UNIT 1.

I. Gap-filling

1. absolute advantage
2. trade surplus
3. autarky
4. balance of trade
5. WTO
6. balance of payments
7. free trade
8. exporting - importing - imports - exports
9. tariffs
 II. Q&A
1. What brings the absolute advantage or comparative advantage to a country?
- Abundant natural resources and materials
- Cheap labour costs
- High technology
- Expertise

2. What are the reasons for imposing tariffs?

- Generate revenue for the Government
- Protect domestic/infant industries
- Protect local jobs
- Make imports more expensive than the home-produced substitutes
- Protection against dumping
- Reduce BOP deficits

5. What is the difference between the balance of trade and balance of payment?
BOT includes imports and exports only. BOP considers all business transactions
with other countries including imports and exports of goods and services and money
earned from and paid for services and investments.

6. Why would government impede free trade?

* Cultural motives: Preserve national identity
 * Political motives:
- Protect jobs
- Preserve national security
- Respond to “unfair” trade
- Gain influence
* Economic motives:
- Protect infant industries
- Pursue strategic trade policy

7. What are the methods used by the government to restrict trade?

- Tariffs
- Quotas:
+ Embargoes
+ Local content requirements
+ Administrative delays
+ Currency controls

8. What are ways of promoting international trade?

- Subsidy
- Export financing
- Foreign Trade Zones
- Special government Agency

III. Essay
The Pros and Cons of Free Trade
The Pros and Cons of Free Trade
Free trade refers to the international exchange of goods and services without
restrictions such as tariffs, quotas, or subsidies. While it has been a driving force
in global economic development, free trade also presents certain challenges. In
this essay, I will explore both the advantages and disadvantages of free trade,
considering its impact on production, resource allocation, customer choices, and
the environment.
One of the primary advantages of free trade is its ability to boost production
efficiency. Countries are able to specialize in producing goods for which they hold
a comparative advantage, meaning they can produce certain products at a lower
 opportunity cost than other nations. This specialization leads to a more efficient
allocation of resources, as each country focuses on producing goods it can create
more efficiently, maximizing global production.
Additionally, free trade enhances consumer access to a diverse range of products
and services. With international markets open, consumers are not limited to
domestic offerings. They can enjoy a wide selection of goods, from cutting-edge
technology to fashion trends, at competitive prices. Furthermore, free trade
encourages the exchange of foreign currencies, resulting in potential gains in
foreign exchange, which strengthens a nation's financial position.
Another notable benefit of free trade is its role as an engine for economic growth.
By expanding markets, countries can increase their revenues through exports,
while local businesses can scale operations to meet global demand. This
expansion often leads to job creation, as industries grow to meet the rising need
for labor.
Despite these benefits, free trade is not without its downsides. One significant
issue is the potential for unfair trade practices. Some countries might engage in
dumping, where they export goods at prices lower than domestic markets, harming
local industries in the importing country. Domestic companies that cannot
compete with the influx of cheaper foreign products may suffer, leading to closures
and job losses.
Moreover, the focus on maximizing production and exports may result in the over-
exploitation of natural resources. Countries eager to increase their output might
overuse raw materials, leading to resource depletion. The environment also suffers
as free trade encourages industrial expansion, often without sufficient regulations
to mitigate environmental damage. This can lead to pollution, habitat destruction,
and long-term environmental degradation.
In conclusion, free trade presents both advantages and disadvantages. While it
promotes efficiency, economic growth, and consumer choice, it also poses risks
such as unfair competition, environmental harm, and resource depletion. Striking
a balance between the benefits of free trade and the protection of local industries
and the environment is essential to maximizing its positive effects while minimizing
its drawbacks.

