Unit 1: International Trade

International business
1. International adds significant
Business (IB) It is all commercial
influences on typical
/ˌɪn.t̬ ɚˈnæʃ.ən.əl transactions between two Kinh doanh quốc tế
domestic operations in
ˈbɪz.nɪs/ or more countries
physical, social and
competitive issues

The commercial exchange The two main types of

international business are
2. International trade of goods or services across Thương mại quốc
classified as ‘international
/ˌɪn.t̬ ɚˈnæʃ.ən.əl treɪd/ boundaries. tế
trade’ and ‘international
investment’.

Foreign investment refers

3. International to the investment in
investment The movement of capital Đầu tư quốc tế domestic companies and
/ˌɪn.t̬ ɚˈnæʃ.ən.əl between nations. assets of another country
ɪnˈvest.mənt/ by a foreign investor.

During the 16th and 17th

centuries, many European
Trade theory holding that
nations adopted
nations should accumulate
4. Mercantilism financial wealth, usually in Chủ nghĩa trọng mercantilism, believing
/ˈmɜː.kən.tɪ.lɪ.zəm/ the form of gold, by thương that accumulating gold
encouraging exports and and silver through exports
discouraging imports. would increase national
wealth.

Vietnam has an absolute

advantage in farming
5. Absolute Ability of a nation to because it can produce
advantage produce a good more Lợi thế tuyệt đối 100 tons of rice, while
/ˌæb.səˈluːt efficiently than any other Thailand can only
ədˈvæn.t̬ ɪdʒ/ nation. produce 50 tons with the
same resources

6. Comparative Inability of a nation to Even though A company

advantage produce a good more Lợi thế so sánh is better at producing both
/kəmˈper.ə.t̬ ɪv efficiently than other
cars and computers, it has
ədˈvæn.t̬ ɪdʒ/ nations, but an ability to
 produce that good more a comparative advantage
efficiently than it does any in cars, while B company
other good. has a comparative
advantage in computers,
so they can trade to
benefit both.

According to the Factor

Proportion Theory, a
Lý thuyết tỉ lệ nhân
country with an
Trade theory holding that tố (là cách lý giải lợi
abundance of labor will
countries produce and thế so sánh trong
7. Factor proportion have a comparative
export goods that require thương mại quốc tế
theory advantage in producing
resources (factors) that are dựa trên những khác
/ˈfæk.tɚ prəˈpɔːr.ʃən labor-intensive goods,
abundant and import goods biệt trong sự dồi dào
ˈθɪr.i/ while a country with an
that require resources in về nhân tố sản xuất
short supply. abundance of capital will
giữa các nước.)
specialize in producing
capital-intensive goods

A country with a highly

skilled labor force and
Factor endowment refers advanced technology may
8. Factor endowment to the quantity and quality Nguồn lực sẵn có have a factor endowment
/ˈfæk.tɚ ɪnˈdaʊ.mənt/ of resources that a country that favors the production
or region possesses. of high-tech goods or
services.

The global financial crisis

of 2008 had a significant
Terms of trade (TOT)
represent the ratio between impact on many countries'
9. Terms of trade Tỷ lệ trao đổi terms of trade, as demand
a country's export prices
/tɝːmz əv treɪd/ for exports fell and prices
and its import prices.
TOT=PE/PI of commodities
fluctuated.

If Vietnam exports $500

The balance of trade is the million worth of goods
10. The balance of difference in value and imports $300 million,
trade (BOT) between imports and Cán cân thương mại
the balance of trade
/ðə ˈbæl.əns əv treɪd/ exports of goods over a (BOT) shows a surplus of
particular period. $200 million.
 "Country X recorded a
A detailed record of all surplus in its current
financial and economic account of $170 million
transactions between the due to strong exports of
residents of two countries.
goods and services, while
The balance of payments
11. The balance of its financial account
comprises the current
payments (BOP) Cán cân thanh toán showed a net inflow of
account, the capital
/ðə ˈbæl.əns əv $30 million, largely
account, and the financial
ˈpeɪ.mənts/ driven by foreign direct
account. "Together, these
accounts balance in the investment, balancing its
sense that the sum of the overall balance of
entries is conceptually payments at $200
zero." million."

