce trade combined with the concept of a new challenge to international trade mode of information-based platforms to promote continuous innovation. The traditional way of trade has not adapted to the pace of new trade under the development of informationization, based on the trade differences between countries, how under the conditions of e-commerce, the production of information, feedback and the use of information to become the primary consideration between countries? How to organize and operate the information on the differences in geographical, cultural and material origins through the "virtual business" mode of e-commerce? To break down the hierarchy and boundaries of traditional organizations and establish an open system. This will enable the country's trade resources to be displayed to the world in the form of "virtualization". So that every production link is included in the modern information network, the use of online "virtual reality" technology in the world more intuitive display. The traditional way of trade has received a great challenge, the urgent need for change to adapt to the new situation of trade!

(II) E-commerce environment of international trade management innovation

The birth and development of e-commerce will inevitably bring new challenges to international trade regulation, but also for the relevant trading countries of foreign trade management approach to bring new opportunities and challenges. China's foreign trade macro-management, but also encountered a great challenge, such as: how to use e-commerce to carry out international trade, how to implement e-commerce in the management of enterprises and other issues, one by one in front of us. China's Ministry of Commerce, the information industry in the information processing and supervision of the problem of repeated research, practice, has achieved initial results. Expressed in: 1. export quotas for the implementation of electronic bidding; 2. online application, the issuance of import and export licenses; 3. the use of e-commerce for customs clearance management and electronic customs clearance; 4. the use of e-commerce for the import and export commodity inspection management. Initially realize the whole process of foreign trade business electronic management. E-commerce environment of international trade supervision has become more efficient, standardization, information, openness and transparency, and further expand the development of China's foreign trade.　

(C) international trade policy innovation

At present, the e-commerce environment of international trade policy innovation is mainly reflected in the World Trade Organization (WTO) through the e-commerce exemption, the prohibition of tariffs agreement. The agreement will permanently prohibit the collection of e-commerce tariffs to promote the role of e-commerce in the history of the development of e-commerce has set up an important milestone. Globally, e-commerce is one of the most important driving forces for the development of the world economy in the next 25 years, and all countries in the world attach great importance to the development of the information industry and e-commerce. In the current cradle period of e-commerce development, countries to give tariff-free support for the popularization and maturity of e-commerce.　

(D) international trade enforcement mechanism innovation

E-commerce to create an online virtual market, the formation of a new international trade enforcement mechanism, to promote the information network as a link to the world market information integration process. In this network trade environment, the economic and trade contacts between countries to further strengthen, which further promotes the innovation of international trade has laid the foundation.

First, the electronic commerce environment in the convenient flow of information, reducing the uncertainty of international trade, correcting the blindness of the world market development, in order to reduce the time lag in international trade decision-making and create the conditions for error.

Second, e-commerce beyond the time and geographical restrictions. Lift the traditional trade activities in material, time, space on the transaction between the two sides of the limitations, change the traditional international trade implementation mechanism is difficult to overcome the disadvantage of location and competitive disadvantage.

Third, in the e-commerce environment, products and services are expressed as digital signals, tangible and intangible trade boundaries become increasingly blurred.

Fourth, the adequacy of information in the world market is further weakened. Due to incomplete information or information asymmetry produced by the monopoly of the world market further weakened, the market mechanism will play a better role in a certain program for the effective allocation of resources in the world market to provide adequate and excellent information services, to promote the realization of the dynamic allocation of resources in the global context of optimization.

(E) international trade transaction mode innovation

The development and application of e-commerce to promote the innovation of international trade mode, the realization of the flow of paper trade documents as the main body of the traditional international trade process and transaction mode of change. In the information industry to the deep development at the same time, the rapid development of international trade urgently requires the realization of global trade operations information, saving social costs and trade costs, the development of e-commerce to meet this demand. In the traditional trade mode, the international trade process to the buyer to prepare a shopping list to the registration of accounts receivable charge, need to go through more than 20 links, while e-commerce mode can be completed in only 8 links. E-commerce to help international trade enterprises to reform the international trade process, the realization of international trade management of electronic, information, automation, scale, the formation of a new efficient international trade process management model to promote international trade innovation.

