International Trade

Submitted by:

Norielita M. Sales

Criselda Bautista

Cindy Lulu

Aldritz Biglete

Joey Cabacungan

Submitted to:

Mrs. Melinda Abejuela

THE CONCEPT OF INTERNATIONAL TRADE

(SLAVIN 2006) Elucidates that people specialize in every field of learning.

*Explanation

Slavin clear it, that some educators who have responsibilities to discover, encourage and sustains
the students motivation to learn by engaging the students to promote learning.

Example:

The economics professor may have specialized in banking where he can explain well exactly
how banks operate how to determine the credit worthiness of borrowers and even how you can
wire money to other countries.

The International Trade

-is the exchange of capital goods and services across international boarders or territories or
between two different countries.

*other words, to know what is happening in the course of international trade and the government
still tracking the transactions.

*Wherein now as we can see here some information about our products as an examples of our
production in intertrading.

And because of the abundant fertile farmland and eventually of the tremendous stock of
farm equipment it is seems as major exporter since colonial times here are;

Wheat
Corn
Cotton
and soybeans

And Philippines is a major exporter of steel and textile even though other nation have
this for now. And also Todays as the world leading exporter of computer software and
entertainment goods and services.

Meanwhile not only for the greater goods of between two person in different countries this
international trading, also such trade represents a significant share of gross domestic product
(GDP). While international trade has existed throughout history (for example Uttarapatha, Silk
Road, Amber Road, scramble for Africa, Atlantic slave trade, salt roads), its economic, social,
and political importance has been on the rise in recent centuries.
IMPORT AND EXPORT
A product that is sold to the global market is called an export, and a product that is
bought from the global market is an import. Imports and exports are accounted for in the current
account section in a country's balance of payments.

The Basics of an Import

Countries are most likely to import goods or services that their domestic industries cannot
produce as efficiently or cheaply as the exporting country. Countries may also import raw
materials or commodities that are not available within their borders. For example, many
countries import oil because they cannot produce it domestically or cannot produce enough to
meet demand.

Understanding Exports

Exports are incredibly important to modern economies because they offer people
and firms many more markets for their goods. One of the core functions of diplomacy and
foreign policy between governments is to foster economic trade, encouraging exports and
imports for the benefit of all trading parties.

According to research firm Statista, in 2017, the world’s largest exporting countries (in terms of
dollars) were China, the United States, Germany, Japan, and The Netherlands. China posted
exports of approximately $2.3 trillion in goods, primarily electronic equipment, and machinery.
The United States exported approximately $1.5 trillion, primarily capital goods. Germany's
exports, which come to approximately $1.4 trillion, were dominated by motor vehicles—as were
Japan's, which totaled approximately $698 billion. Finally, The Netherlands had exports of
approximately $652 billion.

Global trade allows wealthy countries to use their resources—for example, labor,
technology, or capital—more efficiently. Different countries are endowed with different assets
and natural resources: land, labor, capital, and technology, etc. This allows some countries to
produce the same good more efficiently—in other words, more quickly and with less of a cost.
Therefore, they may sell it more cheaply than other countries.

OUTSOURCING AND OFFSHORING OUTCOURSING

Sometimes referred to as "contracting out" shifts tasks, operations, jobs, or processes to

an external workforce, by contracting with a third party for a significant period of time
In 1989 it was formally identified as a business tactic and linked with international trade as it
became synonymous with the practice of sending work overseas

ADVANTAGES OF OUTSOURCING

 Improved focus on core business activities - outsourcing can free up your business to
focus on its strengths, allowing your staff to concentrate on their main tasks and on the
future strategy.
 Increased Efficiency- Choosing an outsourcing company that specializes in the process
or service you want them to carry out for you can help you achieve a more productive,
efficient service, often of greater quality.
 Controlled costs - cost-savings achieved by outsourcing can help you release capital for
investment in other areas of your business.
 Increased reach- outsourcing can give you access to capabilities and facilities otherwise
not accessible or affordable.
 Greater competitive advantages- outsourcing can help you leverage knowledge and
skills along with your complete supply chain.

