Tiếng anh chuyên ngành: INTERNATIONAL BUSINESS
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INTERNATIONAL
BUSINESS
ADVANTAGES OF WORLD TRADE
Develop economy, create wealth
Increase output of goods, enable
countries to exploit comparative
advantages
Consumers benefit from wider choices
and lower prices
Increase opportunities for market
expansion and specialization
FACTORS LEADING TO EFFICIENT
PRODUCTION OF SOME CERTAIN GOODS IN
DIFFERENT COUNTRIES
Climate
Natural resources
Geographical location
Feature of working population
Technological development
Economic mechanism & policies
changes of factors
Changes of production ability
THEORETICAL BACKGROUND FOR
INTERNATIONAL TRADE
Theory of absolute advantages by Adam
Smith
- Absolute advantage: ability to produce
some goods most effectively (oil in Saudi
Arabia, coffee in Brazil, diamond in South
Africa…)
THEORETICAL BACKGROUND
(cont.)
Theory of comparative advantage by
David Ricardo
- Comparative advantage: ability to produce
some goods more cheaply than others
(e.g. China has comp. advantages in
producing labor-intensive goods, the USAin making capital-intensive goods &
farming produce…)
THEORETICAL BACKGROUND
(cont.)
Absolute and/or comparative advantages:
Effective production of certain goods
Low costs,
High productivity
High output
Good quality
High specialization and international exchange
REASONS FOR GOV. CONTROL OF
FOREIGN TRADE
Gain benefit from trade surplus
Ensure trade balance
Protect infant or important domestic
industries from competition
Maintain national basic skills
Avoid structural unemployment and
negative reactions from the public and
labour unions
React against restrictions imposed by
other nations
Ensure national security and
independence
GOV. CONTROL METHODS
Export encouragement
- Offer subsidies to exports
- Organize trade promotion missions
- Provide marketing information
- Offer tax benefits or incentives
- Apply for preferential trade clauses
- Joint inter. trade organizations: GATT,
APEC, WTO…
- Sign common trade expansion
agreements
GOV. CONTROL METHODS (cont.)
Import restriction or protectionism
Non-tariff barriers
Tariff barriers
+ Complicated procedures
+Import duties
+Quotas
+Cultural and social difference
+Economic difference
(Gov. involvement)
+Legal and political difference
(local-content law and
business-practice law)
GOV. CONTROL METHODS (cont.)
Disadvantages of protectionism
- Favor producers, not consumers
- Limit competition and
production effectiveness
- Increase prices to consumers
- Cause frictions between
nations
“Globalization
“Globalizationisisone
oneof
ofthe
theten
ten
most
mostimportant
importanttrends
trendsaffecting
affecting
the
thefuture
futureof
ofthe
theworld”
world”
(John
(JohnNaisbett)
Naisbett)
DEVELOPMENT OF MULTINATIONAL
FIRMS
Multinational corporation is a company
that designs, produces and markets
products in many countries (the highest
involvement in international business)
DEVELOPMENT OF MULTINATIONAL
FIRMS - ADVANTAGES
-
-
-
For the firm
Expand business
opportunities,
production and
market scales
Exploit comp.
advantages to
improve
production
efficiency
Develop global
philosophy of
management,
marketing and
production
For the local
country
- Promote
technology
transfer, new
skill training,
investments
and job creation
THANK YOU FOR LISTENING!