The Advantages and Disadvantages of International Trade for Businesses

International trade plays a crucial role in the global economy, impacting governments,
consumers, and businesses in significant ways. It allows countries to engage in the
exchange of goods and services, fostering economic growth and collaboration. In this
essay, I will discuss the advantages and disadvantages of international trade, focusing
particularly on its impact on businesses.
From a government perspective, international trade facilitates the better allocation and
utilization of natural resources. By participating in global markets, countries can
specialize in producing goods that they are most efficient at, while importing goods that
are more efficiently produced elsewhere. This specialization helps in conserving resources
and maximizing productivity. Additionally, international trade creates more jobs by
stimulating economic activity, both directly through export industries and indirectly
through related sectors. The economies of scale that come with larger markets further
enhance this growth, allowing businesses to lower production costs and maintain a steady
supply of products.
Moreover, international trade helps diversify product ranges. By importing goods that are
not available domestically, countries can offer their citizens a wider variety of products
and services. Another important benefit is the promotion of peace and harmony among
nations. Economic interdependence through trade fosters close cultural and economic ties,
reducing the likelihood of conflicts and promoting mutual understanding.
For consumers, international trade provides a greater variety of goods and services at
lower prices. Due to global competition, businesses are incentivized to offer competitive
prices, which benefits consumers. Moreover, the increased production and trade activities
create more job opportunities, particularly in industries that are directly linked to trade,
such as logistics, manufacturing, and retail.
For businesses, one of the key advantages of international trade is access to new markets
and materials. By expanding operations into foreign markets, businesses can explore new
production possibilities and diversify their revenue streams. This expansion not only
opens up new opportunities but also reduces dependence on existing domestic markets,
allowing companies to spread risks and remain competitive globally.
Additionally, businesses can gain global market share and increase profitability through
international trade. Establishing relationships with new trading partners and venturing
into foreign markets help businesses grow their customer base and extend their product
offerings to new regions. International trade also encourages innovation by facilitating the
exchange of technology, expertise, and investments in research and development.
Companies that engage in international trade are often better positioned to stay
competitive by adopting new technologies and improving their production processes.
However, there are challenges that come with international trade. Businesses may face
stiff competition from global players, which can pressure them to lower prices or improve
product quality to maintain market share. While access to international markets offers
new opportunities, it also exposes businesses to the risks of political instability, exchange
rate fluctuations, and trade regulations. Companies must be prepared to navigate these
challenges to remain successful in foreign markets.
In conclusion, international trade offers significant advantages to businesses, including
access to new markets, resources, and innovation. It fosters economic growth, creates
jobs, and strengthens global economic ties. However, businesses must also contend with
the complexities of global competition and trade risks. Understanding and managing these
challenges is essential for companies to fully benefit from the opportunities that
international trade provides.

UNIT 2.

I. Gap-filling
1. Investment incentives – lure/ promote/ drive/ attract FDI
2. incentives
3. ROI (return on investment)
II. Q&A
1. What are the differences between FDI and FPI?
Foreign direct investment (FDI): Purchase of physical assets or a significant amount of
ownership (stock) of a company in another country to gain a measure of management
control.
Portfolio investment (PI): Investment that does not involve obtaining a degree of control
in a company.

2. What are some financial considerations in making a foreign direct investment?

- Exchange rates
- Rate of returns on investment
- Production Costs
- Investment incentives
- Cash flow
- Sources of working capital
- Tax rates

3. What are the important management issues in the FDI decision?

- Control: controlling activities occurring in the local market
- Purchase-or-Build Decision: purchase an existing business or build an international
subsidiary from the ground up
- Production Costs: the firm’s costs of production: Labor regulations
- Customer Knowledge: gain valuable knowledge about the behavior of buyers that It
could not obtain from the home market
- Following Clients: putting them close to firms for which they act as supplier
- Following Rivals: Companies engage in FDI simply because a rival does

4. For what reason do host countries intervene in FDI?

- To protect their Balance of Payment: a nation also gets a balance-of-payments boost
from an initial FDI inflow
- Obtain resources and Benefits:
+ Access to technology: Local investment in technology also tends to increase the
productivity and competitiveness of the nation
 + Management skills: By encouraging FDI, nations can also bring in people with
management skills who can train locals and thus improve the competitiveness of local
companies.
+ Employment: Many local jobs are also created as a result of incoming FDI

5. For what reasons do home countries intervene FDI?

- Investing in other nations sends resources out of the home country – lowering the
balance of payments
- Outgoing FDI may ultimately damage a nation’s balance of payments by taking the
place of its exports
- Jobs resulting from outgoing investment may replace jobs at home that were based on
exports to the host country

6. What are the methods used by host countries to restrict and promote FDI?
* Restriction
- Ownership restrictions: Government can impose ownership that prohibit nondomestic
companies from investing in business in cultural industries and those vital to national
security
- Performance demands: Performance demands can take the form of stipulations regarding
the portion of the product’s content originating locally, the portion of output that must be
exported, or requirement that certain technologies be transferred to local businesses.

* Promotion
- Financial incentives: Host governments can also grant companies tax incentives such as
lower tax rates or offer to waive taxes on local profits for a period of time. A country may
also offer low-interest loans to investors.
- Infrastructure improvements: Some governments prefer to lure investment by making
local infrastructure improvements – better seaports suitable for containerized shipping,
improved roads, and increased telecommunications systems.

