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School of International Trade and Economics, Guangdong University of Foreign Studies
广东省省级精品课程《国际贸易》
Chapter 2
Basic Classification of
Foreign Trade and Statistics Index
广东外语外贸大学国际经贸学院
卢立岩 副教授
Chapter: 2
Basic Classification of
Foreign Trade and Statistics
Index
2.1 Basic Classification of Foreign Trade
Foreign Trade can be classify to different type basic on the different
ways. Details as follows:
2.1.1 On The Basic of Transit, Foreign
Trade can be Classify as:
 Export Trade: one country sells its commodities
or services to other country.
 Import Trade: one country buys commodities
or services from other country.
 Transit Trade: when country A transit
commodities to country B through country C, it is
called Transit Trade to country C.
2.1.2 On The Basic of Style of Commodity,
Foreign Trade can be Classify to:
 Goods Trade: The trading material is tangible. It
is the main part in international trade.
 Service Trade: The trade is intangible. The
services generally include the following categories:
wholesale and retail trade, restaurants and hotels,
transport, storage, communications, financial
services, insurance, real estate, business services,
personal services, community services, social
services and government services.
The amount of service trade grows rapidly in the
resent years. It is getting more and more
important in the international trade.
2.1.3 On the Basic of Different Standard
for what is Import and Export, the Trade
can be Classify to:
 General Trade: the country calculate its import
and export amount as soon as the trading
commodities move across its frontier
 Special Trade: the country calculate its import
and export amount as soon as the trading
commodities move across its customs area
2.1.4 On the Basic of Different terms of
trade, the Trade can be Classify to:
 Direct Trade: the manufacturing country and
the consuming country buys and sells the
commodities directly.
 Indirect Trade: the manufacturing country and
the consuming country buys and sells the
commodities indirectly through the third party
 Entrepot Trade: the indirect trade to the third
party
2.1.5 On the Basic of Different terms of
transportation, the Trade can be Classify to:
 Trade by Roadway: the trading commodities
are transported by roadway
 Trade by Seaway: the trading commodities are
transported by seaway
 Trade by Airway: the trading commodities are
transported by airway
 Trade by mail order: the trading commodities
are transported by mail order
2.2 Statistics Index of Foreign Trade
2.2.1 Value of Trade and Quantum of Trade
 Value of Trade: It provides the total value on
export and import to a nation or the total value
on export to the world. It is accounted on the
basic of instant price.
The export value of the world
The export and import value of China
 Quantum of Trade: It provides the total value
on export and import to a nation or the total
value on export to the world. But It is accounted
on the basic of price index.
Value of Trade and Quantum of Trade
provide the information on the trading
situation to a nation or to the world. The
difference between of them is the former
is accounted on the basic of instant price
which makes it would be affected by the
change of price; the latter is accounted on
the basic of price index which makes it
would not be affected by the change of
prices.
2.2.2 Balance of Foreign Trade
Balance of Foreign Trade: It provides
information on the balance of export and
import to a nation. It is an important part
of Balance of Payment to a nation.
When export is over import, it is called
Export Surplus;
When import is over export, it is called
Import Surplus;
When export equals to import, it is called
the trade under balance.
2.2.3 Net Export and Net Import
Net Export: Export is over import in the
same commodity. It shows that this
commodity to the nation is more
competitive in the world market.
Net Import: Import is over export in the
same commodity. It shows that this
commodity to the nation is less
competitive in the world market.
2.2.4 Composition of Trade
Composition of Trade: It provides
information on the percentage of goods
and services in the trade.
Another important concept is:
Commodity Composition of Trade: It
provides information on the percentage of
manufactures and the primary products.
2.2.5 Trade by Region
Trade by Region, it is also called
Geographical Composition of Trade: It
provides information on the ratio of a
nation’s export and import value to the
total trade value in the international
market. It shows the importance of a
nation in the world market.
2.2.6 Degree of Dependence upon
Foreign Trade
Degree of Dependence upon Foreign
Trade: It is the ratio between Trade Value
and GDP. It shows the importance of
foreign trade to the domestic economy in
a nation.