MGNM803 –

INTERNATIONAL TRADE
LAWS
 Course assessment model
Details:
 Lecture-3 Exam category ETP
 Tutorials- 1
Marks Break Up
 Credit- 3
 Academic tasks: 2 Attendance 5
 Textbook: INTERNATIONAL TRADE LAW by S.R.
CA 25
MYNENI, ALLAHABAD LAW AGENCY
 References: WTO TEXT & CASES by PALLE KRISHNA ETT 20
RAO, EXCEL BOOKS
ETT 50

Total 100

0-2
Course Outcomes:
Through this course, students should be able to:
 CO1: analyze the principles of WTO and agreements in international trade related issues

 CO2: evaluate the major international trade rules governing tariffs and non-tariff barriers in Indian and
international market

 CO3: understand the essentials of international sales contract and comprehend the knowledge in
formation of sales contracts

 CO4: enumerate the legal regimes and multi-model transportation conventions of International Trade
 PO – CO Mapping
CO3 understand the
CO2 evaluate the major essentials of
CO1 analyze the
international trade rules international sales CO4 enumerate the legal
principles of WTO and
governing tariffs and contract and regimes and multi-model
Outcome Heading Description agreements in
non-tariff barriers in comprehend the transportation conventions
international trade
Indian and international knowledge in of International Trade
related issues
market formation of sales
contracts
Apply knowledge of management
PO1 Problem solving theories and practices to solve 3 3 1 1
business problems.
Foster Analytical and critical
PO2 Decision Making  thinking abilities for data-based 3 2 1 1
decision making.
Ability to develop Value based
PO3 Leadership 2 3 1 1
Leadership ability
Ability to understand, analyze and
communicate global, economic,
PO4 Global Outlook 2 1 3 1
legal, and ethical aspects
of business.
Ability to lead themselves and
others in the achievement of
PO5 Team Dynamics organizational goals, 2 2 2 3
contributing effectively to a team
environment.
Ability to develop entrepreneurial
PO6 Entrepreneurship orientation to leverage business 2 1 1 1
opportunities
 CA 1
Objectives of Academic
Topic Details Evaluation Parameters
Activity

Students in a group of 3-5 each will be allotted a case study

related to international business topics like 1. Trade procedure
2.Trade promotion organisations 3. Tariff/Non-Tariff barriers
Students will prepare a presentation that will be submitted for
evaluation. Students are expected to present the critical analysis/ Students will be evaluated on: Identification of the Main
solution/ recommendations of the case assigned by the faculty. Issues/Problems: (2 Marks),
To test the students Note: Analysis of the issues:(5 Marks,)
1. Students should not waste time while preparing and presenting
analytical and the case summary. Instead, they shall directly discuss the case
Comments on effective solutions/strategies (10 Marks),
presentation skills Links to course reading and additional research: (3 Marks)
issues after briefing the case situation for a while. Additionally, 10 marks for presentation. (Guidelines and
2. Students must not confine themselves to bits and pieces of rubrics uploaded) 5. For group work (Content)
case and must be prepared with entire case.
3. Each group must submit case ppt on UMS within 1 day prior
to their presentation. Ppt submission will be followed by
presentations in the class as scheduled by the faculty member.
**Peer rating will be applicable 
 Objectives of
Topic Details
CA 2 Evaluation Parameters
Academic Activity
The assignment includes the following:
1. Identify the distinctive features of doing business in a specific country (e.g.,
demographics, economic conditions, competition, political/legal forces, cultural forces,
etc.). (5 Marks)
2. Conduct a Risk Assessment that describes the various risk factors associated with doing
To develop a business in that country (e.g., risks from trade, geopolitical tensions between major
trading nations especially in reference to U.S, EU and emerging economies: China,
deeper In this academic task, students need India and Brazil). (5 Marks)
understanding to develop a plan to introduce a new 3. Identify a product or service that you would like to market in this chosen country.
of the issues in product or service into a market Identify the specific rationale that makes your idea a viable business opportunity. (10
somewhere around the globe. Marks)
foreign trade
4. Identify the quantitative restrictions, tariff bindings on the export of your product to
. the market that you have identified. Then look for the trade remedies (anti dumping
duties, countervailing duties etc.) / measures taken by the government to deal with
them. (10 marks)
Course content:

 Foundations of free trade

 India and WTO
 International trade and economies
 International sales contracts
 Incoterms
 International carriage of cargo
 Relevant Websites
Journal Articles as compulsory readings (e-journal, Online Library and
Sr. No. Salient Features
Printed Journals/Periodicals)

1 http://repository.essex.ac.uk/19163 New Rules for Letters of Credit: Time to Update the UCP 600

2 https://www.wto.org/english/tratop_e/dispu_e/dispu_status_e.htm Chronological list of disputes cases

3 https://www.icj-cij.org/en International Court of Justice

4 https://iccwbo.org https://iccwbo.org

5 https://www.wto.org/english/docs_e/legal_e/14-ag_01_e.htm Agreement on Agriculture

6 https://commerce.gov.in/InnerContent.aspx?Type=InternationalTrademenu&Id=32 Trade Agreements Current Engagements/ Negotiations

7 https://www.youtube.com/watch?v=MmJ4I91JuAg What Is The Hague And How Powerful Is It?

SYLLABUS
SYLLABUS
Free Trade
 Free trade is the unrestricted importing and exporting of goods
and services between countries.
 The opposite of free trade is protectionism—a highly-
restrictive trade policy intended to eliminate competition from
other countries.
The Economics of Free Trade

 Free trade allows businesses in each country to focus on producing

and selling the goods that best use their resources while other
businesses import goods that are scarce or unavailable
domestically. 
 That mix of local production and foreign trade allows economies to
experience faster growth while better meeting the needs of its
consumers.
 This view was first popularized in 1817 by economist David
Ricardo in his book, "On the Principles of Political Economy and
Taxation.
 He argued that free trade expands the diversity and lowers the
prices of goods available in a nation while better exploiting its
homegrown resources, knowledge, and specialized skills
 Mercantilism
 Free trade theories of absolute advantage

 Free trade theories of comparative advantage

Mercantilism
 According to mercantilism, countries should export more than they
import (run a trade surplus).

 It happens with the help of government policies and the concept of

balance of trade (country is exporting more than it is importing)
 The goal of mercantilism is a favorable balance of trade, in which
the value of the goods a country exports exceeds the value of goods
it imports. 
Principle of Absolute Advantage
 According to Adam Smith's principle, a country should export a
commodity that can be produced at a lower cost than can other
nations. Conversely, it should import a commodity that can only
be produced at a higher cost than can other nations.
Theory of Absolute Advantage
 Absolute advantage holds that different countries produce different
things more efficiently than others and that consumers should not
have to buy domestically produced goods when they can buy them
more cheaply from abroad.
 A country has an absolute advantage in the production of a product
when it is more efficient than any other country in producing it.
 It can be either natural advantage or acquired advantage.
  Natural Advantage – Costa Rica – Coffee, Bananas and Pineapples

 Acquired Advantage – Services and manufactured goods

Product or process technology
Denmark exports Silver Tableware – Not because there are rich Danish
silver mines but because Danish companies have developed distinctive
products.
Theory of Comparative Advantage
It suggest that global efficiency gains may still result from trade if a
country specializes in what it can produce most efficiently- regardless of
other countries’ absolute advantage.

Imagine that the best physician in town also happens to be the best
medical administrator
 Popularly attributed to English economist David Ricardo and
his 1817 book “Principles of Political Economy and Taxation,”
the law of comparative advantage refers to a country’s ability
to produce goods and provide services at a lower cost than
other countries.
Advantages of Free Trade

 It stimulates economic growth

 It helps consumers
 It increases foreign investment
 It reduces government spending
 It encourages technology transfer
 What Is The Hague And How Powerful Is It?
 Comment …………..
Incoterms….
Thank you