International trade & FTAs

I- What is international trade ?

International trade is the exchange of :

- goods (biens)
- services
- capital
- people

across (à travers) international borders (les frontières)

→ Countries can import or export goods to and from overseas (=foreign) markets.
→ The balance of trade (balance commerciale) compares the value of a country’s exports
against its import.
→ Trade surplus : when exports are greater than imports (favorable trade balance).
→ Trade deficit : when the value of imports outweighs the value of exports (unfavorable
trade balance).

Making international trade easier : Most countries had high tariffs (droits de douane) and
restrictions on international trade until 19th century

Common barriers to trade :

- national currencies (currency = monnaie)
- red tape / bureaucracy
- national regulations
- protectionist measures :
> tariffs /customs duties (droits de douane)
> quotas

BUT : free trade gradually became the dominant belief among Western nations, especially
after WWII

II- In favour of free trade

A- Arguments in favour of free trade

Benefits of international trade :

- Customers have access to a wider range of products and services.
- Customers have access to cheaper products.
- Companies can reach consumers in emerging markets.
- Emerging countries are experiencing rapid economic growth.

Emerging economies
- BRICS (Brazil, russia, India, China, South Africa)
- Four Asian Tigers (Taiwan, Singapore, Hong Kong, South Korea)
- Tiger cubs (Indonesia, Malaysia, Philippines, Thailand and Vietnam)
B- Institutions and agreements that facilitate international trade

Vocabulary :
- Free trade agreements (accords de libre échange)
- Free trade areas (zones de libre échange)
- World Trade Organisation (Organisation Mondiale du Commerce)

World Trade Organisation :

- 164 members
- Oversees (=supervises) the rules of international trade
- Settles trade disputes (règle les conflits commerciaux) between members
- Organizes trade negotiations

WTO encourages multilateral trading

BUT : because progress has been slow
>>> many countries have turned to regional trade agreements (accords commerciaux
régionaux)

Examples of Regional Trading Areas :

- Mercosur (South Common Market)
> Marché Commun du Sud
> South America
- ASEAN (Association of SouthEast Asian Nations)
> ANASE : Association des Nations de l’Asie du Sud-Est
- EU : European Union
- United States-Mexico-Canada Agreement (USMCA) successor to NAFTA : north
American Free Trade Association (ALENA : Association de Libre Échange Nord
Américain)

III- Controversy

Controversy over free trade agreements :

- Negotiations happen behind closed doors
- Food and environmental safety (sécurité alimentaire et environnementale) as a
sensitive issue
- May open European public services to privatisation
- Investors-Stade Dispute Settlements (règlements des différends investisseurs/état)
> Example : Philip Morris sues Australian government for introducing plain packaging
for cigarettes (emballage neutre)

25/01 : entrainement synthèse + cartoon en TD

22/02 : entrainement mémo ou lettre en TD
7/03 : entrainement synthèse
14/03 : QCM CM
The Economy of ASia

Economic development
- Developed countries :
> high level of income per capita = revenu par tête (Europe, North America, Australia,
Japan…)
- Newly industrialized countries / Emerging economies :
> experiencing rapid growth = croissance économique and development but income
per capita is still relatively low (BRICS)
- Developing countries :
> poor countries with little industrial activity (Africa, Asia, South America)

● Brith century
19th century
● American century
20th century
● Asian century
Asian century

The Asian century (siècle de l'Asie)

● Idea that Asia will dominate politics, culture and the global economy in the 21st
century

The Asian Century : a reality ?

● This idea is based on Asia’s growing economic power-as well as its demographic
weight
● The difference in economic performance between Asia and the West has been
recognized for some time.

Demographics
● Population growth in Asia : expected to continue through at least the first half of the
21st century
● Asian population :
> 2000 : 4 billion
> 2050 : 5 billion (predicted)

There are more people living inside the circle than outside of it.

