developing countries constitute two thirds of the WTOs membership the rise in numbers and significance of non state actors (NSAs) has also confirmed their role in shaping the worlds economic

Abstract The world trade pattern has never been the same as it used to be 100 years ago Back to the past, it is the world that the most developed countries would have the voice in many important decisions, global economy policies, political issues of other countries, for instances Fifteen years have passed since the entry into force of the Marrakesh Agreement Establishing the World Trade Organization (WTO) During this time, the traditional actors – namely, the United States, Japan, the European Union and Canada (the original Quad) – have retained much of their leading role on the economic and political scene While their influence on world affairs is irrefutable, over the years, their dominance has waned Since 1995, the world has undergone major geopolitical changes and has witnessed the rise of new state actors, who have asserted their own role in shaping the world's economic and political environment Today, developing countries constitute two thirds of the WTO's membership The rise in numbers and significance of non-state actors (NSAs) has also confirmed their role in shaping the world's economic and political environment It is partly to admit, which many people may tell you, the growth of developing economies and the globalization trend have transformed the word trade sharply However, that is not the whole story while there are more This assignment will bring you a new point of view about what help shape the world trade pattern, how those factors affect it and some predictions of the writers about the future of the global trade LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Introduction The world economy is currently striving to recover from its deepest economic crisis since the 1930s The crisis led to an unprecedented contraction in trade flows that stands in contrast to the process of economic integration and the significant expansion of trade experienced since the Second World War This expansion was partly driven by the process of globalization that rested on increased economic inter-dependence among nations, which was stimulated by a combination of technological advances, economic policy reforms, and geopolitical changes The new geopolitical environment, as well as the financial crisis, are factors that have affected international trade in different ways The development of new technologies has also contributed towards shaping international trade by changing the way business is conducted and the way people interact The rapid development of technology has generated both new challenges and new opportunities for economic agents worldwide What are the main economic, political and technological factors shaping world trade? There are, definitely, enormous works of thousands of economists in the world considering about this topic Understanding well what factors are determining world trade may help not only them but policy makers, businessmen… to make the right decision to earn profit and gain from world trade This assignment cannot cover all potential forces affecting the shaping of world trade It only looks at three major elements contributing to the transformation of the world trade, especially in last decade For more specifically, the paper progressively introduces the following sections: • Section provides a broad context for the analysis with some discussion of the theory of international trade; • Section mainly describes the economical factors, namely Preferential Trade Agreements, Global production networks, Growth of developing countries LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com • Section concentrates on how the development of Internet, International Payment System and Transportation, called Technological factors, influences that of World trade • Section illustrates the impacts of Globalization trend, WTO and local policies by analyzing some situations and decisions that shape the global trade LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS Abstract Introduction Chapter 1: Overview of theories of international trade I Classical theories of international trade Mercantilism The absolute advantage The comparative advantage Factor proportions theory II New theories of international trade Chapter 2: Analyzing factors affecting the world trade pattern 12 I Economical factors 12 Preferential trade agreements 12 Global production networks 15 Growth of developing countries 17 II Technological factors 20 Internet 20 International payment system 21 International transportation 23 III Political factors 26 Local policies 26 Globalization trend and World Organization's influences 27 IV Forecast about the future of world trade pattern 29 Conclusion 30 Reference Duty chart LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER 1: OVERVIEW OF THEORIES OF INTERNATIONAL TRADE   Classical theories of international trade Mercantilism (William Petty, Thomas Mun and Antoine de Montchrétien model) Mercantilism is a philosophy from about 300 years ago The base of this theory was the “commercial revolution”, the transition from local economies to national economies, from feudalism to capitalism, from a rudimentary trade to a larger international trade Mercantilism was the economic system of the major trading nations during the 16th, 17th, and 18th century, based on the premise that national wealth and power were best served by increasing exports and collecting precious metals in return It superseded the medieval feudal organization in Western Europe, especially in Holland, France, United Kingdom, Belgium, Portugal and Spain The monarch controlled everything Their policy was to export in the countries that they controlled and not to import (to have a positive Balance of Trade) Geographical discoveries not only stimulated the international trade, but also produced an affluent flow of gold and silver, which could be used to encourage the economy based on money and