"The balance of payments

The Balance of Payments
identity ensures that a
Identity is a fundamental
country's total exports and
12. Balance of principle in economics that
payments identity states: Định lý cán cân imports of goods,
/ˈbæl.əns əv ˈpeɪ.mənts Current Account = Capital thanh toán services, and capital are
aɪˈden.t̬ ə.t̬ i/ Account + Financial in equilibrium with its
Account + Net Errors and financial transactions with
Omissions the rest of the world."

Protectionism is the
economic policy of Protectionism is
restraining trade between implemented by the
nations, through methods government using tools
such as tariffs on imported such as tariffs, import
goods, restrictive quotas, quotas, and subsidies for
13. Protectionism Chủ nghĩa bảo hộ
and a variety of other domestic industries to
/prəˈtek.ʃən.ɪ.zəm/
restrictive government reduce competition from
regulations designed to imported goods and
discourage imports, and
protect jobs within the
prevent foreign take-over
country.
of local markets and
companies.

An import quota is a type The government imposed

14. An import quota of protectionist trade Hạn ngạch nhập an import quota on steel
/æn ˈɪm.pɔːrt restriction that sets a khẩu to limit the amount of
ˈkwoʊ.t̬ ə/ physical limit on the
quantity of a good that can foreign steel entering the
 be imported into a country country and protect
in a given period of time. domestic manufacturers.

A tariff is a tax imposed

on imported goods,
A tariff is a tax imposed making them more
15. A tariff on goods when they are Thuế quan expensive and
/ə ˈtær.ɪf/ moved across a political encouraging consumers to
boundary. buy domestically
produced alternatives.

North Korea is often cited

The (impossible) situation
16. Autarky in which a country is as an example of a
Tự cung tự cấp
/ˈɑː.tɑːr.ki/ completely self-sufficient country striving for
and has no foreign trade autarky.

The two countries

17. Barter or engaged in counter-trade
counter-trade Direct exchanges of goods, Mua bán đối lưu to settle their trade
/ˈbɑːr.t̬ ɚ/ or /ˈkaʊn.t̬ ɚ without the use of money dispute without involving
treɪd/ money

The government
18. Visible trade or implemented new policies
merchandise trade Giao dịch hàng hóa
Trade in goods to boost merchandise
/ˈvɪz.ə.bəl treɪd/ or hữu hình
trade and attract foreign
/ˈmɝː.tʃən.daɪz treɪd/ investment."

Invisible imports and

19. Invisible imports
and exports Xuất nhập khẩu dịch exports like tourism and
Trade in services vụ IT outsourcing is vital for
/ɪnˈvɪz.ə.bəl ˈɪm.pɔːrts
ənd ˈek.spɔːrts/ the economy

The government imposed

tariffs to prevent foreign
20. Dumping Selling goods abroad at (or Bán phá giá companies from dumping
/ˈdʌm.pɪŋ/ below) cost price cheap products in the
domestic market.
 Unit 2: Foreign Direct Investment

The purchase of shares and

1. Foreign Portfolio long-term debt obligations
Many emerging
Investment (FPI) from a foreign entity.
markets are attractive
Portfolio investors do not Đầu tư gián tiếp nước
to foreign portfolio
/ˈfɔːr.ən pɔːrtˈfoʊ.li.oʊ aim to take control of a ngoài
investment due to their
ɪnˈvest.mənt/ corporation. They can
high growth potential.
liquidate their investment
at market value any time.

The establishment of a
plant or distribution
network abroad. Investors The government
2. Foreign Direct can acquire part or all of announced a new
Investment (FDI) the equity of an existing Đầu tư trực tiếp nước policy to attract more
/ˈfɔːr.ən dɪˈrekt foreign corporation either ngoài foreign direct
ɪnˈvest.mənt/ to control or share control investment to boost the
over sales, production, and economy.
research and development.

Foreign direct investment

decisions based on The company adopted
3. Strategic business strategies. a strategic approach to
Approach Investors seek access to Chiến lược tiếp cận
entering new
/strəˈtiː.dʒɪk əˈproʊtʃ/ raw materials, markets, international markets.
product efficiency, and
“know-how’’.

