Professional Documents
Culture Documents
U1 International Trade New
U1 International Trade New
U1 International Trade New
Trade
I. Overview of International trade
• 30-70% JVC
• Capital contribution:
Foreign partner : capital, technology and equipment,
know-how, brand name
Local partner: land ( over- priced land)
II. Benefits of International
trade
• Open doors to new entrepreneurial opportunity
across nations.
• Provide a country’s people with greater choice of
goods and services.
• An important engine for job creation in many
countries.
• 1986:
• 1985:
III. Theories of International trade
• Land
• Labour
• Capital
Vietnam
• Export
• Import
MDCs vs LDCs
• Balance of trade - NX
V. The balance of payments
• In economics, the balance of payments
(BOP) measures the payments that flow
between any individual country and all
other countries.
• It is used to summarize all international
economic transactions for that country
during a specific time period, usually a year.
• The balance of payments comprises the
current account, the capital account, and
the financial account. "Together, these
accounts balance in the sense that the sum
of the entries is conceptually zero.”
1. Current account
1. Export procedures
-Transport the goods to the docks or airport
-Pass them through customs
-Clear them through another set of customs on arrival
-Present them to the correct customers
2. Export documents
28
Shipped on board
29
Clean bill of lading
30
Airway bill
31
Road consignment note
32
Rail consignment note
33
2. Export documents
2.Political motives
-To protect jobs
-To preserve national security
-To respond to ‘unfair’ trade
-To gain influence
Reasons…
3. Economic motives
-To protect infant industries
-To pursue strategic trade policy
Protectionism
Protectionism is the economic policy of restraining trade
between nations, through methods such as tariffs on imported
goods, restrictive quotas, and a variety of other restrictive
government regulations designed to discourage imports, and
prevent foreign take-over of local markets and companies.
This policy is closely aligned with anti-globalization, and
contrasts with free trade, where government barriers to trade
are kept to a minimum. The term is mostly used in the context
of economics, where protectionism refers to policies or
doctrines which "protect" businesses and workers within a
country by restricting or regulating trade with foreign nations.
Quota