prices The state exercised much control over economic life, chiefly through corporations and trading companies Production was carefully regulated with the object of securing goods of high quality and low cost, thus enabling the nation to hold its place in foreign markets The theory states that the world only contained a fixed amount of wealth and that to increase a country wealth; one country had to take some wealth from another, either through having a higher import/export ratio So, this tendency, to export more and import less and to receive in exchange gold (the deficit is paid in gold) is called MERCANTILISM The theory was criticized by the newly appeared class More money was associated with less products and inflation The standard of living is weaker Mercantilist ideas did not decline until the coming of the Industrial Revolution and of laissez-faire LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com  The Absolute Advantage (Adam Smith model) In the second half of the XVIII century, mercantilist policies became an obstacle for the economic progress Adam Smith (father of liberalism and economical science) brought the argument in his book “The Wealth of Nations”, published in 1776, that the mercantilist policies favorised producers and disadvantaged the interests of consumers Adam Smith’s theory starts with the idea that export is profitable if you can import goods that could satisfy better the necessities of consumers instead of producing them on the internal market The essence of Adam Smith theory is that the rule that leads the exchanges from any market, internal or external, is to determine the value of goods by measuring the labour incorporated in them In order to demonstrate its theory, Adam Smith analyzed for the beginning country A, using one factor of production, the productivity of labour, evaluated in the necessary of hours needed to produce a unit of measure of the products X and Y He used a unifactorial system of economy Symbolizing H-hours, L-labour, the unitary necessary of labour for product X is HLX and for Y HLY Because all the economies have limited resources, there are limits in the level of production, and if a country wants to produce much of one product it has to give up producing another goods, existing in this case renounce of trade Renounces can be illustrated by a graphic  The Comparative Advantage (David Ricardo model) David Ricardo theory demonstrates that countries can gain from trade even if one of them is less productive then another to all goods that it produce Country A is more productive in X than in Y Country B is more productive in Y than in X LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Then, each country should specialize in the production for which it has less opportunity cost  Factor proportions theory A country should choose what to produce on the basis of the relative scarcity of labor, land, and capital Basically, on this view the relative scarcity of a factor or of factors determines the comparative advantage of the country Leontief Paradox - There are instances of reversal of this common sense An example is a capital intensive country exporting labor-intensive goods The reaction is to save the theory by pointing out a possible weakness, in this case that the Heckscher-Ohlin theory erroneously assumes that the factors of production are homogeneous The use of different production methods rests on the heterogeneity of factors of production For example, recently Canada and Egypt were net exporters of wheat Clearly, wheat can be produced in at least two ways Multiple production methods presents a difficulty for the Heckscher-Ohlin theory II) New theories of international trade A new body of international trade theory emerged in the 1980s The foundations of this theory were that competition in markets was imperfect, and that firms and governments could act strategically to affect trade flows and national welfare For many economists, this growing body of literature represented a radical departure from previous scholarship Rigorous mathematical models were developed which questioned the heart and soul of classical comparative advantage Respectable academic economists began asking whether unconditional free trade was a country’s best policy choice This case reviews the background and central hypotheses of these “new” theories, which have also been called theories of strategic trade policy The case looks at why many economists and policymakers thought alternative approaches were necessary, at what the contributions of industrial organization to this new theory were, and at what some of the tentative results in the 1980s were The case ends with a questions about the value of classical comparative advantage and the role of firm and industrylevel variables in determining who competes successfully in international trade Changes in the trading environment LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Several economic changes in the international trading system stimulated executives, policymakers, to revisit international trade theory in the 1980s The first was growing economic interdependence among nations, especially the increasing importance of trade for the United States The rapid growth of imports into the United States, for instance, meant that trade suddenly became a primary concern for executives and policymakers alike For the first time, virtually all American companies began facing serious foreign competition at home; at the same time, U.S government policymakers found that policies for such diverse activities as antitrust or innovation could no longer be set in isolation from the world economy Moreover, the possibility that foreign governments were providing assistance to their domestically-based firms raised the question of whether the U.S government should counter such assistance through its own initiatives By the 1980s, some governments had demonstrated an ability to affect the welfare of Americans through policy actions Traditional predictions of trade patterns were further confounded by the