TS. Trần Nguyễn Ngọc Cương; Th.

S Mai Thị Thanh Mai (0948558333,

Maimtt@vnu.edu.vn ) - INE2020-E *** 3

CC – 10% / GK – 30% / CK: 60%

Foreign exchange market = forex

Cuoi ky

Trac nghiem (multiple choice) => 25 quiz (làm sau)

Essay (3 quiz) => don’t leave blank in any quiz (10-20-20)

Bước làm bài: Gạch í essay đầu tiên ra nháp => làm multi => làm essay

Đổi tiền thì dùng số liệu ở cột bán

Vừa citation vừa có tltk

Gg scholar / ScienceDirect / Sci hub / Academic.oup.com / Zlibrary

Reason in rasing price in oil in 1974 - 1980 => conflict between America and
Ả rập, international cartels cắt giảm sản lượng

International in oil cartels => less cases because don’t see any competitors in
oil production and oil is easy to run out

Cartels có hại nhưng OPEC vẫn giữ => successful existing of OPEC depends
on the poweful members => this org still can control the quantity produce
and export out of the country

Portfolio investment is foreign indirect investment

Portfolio => invest in stocks and bonds

Direct => go to the place and invest directly

There are 5 motives related to FDI: Resource seeking – Market seeking –

Efficiency seeking – Strategic assets seeking – Knowledge seeking
Home => investment come out home country; Host => investment come in

How many resourse of production in the category model => 4: land, labor,
capital, and entrepreneurship => but focus on 2 major resources: capital
and labor

Greenfield is the way to reduce polution, … as everything is new

Main accounts in Balance of Payment => 3 => current, capital, financial.

which BOP accounts that FDI will go to => Financial accounts

reserve accounts => be sub-accounts of finacial accounts => reserve account

is under the financial => reserve => devided into sub-accounts of financial
accounts or 1 part of financial accounts

Trade deficit is either good or bad => keep trade deficit balance as possible

VietNam => heavily trade surplus

Trade deficit => import < export

Why developed country try to make trade deficit: when they spend more
money to import more => unemployment will increase, they spend more
than produce

Developing country try to trade surplus => prevent unemployment by

reduce import

Lecture 5

1. Quotas are government-imposed limits on the quantity of goods traded

between countries
2. A specification of a maximum amount of foreign-produced goods that
will be allowed to enter the country over a given time period is referred to
as an import quota
3. An import quota is a non-tariff that places a limit on the quantity of
goods that may be imported
4. An import quota is a legal limit on the amount of specific goods that
can be imported into a particular country
5. An import quota is a a legal limit on quantity of a good that can be
imported per year.
6. Similar to import tariffs, import quotas tend to result in higher prices and
reduced imports (supply decrease with the same demand => price
increase ( Import quotas could result in … in comparison with
import tariffs)
7. During period of growing domestic demand, an import quota is more
restrictive on a country’s imports than a tariff.
8. Losers of import quota are consumers
 9. Import quotas tend to result in all of thefollowing except domestic
producer of the imported good being harmed

Lecturer 6.

1. International movements of production factors include international

labor migration; transfer of financial assets through-buying bonds
and-stocks in foreign stock markets; transactions of multinational
corporations involving direct ownership of foreign firms.
2. Portfolio investments refer primarily to bonds
3. Prior to World War I, majority of foreign investments were in the form of
portfolio investment
4. Prior to World War II, most of foreign investments were in the form of
portfolio investment
5. The estabilsh of a wholly new operation in a foreign country is refered to
as a greenfield investment (greenfield => every thing is new)
6. Buying a foreign firm is refered to as an acquisition
7. Direct investments usually involve the transer of capital, technology,
management skills
8. Which of the followings is considered as international investments:
buying a firm overseas
9. International movement of production factor is politically and may face
restrictions on immigration, restrictions on financial asset flow (tai
san), restrictions on the activities of multinational corporations
10. There are two main forms of foreign investments foreign portfolio
investment and foreign direct investment
11. Prior to WW1, the largest home country of foreign investments was the
UK
12. Two main characteristics of investment are risks and profitability
13.Portfolio investors may face the risk of bankruptcy and variability in
market value
14. Two ways international portfolio investments can be explained by risk
diversification
15.Reasons for foreign direct investments are to avoid tariff; to seek for
market; to seek for resources.
16.Host governments use a range of controls to restrict Foreign Direct
Investment. The two most common measures are ownership restraints
and performance requirements
17.Multinational Corporation’s foreign direct investments may impact the
home countries in terms of income redistribution; loss of domestic
jobs; increasing rate of return on capital.
18.. Multinational corporations often increase the transfer of technology
between nations
19.The existence of Multinational Corporations can be reasoned by the
competitive advantages of a global network of production and
distribution
20.The host country often complains Multinational Corporations of tax
avoidance; inappropriate technology transfer; excessive exploitation
of their natural resource
21.One negative effect that Multinational Corporations may cause on the
home country is erosion of the home nation’s technology advantages.
22.The host countries expect Multinational Corporations to bring in such
following positive impact(s) as raising tax revenue; industrial linkages
with local firms; transfer of appropriate technology.
23.Most of Multinational Corporations can ensure the supply of foreign
intermediate products and raw materials by vertical integration with
their foreign affiliates
24.By horizontal integration, Multinational Corporations can exploit and
retain control over their monopoly power; ensure the product
quality; adapt their products to the local conditions and taste.
25.Multinational Corporations are firms that run/control/manage
production facilities in several countries
26.The price at which units within a single Multinational Corporation sell
goods and services to other units within the MNE is the tranfer price
27. Multinational Corporations is A headquarter company in one country
but having operations in other countries
28. Labor migration from one country to another raises real wage rate in
the country to which workers migrate.
29.The tendency for well-educated and highly skilled workers to migrate
from developing countries to industrial ones is referred to as “brain
drain” problem
30.Brain drain is the problem of migration of skilled labor.
31. In theory, international labor movement will reduce labor force and
raise real wage in the Home country
32. International labor migration can be fully explained by both economic
and noneconomic reasons
 33.The migration of highly skilled and trained people creates benefits on the
nation of immigration at the cost of the nation of emigration.
34.During the nineteenth century, there were great waves of immigrants
from Europe to the New World.
35.In order to control migration, the U.S and other developed countries
impose policies on regulating immigration of unskilled workers and
encouraging immigration of skilled workers.
36.The U.S. and other developed countries regulate emigration of skilled
labor by taxing on skilled migrants on their exit or subsequent higher
earnings in the nation of immigration.
37.The international labor migration may involve cost of transportation
expenditure, loss of wages during relocating and searching for a job,
separation from relatives.
38.The economic benefits of international migration are higher real wages
abroad, greater educational and job opportunities for the migrants’
children, better living conditions abro