7. What methods do home countries use to restrict and promote FDI?

* Restriction
- Differential tax rates: Impose differential tax rates that charge income from earnings
abroad at a higher rate than domestic earnings
- Outright sanctions: Impose outright sanctions that prohibit domestic firms from making
investments in certain nations

* Promotion
- Offer insurance to cover the risks of investments abroad
- Grant loans to firms wishing to increase their investments abroad. A home-country
government may also guarantee the loans that a company takes from financial institutions
- Offer tax breaks on profits earned abroad or negotiate special tax treaties
- Apply political pressure on other nations to get them to relax their restrictions on
inbound investments

III. Essay
1. What are the advantages and disadvantages of FDI in VN?
The Advantages and Disadvantages of Foreign Direct Investment (FDI) in Vietnam
Foreign Direct Investment (FDI) plays a crucial role in shaping Vietnam's economy,
bringing both benefits and challenges. One of the primary advantages of FDI is its ability
to raise national output, which contributes to the overall economic growth. By increasing
production capacities, FDI also enhances the standard of living for people through higher
wages and better employment opportunities. Additionally, new jobs are created, further
reducing unemployment rates. FDI generates tax revenues, which can be reinvested in
public infrastructure and social programs. Moreover, external capital is injected into the
economy, fostering business expansion. The host country also benefits from high
technology transfers, modern business practices, and advanced management styles,
introducing new economic concepts that enhance Vietnam’s competitiveness in the global
market.
Despite these positive aspects, FDI comes with certain disadvantages. One major concern
is the potential negative impact on the ecosystem and environment. Rapid
industrialization led by foreign investors can result in environmental degradation if not
regulated properly. Additionally, local resources may be exploited by foreign firms,
leaving Vietnam with diminished natural reserves. Furthermore, the balance of payments
(BOP) might decrease as foreign investors repatriate profits back to their home countries.
Finally, excessive FDI inflows can lead to an overheating of the economy, causing
inflationary pressures and asset bubbles.
In conclusion, while FDI brings significant advantages such as boosting economic growth
and technological advancement, it also poses risks to environmental sustainability and
economic stability if not carefully managed. Vietnam must strike a balance between
welcoming foreign investments and safeguarding its resources and long-term
development.
UNIT 3.
I. Gap-filling

1. Foreign exchange market

2. arbitrage/ arbitrage currency
3. Speculators
4. speculation
5. reduce risks
6. US dollar
7. Gold standard
8. Bretton Woods Agreement
9. Hedging - speculating
10. goods
11. fixed - floating
12. Central banks
13. forward contract/ forward transaction
14. Arbitrage
15. pet
16. speculators
17. central
18. Commodities
19. hedge
20. speculator
21. forex market/ foreign exchange market

II. Q&A
1. For what four reasons do investors use the foreign exchange market?
First, individuals, companies, and governments use it, directly or indirectly, to convert
one currency into another. Second, it offers tools with which investors can insure against
adverse changes in exchange rates. Third, it is used to earn a profit from arbitrage – the
purchase and sale of a currency, or other interest-paying security, in different markets.
Finally, it is used to speculate about a change in the value of a currency.

2. What is the foreign exchange market?

The foreign exchange market is the market in which currencies are bought and sold and in
which currency prices are determined.
The foreign exchange market is the mechanism through which foreign currencies are
traded. It is not an actual market place but a system of telephone of telex communications
between banks, customers and middlemen (foreign exchange brokers, acting for a client
vis-à-vis the bank). It is an extremely valuable mechanism for world trade. Its main
function is to reduce the risk of fluctuating exchange rates or of a change in the parity of
currencies (devaluation or revaluation)

3. Distinguish between spot rate and forward rate. How is each used in the foreign
exchange market?
A spot rate is an exchange rate that requires delivery of the traded currency within two
business days. This rate is normally obtainable only by large banks and foreign exchange
brokers. The forward rate is the rate at which 2 parties agree to exchange currencies on a
specified future date. Forward exchange rates represent the markets expectation of what
the value of a currency will be at some point in the future.

5. Describe the 3 main institutions in the foreign exchange market

The world’s largest banks exchange currencies in the interbank market. These banks
locate and exchange currencies for companies and sometimes provide additional services.
Securities exchanges are physical locations at which currency futures and options are
bought and sold (in smaller amounts than those traded in the interbank market). The over-
the-counter (OTC) market is an exchange that exists as a global computer network linking
traders to one other.

6. Why are restrictions placed on currency conversion: What policies can government
use to restrict currency conversion?
There are four main goals of currency restriction.
First, a government may be attempting to preserve the country’s hard currency reserves
for repaying debts owed to other nations.
Second, convertibility might be restricted to preserve hard currency to pay for needed
imports or to finance a trade deficit.
Third, restrictions might be used to protect a currency from speculators.
Finally, such restrictions can be an attempt to keep badly needed currency from being
invested abroad.
Policies used to enforce currency restrictions include government approval for currency
exchange, imposed import licenses, a system of multiple exchange rates, and imposed
quantity restrictions.