emergence of huge scale economies in some industries, and the growth of very large firms (usually multinationals) which dominated selected global markets Classical theory assumed that firms did not have the power to affect prices As long as there were many firms operating at arm’s length, theory did not have to account for strategic behavior; all firms could be assumed to be price takers But as industries became increasingly concentrated, with large firms capable of affecting the structure and conduct of the market, firms and governments had the opportunity to make strategic choices that could build competitive advantage in global markets Demand for government intervention A second stimulus to the new trade theory was shifting political and policy dynamics Rising demands for protectionism and growing pressures for regional trade blocs, especially in Europe and North politicians to search America, led economists and for solutions as well as justifications for their preferred policies Mature industries continued lobbying for more protection while normally free traders, such as semiconductors, telecommunications, and airframe firms, actively started to seek government assistance LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com New analytical tools While some economists had questioned classical trade theory for many years, they were never able to provide rigorous alternatives As a result, theories such as the product life cycle, which incorporated ideas about imperfect competition, remained outside the mainstream of academic economics Industrial organization theorists had developed new tools for analyzing economies of scale, economies of scope, learning effects, R&D races and technological spillovers These tools could explain why it was sometimes beneficial for firms to engage in certain activities that otherwise did not seem feasible or rational A few economists began to speculate that if these models of imperfect competition could be applied to international trade, we might better understand the new patterns of international flows Origins of the New Trade Theory: Industrial Organization While theories of trade under imperfect competition are a phenomenon of the 1980s, the roots of these theories can be traced back 150 years to when industrial organization (IO) first began describing how firms might behave when excess profits were available These types of behavior were referred to as strategic because firms could consciously undertake them to capture control of markets and could anticipate the reactions of rivals to their actions Among the types of strategic behavior firms could engage in were dumping (selling in markets below cost to develop economies of scale), preemption in R&D, product introduction, market penetration, etc (moving before rivals to capture competitive advantage), and predation (incurring losses from price cutting to drive rivals out of the marketplace) Crossing Over From Industrial Organization to International Trade An iconoclastic handful of trade theorists realized that there were reasons to be concerned with market imperfections and international arena with strategic behavior in the The central proposition of the new trade theorists was that firms and governments could behave in strategically self-conscious ways in imperfect global markets, and thereby affect a country’s balance of trade and LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com The profit-shifting argument was built on the assumption that a domestic government seeks to maximize national welfare, and not the welfare of the world or foreign consumers and producers Based on the new trade theory, economists believed that governments could help domestic firms to capture profits that would otherwise accrue to foreign firms Governments could use tax relief or subsidies, for example, to increase the profitability of private investments If government policy facilitated domestically-based firms to make a credible commitment to expand production facilities, foreign firms might be discouraged from expanding their own operations The result would be increased market shares and profits for the domestic firms Empirical Research By developing clear, mathematical formulations, the new trade theorists gave strategic trade policy academic respectability However, the models remained very tightly tied to narrow and unrealistic sets of assumptions, which reduced their usefulness for prescribing policy To sort out which models were more or less robust, economists turned to empirical research Research on trade under imperfect competition faced daunting obstacles such as the lack of data As a result, theorists mixed modeling techniques and relied on educated guesswork to set missing parameters Implications for Trade Policy These empirical limitations of the new trade about most its application to was that theory left theorists cautious real-world problems What concerned economists governments generally lacked sources of unbiased data upon which to base their decisions Even when data was available there was a great deal of uncertainty about its veracity Mistaken estimates could lead to misguided policies A second concern was that few believed the models captured enough of the key elements of real-world behavior to provide a satisfactory guide to decision making Even if the theory was refined sufficiently, it was unlikely that frontline policy analysts would have the time and resources necessary to build models of sufficient sophistication Third, the sensitivity of the models to assumptions about LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com In summarized, the developing country export patterns enjoyed three striking changes through brief survey of patterns of trade before The first is a rapid increase in the importance of manufactures exports from developing countries The second is a marked shift in the direction of developing country exports towards other developing countries The third is a sharp increase in the importance of services exports from developing countries Together, these