KHOA MARKETING – KINH DOANH QUỐC TẾ

NGUYỄN TIẾN THÀNH

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Th.S Nguyễn Tiến Thành

 IINTERNATI
ONAL
ECONOMICS

Nguyễn Tiến Thành

CONTENT

01
INTRODUCTION
02
INTERNa1TIONa1L
TRADE THEORY
INTERNa1TIONa1L 03
RESOURCE MOVEMENTS
04
TRADE RESTRICTIONS-
TARIFF
Th.S Nguyễn Tiến Thành
 NON TARIFF TRADE 05
BARRIERS
06
FOREIGN EXCHANGE
MARKET
EXCHANGE RATE
07
GLOBALIZATION

Th.S Nguyễn Tiến Thành

 INTERNATIONAL TRADE THEORY 02
1. Understand the law of comparative advantage
2. Understand the relationship between opportunity costs and
relative commodity prices
3. Explain the basis for trade and show the gains from trade under
constant costs conditions
4. What is the basis for trade & what are the gains from trade

Th.S Nguyễn Tiến Thành

The Law of Comparative Advantage 01
1.1 Mercantilist thesis on trade (THUYẾT TRỌNG THƯƠNG)

Nguyễn Tiến Thành

 The Middle Ages extended in the 14th and 15th centuries

France and Britain confronted In 1453, the Turkish

peasant uprisings Ottoman Empire
wiped out the East
and proceeded to
invade Western
Europe
1492, Comlombus found America, expanding In 1498, Vasco da Gama traveled from
trade. Europe to India and found a trading
route in the Indian Ocean.

è In the early 16th century, the American colonization of Europe

è Capitalizing and developing the capitalist economy
è Mercantilism and foreign trade thrive
IDEA

EXPORT

IMPORT
Trade surplus

Neo-
mercantilism
 LỊCH SỬ PHÁT TRIỂN

Appeared in 15th Ngăn chặn

century (1450s) chảy tiền ra
Agriculture does not create Industry costs money
ngoài (1554)

Bourgeois Economy Export is the most important Na1tioNa1l economic

William Stanfford:
Theory:
Khuyến khích mang
tiền về
- Robbery and
exchange of - Quy định tiền
imbalances with Phải có sự thiệt thòi 1 bên vàng
the colonies.
- Against feudal - Xâm chiếm nước
and bourgeois khác
Zero-sum is a situation in game theory in which one person’s gain is equivalent to
another’s loss, so the net change in wealth or benefit is zero.

ZERO-SUM
Game
 Mercantilism is an economic theory
that advocates government regulation
of international trade to generate
wealth and strengthen national power.
Merchants and the government work
together to reduce the trade
deficit and create a surplus.
1.2 Absolute advantage (THUYẾT LỢI THẾ TUYỆT ĐỐI)

Invisible hand is a metaphor for

how, in a free market economy,
self-interested individuals
operate through a system of
mutual interdependence to
promote the general benefit of
society at large.
Nguyễn Tiến Thành
 IDEA

Absolute advantage is the ability of an individual,

company, region or country to produce a good or
service at a lower cost per unit than another entity that
produces the same good or service.

An entity with an absolute advantage can produce a

product or service using a smaller number of inputs or
a more efficient process than another entity producing
the same good or service.
Germany Medicine

India Rice, Coffee bean, Rubber

America Machine, High tech devices

China Semiconductors, Machine

Japan Diamond, Agricultures

Korea Aircraft, Computer

Viet Nam Car, Car’s parts

Israel Steel, Device,...

Germany Medicine

India Rice, Coffee bean, Rubber

America Machine, High tech devices

China Semiconductors, Machine

Japan Diamond, Agricultures

Korea Aircraft, Computer

Viet Nam Car, Car’s parts

Israel Steel, Device,...

 SIMULATION
Cost = Hours of labor/ product
VN (1000h) France (1000h)
Rice (500h) 2h 5h
Wine (500h) 7h 2h

Autarky Economy Quantity

VN France VN France
Rice = 2/7 Wine = 5/2 Wine Rice 250R 100R

Wine = 7/2 Rice = 2/5 Rice Wine 71,5W 250W

 Cost = Hours of labor/ product
2h VN (1000h) France (1000h)
Rice (500h) 2h 5h
Wine (500h) 7h 2h

Comparison:
VN FR
R/W = 2/7 < 5/2
è VN Exp Rice
è FR Exp Wine
 Quantity in Autarky
VN France World
Rice 250 100 350R

Wine 71,5 250 321,5W

Quantity in Specialization
VN France World
R 500 0 500R

W 0 500 500W
 Trading
VN France
Rice > 2/7 Wine Rice < 5/2 Wine
Wine < 7/2 Rice Wine > 2/5 Rice

èRice = (2/7 ; 5/2) Wine (Or) Wine = (2/5 ; 7/2) Rice

è If we take: 5 Rice = 4 Wine <=> [R=4/5W]

èVN: 5 Rice trade with 4 Wine è 300 Rice = 240 Wine

 Quantity after Trading
VN France
Rice 500-300=200 0+300

Wine 0+240 500-240=260

èVN: 5 Rice = 4 Wine è 300 Rice = 240 Wine
Quantity in Autarky
VN France World
Rice 250 100 350R
Wine 71,5 250 321,5W
èRice = (2/7 ; 5/2) Wine (Or) Wine = (2/5 ; 7/2) Rice

èRice = 39/28 Wine (Or) Wine = 39/20 Rice è Equal Benefits

 Practicing
1. Determine the productive scale, demand and substitution rate in
the Autarky economy.

2. Determine each Nation’s advantage & the range for mutually

beneficial trade.

3. Determine the equal international trade ratio.

 Labor cost (Hours of labor/ product)
China (800h / 2) Japan (800h/ 2)
Silk 1 5
Vacuum Cleaner 4 2

Hours of labor/ product

Thailand (600h / 2) Laos (600h / 2)
Durian (300h) 3 5
Beer (300h) 4 1,5