International Trade: Group 1 Teacher: Nguyen Vu Thanh Tuyen

INTERNATIONAL TRADE
F
T
U GROUP 1
2 K
5 TEACHER: NGUYEN VU THANH
1 TUYEN
E
E
S
P
CONTENTS
I
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T
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R
N
A 1
• OVERVIEW
TI
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S
O
N 2
• MAIN CONTENTS
P
A
L
3
• VOCAP & EXERCISE
T
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D
E
G1 OVERVIEW MAIN CONTENTS VOCAP & EXERCISE
DEFINITION
………………….
is the exchange of . .…………… across border
HISTORY
…………………
International
trade refer to exports of goods and
VIET NAM
services by importers
represents significant share of

BENEFIT
gross domestic products
DEFINITION
goods
HISTORY is the exchange of services across border
capital
International
VIET NAM refer to exports of goods and
trade
services by importers
represents significant share of

BENEFIT gross domestic products
DEFINITION
HISTORY
“Although more than 500 million
maritime containers move around
VIET NAM
the world each year, accounting for
90 per cent of international trade,
BENEFIT
only 2 per cent are inspected”
-Ban Ki Moon – United Nations Secretary General
DEFINITION
HISTORY
VIET NAM Century

1765 1783 NOW
II, BC
BENEFIT
DEFINITION
DEFINITION
Century II,
BC
HISTORY
VIET NAM
BENEFIT
Why was it called “silk road”?

DEFINITION
1765
HISTORY
VIET NAM
BENEFIT
Who is he? And what is it?

DEFINITION 1783
HISTORY
VIET NAM
BENEFIT
1783,where was the first steam vessel

made from ?
DEFINITION VIET NAM
HISTORY
VIET NAM 1986 1995 2007 2014
BENEFIT
DEFINITION 1986 Viet nam opened economic door, began to join

in the global value
HISTORY
VIET NAM
BENEFIT
Before 1986, what type of trade was

operated in Viet Nam?
DEFINITION 1995 Viet Nam participated in ASEAN
HISTORY
VIET NAM
BENEFIT
What events happen in 1995?

DEFINITION 2007
Viet Nam became a member of WTO. How many
years of negotiation to be permited to join in it?
HISTORY
VIET NAM
BENEFIT
11 YEARS
DEFINITION
Who know the current total value of
export and import in 2014 ?
HISTORY
VIET NAM
BENEFIT
1986 – 2014 The total value of export and import

rose 50 times. (3bn -150 bn dollars).
Utilize comparative advatages in producing goods and

DEFINITION services.

A motivation to promote keep npeace and enhance
cooperation..... in many fields
HISTORY To
nation Attract international investment to develop country, intead
of only use national sources
VIET NAM Create more jobs to reduce unemployment.

Lead to born the corporations cross borders which
contibute to global integation and cooperation.
BENEFIT
Have greater choice of goods and services

PROTECTISM
PROTECTISM
TRANSPORT
ORGNIZATION INVESTMENT
TRANSPORT ORGNIZATION
FREE
TRADE
FREE
TRADE
INVESTMENT
PROTECTISM
FILL IN THE GAP
TRANSPORT
Trade protectionism is the deliberate
attempt to limit imports or promote exports
ORGNIZATION
by putting up barriers to trade. Despite the
arguments in favor of free trade and
increasing trade openness, protectionism is
FREE still widely practiced.
TRADE
1
INVESTAMENT
PROTECTISM Protection sunrise industries also

known as ……………until they are large
TRANSPORT
enough to achieve economies of scale
and strong enough to compete
international.
ORGNIZATION
Choose the best answer
FREE
TRADE
A. Infant industries
B. Declining industries
2
INVESTMENT
C. Strategic industries
PROTECTISM
FILL IN THE GAP
TRANSPORT
Protection of domestic industries may allow
countries to develop a
ORGNIZATION comparative advantage. For example,
domestic firms may expand when protected
from competition and benefit from
FREE
TRADE economies of scale.
3
INVESTMENT
PROTECTISM
TRANSPORT
Why do most governments

ORGNIZATION
apply protectionism?
FREE
TRADE
4
INVESTMENT
PROTECTISM
Protect sunrise industries
Protect sunset industries

TRANSPORT
Protect strategic industries

APPLY
PROTECTIONISM
ORGNIZATION Protect non-renewable resources
Deter unfair competition

FREE
TRADE Save jobs
Limit over-specialization
INVESTAMENT
PROTECTISM
Tariffs
TRANSPORT HOW Quotas
MANY Embargoes
METHODS Subsidies
ORGNIZATION
OF Administrative barriers
PROTECTIONISM
FREE
TRADE
???
5
INVESTMENT
PROTECTISM
What is the transportation ?