DISADVANTAGES

 Service delivery - which may fall behind time or below expectation.

 Confidentiality and security - which may be at risk
 Lack of flexibility - contract could prove too rigid to accommodate change
 Management difficulties - changes at the outsourcing company could lead to friction
 Instability - the outsourcing company could go out of business

OFFSHORING

Offshoring is the relocation of a business process from one country to another

The practice of basing some of a company’s process or service overseas, also to take advantage
of lower costs.

BENEFIT OF SHORING

 Lower costs
 Focus on business development
 Attain flexibility and business expansion
 Lower risk
 Exercise more control
CHALLENGES OF OFFSHORING

 The risk of exposing confidential data and/or information

  Calibration and synchronization
 Covert costs
 The lack of customer focus and engagement

DIFFERENCE BETWEEN OUTSOURCING AND OFFSHORING

OUTSOURCING

>Is the act of transferring business activities to an external organization that has a level of
specifications

OFF SHORING

>Refers to moving an organization’s business to another.

INTERNATIONAL TRADING AGREEMENT

1. The North America Free Trade Agreement (NAFTA)

- The North America Free Trade Agreement, which was ratified by Congress in 1993,
created by a free trade area including Canada, the United States, and Mexico, a market of over
400 million consumers. In addition to dismantling trade barriers in industrial goods, NAFTA
includes agreements on services, investment, intellectual property rights, agriculture and
strengthening of trade rules

NAFTA is an extension of an earlier trade agreement with Canada. The Philippines imports more
from Canada, than any other country, and exports more to Canada than any other economies- it
would be unthinkable for either country to erect trade barriers to keep out imports from the other.
There has been talk of expanding NAFTA to include all 34 nation's of the Western Hemisphere
( except Cuba), a grouping tentatively called the " Free Trade Area of the Americas. " The leader
of these nation's met in Quebec in April 2001 at the third summit of the Americas .

2. The European Union ( EU)

Freight was now able to move anywhere within the EU without checkpoint delays and
paperwork. So called "quality" codes such as German beer-purify regulations and Belgian
chocolate-content restriction were ended. Workers from any EU country could work in any other
member country.

With a population and GDP comparable to those of the United States, the EU is already an
economic powerhouse. In 1999, 11 EU countries formed the European Monetary Union, which
established the euro as a common currency. Making trade among participating member nation's
much easier to conduct.
WORLD TRADE AGREEMENT

1.General Agreement on Trade and Tariffs (GATT)

> It was legal agreement minimizing barriers to international trade by eliminating or

reducing quotas, tariffs, and subsidies while preserving significant regulations. The GATT
was intended to boost economic recovery after World War II though reconstructing and
liberalizing global trade.

2.World Trade Organization (WTO)

> Is the only global international organization dealing with the rules of trade between
nations.

> It operates a global system of trade rules, it acts as a forum for negotiating trade
agreements, it settles trade disputes between its member and it supports the need of
developing countries.

3.International Monetary Fund (IMF)

>It is an international organization that promotes global economic growth and finalcial
stability, encourages international trade, and reduces poverty.

4.World Bank (WB)

> Is the unique global partnership fighting poverty worldwide through sustainable
solution.

 International Bank for Reconstruction and Development

 Lends to governments of middle income and creditworthy low-income countries.
 International Development Association
 Provide interest-free loans
 International Finance Corporation
 Is the largest global development institution focused exclusively on the private
sector
 Multilateral Investment Guarantee Agency
 Is to promote foreign direct investment into developing countries to support
economic growth, reduce poverty, and improve people’s lives.
 International Centre for Settlement of Investment Disputes
 Provides international facilities for conciliation and arbitration of investment
disputes.