changes mean that there has been a fundamental shift away from the traditional north-south model of the world economy in which developing countries exporting commodities in return for imports of manufactures This diversification of exports and shift away from commodities has many important advantages In particular, it helps reduce the volatility of export returns, and diminishes the concerns about potential price declines as exports expand (Martin 1993b)  Technological factors  Internet LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Although Internet came out in the 1960s, it is undoubtedly that Internet has proved its motive role in world trade pattern Probably, nowadays, people has become familiar with two kinds of trade known as e-business and traditional business It is generally believed that commercial use of the Internet has been a significant stimulant to the development of international trade The free, costless, and instantaneous flow of information is seen as a critical factor in developing trading relationships In additional, one result suggests that a 10 percentage point increase in the growth of web hosts in a country leads to about a 0.2 percentage point increase in export growth Figure shows that out of 20 countries with highest number of internet users, there are countries which are developing countries It also indicates the potential development of these countries, and lead to a rapid change in the way people trade in a country or even across national borders Thus, as you may know that probably almost young milionares over the world today are businessmen in terms of technology-related field LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com  International Payment System Payment is an integral part of mercantile process Negotiating the payment method is equally as important as negotiating the additional aspects of transaction such as quantity, price, shipping method of whether or not it is a recurring transaction Since the advent of the Internet, and in particular, the increase of emarketplaces since the start of 21st century there have been a number of methods adopted in relation to payment methods using online marketplaces All payment methods carry a certain degree of risk, and it is only by carrying out accurate due diligence on a potential business partner you alleviate some of that risk to your company One of the most widely available payment methods for participants in emarketplaces is that of escrow services Escrow services such as www.escrow.com, and Alibaba’s Chinabased escrow services, Alipay, are available to companies for a free which is normally based as a percentage cost of the overall transaction value An escrow service, in relation to an emarketplace, operates essentially as follows The buyer and seller participate in online negotiations over a particular material or service After negotiation the participants finalize the transaction online: normally agreeing on a purchase order which would detail fields such as price, quantity, shipping method, buyer’s inspection period These finalized details would be passed to the Escrow service The buyer issues payment for merchandise to the escrow service – once payment is confirming by the escrow service, it is the escrow service who notifies the seller to ship the goods or services to the buyer On arrival, the buyer then has a set number of days to inspect the merchandise as was previously set – out in the purchase order They buyer can accept of reject the goods or services during this period If they accept the seller is paid by the escrow service and transaction is concluded If the buyer rejects the merchandise, the buyer returns the goods to the seller and payment is returned to the buyer by the escrow service The risk to participants is lessened in comparison to using a method such as a wire transfer, for example Currently, the main risk in relation to escrow services is the proliferation of fake escrow websites LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com From experience, one of reasons why some SMEs (small and medium-sized enterprise) not engage in escrow services is the additional fee charged by the escrow provider Once the fee is factored-in to the profit on the transaction, unless it’s a particularly large transaction, the transaction itself becomes economically unviable Therefore, SMEs may engage in more high risk payment methods in order to sustain a potential higher profit Paypal, and other online payment sites such as 2checkout.com, are prominent alternatives used for making online payments However, in relation to emarketplaces, currently, it would appear that SMEs prefer to meet, negotiate and conclude business using the more traditional payment methods that were outlined This trend may change in future years, however, as the next generation of business leaders will be much more comfortable in using the various ebusiness solutions offered on the Internet Additional payment methods such as wire transfer, and payment using credit cards are also available to SMEs, however, they also include a high degree of risk, particularly from a buyer perspective As all payment methods carry a degree of risk, it is imperative that appropriate due diligence is carried out on any prospective trading partner with particular focus on that trading partner’s credit worthiness After due diligence has been successfully finalized, selection of an appropriate payment method whilst using an e-marketplace will be an easier task  International Transportation The growth of the amount of freight being traded as well as a great variety of origins and destinations promotes the importance of international transportation as a fundamental element supporting the global economy Economic development in Pacific Asia and in China in particular has been the dominant factor behind the growth of international transportation in recent years Since the trading distances involved are often considerable, this has resulted in increasing demands on the maritime shipping industry and on port activities