Effective management
The total amount of cash
4. Cash Flow that remains in a company of cash flow is crucial
Dòng tiền
/kæʃ floʊ/ after it has paid taxes and for the survival of
other cash expenses. small businesses.

Benefits or rewards
offered by governments to
attract businesses to invest
The government offers
5. Investment in a specific country or
Incentives region. These incentives various investment
Khuyến khích đầu tư
/ɪnˈvest.mənt can include tax breaks, incentives to attract
ɪnˈsen.tɪvz/ grants, or reduced foreign companies.
regulations to encourage
economic growth and
development.
 The firm signed a deal
An independent sales
6. Exclusive to become the
agent who is given the sole
Distributor Phân phối độc quyền exclusive distributor of
right, under contract, to
/ɪkˈskluː.sɪv the new tech gadget in
sell a foreign
dɪˈstrɪb.jə.t̬ ɚ/ the region.
manufacturer’s products.

By appointing multiple
7. Multiple distributors, the
A sales agent who
Distributor Phân phối đa kênh company ensured wider
represents more than one
/ˈmʌl.tɪ.pəl market coverage for its
manufacturer.
dɪˈstrɪb.jə.t̬ ɚ/ products.

The artist receives

The payments made by a
foreign manufacturer to a monthly royalty
8. Royalty Payments Tiền bản quyền payments from
company that has licensed
/ˈrɔɪ.əl.t̬ i ˈpeɪ.mənts/ streaming services for
the manufacturer to
produce its products. her music.

The two companies

9. Joint Venture A subsidiary formed by formed a joint venture
Liên doanh
/dʒɔɪnt ˈven.tʃɚ/ two or more corporations. to develop new energy
solutions.

Horizontal FDI arises Company A invests in

when a firm duplicates its a similar manufacturing
10. Horizontal FDI
home country-based FDI theo chiều ngang company in Germany,
/ˌhɔːr.ɪˈzɑːn.t̬ əl
activities at the same value representing horizontal
ˌef.diːˈaɪ/
chain stage in a host FDI.
country through FDI.

Corporation B invests
in Vietnam with the
Foreign direct investment
from a source country into purpose of exporting
11. Platform FDI FDI nền tảng goods from Vietnam to
a destination country for
/ˈplæt.fɔːrm ˌef.diːˈaɪ/ neighboring countries,
the purpose of exporting to
a third country. an example of platform
FDI.

Vertical FDI takes place Tesla’s investment in

12. Vertical FDI when a firm through FDI FDI theo chiều dọc lithium mines in
/ˈvɝː.t̬ ɪ.kəl ˌef.diːˈaɪ/ moves upstream or
Australia is a form of
downstream in different
 value chains i.e., when vertical FDI, as it
firms perform secures raw materials
value-adding activities for its battery
stage by stage in a vertical production.
fashion in a host country.

Foreign investment made

to acquire specific A petroleum company
resources, such as invests in oil fields in
13. Resource seeking minerals, energy, Nigeria to secure a
FDI agricultural products, or a FDI tìm kiếm tài
supply of crude oil for
/ˈriː.sɔːrs ˌsiː.kɪŋ specialized workforce, nguyên
its refineries back
ˌef.diːˈaɪ/ which are not readily home, exemplifying
available or cost-effective resource seeking FDI.
in the investor's home
country.

Market-seeking FDI
enables companies to
14. Market seeking Investment focused on
FDI entering new markets to FDI tìm kiếm thị expand into new
/ˈmɑːr.kɪt ˌsiː.kɪŋ sell products or services trường regions to reach
ˌef.diːˈaɪ/ directly to consumers. untapped consumer
bases.

Efficiency seeking FDI

Investment to optimize
15. Efficiency drives global firms to
operations by reducing
seeking (global relocate production to
costs, improving FDI tìm kiếm hiệu quả
sourcing FDI) countries with lower
efficiency, or taking
/ɪˈfɪʃ.ən.si ˌsiː.kɪŋ costs and higher
advantage of economies of
ˌef.diːˈaɪ/ productivity.
scale.