Rising education levels boosting economic growth :

Quality education → Rapid expansion of human capital → Economic growth

China :
● Since China’s economic reforms in the late 1970s and early 1990s, the Chinese
economy has enjoyed three decades of economic growth rates between 8 and 10%.
India :
● Similar growth started at the end of the 1980s and early 1990s
● A Goldman Sachs report suggests that the Indian economy could surpass the US
economy by 2043
China : the industrial workshop of the world
India : one of the great service societies

“Chindia”
● populations of China and India = potential market of over two and a quarter billion
● Development of the internal consumer market (marché de la consommation
intérieure) as a major basis for economic development.
>>> much higher national growth rates for China and India in comparison to Japan,
the EU, and even the US.

Japan
● Third-largest in the world for GDP (Gross Domestic Product)
● Fourth-largest in the world for purchasing power (pouvoir d’achat)

Four Asian Tigers :

- S. Korea
- Hong Kong
- Taiwan
- Singapore

Common point : Finance, Investment and new technology car industry

Tiger Cubs (bébé tigre) :

- (Indonesia) because it is between the cub and 4T because it is more developed
- Malaysia
- The Philippines
- Thailand
- Vietnam

Challenges

Challenge 1 : Growing inequality within countries >> could undermine social cohesion and
stability

Challenge 2 : Problems for investing in infrastructure, education and government policies >>
risk of being stuck in the Middle Income Trap

The Middle Income Trap : Unable to Compete

↟
Rich industrialized countries
↟
The middle income trap
↡
Poor developing countries
↡
Challenge 3 : China and US debate - Competition for finite natural resources (land, water,
fuel or food)

Challenge 4 : Global warming and climate change threatens :

> Agricultural production
> Coastal populations
> Urban areas

Challenge 5 : Corruption

Challenge 6 : Aging population

Caricature :
- Wrestling match
- Power struggle
- Chinese dragon
- American eagle
- Competitors/rivals

- Uncle Sam eating takeaway Chinese food

- (Fortune cookie)
- China as a threat

Pronoms perso. Pronoms poss. Pronoms réfléchis

1S I My Me (Self)
2S You Your You (Self)
3S He, She, It His, Her, Its Him, Her, It (Self)
1P We Our Us (Selves)
3P They * Their Them (Selves)
* Them
Their
* There
Basic vocab

● Working conditions

Contracts :
- permanent contrat (CDI)
- fixed-term contract / contract job (CDD)
- temporary job / temping agency (intérim), a temp
- zero contract when you pay if you work in the UK

Pay :
- pay / wage / salary
- to earn money
- minimum wage, what should be paid a person por hour so you can’t live without
- poverty wage VS living wage (just enough to live)
- gender pay gap

Compensation and benefits packages :

- salary
- bonus / commission
- benefits (health insurance …)
- shares, stock options …

● Working hours

- The average working time in the EU is 40.3 hours per week

- Employees may work overtime but must not work for more than 48 hours a week
- Full-time VS part-time
- Flexible working / flexitime / flex time
- Work / life balance

Leave and time off :

- paid leave (congés payés)
- bank / public holidays
- sick leave (congé maladie) / maternity leave (congé de maternité)…

Starting and leaving a job

Worker :
- to apply for a job
- to be recruited
- to resign
- to be promoted / to get a promotion
- to get a raise / a payrise
Company :
- to hire / recruit
- to fire / sack (mettre à la porte) / dismiss / lay off = to dismiss for economic reasons/
make redundant = to dismiss because the employee is useless. You have no use in
the company.
- gross misconduct (faute grave) VS unfair dismissal (licenciement abusif)

Employee relations
- Good working conditions
- Motivation / commitment / engagement
- Productivity
- Staff retention (vs high staff turnover)
VS
- disputes (un contentieux)/ strikes (une grève)
- bullying / harassment
- industrial action

* a trade union (un syndicat)

The future of work

“Traditional” companies (1880-1980s)

Companies allowed :
> work stability : employment contracts
> a structure with defined roles and paths (chemins) of career progress

Many of the jobs were unionised, and the unions (syndicats) fought to improve their
members’ benefits

Government built stable employment into the heart of welfare legislation (Etat providence)

A lot of white-collar workers (cols blancs) enjoyed secure jobs (emplois stables).