Lecture 7

1. The balance of payments is a summary statement in which, in principle,

all the transactions of the residents of a nation with those of all other
nations are recorded during a particular period of time, usually a calendar
year.
2. The set of accounts recording economic transactions between a nation's
residents and the residents of the rest of the word during a specific period
of time is called the balance of payments (BOP)
3. A country's balance of payment records both its payments to and its
receipts from foreigners
4. Acountry' balance ol payment records (international trading/international
investment/international lending and borrowing) of EXCEPT
international taxes
5. The main purpose of the balance of payments is to inform the
government of the international position of the nation, to help the
government in its formulation of monetary, fiscal, and trade policies,
to provide information for banks, firms and individuals
6. Each interational transaction between the residents of a country and
foreign residents is recored two times, one as a credit and one as a debit
in the country’s balance of payment.
7. The accounting procedure in which each international transaction of a
nation is recorded twice in its balance of payment is known as double-
entry bookkeeping.
8. Foreign direct investment in the country is entered as credits in a in a
country’s balace of payment.
9. Gifts sent to foreigners are entered as debits in a country’s balace of
payment
10.The three broad categories that make up a country's balance of payment
are the financial account, the current account, and the capital
account.
11.A country's balance of payment includes all of the following EXCEPT
military account
12.A country's balance of payment includes the current account
13.The account that records the receipts from the exports of goods and
services sold abroad, the payments for imports of goods and services from
abroad, net interest income paid abroad, and net transfers is the current
account
14.A country's current account reflects all of its exports and imports of
goods and services, its income receipts and income payments, and its
income transfers
15.The balance of payments account used to record payments for imported
goods and services is the current account
16.A country's current account partially measures receipts from the sale of
goods and services to foreigners and payments for goods and services
bought from foreigners.
17.US exports of goods and services and US grants to foreign countries
are recorded in the U.S. current account
18. The sale of U.S. bonds to foreign residents is NOT recorded in the U.S.
current account
19.The U.S investors purchase stocks of FPT Corporation is NOT recorded
in Vietnam’s current account
20.The balance of payments account that records foreign investment in a
nation is the financial account.
21.A country’s financial account measures foreign investment in the
country and the country’s investment abroad
22.Vietnamese investors purchase stocks of Canon, Inc is recorded in
Vietnam’s financial account
23.The U.S. financial account does NOT include U.S. grants to foreign
countries
24.Vietnam forgives debt for Cuba is recorded in Vietnam’s capital
account
25.The largest part of the Vietnam’s current account consists of receipts
from exports and payments for imports.
26.In the context of a country's balance of payment, unilateral transfers arise
from transactions for which there are no offsetting transfers of value,
such as gifts
27.A country’s net exports of goods is often called the country’s trade
balance
28. Trade surplus occurs when the country’s value of export exceeds its
value of import
29. Trade deficit occurs when the country’s value of import exceeds its
value of export.
30. The current account balance is the sum of the balance of trade in goods,
the balance of trade in services, net investment income, and net
unilateral transfers.
31. The current account balance increases when the value of imports goods
and services increase
32. A country’s current account balance decreases when the receipt of
investment income decrease
33. The balance on investment income is the difference between income
earned on foreign assets and payments to foreign residents on their assets
34. The official settlement balance of payment is the sum of the current
account balance, the capital account balance, the non-reserve portion
of the financial account balance, and the statistical errors and
ommissions.
35.A country’s official settelment balance is the sum of the current account
balance, the capital account balance, the non-reserve portion of the
financial account balance, and the statistical errors and ommissions.
36.The official settlement balance of a counrty is equal to the opposite value
of the country’s official reserves
Lecture 8.