With the launch of their

innovative smartphone,
The portion or percentage they managed to
16. Market Share of a market earned by a Thị phần capture a significant
/ˈmɑːr.kɪt ʃer/ company or an market share in the
organization. high-end mobile device
segment.

17. Uniform World Despite regional

Markets Global markets with Thị trường thế giới
đồng nhất variations, Coca-Cola
/ˈjuː.nɪ.fɔːrm wɝːld increasingly similar
economic and social needs implements a
ˈmɑːr.kɪts/
 due to technological and marketing strategy that
cultural changes. maintains a consistent
brand image in uniform
world markets.

Unilever, as an MNC,
18. Multinational A corporation that operates operates in various
Corporation (MNC) in multiple countries to Tập đoàn đa quốc gia sectors and has a
/ˌmʌl.tɪˈnæʃ.ən.əl expand markets and presence in more than
ˌkɔːr.pəˈreɪ.ʃən/ resources. 190 countries.

The company issued

debentures to raise
Long-term debt funds for its new
19. Debentures Trái khoán
obligations that can be infrastructure projects,
/dɪˈben.tʃɚz/
liquidated at market value. offering a fixed interest
rate to investors.

The startup secured a

A type of private equity
substantial amount of
20. Investment used to support startups
Capital and early-stage companies investment capital from
Vốn đầu tư
/ɪnˈvest.mənt with the potential for venture capitalists to
ˈkæp.ɪ.t̬ əl/ substantial and rapid scale its operations and
growth. enter new markets.

Unit 3: Foreign exchange trading

1. Foreign exchange The act of exchanging Ngoại hối Foreign exchange allows
/ˈfɔːr.ən ɪksˈtʃeɪndʒ/ money or currency of a businesses to trade
foreign country internationally.

2. Gold standard As all currencies had a Tiêu chuẩn vàng Under the gold standard,
/ɡoʊld ˈstæn.dɚd/ gold value, they also had a each currency had a fixed
certain value in relation to value in gold
each other

3. A central bank Owned by government. Its Ngân hàng trung ương The central bank regulates
/ə ˈsen.trəl bæŋk/ three functions are inflation by controlling
regulating the commercial interest rates.
banks; holding gold and
 foreign currency reserves
and the last is keeping a
certain value of its own
currency

4. Fixed Exchange A system whereby central Tỷ giá hối đoái cố định Countries with a fixed
Rate banks are required by exchange rate avoid
/fɪkst ɪksˈtʃeɪndʒ reɪt/ international agreements to extreme currency
maintain their currency at a fluctuations.
relatively fixed value

5. Floating A system in which Tỷ giá hối đoái thả nổi A floating exchange rate
Exchange Rate currencies have no specific adjusts according to
/ˈfloʊ.t̬ ɪŋ ɪksˈtʃeɪndʒ par values. market force
reɪt/

6. Spot Transaction Currency bought or sold Giao dịch giao ngay Spot transactions are
/spɑːt trænˈzæk.ʃən/ today with delivery two common in foreign
business days later exchange markets.

7. Forward The payment is made at Giao dịch kỳ hạn Forward transactions help
transaction the present but the delivery businesses plan for future
/ˈfɔːr.wɚd of funds is made in the currency needs
trænˈzæk.ʃən/ future date.

8. Hedging Offset a “buy” contract Phòng ngừa rủi ro Hedging protects investors
/ˈhedʒ.ɪŋ/ with a “sell” contract and from potential losses
vice versa, matching the
amounts and the time span
exactly

9. Speculation When dealers do not offset Đầu cơ Speculation often disrupts

/ˌspek.jəˈleɪ.ʃən/ a “buy” contract with a the stability of foreign
“sell” contract. This means exchange markets
that their position is left
open.