(F) international trade marketing innovation

E-commerce caused by the vantage point of marketing, promote international trade marketing innovation, resulting in a new form of marketing - e-marketing. E-marketing is to refer to the electronic information network for marketing. Enterprises through e-marketing, with the help of the Internet, you can produce, information transfer, advertising, shopping, payment and information products and other businesses, two-way interactive information can be exchanged data files, images, sound, etc., can be one-to-one two-way interaction, and can even be a pair of countless and countless interaction. It can transfer the physical market to the virtual market where the largest number of people can participate. The initiative of customer participation and the initiative of choice has been strengthened, and the modern interactive marketing is taking shape. Interactive marketing emphasizes the two-way promotion of interactive communication between enterprises and consumers, changing the one-way promotion of enterprises to consumers in traditional marketing. With the improvement of residents' income, the maturity of consumer awareness and the transformation of the concept of consumption, differentiated consumption, personalized consumption has become fashionable, interactive marketing through the active participation of consumers in the whole process of production, so that the enterprise can not only obtain the economies of scale of mass production, but also to adapt its products to the unique needs of individual consumers to meet the needs of both mass, but also to meet the needs of personalized to maximize consumer satisfaction of the product. Increase consumer satisfaction with the product. In electronic marketing, enterprises and customers to form this marketing framework can be called network integrated marketing, which always reflects the customer as the starting point and the enterprise and customer interaction characteristics, is a breakthrough in the traditional marketing approach.

(VII) international trade and transportation innovation

In the case of EDI popularity, international trade and transportation is not just a single mode of transport, but must be warehousing, transportation, traffic and other close combination, the formation of e-commerce under the international trade and integrated logistics. The use of information networks on the entire international trade transportation process for integrated management, improve the efficiency of each link of the integrated logistics chain and level of service, reduce inventory, intermodal transportation and other aspects of the integrated logistics costs. Network space-time "zero distance" requirements to speed up the speed of international trade transport, modern consumers pursue the concept of personalized consumption and increased international trade transport tasks, which indicates that the traditional international transport will gradually fail to adapt to the requirements of the network economy, the E Era calls for changes in international trade transport.

In the ever-changing e-commerce era, international trade presents changes in the new trade environment and trade mode of adaptability performance, it should be said that international trade as a powerful source of power for the development of the international economy, and its innovation and change can always cause great interest in our country's international trade in the new period of development and innovation of the study has just begun, so it is necessary to seize the new opportunities brought about by e-commerce, the new opportunities for the development of the international trade in the new period of development and innovation. Therefore, it is necessary to grasp the new opportunities brought about by e-commerce, drawing on the experience of developed countries, so that China's international trade development into a new milestone.

The similarities and differences between cross-border e-commerce and traditional international trade mode

Cross-border e-commerce is a recent development, there are several giants, to the development of overseas warehouse mode, O2O, B2C, C2C. traditional trade is B2B, usually factories directly exported

How to combine the international e-commerce with the traditional way of trade

In the opening of a brick-and-mortar store, at the time of traditional trade at the time. At the same time also carry out e-commerce promotion!

Now so many companies are like this!

The concept of traditional trade

Not determined, see the Western classical trade theory

The difference and liaison between the new theory of international trade and the traditional trade theory

The theory of international trade as a specialized branch of modern economic theory began with Adam Smith. He proposed the concept of absolute cost in his Wealth of Nations, which was later amended by Ricardo to form the comparative cost theory. Comparative cost theory suggests the basis of mutually beneficial trade and the source of trade benefits. This was then explained by Olin in his book Interregional and International Trade, which proposed the theory of factor endowments (i.e., the H-0 model). This theory points out: the comparative cost difference is due to the different resource endowment of the countries, and the international trade commodity and factor model to make a definitive conclusion. Thus, the core of the two levels of traditional international trade theory has been laid.

