CHAPTER2:

INTERNATIONAL TRADE
AND
FOREIGN DIRECT INVESTMENT
PR ESENTED BY G ROUP 5
 CONTENT

LO2-1 APPRECIATE

LO2-2: IDENTIFY

TR ẦN THỊ CẨM H À
OUR TEAM NGUYỄN TH Ị PH Ư Ơ N G THẢ O
TR ẦN NGUY Ệ T H ẰN G
LÊ THỊ HUYỀN
DƯƠNG THU H À
 INTERNATIONAL TRADE
VOLUME OF
INTERNATIONAL TRADE

1 In 1990, a milestone was reached: the volume of

international trade in goods and services surpassed
$4 trillion

2 By 2010, exports of goods and services had been fivefold,

exceeding $18.9 trillion.
(services have been growing faster than goods)

3 The dollar value of total world exports is greater than the

gross national product (GNP) of every nation except the
United States.

4 One-fourth of everything grown or made in the world

is now exported.
 HOW EVEN HAS THE
GROWTH IN TRADE BEEN?
BOTH SERVICES EXPORTS AND GOODS EXPORTS
EXPERIENCE SIMILAR TRENDS

The proportion
of Asian goods The United
exports States's
increased by proportion of
more than 90% services exports
China accounted has risen by
for nearly two- approximately
thirds of that one-third.
increase)
EXPORTING HELPS INCREASE SALES
AND THE CREATION OF JOBS CAN
BENEFIT THE EXPORTING NATIONS.

MANAGERS COULD FACE INCREASED

COMPETITION FROM EXPORTS TO
THEIR DOMESTIC MARKETS.
 WHICH NATIONS ACCOUNT FOR THE MOST
EXPORTS AND IMPORTS?
Which nations contribute to the large and growing levels of goods and services
trade worldwide? (2022)
DIRECTION OF TRADE
More than half of the exports from developing
nations go to developed countries, this proportion has
been declining over the past 40 years, from 72 % in 1970
to about 50% by 2010. About 70% of exports from
developed economies go to other industrialized nations,
not to developing countries.

THE INCREASING
REGIONALIZATION OF TRADE:
App r oxi mat e l y ha l f t he e x p or t s fr om N or t h
Ame r i c an nat i o ns w e nt t o ot he r nat i ons i n
Nor t h Ame r i c a .
Ame r i c an e x po r t e r s a r e e x p and i ng i nt o
d e v e l opi ng c o u nt r i e s , l e ad i ng t o i ncr e as e d
s al e s t o t he U S
 MAJOR TRADING PARTNERS: THEIR
RELEVANCE FOR MANAGERS
1. The business climate in these
5. Import channel members are
importing nations is already relatively
experienced in handling import
favorable.
shipments from the exporter's area.
2. Export and import regulations are
6. Currency from the foreign country is
not insurmountable.
available to pay for the exports.
3. There should be no strong cultural
7. The government of a trading
objections to buying that nation's
partner may be applying pressure on
goods.
importers to buy from countries that
are good customers for that nation's
4. Satisfactory transportation facilities
exports.
have already been established.
 THE MAJOR TRADING
PARTNERS OF THE UNITED
STATES

1 The Uni t e d S t a t e s g e ne r al l y fol l ow s t he t e nde n cy ,

t ha t i s, de ve l o pe d na t i o ns t r ad e w i t h one anot h e r

2 Me x i c o and Ca na da a r e maj or U . S. t r ad i ng p ar t n e rs i n
gr e at p ar t

Ove r t he pa s t 4 5 ye a r s , 9 of t he t op 1 5 nat i ons th e

3
US i mpor t s f r o m ha v e r e mai ne d on t he l i s t

As i a' s nat i ons l i k e Chi na, Si ng ap or e , Sout h K ore a,

4
Ta i wan, and I ndi a ha v e b e come i ncr e as i ng l y i mportan t
t r ade par t ne r s
 ASIAN COUNTRIES ARE ALSO IMPORT
PARTNERS OF THE U.S.
1 The i r r i si ng s t a nda r ds of l i v i ng e nab l e t he i r
pe opl e t o aff o r d mo r e i m p or t e d p r od uct s .

2 The y a r e pur c ha s i ng l a r g e amount s of cap i t al

goods t o fur t he r t he i r i nd us t r i al e x p ans i on.

3 The y a r e i mpo r t i ng r a w mat e r i al s and

c ompone nt s

4 The i r g ove r nme nt s , pr e s s ur e d b y t he U . S.

gov e r nme nt t o l o w e r t he i r t r ad e s ur p l us hav e
s e n t b uyi ng mi s s i o ns t o t he U ni t e d St at e s t o
l ook f or pr odu c t s t o i mp or t .
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