You are on page 1of 3

Background of department of International trade and



In 1999E.C, the International trade and Investment Management department was started with
the 36 student intake. The student was selected at the national level with entrance test. In 2002 it
was merged with the marketing department and became a unit of Department of Marketing and
Trade. In 2003 it became a completely independent unit under marketing. In 2004E.C it was
recognized as a full-fledged independent department.
International trade is growing faster than the world output, indicating that a growing proportion
of the national output is traded internationally or that the international market is more dynamic
than the national markets. Thanks to the ongoing globalization, barriers to cross-border
businesses have been disappearing or diminishing substantially and a borderless business world
is emerging. Globalization makes the business environment increasingly global even for
domestic firms. It is the internationalization and globalization that is creating many business
opportunities for developed and even developing countries.
The major competition which many Ethiopian firms encounter in the home market now, for
instance, is from foreign firms they now face a substantially growing competition from goods
that are imported. Whether liked or not, globalization has become inevitable fact today
regardless of a countrys level of economic development.
International trade is the exchange of goods and services across international boundaries or
territories. In most countries, it represents a significant share of GDP. While international trade
has been present throughout much of history its economic, social, and political importance has
been on the rise in recent centuries. Industrialization, advanced transportation, globalization,
multinational corporations, and outsourcing are all having a major impact. Increasing
international trade is basic to globalization.
International trade not only results in increased efficiency but also allows countries to
participate in a global economy, encouraging the opportunity of foreign direct investment (FDI),
which is the amount of money that individuals invest into foreign companies and other assets. In
theory, economies can therefore grow more efficiently and can more easily become competitive
economic participants. For the receiving government, FDI is a means by which foreign currency
and expertise can enter the country. These raise employment levels and, theoretically, lead to a

growth in the gross domestic product. For the investor, FDI offers company expansion and
growth, which means higher revenues.
The importance of Trade and Investment in development is well established. In todays world,
trade is a prime mover of the global economy in which investment is the main tool.
Ethiopias situation can never be different in isolation from the global fact. Responding to
globalization is without option.

Ethiopia is a Least Developed Country (LDC) as reflected by its low level social and economic
indicators even compared with Sub-Saharan countries. The long-term development objective of
the Government is to enhance the welfare of the people through ensuring sustainable growth
with a free market economic system. In this regard, the country's trade policy aims at creating a
competitive economy driven by the private sector. The Governments latest decision to join
WTO is a part of the countrys response to the order of global economic scenario without which
economic development will remain a mere dream.
The Government of Ethiopia is fully cognizant of the fact that the best way to accelerate
economic growth and development is to integrate its economy into the Multilateral Trading
System (MTS). It acknowledges that membership to WTO is to be part of the rules-based
multilateral trading system and this will create confidence for investors and serve as one of the
instruments to attract foreign direct investment. The latter is of great help in diversifying the
production base and expanding the supply capacity of the country. Membership in WTO could
help secure predictable and transparent market access.
While Ethiopia fully recognizes the benefits of the WTO and the MTS, it is also fully aware of
the challenges involved in the WTO accession process, especially vis--vis the limited human,
institutional, financial, and administrative capacity of Ethiopia as a least developed country.
As clearly stipulated on the Memorandum on the Foreign Trade Regime, lack of qualified
manpower in the area of Foreign Trade and Investment is one of the anticipated challenges the
country has.

Therefore, our curriculum is designed in such a way that the country will be able to turn a
challenge into opportunity by producing need based, qualified, and meritorious personnel of
high caliber.

Internal and External Situation Analysis (SWOT analysis)

The program is new not only to the University but also to the country. The department has
committed and young faculty that can be considered as strength. There is also good future
capacity to expand programmes both in regular and extension. The initiation from students to
participate and solve problems is encouraging. On the other hand, there are significant
weaknesses that need to be focused
Strength + Opportunity
Attention given to quality of education

Weakness + Threat
Weak level of student-centered approach
Attitudinal problem between academic and
administrative staffs

Economic growth of the country and

increased societal demand for higher
Expansion of science and Technology
Low commitment of staff in few cases
Location advantage
Poor lounge and recreation facilities for
Positive attitude towards industry Increasing trend of unethical behavior of
department linkage
Established relationships with outside In adequacy of information system
organizations such as Chamber of
commerce, ECX, ERCA etc
Willingness of the teaching staff to accept High staff turnover