U1-International-Trade. - TACN3 (Kinh tế và kinh doanh quốc tế) FTU

Unit 1: International Trade I. Overview of International trade 1. 2. 3. International trade: Purchase, sale, or exchange of goods and services across national borders. Foreign Direct Investment (FDI): Purchase of physical assets or a significant amount of the ownership of a company in another country to gain a measure of management control. Foreign Portfolio Investment (FPI): Investment that does not involve obtaining a degree of control in a company. JVC/JVE • 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. (tạo cơ hội kinh doanh) • Provide a country’s people with greater choice of goods and services. (tang lựa chọn) • An important engine for job creation in many countries. (tạo việc làm) • 1986: • 1985: III. Theories of International trade 1.Mercantilism: Trade theory holding that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports. 2. Absolute advantage: Ability of a nation to produce a goods more efficiently than any other nations (rest of the world – ROW) III. Theories of International trade 3. Comparative advantage: Inability of a nation to produce a goods more efficiently than other nations, but an ability to produce that good more efficiently than it does any other goods. 4. Factor proportions theory: Trade theory holding that countries produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply. Factors of production • Land • Labour • Capital