G-Global-International-Trade-Donald Maglangit

Saint Joseph Institute of
Technology
Corner Montilla Boulevard and T. Calo Street, Butuan City,
8600 Philippines
Certified : ISO 9001 :2000
Accredited : Philippine Association of Colleges and Universities Commission of Accreditation
Contact Nos : (085) 225-5039, (085) 225-6228, (085) 342-5694, Tele Fax : (085) 815-4248
Website : http://www.sjit.edu.ph
EXPANDED TERTIARY EDUCATION EQUIVALENCY AND ACCREDITATION PROGRAM

(ETEEAP)
GLOBAL / INTERNATIONAL TRADE (GIT)
COURSE REQUIREMENTS
CATEGORY OF GLOBAL AND INTERNATIONAL PHENOMENA
1. ETHICAL ISSUES IN INTERNATIONAL BUSINESS
Issue 1 What are the Benefits and Costs of International Outsourcing?
Benefits: 1. Cost savings
2. Improved efficiencies, quality and staff satisfaction
3. Scalability and business growth
Cost: 1. Loss control over business
2. Communication problems
3. Job loss for the home country
Issue 2 What are the Standards and Practices in Global and International
Trade?
1. ISO 9001 - Quality Management
2. ISO 14001 - Environmental Management
3. ISO 26000 - Guidance on Social Responsibility
4. ISO 45001 - Occupational Health and Safety
5. ISO 45003 - Psychological Health and Safety
6. ISO 22301 - Business continuity
7. ISO 27001 - Information security
8. ISO 44001 - Collaborative Business relationships
EXPANDED TERTIARY EDUCATION EQUIVALENCY AND ACCREDITATION PROGRAM (ETEEAP)

JENNY LYN TINDUGAN- NALUPA, CPE, BA, LPT, LTC, PHF, MM, PhD, EdD
PROFESSOR- Global/ International Trade
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8600 Philippines
Issue 3 What are the Best Approaches to Minimizing Global Corruption?
1. End impunity
2. Reform public administration and finance management
3. Promote transparency and access to information
4. Empower citizens
5. Close international loopholes
Issue 4 What are the Types of Economic Models? Define each?
1. Very long-term economic model - The study of the behavior of
the economy focuses on the theory of growth, that is, on
improving the economy’s ability to produce goods and services.
It focuses on the historical accumulation of capital and
technological advances. Capital reserves and the level of
technology can be considered fixed and determine the
productive capacity of the economy, which is called potential
production.
2. Long-term economic model - The supply of goods and services
is equal to potential production, and prices and inflation depend
on changes in demand.
3. Short-term economic model - The fluctuations in demand
determine the efficiency in the use of capacity, which implies
the level of production and employment. In this model, prices
are relatively fixed and production is variable, and this is where
economic policies have greater applicability.

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8600 Philippines
2. OPERATING IN A GLOBAL ECONOMY
Issue 1 How does Globalization Affect the World?
- One of the major potential benefits of globalization is to provide
opportunities for reducing macroeconomic volatility on output and
consumption via diversification of risk. The overall evidence of the
globalization effect on macroeconomic volatility of output
indicates that although direct effects are ambiguous in theoretical
models, financial integration helps in a nation's production base
diversification, and leads to an increase in specialization of
production. However, the specialization of production, based on
the concept of comparative advantage, can also lead to higher
volatility in specific industries within an economy and society of a
nation. As time passes, successful companies, independent of
size, will be the ones that are part of the global economy.
Issue 2 How do Free- Trade Agreements Affect Multinational Firms?
- Free trade agreements (FTAs) can have both positive and
negative effects on multinational firms. FTAs can allow global
firms access to new business opportunities and markets, which
can increase gross domestic product (GDP) and invite new
investments. When multinationals partner with local firms to
develop resources, they train them in best practices, which gives

