Make A Wish - Vic Zhou (周渝民)

Dang lei si liu xing
Hua guo shou xin, wo bu jin
Bie shang xin, bu yao jin
Zhe ge shi jie hao nian qing
(wo men de meng hai nian qing)

Ai mei you chi bang
Ye neng fei xing dao ni xin
Bie hai pa, bie dan xin
Nan dao ni mei gan ying
Zhe ai qing hao jian ding

Will you make a wish
Make a wish
Bi shang yan jing yuan wang shi kou jing
Make a wish make a wish
Ni hui ting jian zhen cheng de hui yin

Rang wo men
Make a wish make a wish
Yi qi yue ding kan zui mei feng jing
Zhe yi qie dou bu hui shi meng jing

Zhi yao ni quan xin quan yi
Xiang xin

The letter of credit - LC

The letter of credit is the most widely used instrument of international banking. It has facilitated international trade for a very long time, especially during times of economic and political uncertainly.
The letter of credit is the bank instrument that assures the person selling merchandise of payment if he makes the agree-upon shipment. On the other hand, it also assures the buyer that he is not requires to pay until the seller ships the goods. It is thus a catalyst that provides the buyer and the seller with mutual protection in dealing with each other.
An international trading transaction begins when a buyer and a seller sign a contract that records all the elements of the transaction: the merchandise, price, method of payment, delivery date, and method of shipment, as well as specifics, the buyer and seller must arrange payment. The buyer will want possession before paying, and the seller will want payment before making delivery. Since each party often has incomplete knowledge of the other, there is a certain caution to their dealings.
To be safe, the buyer and seller use the letter of credit. The buyer requests his bank to issue a letter of credit in favor of the seller. Assuming that the credit risk is acceptable to the bank, it issues its letter of credit. Basically, the letter says to the seller: we, the bank promise that we will pay you when you have made the agree-upon shipment. The bank thus substitutes its credit for that of the buyer, which might also be good but probably is not as well known. The letter of credit also protects the buyer, for he knows that he will not be called upon for payment by his bank until the evidence shows that the shipment has actually been made.

Vietnamese Rice Exports

In the mid - 1980s, Vietnam had to import rice and request international food aid several times during the decade to prevent famine. By 1989, it had become the third leading exporter of rice, following the United States and Thailand. Rice trade changed from imports of 280,000 tons in 1988 to exports of nearly 1.5 million tons in 1989. Rice export earnings represent one-third of total hard currency exports.
How did Vietnam have such great success? The main cause was not a change in the weather, but rather a series of policy reforms that transformed Vietnam from an importer to an exporter of rice. During 1988 and 1989, agriculture was decollectivized and rice returned to family-farm production. Price controls were eliminated and a large real devaluation of the currency in 1989 strengthened financial incentives to export. Finally trade organizations were reorganized to eliminate states monopolies in imports and exports, which introduced competition among the big state-owned trading companies.

What is international economics?

International economics deals with the economic interdependence among nations. It analyzes the flow of goods, services, and payments between a nation and the rest of the world, the policies directed at regulating this flow and their effect on the nation's welfare. This economic interdependence among nations is affected by, and in turn influences, the political, social, cultural and military relations among nations. Specifically, international economics deals with the pure theory of trade, the theory of commercial policy, foreign exchange markets and the balance of payments and adjustment in the balance of payments. The pure theory of trade analyzes the basis for and the gains from trade. The theory of commercial policy or protectionism examines the reasons for and the effects of trade restrictions. Foreign exchange markets are the framework for the exchange of one national currency for another while the balance of payments measures a nation's total receipts and the total payments to the rest of the world. Finally, adjustment in the balance of payments disequilibria under international monetary systems and the effects of these adjustments on a nation's welfare.