CHAPTER 1: INTRODUCTION

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 Contents
1 Reasons for International Trade

2 Difference between Int-Trade & Dom-Trade

3 Classification of International Trade

4 Export and import procedures

5
1 Key terms
5
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 Learning Outcomes

1 Define what is meant by international trade (IT)

2 Explain the reasons for engaging in IT

3 Identify the benefits of IT

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 Learning Outcomes

4 Explain the major categories of IT

5
1 Tell the difference between Domestic and IT
5

6
1 Understand the major procedure involved IT
5

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 Resources

International Trade

Economics
Reasons

Benefit
Other

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 Resource
Diagram
Reasons

Some nations The developed

possess natural countries are full of
resources in excess skilled labor, capital
of their own and technological
requirements while resources while the
other nations have developing countries
none may lack them

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 Economics Benefits
1

Economics Theory of comparative

Reasons 2 advantage
(David Ricardo)

Open up new market in

3
other nations

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 Other reasons

Natural resources, technological resources, human

resources, cost of production, political strength,
tastes, preferences & consumption patterns, etc.

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 Benefits of International Trade
1 2 3

Larger Cheaper Greater

Economic Goods Variety
Growth or
services

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Differences between Int-Trade & Dom-Trade
Communication Languages & cultures
systems

Customs & Foreign law

regulations

Risk Foreign currencies

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 Export, import and Transit

Direct, Indirect and Entrepôt

Visible and Invisible

Barter and Free-liquidation

International
Trade

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 OVERVIEW
Customs
Offices Border

District 7 Tân Thuận

Export processing
zone
Exporter Importer
Exporter Importer

Customs Border
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 Be taken out of
Vietnam
Exporting

Be put in special areas in

Vietnam

EPZs
Industrial Zones
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 Exporting

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 Importing
Be put in Vietnam

Be taken out of special

areas in Vietnam

EPZs
Industrial Zones
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 IMPORTING

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 Transit

Vietnam
Import Export
Procedures Procedures

Goods
A B
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 Transit
Goods
A B

Vietnam

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 Transit
Vietnam

Import Export
Procedures Procedures

Goods
A B

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 Transit

Vietnam
Import Export
Procedures Bonded
warehouse/
Procedures
Transit center
Goods
A B

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 Export and Import procedure
Settlement of Disputes
4
Performance of
the contract 3

Negotiation of a
sales contract 2
Preparation of
a transaction 1

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 Key terms
• Barter trade • Customs clearance
• Commodity inspection • Direct trade
• Comparative advantage • Direct transit trade
• Credit reference

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 Key terms

• Documentation • Export license

• Domestic trade • Export procedure
• Economics scale • Export trade
• Entrepot trade

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 Key terms
• Free- liquidation • Import procedure
trade • Import trade
• General trade • Indirect transit trade
• Import license

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 Key terms
• International trade • Special trade
• Invisible trade • Transit trade
• Payment • Visible trade

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