Comparative cost theory and factor endowment theory. Since then, Rybczynski, Samuelson and others on this basis to further improve and supplement the content of the popular international trade theory as we know it.

The traditional theory of international trade is best characterized by its logical rigor and perfect form. But this is also where its weakness lies. Because the real world is not as perfect as it imagined. In fact, the traditional theory of international trade since its inception, has been a serious challenge. Leontief's fascination first questioned its predictions about the pattern of international trade in goods and factors through empirical research. In the post-war period, especially after the 1960s, many new phenomena emerged in the field of international trade. Trade among developed countries (i.e., among countries with similar factor endowments) and trade among similar products (i.e., among products with similar proportions of the factors needed for production). This traditional international trade theory is at a loss. since the 80's, many western economists are committed to the use of industrial organization theory and market structure theory to explain the phenomenon of international trade, with imperfect competition, scale payoff incremental and dissimilar products and other concepts and ideas to construct a new trade theory model. A group of economists mainly represented by Stigley, Krugman, Grossman and Helpmann established a new analytical framework, absorbed the reasonable factors of many previous trade theories and developed their own theory. This theory because of its theory of novelty, analytical method of unique and explain the reality of the ability to gradually for everyone to agree, its status has far more than the traditional international trade theory. Grossman, Krugman for this successively won the Clark Award. The theory is also known as the "new trade theory Neo-tradetheory".

1. The fundamental reason for the formation of international trade. The traditional trade theory is that demand preferences and the distribution of ownership of factors of production determine the demand for the final product, which leads to the derived demand for factors. Derived demand for factors and factor supply determine factor prices. Factor prices and production technology determine commodity prices. Differences in commodity prices are the most direct cause of trade. The traditional theory of international trade assumes that demand preferences and production technology are the same in both countries, and concludes that differences in relative factor endowments between the two countries determine differences in relative factor compensation between the two countries, which in turn directly converges on the differences in relative commodity prices between the two countries, differences in relative factor compensation, and relative commodity prices in the explanation of the causes of trade in the function of the three are equivalent. Differences in relative factor endowments are the underlying cause. Conversely, if there are no differences in relative factor endowments between two countries, there is no trade between them. The new trade theory, on the other hand, argues that because of economies of scale, the difference in relative commodity prices between the two countries cannot be derived directly from differences in factor prices, but must be factored in by production technology. Other things being equal, differences in the size of the economies of the two countries lead to differences in the cost of production, which also affects the price of goods. The trajectory of the determination of relative commodity price differentials is such that differences in relative factor endowments determine relative factor price differentials, and differences in relative factor prices and differences in the size of the economy between countries (specifically differences in the level of output)*** together determine differences in relative commodity prices. Thus, differences in relative factor endowments are equivalent to differences in relative factor prices, but they are no longer equivalent to differences in relative commodity prices. Differences in relative factor endowments and differences in the size of the economy determined by the size of the country * * * work together to produce the result that is the root cause of trade. Conversely, even if there were no differences in factor endowments between two countries, trade would occur due to differences in economic size. This explains the dilemma faced by traditional trade theory that there is a large amount of trade between developed countries.

2. Commodity model of trade. The traditional theory of trade according to the 2 × 2 × 2 model: a country will export goods are those that require intensive use of the country's relatively abundant and cheap factors, while imports of goods are those that require intensive use of relatively scarce and expensive factors. In short, there is a corollary here; the country with relative labor abundance exports relatively labor-intensive goods and imports relatively capital-intensive goods, and the other country does the opposite. The new trade theory breaks through the limitations of the 2 x 2 x 2 model by pointing out that when the number of traded goods is greater than the number of factors, there is uncertainty in the production of goods and trade in goods between two countries. A country may export a good under one production model and may import it under another. The mode of production, on the other hand, may be determined by some accidental historical reasons, such as *** planning. Below we explain this possible situation by assuming the existence of two countries (A and B), two factors (K and L), and three commodities (X, Y, and Z).