10. Premium The additional amount it Phí bảo hiểm The euro is trading at a
/ˈpriː.mi.əm/ will cost to buy or sell a premium for next month's
currency at a given future contracts
date

11. Discount The lesser amount it will Phần chiết khấu The yen is currently at a
/ˈdɪs.kaʊnt/ cost to buy or sell a discount compared to its
currency at a given future future price
date.
12. Arbitrage The transfer of funds from Kinh doanh chênh lệch giá Traders engage in arbitrage
/ˈɑːr.bɪ.trɑːʒ/ one currency to another is by buying dollars in one
involved market and selling them in
another

13. Precious metals Early forms of money and Kim loại quý Gold and silver were
/ˈpreʃ.əs ˈmet̬ .əlz/ exchange mediums considered precious metals
for trade

14. International An international financial Quỹ Tiền tệ Quốc tế The IMF provides
Monetary Fund institution created to financial aid to countries
(IMF) stabilize exchange rates facing economic
/ˌɪn.t̬ ɚˈnæʃ.ən.əl and support global difficulties.
ˈmʌn.ɪ.tri fʌnd/ monetary cooperation.

15. Convertible A currency that can be Tiền tệ tự do chuyển đổi The British pound was
currency exchanged for a specific once a convertible
/kənˈvɝː.t̬ ə.bəl amount of gold or other currency linked to gold
ˈkɝː.ən.si/ currencies

16. Stable exchange Economic environments Thị trường trao đổi ổn định Governments aimed to
markets with minimal fluctuations create stable exchange
/ˈsteɪ.bəl ɪksˈtʃeɪndʒ in currency values markets post-World War II.
ˈmɑːr.kɪts/

17. Par value Fixed value of currencies Giá trị danh nghĩa Currencies were
/pɑːr ˈvæl.juː/ in terms of gold exchanged based on their
par value in gold

18. International A financial institution Ngân hàng Quốc tế Tái The IBRD focuses on
Bank for created to help with thiết và Phát triển reducing poverty and
Reconstruction and post-World War II promoting sustainable
Development reconstruction and development.
(IBRD) economic development
ˌɪn.t̬ ɚˈnæʃ.ən.əl
bæŋk fɔːr
ˌriː.kənˈstrʌk.ʃən ənd
dɪˈvel.əp.mənt/

19. Intervention The upper and lower limits Điểm can thiệp Central banks step in at
points of currency fluctuation, intervention points to
/ˌɪn.t̬ ɚˈven.ʃən beyond which central stabilize the currency
pɔɪnts/ banks intervene to stabilize
the currency.

20. Devaluation A deliberate downward Phá giá tiền tệ The government devalued
/ˌdiː.væl.juˈeɪ.ʃən/ adjustment in the value of the currency to boost
 a country’s currency exports
relative to gold or other
currencies

21. Revaluation An upward adjustment in Tăng giá tiền tệ Revaluation can reduce
/ˌriː.væl.juˈeɪ.ʃən/ the value of a currency inflation but hurt exports

22. Snake system A monetary arrangement Hệ thống con rắn The snake system aimed to
/sneɪk ˈsɪs.təm/ where European currencies stabilize European
moved together within currencies post-Bretton
fixed limits relative to each Woods
other but fluctuated against
external currencies

23. Foreign Middlemen who facilitate Môi giới ngoại hối Foreign exchange brokers
exchange brokers currency transactions help secure the best
/ˈfɔːr.ən ɪksˈtʃeɪndʒ between banks, customers, exchange rates for large
ˈbroʊ.kɚz/ and other market transactions
participants

24. Long position A situation where a dealer Vị thế mua Holding a long position in
/lɔːŋ pəˈzɪʃ.ən/ buys foreign currency euros can benefit if the
without selling forward at currency appreciates
the same time

25. Short position A situation where a dealer Vị thế bán A short position in the yen
/ʃɔːrt pəˈzɪʃ.ən/ sells foreign currency might lead to losses if the
forward without buying currency strengthens
forward at the same time

Unit 4: Payment in international trade

The exporter ships the goods Exporters often use open

Ghi sổ: Người bán giao
Open account to the buyer and waits for accounts with buyers they
hàng trước và nhận thanh
/ˈoʊ.pən əˈkaʊnt/ payment on a fixed date as trust and have long-term
toán sau.
agreed in the contract. relationships with.
 A document issued by a
Documentary
bank replacing the buyer as Thư tín dụng chứng từ: Using a documentary letter
letter of credit
the paying party. The Ngân hàng đảm bảo thanh of credit reduces the risk
/ˌdɒk.jəˈmen.tər.i
exporter is guaranteed toán cho người xuất khẩu. for the exporter.
ˈlɛt.ər əv ˈkrɛd.ɪt/
payment by the bank.