TRANSPORT
=>Transportation is the movement of

ORGNIZATION
people, animals and good from one
location to another.
FREE
TRADE
1
INVESTMENT
PROTECTISM
Can you name some modes of

TRANSPORT transportation?
ORGNIZATION
FREE
TRADE
2
INVESTMENT
PROTECTISM
Arrange in the order of time
Steam Riding Automobiles Walking Carriage

TRANSPORT train animals with

animals
ORGNIZATION
FREE
TRADE
Walkin Riding Carriage Stream Autom
g animal With A train obile
INVESTMENT
3
PROTECTISM
FILL IN THE GAP
The first form of transport was

TRANSPORT walking.
ORGNIZATION The first forms of road transport

were horses or even humans
FREE
carrying goods
TRADE
The first watercraft were 4

INVESTMENT canoes cut out from tree trunks
PROTECTISM
TRANSPORT
ORGNIZATION
FREE
TRADE slow and limited started to ride
to the amount of the domestic
goods animals
INVESTMENT
PROTECTISM
TRANSPORT
ORGNIZATION
FREE
TRADE
For traveling by waterway, Canoe

INVESTMENT was the first means of transport
PROTECTISM
TRANSPORT
ORGNIZATION
FREE
TRADE 1896
1903
INVESTMENT
PROTECTISM
Which one is the most popular?

TRANSPORT
A. Seaway
B. Road and railways
ORGNIZATION
C. Multimodal transportation
FREE D. Airway
TRADE
5
INVESTMENT
PROTECTISM
What is the most popular transport
in freight trade?
TRANSPORT
A. Airway
B. Maritime way
ORGNIZATION
C. Road and railways

FREE
TRADE
D. Pipeline
6
INVESTMENT
PROTECTISM
B. Maritime way
TRANSPORT
Handles about 90% of
the global trade
ORGNIZATION
40 percent of the total
U.S. foreign trade were
FREE shipped through ocean
TRADE
vessels - 2000
INVESTMENT 6
PROTECTISM
What is the most popular transport
in value of global trade?
TRANSPORT
A. Airway
B. Maritime way
ORGNIZATION
C. Road and railways

FREE
TRADE
D. Pipeline
7
INVESTMENT
PROTECTISM
A. Airway
Takes 15% of the value of
TRANSPORT
global trade and about 70
times more valuable than
its maritime 30 times
ORGNIZATION
more valuable than freight
carried overland.
FREE
TRADE Ships high tech,
sophisticated, just in time
products.
7
INVESTMENT
PROTECTISM
Road and railway modes focused on their role
in the first and last miles of global
distribution.
TRANSPORT
ORGNIZATION
FREE
TRADE
INVESTMENT
PROTECTISM
What are the roles of
international Organisation on the
TRANSPORT
In ternational Trade?
Rearrange the letters below :
ORGNIZATION - sestiblah a tet fo drardtsa to gdeiu
FREE
- rpoctet the ebenitfs fo eht develipong ciuntroes
TRADE
- Organisations act sa the “ truoc of international
detra”
INVESTMENT
1
PROTECTISM The roles of international

organisation on the In
TRANSPORT ternational Trade :
ORGNIZATION - Establish a set of standard to guide
- Protect the benefits of the developing countries

FREE
TRADE
- Organisations act as the “court of international
trade”
INVESTMENT
2

PROTECTISM
What is a trade agreement?
A trade agreement is a wide ranging tax, tariff and
TRANSPORT trade treaty that often includes investment guarantee

.The most common trade agreements are of
the preferential and free trade types are concluded in
ORGNIZATION
order to reduce (or eliminate) tariffs, quatas and
FREE other trade restrictions on items traded between the

TRADE
signatories. 3
Guarantees Trade Free Tariff

INVESTMENT
Agreement Barriers Quotas Treaty
Point out the advantages and

PROTECTISM
disadvantages of join in a International
Trade from the hints below:
TRANSPORT Reducing Tariff barriers leads to trade creation
Infant Industry Argument
ORGNIZATION
The Senile industry argument
 Make use of comparative advantage
FREE To diversify the economy

TRADE
Gaining opportunities to integrate into the
global market, softening the negative impact of
INVESTMENT
the economic crisis 4
PROTECTISM The advantages of joining in a

International Trade
Reducing Tariff barriers leads to trade creation
TRANSPORT
AD1Make use of comparative advantage
Gaining opportunities to integrate into the global market, softening the negative
ORGNIZATION impact of the economic crisis
AD2
FREE
TRADE
INVESTMENT
AD3
PROTECTISM The disadvantages of joining in a

International Trade
Infant Industry Argument
TRANSPORT
DISAD1
The Senile industry argument
ORGNIZATION To diversify the economy
DISAD1
FREE
TRADE
INVESTMENT DISAD1
PROTECTISM
Free trade is a policy in international markets
in which governments do not restrict
TRANSPORT imports or exports.
ORGNIZATION
FREE
TRADE
INVESTMENT
PROTECTISM A Increase economic growth.