As its industrial and manufacturing activities develop, China is importing growing quantities of raw materials and energy and exporting growing quantities of manufactured goods The outcome has been a surge in demands for long distance LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com international transportation The ports in the Pearl River delta in Guangdong province now handle almost as many containers as all the ports in the United States combined International transportation systems have been under increasing pressures to support additional demands in freights volume and the distance at which this freight is being carried This could not have occurred without considerable technical improvements permitting to transport larger quantities of passengers and freight, and this more quickly and more efficiently Few other technical improvements than containerization have contributed to this environment of growing mobility of freight Since containers and their intermodal transport systems improve the efficiency of global distribution, a growing share of general cargo moving globally is containerized Consequently, transportation is often referred to as an enabling factor that is not necessarily the cause of international trade, but as a condition without which globalization could not have occurred A common development problem is the inability of international transportation infrastructures to support flows, undermining access to the global market and the benefits that can be derived from international trade International trade requires distribution infrastructures that can support trade between several partners Three components of international transportation facilitate trade:  Transportation infrastructure Concerns physical infrastructures such as terminals, vehicles and networks Efficiencies or deficiencies in transport infrastructures will either promote or inhibit international trade  Transportation services Concerns the complex set of services involved in the international circulation of passengers and freight It includes activities such as distribution, logistics, finance, insurance and marketing  Transactional environment Concerns the complex legal, political, financial and cultural setting in which international transport systems operate It includes aspects such as exchange rates, regulations, quotas and tariffs, but also consumer preferences About half of all global trade takes place between locations of more than 3,000 km apart Because of this geography, most international freight movements involve several modes LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com since it is impossible to have a physical continuity in freight flows. Transport chains must thus be established to service these flows which reinforce the importance of intermodal transportation modes and terminals at strategic locations Among the numerous transport modes, two are specifically concerned with international trade:  Ports and maritime shipping The importance of maritime transportation in global freight trade in unmistakable, particularly in terms of tonnage as it handles about 90% of the global trade Thus, globalization is the realm of maritime shipping, with containerized shipping at the forefront of the process The global maritime transport system is composed of a series of major gateways granting access to major production and consumption regions Between those gateways are major hubs acting as points of interconnection and transshipment between systems of maritime circulation  Airports and air transport Although in terms tonnage air transportation carries an insignificant amount of freight (0.2% of total tonnage) compared with maritime transportation, its importance in terms of the total value is much more significant; 15% of the value of global trade International air freight is about 70 times more valuable than its maritime counterpart and about 30 times more valuable than freight carried overland, which is linked with the types of goods it transports (e.g electronics) The location of freight airports correspond to high technology manufacturing clusters as well as intermediary locations where freight planes are refueled and/or cargo is transshipped Road and railway modes tend to occupy a more marginal portion of international transportation since they are above all modes for national or regional transport services Their importance is focused on their role in the "first and last miles" of global distribution Freight is mainly brought to port and airport terminals by trucking or rail There are however notable exceptions in the role of overland transportation in international trade A substantial share of the NAFTA trade between Canada, United States and Mexico is supported by trucking, as well as large share of the Western European trade In spite of this, these exchanges are at priori regional by definition, LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com although intermodal transportation confers a more complex setting in the interpretation of these flows Still, many challenges a impacting future developments in international trade and transportation, mostly in terms of demographic, energy and environmental issues While the global population and its derived demand will continue to grow and reach around billion by 2050, the aging of the population, particularly in developed countries, will transform consumption patterns as a growing share of the population shifts from wealth producing (working and saving) to wealth consuming (selling saved assets) The demographic dividend in terms of peak share of working age population that many countries benefited from, particularly China, will recede As both maritime and air freight transportation depend on petroleum, the expected scarcity of this fossil fuel will impose a rationalization of international trade and its underlying supply chains Environmental issues have also become more salient with the growing tendency of the public sector to regulate components of international transportation that are judged to have