INTERNATIONAL TRADE

AND INVESTMENT
Michael C. Suldan
Faculty, College of Business Education and
Management
International Trade
 Is an exchange involving a good or service
conducted between at least two different
countries
 Is a method of economic interaction between

international entities and is an example of

economic linkage
Cont..
 Comparative advantages allows for gains
from international trade, ultimately leading to
increased consumption of goods.
 Two major protectionist trade policies are

tariffs and import quotas

EXPORT
 Refers to a good or service sold to a foreign
country.
 Philippines Top 3 Export Products
 1.Computer Parts and Accessories, cable and

printing machinery
 2.Banana
 3.Pineapples
 46.7% export sales in 2020
Import

 Refers to a good or service bought from a foreign

country.
 Top 3 Importing Products(Philippines)
 1.Electronic Products(25%)
 2.Mineral Fuels(21%)
 3.Transport Equipment(10%)

 Top 3 Import partners

 1.China(13%)
 2.USA(11%)
 3.Japan (8%)
Why does international trade occur?
Because one country enjoys a comparative
advantage in the production of goods and
services specifically if the opportunity cost of
producing that goods or services is lower for
that country than any other country.
Sources of Comparative Advantage
 1. Internal Difference in Climate
 2.Difference in Factor endowments
 3.Difference in Technology
Examples of International Trade
Policies
1.Tariffs
2.Import Quotas
Arguments for a Protectionist Trade
Policy
1.National Security
2.Job Creation
3.Protection of Infant Industries
INTERNATIONAL INVESTMENT
 Are those investments that are made outside
the domestic markets and offer portfolio
diversification. It aims to assure investors two
probabilities:
 1.The counter of domestic market risk
 2.The opportunities in the foreign market
References
www.markettrde.com
www.uplblib/edu-ph.com