D
More dynamic business climate.
TRANSPORT V
A Lower government spending.
ORGNIZATION
N Foreign direct investment.
T
Technology transfer.
FREE
A
TRADE G More jobs
E Expertise
INVESTMENT S
PROTECTISM
D
Increase jobs outsourcing
I
S Theft of intellectual property
TRANSPORT A
D Crowd out domestic industries.
V
ORGNIZATION Poor working conditions
A
N Degradation of natural resources
FREE T
TRADE A Destruction of native cultures.
G
Reduced tax revenue
INVESTMENT
E
S
PROTECTISM
What does FTAs mean? Then, talking
about some examples that you know,
TRANSPORT especially FTAs in Viet Nam ???
ORGNIZATION
FTAA: Free Trade Area of the Americas
FREE
TRADE
NAFTA: North American Free Trade
Agreement
INVESTMENT 1
PROTECTISM
How many FTAs in Viet Nam that has
been signed?
TRANSPORT
A. 8 B.9
ORGNIZATION
C. 10 D. 11
FREE  ASEAN  ASEAN – China

TRADE  ASEAN- India  Viet Nam- Chile
 ASEAN – Australia/New Zealand  Viet Nam- Laos
 ASEAN –Korea  Viet Nam- Korea
 ASEAN – Japan  Viet Nam – EAEU or EEU
INVESTMENT
2
PROTECTISM
Foreign investment/ international investment

TRANSPORT
is when a company or individual from one
nation (home country) invests in assets or
ORGNIZATION
ownership stakes of a company based in
FREE another nation (host country).
TRADE
1
INVESTMENT
PROTECTISM
How many types does foreign investment

TRANSPORT
have?
ORGNIZATION Foreign investment can be split into DIRECT

INVESTMENT and INDIRECT INVESTMENT
FREE
TRADE
2
INVESTMENT
PROTECTISM
Effects of foreign investment
TRANSPORT
 Trade effects  Negative wage spillovers

ORGNIZATION
 Competition level  Profit repatriation
 Management and governance  Human capital contribution
FREE practises
TRADE
 Spillover effects
 Crowding out effect of FDI  Infrastructure development
 Dual economy effect constraint
INVESTMENT  Balance of payment effect  Environmental issues
3
PROTECTISM
Effects of foreign investment
TRANSPORT
• Trade effects • Crowding out effect of FDI

ORGNIZATION
• Human capital contribution • Negative wage spillovers
• Spillover effects • Profit repatriation
FREE • Competition level • Dual economy effect
TRADE
• Management and governance • Balance of payment effect
practises • Infrastructure development
INVESTMENT constraint
• Environmental issues
PROTECTISM
PROTECTISM
TRANSPORT
ORGNIZATION INVESTMENT
TRANSPORT ORGNIZATION
FREE
TRADE
FREE
TRADE
INVESTMENT

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INTERNATIONAL TRADE

represents significant share of

represents significant share of

VIET NAM Century

Why was it called “silk road”?

Who is he? And what is it?

1783,where was the first steam vessel

DEFINITION VIET NAM

VIET NAM 1986 1995 2007 2014

DEFINITION 1986 Viet nam opened economic door, began to join

Before 1986, what type of trade was

DEFINITION 1995 Viet Nam participated in ASEAN

What events happen in 1995?

1986 – 2014 The total value of export and import

Utilize comparative advatages in producing goods and

VIET NAM Create more jobs to reduce unemployment.

Have greater choice of goods and services

PROTECTISM Protection sunrise industries also

Why do most governments

Protect sunset industries

Protect strategic industries

Deter unfair competition

TRANSPORT HOW Quotas

What is the transportation ?

=>Transportation is the movement of

Can you name some modes of

Steam Riding Automobiles Walking Carriage

The first form of transport was

ORGNIZATION The first forms of road transport

The first watercraft were 4

For traveling by waterway, Canoe

Which one is the most popular?

C. Road and railways

C. Road and railways

ORGNIZATION - sestiblah a tet fo drardtsa to gdeiu

PROTECTISM The roles of international

ORGNIZATION - Establish a set of standard to guide

- Protect the benefits of the developing countries

TRANSPORT trade treaty that often includes investment guarantee

FREE other trade restrictions on items traded between the

Guarantees Trade Free Tariff

Point out the advantages and

FREE To diversify the economy

PROTECTISM The advantages of joining in a

PROTECTISM The disadvantages of joining in a

ORGNIZATION To diversify the economy

PROTECTISM A Increase economic growth.

FREE  ASEAN  ASEAN – China

Foreign investment/ international investment

How many types does foreign investment

ORGNIZATION Foreign investment can be split into DIRECT

 Trade effects  Negative wage spillovers

• Trade effects • Crowding out effect of FDI

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