negative externalities Also, international trade enables several countries to mask their energy consumption and pollutant emissions by importing goods that are produced elsewhere and where environmental externalities are generated Thus international trade has permitted a shift in the international division of production, but also a division between the generation of environmental externalities and the consumption of the goods related to these externalities  Political factors  Local policies Figure Predicted increase of world imports if all countries were democratic LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Figure Predicted increase of world imports if all countries were democratic, accounting for official trade policy We re-examine the influence of a country’s political regime on its involvement in international trade Democratisation leads to trade liberalisation because political power falls into the hands of a median voter who is in favour of free trade Autocratic states trade less   Globalization trend and World Organization’s influences Globalization LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Economic globalization is the life of a world economy that is open and does not recognize territorial boundaries, or land between yanglain regions with each region Here the world is considered as a whole in which all regions can quickly and easily affordable Side of trade movements and inventory towards liberalization of capital so that all people are free to try any time and place in this world Economic globalization is a process of economic activity and trade, where countries in the world of market forces increasingly integrated within the territorial limits without hindrance The globalization of the economy requires the removal of all restrictions and barriers to capital flows of goods and services Impact of globalization on international trade Positive impact:  World production could be improved  Prosperity in a country of the Community  The development of the domestic market  Can obtain more capital and better technology  Provide additional funding for economic development Negative impact:  Because the development of the foreign trade becomes more free, which can inhibit the growth of the industry   Can worsen the balance of payments  The financial sector is increasingly unstable  Exacerbate the process of long-term economic growth World Organization The international organizations to strengthen international trade Since its creation, the WTO has promoted market access for corporations with trade agreements These agreements circumvent the democratic national rights of a country to determine domestic polices regarding trade, natural resources and service provision.It includes GATT,GATS LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com and TRIPS.For example: The General Agreement on Trade in Services (GATS) was agreed at the World Trade Organization (WTO) in 1994 Its aim is to remove any restrictions and internal government regulations in the area of service delivery that can be+ considered “barriers to trade" Such services include everything from marine fishing to provisions for health and education The agreement affectively abolishes a government’s sovereign right to regulate, subsidise and provide essential national services on behalf of its citizens The International Monetary Fund was conceived in July 1944 with a goal to stabilize exchange rates and assist the reconstruction of the world’s international payment system Countries contributed to a pool which could be borrowed from, on a temporary basis, by countries with payment imbalances The IMF was important when it was first created because it helped the world stabilize the economic system The IMF works to improve the economies of its member countries.The IMF working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty The World Bank is one of two major institutions created as a result of the Bretton Woods Conference in 1944 The World Bank (WB) is a multinational corporation aiming at the alleviation of poverty It facilitates various economies of the world in following sustainable economic growth The World Bank comprises of the following two institutions:  International Bank for Reconstruction and Development: The IBRD focuses on low-income economies that have little access to global credit markets  International Development Association: The IDA focuses on helping the poorest nations  Forecast about the future of world trade pattern From above analyzing, we can see that international trade develop likely nowaday due to factors such as: economical factors, technological factors, political factors When nations LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com join free trade areas or sign bilatiral agreements with each other, they create an advantage business environment for enterprises, and help reduce tariff barriers, non-tariff barriers And these things helped increase export and import of nations For example, when VietNam join WTO, export and import increased 25%/year Inaddition, global production networks, foreign direct investment (FDI) helped enterprises reduce cost of production because of cheap price of employee, materials…, promote effective production, receive technology A clearly sample about these economical fators is the development of LDCs such as VietNam with 8,5% growth in 2007 after joining WTO Technological factors promoted development of international trade Internet helped enterprises promote sales Enterprises can sign contract with each other in two place have far distance Modern payment systems of banks helped transactions performed faster, safer, easier… Development of international transportation such as: ship, air plane, train… helped goods come to export faster, more convenient Political factors also help development of international trade Open policies, integrate, globalization trend created opportunities for enterprises performed business actions in potential market For example, with motto integrate, coopration, development togather, and stable political