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8600 Philippines
local firms access to new methods. However, FTAs can also force
local industries to become more competitive and rely less on
government subsidies.
The effects of FTAs on foreign affiliate transactions have been
studied by the International Trade Commission. Using available
data on inbound and outbound sales of multinational firms, the
report estimated that the U.S. trade agreements did not have a
significant impact on foreign affiliate transactions. However, there
is a much larger literature examining the impact of free trade
agreements on cross-border services trade, reflecting the greater
availability of data.
Issue 3 What are some Key Strategies for Taking Advantage of Modern
Technologies Related to Global Logistics?
1. Some of the most promising use cases for supply chain
analytics include inventory visibility and optimization, strategic
sourcing and optimization, and real-time product intelligence.
2. Digital technologies such as blockchain, artificial intelligence
(AI), and the Internet of Things (IoT) are transforming logistics
and supply chain management.
Issue 4 Why some people fear globalization?
- Globalization is accused of causing job losses, culture shocks
and xenophobia, but modernization of lifestyles and industries
alter work and life patterns more fundamentally. Politicians who
blame globalization are really alluding to larger socioeconomic
issues – 25 years of hyper-competition, with intense focus on

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company stock values and profits. The power of unions has
shrunk – tilting the social balance in favor of capital investors,
managers and consumers who demand better products at low
prices. Before the 1980s, unions in several manufacturing sectors
were perhaps overly strong, resulting in inefficiencies and meager
profits. Each society must find the proper balance for allocating
benefits among labor, consumers, management and
shareholders.
Issue 5 Discuss Open Economy?
- An open economy is a type of economy where not only domestic
factors but also entities in other countries engage in trade of
products (goods and services). Trade can take the form of
managerial exchange, technology transfers, and all kinds of
goods and services. Certain exceptions exist that cannot be
exchanged; the railway services of a country, for example, cannot
be traded with another country to avail the service.
It contrasts with a closed economy in which international trade
and finance cannot take place. The act of selling goods or
services to a foreign country is called exporting. The act of buying
goods or services from a foreign country is called importing.
Exporting and importing are collectively called international trade.

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8600 Philippines
3. THE HUMAN SIDE OF GOING GLOBALIZATION
Issue 1 What are the Major Challenges that Face Expatriates while Living
Abroad?
1. Language - Language barriers are the most common
challenges faced by expatriates. If you move to a country where
you don’t speak the native language, you may be in trouble the
moment you land. Countries like Italy are known to speak only in
Italian. Communicating with cab drivers to get to your new home
and discussing rental with landlords can all be frustrating if you
don’t know the basics of the language.
2. Understanding Cultures and Customs - If you’re moving to a
country dense in culture, you may find yourself amidst strict and
unique customs. Learning and following those cultures and
customs may come across unnecessary, but part of becoming an
expat in a foreign country is learning to adapt. It also ensures the
longevity of your expat experience. For example, if you’re an

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expat employee in China, it’s important to know that the local
population is superstitious and attach meanings to a lot of things.
A white rose indicates innocence and purity in Western countries
like the USA, but in China, it represents ghosts and deaths.
3. Housing problems - Housing problems are major challenges
faced by expatriates. Some digital nomads and self-employed
expats may move to a temporary home that’s closer to the public
transportation or work area. In many cases, they may be dealing
with crumbling walls, leaky water pipes, and awry repairs. It is
advisable to do your research before you move abroad and
check the local rental listings. If you are moving abroad for work,
your expat employer may arrange and pay for your housing.
4. Acclimatizing to the local weather - The stark difference can be
seen when an expat is moving one continent to another. If you’re
from North America moving to Asia, you may find yourself feeling
uncomfortable settling in the weather. Hot balmy days and rain
are all you will experience. On the other hand, a digital nomad
moving from Malaysia to the UK might find the cold, gloomy
British weather depressing. Failing to properly plan and prepare
necessary attires are challenges faced by expatriates
5. Earning an income - One of the most common challenges
faced by expatriates is earning an income in their new
destination. Either you’re doing digital work in Cambodia or
running bed and breakfast in rural Italy, but ensuring it finances
your expat living is a whole other case. You need to put extra

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hard work and may not be able to work a 9-5 job like everyone
else. It also depends on what kind of expat life you choose to live.
Being able to live in different scenic backdrops can be the dream
for some, but whatever avenue you choose to work in, it must be
sustainable.
6. Establishing a social network - Similarly, leaving comfort zones
such as friends and family and establishing a new can be
challenging for expats. If expats are looking to make their move
abroad a long term success, they need to integrate into the local
community, build a new circle of friends and fellow expats. It’s not
easy leaving behind the people you have known for a long time. It
is also why expats who move to a different country for career
progression get high compensation from employers.
7. Missing family and friends - It’s now easier than ever to take a
flight to a destination you desire. The internet has also allowed for
easy Skype, and Whatsapp calls to friends and family.
Globalization has made the world a smaller place. Nevertheless,
separating from friends and family is one of the hardest
challenges faced by expatriates.
My opinion: When it comes to safety and health, there is one typical problem
that expatriates can avoid. As you face all other difficulties in your expat life,
purchasing comprehensive health insurance guarantees that you are protected.
Health is wealth and no one will take care of you than yourself.