Let the total resources of the world be K = 7 and L = 9. The production functions for X, Y, and Z are X = 1K + 3L; Y = 2K + 2L; and Z = 3K + 1L. Consider that (1) if the resources are concentrated in one country, then X = 2, Y = 1, and Z = 1 can be produced, and the economy reaches full-employment equilibrium; and (2) if the resources are distributed in the two countries, with K = 3 and L = 5 for country A, and with K = 4 and L = 4, then the following two production patterns: (1) country A (X, Y, Z) = (1, 0, 1), country B (X, Y, Z) = (1, 0, 1); (2) country A (X, Y, Z) = (1.5, 0, 0.5), country B (X, Y, Z) = (0.5, 1, 0.5) are both able to make the two countries reach the full employment equilibrium, i.e., the production patterns are uncertain. And in the first case, country A exports commodity Y to country B. In the second production pattern, country A imports commodity Y from country B. For a country, good Y may be either an exported or imported good. That is, the commodity pattern of trade is also uncertain.

3. Factor model of trade. The traditional trade theory of the factor pattern of trade is very simple, the net flow of factors in trade in the direction of: a country exports its own relative abundance of factors, imports its own relative scarcity of factors. The new trade theory, on the other hand, states that a country may be a net importer of all factors even if trade between the two countries is balanced. The reason for this is that due to economies of scale, it is impossible for firms to follow the principle of marginal cost pricing. At the same time, if entry is restricted due to size, *** regulation or other reasons, there are monopoly profits (economic rents) in the behavior of increasing returns to scale, which will be obtained from abroad when goods from these industries are exported abroad. And when the magnitude of the monopoly profits obtained by the two countries (i.e., the monopoly profit rate) is unequal due to different degrees of management, one country can use the monopoly profits obtained to purchase goods from the other country, and may even reach the situation of importing all the elements. This partly explains the current phenomenon of deteriorating terms of trade for commodity-producing countries in world trade. The industries of developed countries generally have strong economies of scale and degree of monopoly, and in the United States, for example, in primary aluminum, telephone and telegraph equipment, motor vehicles, synthetic fibers, and other industries, the industrial output of the top four companies accounted for more than 90% of the total industry. And in 1987, Exxon, General Motors, Ford Motor Company, Mobile Oil Company sales exceeded the gross national product of Norway, Greece, Finland and other moderately developed countries. With the advantage of these powerful monopolies, the industrial products of developed countries are sold on the world market at high prices, obtaining huge monopoly profits, and obtaining cheap raw materials and fuels from primary product-producing countries, indirectly occupying the resources of these countries. With the strengthening of this monopoly trend, the terms of trade of the commodity-producing countries continue to deteriorate.

4. Trade composition and trade volume. Traditional trade theory holds that a country is bound to export relatively abundant factor-intensive products and import its own relatively scarce factor-intensive products. Only inter-industry trade exists between the two countries, and intra-industry trade (trade in products of similar factor intensity) cannot exist. And within a certain range, the greater the relative difference in factor endowments between the two countries, the greater the volume of trade. When there is no relative difference in factor endowments between two countries, there is no mutual trade. The reality is otherwise, not only within many industries (such as small cars, machinery, electronics) and so on there is a large amount of trade; but also the post-war world trade volume growth rate far exceeded the rate of economic growth. What's more, trade between developed countries has grown even faster, which cannot be explained by traditional trade theory.