III. Essay
What are ways of making money on the foreign exchange market.
Ways of Making Money on the Foreign Exchange Market
The foreign exchange market (Forex) is the largest and most liquid financial market in the
world, where currencies are traded. There are several ways traders and investors can make
money on the Forex market, each requiring different strategies, risk tolerance, and
knowledge.
One of the most common ways to make money on the Forex market is through currency
speculation. Traders buy a currency when they believe its value will increase and sell it
when they expect it to decrease. By accurately predicting price movements, traders can
earn profits from the difference between buying and selling prices. For example, if a
trader buys euros with U.S. dollars at a low exchange rate and the value of the euro rises,
they can sell the euros back to U.S. dollars at a higher rate, making a profit.
Another method is carry trading, where traders take advantage of interest rate
differences between countries. In this strategy, traders borrow money in a currency with a
low-interest rate and invest it in a currency with a higher interest rate. The difference in
interest rates generates profit over time, and this can be a reliable source of income if the
exchange rate remains stable.
Traders can also use leverage to increase their potential profits. Leverage allows traders
to control large positions with a relatively small amount of capital. For example, with a
leverage ratio of 100:1, a trader can control $100,000 worth of currency with just $1,000.
While leverage can magnify profits, it also increases risk, as losses are similarly
magnified.
Additionally, technical and fundamental analysis are important tools for making money
on the Forex market. Technical analysis involves using historical price charts and
indicators to predict future market movements, while fundamental analysis focuses on
understanding the economic factors, such as interest rates, inflation, and geopolitical
events, that affect currency values.
In conclusion, making money on the Forex market involves a combination of strategies,
including currency speculation, carry trading, leverage, and analysis. However, it is
important to note that Forex trading carries significant risk, and success requires careful
planning, research, and disciplined risk management.

4o
UNIT 4.

I.
1. dishonour
2. draw
3. Documentary collection
4. L/C
5. Open account
6. Advance payment
7. remit
8. documentary
9. open account
10. advance payment

II. (các câu màu đỏ)

1. roles of banks: active (check document authenticity)/ passive roles (transfer document)
2.
U5.
I. Gap-filling

1. Counter-marketing
2. Points of sales
3. Conversional mkt
4. Stimulational mkt
5. Maturity
6. distribution channel
7. Developmentl mkt
8,9,11. Word of mouth
10. Synchromkt
12. Remkt
13. Demkt
14. Maintainance mkt

II. Q&A
The Importance of Marketing to Society

Marketing plays a critical role in modern society, influencing not only businesses but also
the way people interact with products, services, and ideas. Its significance extends beyond
just promoting goods; marketing shapes consumer behavior, drives economic growth, and
fosters social development.

One of the primary ways marketing benefits society is by raising awareness of products
and services. Effective marketing educates consumers about their options, helping them
make informed purchasing decisions. Through advertising, promotions, and public
relations, marketing provides valuable information that consumers can use to compare
different products and select those that best meet their needs. This leads to higher
satisfaction and improved quality of life as people access goods and services that solve
their problems or enhance their well-being.

Marketing also drives economic growth by stimulating demand. When businesses market
their products effectively, they increase sales, which in turn leads to higher production
and more job creation. The ripple effect extends to multiple industries, from
manufacturing to retail, boosting overall economic activity. This not only benefits
companies but also contributes to a healthier economy by increasing employment
opportunities and generating tax revenues that fund public services.

Furthermore, marketing promotes innovation by encouraging businesses to differentiate

their products and improve their offerings to stay competitive. In a market-driven
economy, companies invest in research and development to create new and better
products that fulfill emerging consumer needs. As a result, society benefits from
technological advancements, improved services, and more efficient solutions to everyday
challenges.

In addition to its economic impact, marketing also plays a key role in social
development. It can raise awareness about important social issues, promote positive
behaviors, and influence cultural trends. For example, social marketing campaigns have
successfully addressed issues like public health, environmental conservation, and social
justice, encouraging people to adopt healthier and more responsible lifestyles.

In conclusion, marketing is essential to society because it empowers consumers, fuels

economic growth, promotes innovation, and contributes to social development. By
connecting people with products, services, and ideas, marketing helps create a more
informed, dynamic, and forward-moving society.

Unit 7
I.
5. premium
6. General Average
7. insurer
8. underwriter
10. insurance
11. marine insurance
12.
Unit 9.
I.

1. merger
2. horizontal - conglomerate - vertical
3. vertical merger
4. conglomerate
5. horizontal
6. friendly acquisition
7. hostile acquisition
8. reverse acquisition

II.