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Issue 2 Whys is it So Important to understand Cultural Differences When

Working Abroad?
- When you start or expand your business abroad, you come into
several cultural touch points. For example, when discussing a
contract with a local employee, using local language, negotiation
methods, and more are critical when establishing a respectful
working relationship. This is cultural sensitivity.
The importance and role of culture in international business is a
long-established area of interest in business and academic
research. For example, in a broad study on the role of culture in
international business, cultural context is shown to substantially
influence how global companies perform everyday duties in
diverse cultural contexts. Specifically, going abroad makes
companies adapt business procedures to local customs.
This finding has broad implications for developing business
strategies that are culturally competent on a wide scale. Notably,
while each company may (or should) have a clear and actionable
business strategy at home, applying this method without adopting
it to local customs may fail and result in scandalous or
undesirable outcomes.
Moreover, the complexities involved in doing business abroad are
informed by what makes a culture, such as local languages,
business practices, local dress codes, food habits, and much
more. In short, doing business abroad is, in many ways, more
about understanding who your customers — and, by extension,

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your business partners, suppliers, vendors, etc. — are in your
chosen international markets of operation.
My opinion: Any worldwide employer must comprehend cultural variations in
the context of international business. Your emerging or
established global presence may succeed or fail depending on
how well you understand who your overseas clients, partners,
vendors, and suppliers are.
International employers must recognize these differences, know
how to handle them, and embrace best practices to make culture
a benefit if they are to effectively grasp global markets.
When conducting business overseas, cultural differences may
manifest in a variety of ways. If you're new to conducting business
internationally, you probably won't be able to understand the
culture of a foreign market unless you get assistance from a
worldwide employer of record.

.
Issue 3 Discuss the distinction between Global Trade and International

Trade and site examples for each?
- The difference between global and international is that in case of
global concern the entire world comes together as a single nation
and revolves around the issue at concern, whereas in the case of
international concern only the countries in conflict or dilemma get
together in order to resolve the concerning issue.
Examples: Global Trade - As per the Singapore-Australia Free Trade
Agreement (SAFTA), Australia and Singapore are strategic trade

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and investment partners. Australia imported goods worth $8.06
billion from Singapore in 2019, and the breakup was as follows:
Out of $8.06 billion, 57.3% of imports constituted mineral
products.
* $838 million of imports were of machinery, 20% of it in the form
of digital CPUs.
* $661 million in imports accounted for food products.
* $575 million of imports comprised chemical products.
International Trade - Consider China and the United States as an
example. China's comparative advantage over the United States
comes in the form of cheap labor, which the United States cannot
match. Chinese employees create basic consumer items at a
lower opportunity cost than their counterparts in the United
States. The reason for that is that China has a larger amount of
unskilled labor compared to the U.S. That's why using this labor in
the production of basic customer items doesn't come with much
opportunity cost for China.
On the other hand, a specialized, high-skilled workforce is where
the United States has a comparative advantage. American
employees generate sophisticated items or investment
possibilities at lower opportunity costs than their counterparts in
China. Specializing and trading in this manner are beneficial to
both parties: the U.S. and China.
Issue 4 Expound comprehensively the distinction between Dependent,

Independent, and Interdependent in a Global and International Trade Arena?

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8600 Philippines
- In a global and international trade arena, “dependent” refers to a
country that relies on other countries for its economic growth and
development. “Independent” refers to a country that can sustain
its economic growth and development without relying on other
countries. “Interdependent” refers to a country that has economic
relations with other countries but also has the ability to sustain its
economic growth and development without relying on other
countries.
Issue 5 How Multi- Cultural Understanding Affects Globalization?
- Multicultural understanding can have a significant impact on
globalization. It can help to break down barriers between different
cultures and promote greater understanding and cooperation
between people from different backgrounds. This can lead to
greater cultural exchange and the sharing of ideas, which can
help to drive innovation and progress.
In addition, multiculturalism can help to promote diversity and
inclusivity in society, which can be beneficial for businesses and
organizations operating in a globalized world. By embracing
diversity and promoting multiculturalism, companies can create
more inclusive work environments that are better equipped to
meet the needs of a diverse customer base.
Issue 6 What do you think are the best products that are marketable in a
Global Market and in an International Market?
- For me, digital and techno-based products are the best to market

