ESP 2

L HNG LINH Tel: 0903 978 552 Email: lehonglinh.ftu@gmail.com Faculty of ESP FTU
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What is international trade?

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International trade is exchange of capital, goods, and services across international borders or territories. It refers to exports of goods and services by a firm to a foreignbased buyer (importer)In most countries, it represents a significant share of gross domestic product (GDP).
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What are benefits of international trade?

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International trade is the exchange of services, goods, and capital among various countries and regions, without much hindrance.

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The international trade accounts for a good part of a countrys gross domestic product.

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The rise in the international trade is essential for the growth of globalization.

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Enhances the domestic competitiveness Takes advantage of international trade technology Increase sales and profits

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Extend sales potential of the existing products Maintain cost competitiveness in your domestic market Enhance potential for expansion of your business

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Gains a global market share Reduce dependence on existing markets Stabilize seasonal market fluctuations

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International trade has reduced inequalities and facilitated growth in economy of different countries.

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International trade terms: Import Imports are valued on the basis of free-on-board. Import of goods is a measure of the total value of the goods entering the domestic arena of any nation.
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International Trade Terms: Export Conversely, export is a measure of the value of the goods leaving the domestic arena of a nation. Export does not take into account the place, where the goods have been produced. They are usually estimated on the basis of cost-including-freight.
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International Trade Terms:
Ad Valorem: percentage of any tax, charge or duty that is imposed on the value of a commodity. Anti dumping: Dumping, is referred to as a practice when a particular commodity is sold in the foreign market for a value, which is less than the fair value. Referring to the various laws, anti dumping is the reverse of dumping.
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International Trade Terms:
Balance of payments: refers to the statistical overview pertaining to international transactions. These Transaction are referred to as ownership transfer of any commodity, from the citizens of on nation to the citizens of another. The commodity should have an economic value in terms of money.
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International Trade Terms:
Common External Tariff, CET or CXT: Is a common tariff, estimated on imports, which enter the union territory from nations, which do not fall within the purview of the union. It is abbreviated as CXT or CET.

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International Trade Terms:
Common External Tariff, CET or CXT: Is a common tariff, estimated on imports, which enter the union territory from nations, which do not fall within the purview of the union. It is abbreviated as CXT or CET.

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International Trade Terms:
Common market: Exemplified by the European community, common market is one, which has external tariff, which is common. It also permits, mobility of labor and the same economic policies govern the member nations.

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International Trade Terms:
Marks of origin: these are the indication marks seen on products, which depict the country, where the product was manufactured. As per customs norms, it is obligatory for almost all countries to provide the marks of origin.

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Restriction of international trade nontariffs: The non tariff barriers may include norms, which govern technical standards and health standards, influencing costs. The non tariff restrictions are difficult to ascertain, hence they are more frequently treated quantitatively and are of wide range.
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Restriction of international trade nontariffs: Constraints on export Health regulations Sanitary regulations

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Restriction of international trade nontariffs: Embargoes Licensing Minimum price regulations.

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Import charges: Restriction of international trade pertaining to imports may be of the following types: Internal taxes Tariffs Variable levies Special import duties

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Intervention of the government in trade: Government procurement Countervailing duties Subsidies in export Trading of stocks

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Standards: Packaging Industry standards Labeling regulations Marking regulations

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Procedures followed in administrative and customs entry: Duties imposed for anti dumping Customs valuation Customs classification Sample requirements

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The restriction of international trade pertaining to environmental factors include the following:
Pollution as a result of processing plants Usage of polluting elements in production procedures Waste disposal How much energy is utilized by processing plants Judicious consumption of energy
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Writing Assignment: what do you think of the relation between international & economy.
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THANK YOU !

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