The new trade theory introduces the concept of dissimilar products to model trade. The so-called dissimilar products are: after we determine the structure of the commodity sector, belong to the different kinds of products of this commodity sector. For example, if we identify "quartz watches" as a commodity sector, then quartz watches of various brands available in the market such as Seiko, Polaris, Haida, etc., are all dissimilar products (also called "variants") of the commodity "quartz watches", and not only that, but also that, the new trade theory introduces the concept of dissimilar products to model trade. Not only that, there are more variants that can be produced potentially, for example, a year later there may be "dream brand", "fictitious brand" quartz watches, which all belong to the category of the new trade theory of variant products. What is particularly important is that dissimilar products can exist because they are valuable in their own right (there will always be people in the market who prefer such variants), and that the greater the variety of dissimilar products, the greater the choice for consumers and the higher the social welfare. In the case of a country's self-sufficiency, however, due to size constraints. There cannot be many varieties of variants because the greater the number of variants, the smaller the scale of production, the smaller the scale, and the economies of scale are limited. The variety of variants will be kept at a level that is a trade-off with economies of scale. With trade, the markets of the two countries are united, and each country produces several variants that do not overlap with each other, but the total number is greater than the number in the country of the trading predecessor. On the demand side, the two countries import each other's variants because an increase in the number of consumable variants will increase welfare. Thus, intra-industry trade arises. And, as far as trade volumes are concerned, there is a fundamental difference between a world economy with dissimilar products and the traditional theory of trade, where the relative size of countries has a great impact on trade volumes. The more similar the country sizes, the greater the volume of intra-industry trade. In terms of total trade volume, the relative differences in factor endowments (which determine the volume of inter-industry trade) and the relative size of countries (which determine the volume of intra-industry trade)**** together determine the volume of trade.

5. Trade benefits. The traditional trade theory that: do not take into account the dynamic benefits arising from trade, when there is a relative difference in factor endowments of the two countries are incompletely specialized production, each play a comparative advantage, and then trade, then both sides can profit. This static benefit of trade comes from the increased productivity of specialized production. The new trade theory, on the other hand, points out that under the market structure of economies of scale and imperfect competition, the economy cannot achieve the optimal allocation of resources under a perfectly competitive market, but can only perform in a suboptimal state. However, compared to a situation where countries are self-sufficient, trade leads to an increase in the overall level of welfare worldwide. This is not only due to the traditional benefits of comparative advantage, but also due to the following potential benefits: (1) Productivity benefits. Trade allows industries with increasing returns to expand as a result of expanding markets, increasing economies of scale and raising productivity. (2) Concentration of production. Trade allows industries with increasing returns to concentrate production in the world's most efficient countries, bringing down the price of goods. (3) Rationalization of production. The development of trade increases competition in imperfectly competitive industries, reduces monopoly profits, eases price distortions, and optimizes resource allocation. (4) Product diversification. Trade makes the world market much larger than the domestic market, the choice of variants increases, and welfare increases. But the new trade theory also points out that for a country, there is also the possibility of trade damage. When trade leads to the contraction of domestic industries that produce on an incremental scale and in highly monopolized industries (because domestic production is less efficient than foreign production and competition fails in international markets), and other benefits from trade are not sufficient to compensate for the loss of economies of scale and the loss of monopoly profits from this contraction (which is then captured by the foreign country), then trade impairs the country, although this is unlikely. What is important to pay attention to is the problem of unfair distribution of the benefits of trade.

What are the advantages of cross-border e-commerce compared with traditional international trade

First, low cost: most of the traditional cross-border trade is mainly by a country's importers/exporters through another country's out/importers to focus on importing/exporting large quantities of goods, and then through the domestic distribution enterprises through multiple levels of distribution, and finally reach

the demand for enterprises or consumers. Import and export links, long time, high cost, and the emergence of cross-border e-commerce, direct to the final consumer, greatly reducing the cost of enterprises out of the country.

Second, fast speed: as long as overseas buyers place orders on the platform, a strong logistics system can make the goods reach buyers in 1-2 weeks.

Third, easy to start: as long as the merchant customers through the cross-border e-commerce platform can be convenient shopping transactions.

International Trade Documentation and International Business Documentation is a concept of

from the practical work is the same, but if the certificate, it is the two organizations organized the examination, it is recommended that you test international business documentation, this as long as more questions can be recommended the following set of questions, it is very full:

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