【正文】 Tong, 2006)Though free translation has bee the main stream of term translation, yet in financial area there exist a large number of term translations by borrowing, transliteration and free translation. The disorder of terms would cause mess in the study of financial theories and development. Literal TranslationLiteral translation is a kind of translation, in which few adjustments are made for differences in symbolic or metaphorical meanings in the two languages (Cheng Linhua, 1995: 28). The aim of literal translation is to preserve the content and form of the source language in accordance with the cultural tradition.As the same referent in the world is the base of human cognitive system, whatever language one may speak, people must have the same thought about the mon objective world. The referent is changed into linguistic form through conventions with meanings (Larry, 2000). Cross culture munication actually relies on translation which is based on the same referent in the objective world.Literal translation is usually used when the expressions do not have cultural connotations and it is also widely used for the translation of financial terms. Let’s take one sentence for example. “In general, a nation’s balance of payment is affected by the appreciation or depreciation of its currency in the foreign exchange market.” The words and phrases lined above are all financial terms which have accurate meanings of themselves and in Chinese they have corresponding and correct terms so they can be translated correspondingly, not necessary adopting free translation. No matter nouns or verbs, literal translation should be adopted if they have single meaning and peculiar to financial area. From the above example, we conclude that literal translation embodies the correspondence both in from and meaning between the two languages. Free Translation Free translation is a kind of translation, in which the meaning of the statement, expression or text in the source language is rendered into the target language without exactly or accurately following the source language. It is a kind of reproduction based on essential meaning and intention of the original language material (Chen Linhua, 1995: 289). Because no equivalent words or phrases of the source language can be found in the target language, translators have to find similar words or phrases to replace the original ones. Adopting free translation is mainly because of “culture vacancy” (no equivalence of the original expression can be found in the target language due to cultural differences). Thus, the translator has to adapt the expressions to target language style. The following are two examples of free translation, both of which have to do with the change of form and content between source language and target language. Let’s take a sentence for an example. “In some cases the MNC retains a minority of interest while in others in others the host country owns 100 percent and the MNC only performs managerial and supervisory functions for a period of time.” “retains a minority of interest” means “擁有一小部分股份”, not “保留一小部分興趣”. These words and phrases seem to be mon words and phrases but in fact they have special meanings in financial context. Grasp main idea in special context. The other kind of terms is not peculiar to financial area. They have accurate meanings in financial language but can also appear in other languages, such as acquire (獲得，取得——常用意義), (保險單——金融專業(yè)意義). This kind of words looks like mon words. But in particular context, they have special meanings of professional financial terms.Generally speaking, free translation aims to break down the surface structure of the source language and to dig out its meaning in general. However, they ignore the influence of both cultures upon the rendition of political terms. Limitations of Previous MethodsAlthough some Chinese researchers have contributed a lot to the study of financial terms from various perspectives, few of them have analyzed financial terms from the theoretical perspective of foreignization and domestication. The translators have paid much attention to literal translation and free translation, but the methods they used failed to give any consistent and satisfactory results. Translation was maintained on the superficial level and the connotation behind remained neglected. At the same time, little attention has been paid to breaking to retaining the original culture conventions. What literal translation and free translation often neglects is the cultural factors. They stress form and meaning rather than cultural influence. The current financial terms are rendered in the situation of “open up policy” and globalization which require more crosscultural munication. To some extent, cultural factors are more important than before in the rendition of political terms.The review of previous methods employed in the EC translation of political terms suggests that both literal and free translation are needed, but they should be upgraded to a higher level in this culturally globalized world. Which culture should be stressed, the source culture or the target culture, falls into the category of the theory of domestication and foreignization.To meet the need of cultural munication in the contemporary world, it is essential to guide the Chinese traditional studies on the basis of bilingual and bicultural transferring.Translation was maintained on the surface level of language in the past. The foreign elements under the surface level of language remained neglected in translator’s debate over a universal translation standard. And the traditional methods emphasize the role of translators in the process of translation rather than the objectivity of both source culture and target culture. Aims and Objectives of the Present StudyBased on domestication and foreignization theory, the thesis aims to find out the factors leading to the translator’s choice of a prope