After World War II everybody seemed to benefit from this model :

> workers got security, benefits and steady wage rises
> companies got a stable workforce in which they could invest with a fair expectation of
returns (rentabilité)

From “traditional companies” to the “on-demand economy”

BUT : the model started to get into trouble in the 1970s because of :
> deteriorating industrial relations
> globalisation (mondialisation)
> computerisation

>>>>> TODAY : The on-demand economy is changing the way people work and the role of
companies.
What is the on-demand economy ?
- Economie à la demande
- Uber économie

Technology companies matching jobs with independent contractors (travailleurs

indépendants)

>>> supplying labour and services on demand

The business in this new economy are a result of :

> technological innovation
> evolution in consumer behavior (comportement des consommateurs)

This industry is experiencing rapid growth

From “traditional” companies to self-employment

- Today : 1/3 members of the American workforce (and a higher proportion of younger
people) do some freelance work
- This pattern fits in with people’s wishes to work more flexibility :
> Working from home (teleworking)
> Working flexible hour
> Working part-time

The on-demand economy is unlikely to be a happy experience for people who value stability.

It is likely to benefit people who value flexibility more than security :

> students who want to supplement their incomes
> specific individuals who can afford to dip in and out of the labour market
> young mothers who want to combine bringing up children with part-time jobs
> the semi-retired or early retired
Money and Income

Collocations :
- to earn money
- to borrow money (to get a loan)
- to lend money
- to pay back / repay
- to owe someone money = devoir de l’argent à quelqu’un
- to spend money (on)
- to invest money (in)

Money : basic vocab

- to buy
- to sell
- to rent / to hire
- to pay in instalments
- a bill / a receipt / an invoice = la facture mais sous différents sens
- a refund = remboursement
- for sale / on sale
- earning VS expenses = recette VS dépenses
- a quote = un devis

Currency
- The money used in a country (=considered to be legal tender) is its currency
- In English, the currency is written BEFORE the amount
> £5.99
> $1,250
- Money in notes/bills and coins is called cash
- Most money consists of bank deposits : money that people and organizations have in
bank accounts

Personal finance

All the money a person earns is his/her income :

- A salary / wages
- Overtime : money received for working extra hours
- Commission : e.g. money paid to salespeople-a certain percentage of the income the
employee generates
- A bonus : extra money given for meeting a target
- A pension : money paid to a retired person

Amounts of money that people have to spend regularly are outgoings :

 - Living expenses = dépenses courantes, du quotidien
- Bills = facture
- Rent = location
- A mortgage : repayment of money borrowed to buy a house or flat
- Health insurance = assurance maladie
- Tax = impôts

Idioms with money

- Easy money
- Money that you earn with very little work or effort
>>> Some people think running a website is easy money

- Money doesn’t grow on trees = l’argent ne tombe pas du ciel, ne court pas les rues
- If you say that money doesn’t grow on trees, you say that money is limited
>>> Don’t be so wasteful! Money doesn’t grow on trees, you know

- Put your money where your mouth is

- If you put your money where your mouth is, you prove something with actions, not
just words
>>> If you say that is important for you, you should invest in it. You need to put your money
where your mouth is

- Spend money like water

- If you spend money like water, you spend too much money
>>> Mark spends money like water. He buys new clothes all the time !

- Throw good money after bad

- If you throw money after bad, you waste more and more money on something
>>> Instead of paying to fix my laptop all the time, I think I should buy a new one. I don’t
want to throw good money after bad.

- see the color of (someon’s) money

- to make sure that someone will pay for something before you give it to him/her
>> I will not give him the product until I see the color of his money