TIỂU LUẬN international trade

Topic 5: Internationa l Trade Member: Ngô Thị Khánh Hiền Nguyễn Thị Thùy Hương Nguyễn Thị Hải Yến Nguyễn Minh Hoàng International Trade 01 What is International Trade? 04 Protectionism 02 03 Advantages and disadvantages of International Trade Comparative and Absolute Advantage 05 Free Trade I What is International Trade? What is International Trade? ■ International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services II Advantages and disadvantages of international trade? Advantages of international trade i Optimal use of natural resources International trade helps each country to make optimum use of its natural resources Each country can concentrate on production of those goods for which its resources are best suited Wastage of resources is avoided ii Availability of all types of goods It enables a country to obtain goods which it cannot produce or which it is not producing due to higher costs, by importing from other countries at lower costs iii Specialisation Foreign trade leads to specialisation and encourages production of different goods in different countries Goods can be produced at a comparatively low cost due to advantages of division of labour 10 ABSOLUTE ADVANTAGE Absolute advantage refers to the amount produced per input: a country has an absolute advantage able to produce a larger quantity of products than other countries with the same amount of inputs 22 Good A Good B CN1 10 CN2 10 COMPARATIVE ADVANTAGE Comparative advantage refers to opportunity costs: a country has a comparative advantage in something if what they have to give up to produce that product is less than what their trading partners must give up Good A Good B CN1 10 CN2 10 Absolute advantage is important, but comparative advantage is what determines what a country will specialize in 23 IV PROTECTIONISM 24 1) What is the protectionism? Protectionism involves any attempt by a country to impose restrictions on trade in goods and services 25 2) How many types of protectionism? Ta r i f f s Ranger Import Quotas Domestic and Export Subsidies Government Legislation and Regulation TARIFFS:   - A tax or duty that raise the price if imported products - The aim is to cause a reduction in domestic demand and an expansion in domestic supply Import quotas - Quotas are volume limits on the level of imports allowed or a limit to the value of imports permitted into a country in a given time period 28 Domestic and Export Subsidies - Domestic subsidies involve government help (state aid) for domestic businesses facing financial problems - Export subsidies: A subsidy is a payment to encourage domestic production by lowering their costs.  KIẾM HÌNH TÚI TIỀN BỰ HƠN NHOA 29 Government Legislation and Regulation - Import licensing: in the case, governments grant importers the license to import goods – these can be restricted - Intellectual property laws: patents and copyright protection protecting domestic ideas and products -Technical barriers to trade: these include product labeling rules and stringent sanitary standards ĐƯA Ý NÀY VÔ HÌNH KIỂU NHƯ VẬY 30 free trade? - Free trade is a trade policy that does not restrict imports or  exports by applying tariffs (to imports) or subsidies (to exports) A free-trade policy does not necessarily imply, however, that a country abandons all control and taxation of imports and exports 32 BENEFITS OF FREE TRADE:  1 Increased efficiency No monopoly - The good thing about a free trade area is that it When there is free trade, and tariffs and encourages competition, which consequently quotas are eliminated, monopolies also increases a country’s efficiency, in orderare to be on par eliminated because more players can come with its competitors Products and services then in and of join the market become better quality at a lower cost 2.4.Specialization of countries Lowered prices - Whenthere there is competition, intense competition, countries When especially on awill tend to produce the products or goods that they are global level, prices will surely go down, most efficient at Efficient use of aresources allowing consumers to enjoy higher means maximizing purchasingprofit power 33 DRAWBACK: Threat to intellectual property -  When imports are freely traded, domestic producers are Less often abletax to revenue copy the products and sell them as knockSince member arerepercussions no longer subject to offs without fear countries of any legal Therefore, importthe taxes, need provisions to think of for  ways to unless FTAthey includes compensateproperty for the reduced revenue there are no intellectual laws andtax enforcement protections for exporting companies 34 Unhealthy working conditions - Outsourcing jobs in developing countries can become a trend with a free trade area Because many countries lack labor protection laws, workers may be forced to work in unhealthy and substandard work environments CONCLUSION I agree with freetrade because The greatest benefit of trade liberalization is to promote exchange and trade, promote comparative advantages of countries, thereby promoting economic growth and improving efficiency in the use of resources 35 THANKS YOU FOR LISTENING 36 ... Hoàng International Trade 01 What is International Trade? 04 Protectionism 02 03 Advantages and disadvantages of International Trade Comparative and Absolute Advantage 05 Free Trade I What is International. .. Advantage 05 Free Trade I What is International Trade? What is International Trade? ■ International trade is the exchange of capital, goods, and services across international borders or territories because... services II Advantages and disadvantages of international trade? Advantages of international trade i Optimal use of natural resources International trade helps each country to make optimum use