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in Global and International market because they can provide
greater productivity and efficiency, cost reduction and profit
boost. Emerging technologies have a transformative impact on
the global trade system. Much of our day-to-day in some way or
the other, is getting impacted with these technologies, and global
trade is no exception. These emerging technologies are playing
an important role in improving the overall global trade processes
by making them less complex and powering global trade with
robust solutions, including machine learning. Social media
connects almost half of the entire global population and enables
people to make their voices heard and to talk to people across the
world in real time.
Prepared by:
DONALD B. MAGLANGIT
Student
Submitted to:
DR. JENNY LYN NALUPA, PhD, EdD

Professor


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Saint Joseph Institute of

EXPANDED TERTIARY EDUCATION EQUIVALENCY AND ACCREDITATION PROGRAM

GLOBAL / INTERNATIONAL TRADE (GIT)

CATEGORY OF GLOBAL AND INTERNATIONAL PHENOMENA

1. ETHICAL ISSUES IN INTERNATIONAL BUSINESS

Issue 1 What are the Benefits and Costs of International Outsourcing?

Benefits: 1. Cost savings

2. Improved efficiencies, quality and staff satisfaction

3. Scalability and business growth

Cost: 1. Loss control over business

3. Job loss for the home country

1. ISO 9001 - Quality Management

2. ISO 14001 - Environmental Management

3. ISO 26000 - Guidance on Social Responsibility

4. ISO 45001 - Occupational Health and Safety

5. ISO 45003 - Psychological Health and Safety

6. ISO 22301 - Business continuity

7. ISO 27001 - Information security

8. ISO 44001 - Collaborative Business relationships

EXPANDED TERTIARY EDUCATION EQUIVALENCY AND ACCREDITATION PROGRAM (ETEEAP)

Issue 3 What are the Best Approaches to Minimizing Global Corruption?

2. Reform public administration and finance management

3. Promote transparency and access to information

5. Close international loopholes

Issue 4 What are the Types of Economic Models? Define each?

1. Very long-term economic model - The study of the behavior of

the economy focuses on the theory of growth, that is, on

improving the economy’s ability to produce goods and services.

It focuses on the historical accumulation of capital and

technological advances. Capital reserves and the level of

technology can be considered fixed and determine the

productive capacity of the economy, which is called potential

2. Long-term economic model - The supply of goods and services

is equal to potential production, and prices and inflation depend

3. Short-term economic model - The fluctuations in demand

determine the efficiency in the use of capacity, which implies

the level of production and employment. In this model, prices

are relatively fixed and production is variable, and this is where

economic policies have greater applicability.

EXPANDED TERTIARY EDUCATION EQUIVALENCY AND ACCREDITATION PROGRAM (ETEEAP)

2. OPERATING IN A GLOBAL ECONOMY

Issue 1 How does Globalization Affect the World?

- One of the major potential benefits of globalization is to provide

opportunities for reducing macroeconomic volatility on output and

consumption via diversification of risk. The overall evidence of the

globalization effect on macroeconomic volatility of output

indicates that although direct effects are ambiguous in theoretical

models, financial integration helps in a nation's production base

diversification, and leads to an increase in specialization of

production. However, the specialization of production, based on

the concept of comparative advantage, can also lead to higher

volatility in specific industries within an economy and society of a

nation. As time passes, successful companies, independent of

Issue 2 How do Free- Trade Agreements Affect Multinational Firms?

- Free trade agreements (FTAs) can have both positive and

negative effects on multinational firms. FTAs can allow global

firms access to new business opportunities and markets, which

can increase gross domestic product (GDP) and invite new

investments. When multinationals partner with local firms to

develop resources, they train them in best practices, which gives

EXPANDED TERTIARY EDUCATION EQUIVALENCY AND ACCREDITATION PROGRAM (ETEEAP)

local industries to become more competitive and rely less on

The effects of FTAs on foreign affiliate transactions have been

studied by the International Trade Commission. Using available