environment, VietNam is ideal destination for investors From above factors we can forecast future of development of world trade pattern when economical factors, political factors and technological develop Therefore, integrate international trade is unique way so that nations develop Conclusion Globalization has brought economic interaction among nations closer than ever before, thanks in no small part to revolutions in information and transport technology and growing openness in government policy The trend towards increased inter- dependency has rendered international economic co-operation more complex and multi-faceted This assignment has attempted to provide a better understanding of what factors have been changing the world trade This may seem a simple question, but it turns out to have several answers An historical review of trade relations since the establishment of the LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com GATT/ WTO strongly points to the importance of building and sustaining institutional arrangements to underwrite international trade relations At the same time, it has been repeatedly demonstrated that if institutions and nations not adapt to change, the will wither, becoming increasingly regarded as vestiges of an older world driven by different interests than those that shape the present The recent global economic crisis has accelerated the rise of the BRICs, Brazil-RussiaIndia-China The forum for discussing issues of global economic governance has shifted from the G-8 to a more comprehensive G-20 The G-20 has been praised for its more balanced membership, as it brings together important industrial and emerging-market countries from all regions of the world Collectively, these countries represent around 90 per cent of global gross national product, 80 per cent of world trade and two-thirds of the world's population These numbers give the G-20 a considerable degree of legitimacy The raising voice of these countries has made the world trade balance to be shifted from Developed countries to a more balanced point The poorer country can gain from world trade, not loss as we used to know Last but not least, technology always has it influences in many fields, and world trade is one of them The achievement of transport, information, payment systems revolutions could be one of the root causes that turn international trade into a different one, in compared with that in the past These factors have made the world flat, exchange goods and services in various ways our ancestors could have never imagined in last century But what of future challenges, of issues that are beginning to call a new effort and evolve the world trade? We should concern more about the environmental factors as there are a lot of human efforts to deal with the global warming and more government are introducing laws and policies in protecting the contamination and pollution How trade will contribute to managing environmental challenges and vice versa is doubtless an issue about which we shall hear a lot more LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com REFERENCES  Michael Porter’s book, Competitive Advantage of Nations  David Yoffie, “American Trade Policy: An Obsolete Bargain?,” in John Chubb, ed., Can the Government Govern?, Washington, D.C.: The Brookings Institute, 1989  Paul Krugman’s “Rethinking International Trade,” Business Economics, April 1988  “Is Free Trade Passé?,” Journal of Economic Perspectives, 1.2, Fall 1987 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com  “Intra-industry Specialization and the Gains From Trade,” Journal of Political Economy, 89.51, 1981  “The Theory of Intra-industry Trade” which was published in I.A McDougall and Richard H Snape  John von Neumann and Oskar Morgenstern, “Theory of Games and Economic Behavior”  J David Richardson, “Empirical Research on Trade Liberalization with Imperfect Competition: A Survey,” Cambridge, MA: NBER Working Paper No 2883  Alasdair Smith and Anthony Venables, “Trade and Industrial Policy under Imperfect Competition,” Economic Policy, v  Avinash Dixit, “Optimal Trade and Industrial Policies for the U.S Automobile Industry,”  World Trade Report 2011: The WTO and preferential trade agreements: From coexistence to coherence  Multinational Corporations and Global Production Networks: The Implications for Trade Policy  Global production networks and the analysis of economic development  Aidt, T.S and M Gassebner 2007 “Do Autocratic States Trade Less?,” Cambridge Working Papers in Economics 0742, Faculty of Economics, University of Cambridge  Mansfield, E.D., H.V Milner and B.P Rosendorff 2000 “Free to Trade: Democracies, Autocracies, and International Trade”, American Political Science Review And other sources DUTY CHART LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com Member’s name Task Vũ Thị Thu Hằng Title & abstract, Introduction and Conclusion Kathkeo Vogpadith Nothing Lê Thạch Anh New theories of international trade Lê Thị Ngọc Preferential Trade Agreements + Global production networks Ngơ Thị Ngọc Bích Growth of developing countries + Internet + Classical theories of international trade + Edit the draft Nguyễn Khánh Linh International Payment System + International Transportation Phạm Văn Hà Local policies + Globalization trend and World Organization’s influences Nguyễn Văn Thiện Forecast about the future of world trade pattern LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ... This increase in the importance of developing countries as markets for each others’ goods reflects a number of factors, including growth in the share of developing countries in world trade, and the. .. from developing countries The second is a marked shift in the direction of developing country exports towards other developing countries The third is a sharp increase in the importance of services... supporting the global economy Economic development in Pacific Asia and in China in particular has been the? ?dominant factor behind the growth of international transportation? ?in recent years Since the