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Briefing group 1: Nguyen Vuong Hoang Nguyen Dieu Linh Vu Diem Thanh Briefing topic: International Trade Date

: 22/02/2011
Good morning. We are Linh, Hoang and Thanh. Today we will introduce to you a topic that maybe all of you here concern. Do you know what WTO, E or !"#T" are$ "ll of them are organi%ation& related to international trade. '(m &ure that you can gue&& the topic we want to gi)e out today. 't i& 'nternational Trade. ' hope that after the Word Game, you can under&tand our brief more ea&ily. Our brief include& * part&+

! International trade:
'. Trading between countrie& nowaday&, - Protectionism is no longer the order of the day in most places. - International trade now forms the ideal for almost all nations. ''. 'nternational trade, - International trade is the exchange of products, services, and money across national borders, essentially trade between countries. - It takes place within the framework of agreements worked out by countries in the World Trade rgani!ation "WT #.

B! d"antage# and di#ad"antage# of international trade:
'. "d)antage& of international trade,
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$onetary gains to the respective country indulging in trade. $ore variety of goods available for consumers. %etter &uality of goods. 'ompetition both at the international level as well as local level. 'loser ties between nations. $ore exchange of technical know-how. (ocal producers will try to improve the &uality of their products. Increase in employment locally. (ocal production may suffer (ocal industries may be overshadowed by their international competitors )

''. Di&ad)antage& of international trade,
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Ideological differences may emerge between nations with regard to the procedures in trade practices. .Open Account: is a sale where the goods are shipped and delivered before payment is due.T is also used between buyers and sellers who have already established a mutual trust. and the fact that the transaction may have taken place without the two parties actually meeting. escrow is used when the %uyer and -eller are unknown to each other. and the seller need to know how much they will get paid for it. (etter of credit "(' or (o'# is a common means of payment in international trade. Definition. -roce&&. but it is consequently the highest-risk option for an e porter. . which is usually in 30 to 90 days. . Obviously. under specified conditions. . ''. fastest and cheapest from of payment and is typically used when samples or small &uantity shipments are transported by air.Document gain#t %ayment/Bill of ')change *D/%+: are one form of commercial safeguard that often relies on a bill of exchange document. this is a written commitment by a bank to make payment to an exporter on behalf of an importer. T. . this option is the most advantageous to the importer in terms of cash flow and cost. • $! %ayment: There are many ways to make and receive payment in international trade.Letter of $redit i# a comple) form of international payment! '. & '#cro(: is a process where sellers and buyers give funds and documents to an independent trusted third-party " called escrow agent# for disbursement to the parties upon completion of terms and conditions Typically. +ue to the physical distances between buyer and seller.• *ich countries may influence political matters in other countries and gain control over weaker nations. The buyer wants to make sure they receive their order in acceptable condition and on time. The documents serve as a security for an agreement between a buyer and a seller. The +ocumentary 'redit 'ycle .T/T or $a#h d"ance: is the easiest.

are necessary taxes on goods as they cross the borders of a nation. Trade barriers are governmental restrictions on trade between nations.  -tep 2/ The advice of a (etter of 'redit is a simple form that is sent to the seller by advising bank. "The issuing banks0 role is to provide a guarantee to the seller that if compliant documents are presented. and only pay if these documents comply with the terms and conditions set out in the letter of credit#  -tep 1/ The actual letter of credit "('# is transmitted to the advising bank "confirm the letter of credit for the seller #. and which documents to provide. They include tariffs. 3n important aspect of international trade that is always discussed in trade negotiations is trade barriers. subsidies. duties. 1 ./ The application for a (etter of 'redit must be completed by the buyer and given to the issue bank. It tells the seller exactly which functions to perform. They are applied to both imports and exports. and it is followed by the actual (etter of 'redit. It says that a credit has been opened in his favor.  /uota# are a protectionist means of trade restrictions that set a physical limit on the &uantity of imports in order to make the prices of those goods higher. and embargoes. Trade barrier&.arrier# and -ree trade . D! Trade . the bank will pay the seller the amount due and to examine the documents. It gives the seller notice that they can begin preparing the goods for shipment. a fairly common form of trade barriers. but in some cases they are used as a form of protectionism that helps domestic goods stay competitive with imports. Tariffs are used as a way to earn money for the government. helping benefit the '.  Tariff#. in order to get paid. -tep )/ seller and buyer have a contract  -tep . &uotas.

services and capital can move freely. It is often done as a form of punishment that a nation applies to a weaker one because of its political or economic aims. "Take 67 for example/ .67 has developed a single market in which people. . 3-638. Therefore. more profits and more 5obs. ♦ There are some benefits of free trade/ . . goods. . 'ontrary to the trade barriers.  n em. free trade !ones are established.# 2 . it uses a common internal tariff on all goods entering the market. 4or example.9 These unions not only protect the interests of their members but they also regulate the trend and pattern of international trade.It has its own currency known as 6uro that allows trade between member countries more conveniently.<s by six country. 3s a result.argo can be seen as the most extreme of the trade barriers. customers can have access to goods that may be unavailable when the market can not meet the demand. ♦ The well known free trade !ones in the world are 67. the prices of goods reduce. especially for developing countries. $6' -7*. Today it has . 3s a result. $oreover.4or customers/ %ecause it allows people from various countries with various production methods and business strategies to compete within a single market.4or suppliers/ it has created bigger markets that bring suppliers the opportunity for more growth. That allows goods and services to flow across international borders without trade barriers. free trade refers to the exchange of goods across international borders without government interference.67 was established in the ):. It basically forbids the import as well as the export of anything with another country.#idie# are another of the common trade barriers usually used to protect domestic industries or agricultures. its trade has improved and extended. #ree trade %one&.= member countries and becomes one of the biggest trade blocks. food crops and some industrial goods like steel are subsidi!ed to ensure that a nation is always able to supply those goods. 0u. 834T3. It also increases investment opportunities. ''.

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