First, define the concept of price. The simple answer here is different scope of application.
-Trade credit business: applicable to general trade.
-entrepot trade revenue and expenditure business: applicable to entrepot trade.
-Counseling area business: applicable to processing trade.
The above three kinds are easy to understand as long as you know the types of trade.
-Trade financing business: applicable to businesses such as letters of credit. No matter what trade it is, it is used as long as the letter of credit is involved.
In this case, we must understand the definition of letter of credit and so on, as a special way of income and expenditure.
-Trade credit
Trade credit refers to the foreign debt between Chinese mainland residents and overseas non-residents (including Hong Kong, Macao and Taiwan), which is caused by the direct provision of credit by buyers and sellers of goods and services, that is, the debt caused by the difference between the time of capital payment and the time of ownership transfer of goods. Specifically, it includes suppliers (such as overseas exporters) who directly provide credit for commodity transactions and services, and buyers (such as overseas importers) who pay in advance for goods and services and ongoing (or planned) work. It is different from the bill financing and import and export credit provided by banks (included in loans from other investments), but it is manifested in the credit provided directly between importers and exporters, including four forms: advance payment, advance payment, deferred payment and deferred payment. Due to the small scale of service trade, the commodity flow and capital flow of service trade are generally synchronous, so the trade credit item in China's national balance of payments statistics generally refers to goods trade credit.
-Trade financing
Trade financing is one of the businesses of banks. Refers to the short-term financing or credit facilities provided by banks to importers or exporters related to import and export trade settlement. Overseas trade financing business refers to the financing method of extending the payment period under the letter of credit by using the financing amount and financing conditions provided by foreign agents when handling the import letter of credit business.
transit trade
Entrepot trade, also known as intermediate trade or entrepot trade, refers to the buying and selling of import and export goods in international trade, not directly between producing countries and consuming countries, but through third countries. This trade is entrepot trade for transit countries. The traded goods can be transported by the exporting country to a third country, where they are not processed (changing packaging, sorting, classification, etc.). Not regarded as processing) and then sold to consumer countries; It can also be transported directly from the producing country to the consuming country without going through a third country, but there is no trade relationship between the producing country and the consuming country, but the transit country trades with the producing country and the consuming country respectively.
-Processing trade means that a country imports raw materials, materials or spare parts through various means, processes them into finished products by using its own production capacity and technology, and then exports them, so as to obtain the added value embodied in foreign exchange. Processing trade is a entrepot trade characterized by processing, with various ways.
Trade credit business, trade financing business, re-export trade revenue and expenditure business and foreign exchange consulting area business.
These four concepts are quite different and easy to understand and distinguish. I hope the above answers can help you understand better.
The above answers were given by She, a senior foreign trader in Shantou City, Guangdong Province, on 2012110/0/0 2 65438, for reference only ~ ~