Revocable letter A letter of credit that can be Thư tín dụng có thể hủy A revocable letter of credit
of credit canceled at any moment bỏ: Có thể bị hủy bỏ bất gives the buyer more
/rɪˈvɑː.kə.bəl without prior notice to the kỳ lúc nào mà không cần flexibility but increases
ˈlɛt.ər əv ˈkrɛd.ɪt/ beneficiary. thông báo trước. risks for the exporter.

Irrevocable letter A letter of credit that cannot Thư tín dụng không thể An irrevocable letter of
of credit be canceled or amended hủy bỏ: Không thể hủy bỏ credit ensures security for
/ɪˈrɛv.ə.kə.bəl without the agreement of all hoặc thay đổi mà không both parties involved in the
ˈlɛt.ər əv ˈkrɛd.ɪt/ parties. có sự đồng ý. transaction.

Deferred
A letter of credit where the The exporter accepted a
payment letter of Thư tín dụng trả chậm:
importer’s bank forwards deferred payment letter of
credit Thanh toán được thực
documents while payment is credit for the large
/dɪˈfɜːrd ˈpeɪ.mənt hiện vào một ngày sau.
made at a later date. shipment.
ˈlɛt.ər əv ˈkrɛd.ɪt/

Red clause letter

A letter of credit permitting Thư tín dụng điều khoản The exporter used a red
of credit
the beneficiary to receive an đỏ: Cho phép nhận tiền clause letter of credit to
/rɛd klɔːz ˈlɛt.ər əv
advance payment before tạm ứng trước khi giao finance production costs
ˈkrɛd.ɪt/
shipment. hàng. before shipment.

Transferable The importer allowed the

A letter of credit that can be Thư tín dụng chuyển
letter of credit supplier to use a
used by someone designated nhượng: Có thể chuyển
/ˈtræns.fər.ə.bəl transferable letter of credit
by the original beneficiary. nhượng cho bên thứ ba.
ˈlɛt.ər əv ˈkrɛd.ɪt/ to pay a subcontractor.

A letter of credit allowing

Revolving letter Thư tín dụng tuần hoàn: A revolving letter of credit
for renewed credit
of credit Được làm mới sau khi was issued to facilitate
availability once the issuing
/rɪˈvɒlv.ɪŋ ˈlɛt.ər ngân hàng phát hành nhận repeated shipments of
bank is reimbursed for
əv ˈkrɛd.ɪt/ hoàn trả. goods over six months.
previously drawn drafts.
 Two letters of credit with The back-to-back letter of
Back to back Thư tín dụng đối ứng: Hai
identical documentary credit arrangement was
letter of credit thư tín dụng giống nhau
requirements, except for used to facilitate payment
/bæk tuː bæk về yêu cầu chứng từ
differences in price as shown between the intermediary
ˈlɛt.ər əv ˈkrɛd.ɪt/ nhưng khác về giá.
in the invoice and draft. and supplier.

Standby letter of A letter of credit that can be Thư tín dụng dự phòng: The standby letter of credit
credit drawn against, but only if Chỉ được sử dụng khi một ensured the supplier would
another business transaction giao dịch kinh doanh be paid if the buyer
/ˈstænd.baɪ ˈlɛt.ər is not performed. khác không được thực defaulted.
əv ˈkrɛd.ɪt/ hiện.

Advised letter of A letter of credit issued by a Thư tín dụng thông báo: The advised letter of credit
credit bank and forwarded to the Được ngân hàng phát was sent through the
beneficiary by another bank hành và thông báo qua beneficiary’s local bank for
/ədˈvaɪzd ˈlɛt.ər əv in the beneficiary’s area, ngân hàng khác. validation.
ˈkrɛd.ɪt/ validating signatures and
legitimacy.

Confirmed letter A letter of credit issued by Thư tín dụng xác nhận: The exporter required a
of credit one bank, to which another Ngân hàng thứ hai cam confirmed letter of credit to
bank adds its commitment to kết thanh toán. ensure payment security.
/kənˈfɜrmd ˈlɛt.ər pay.
əv ˈkrɛd.ɪt/

Usance draft A draft that is payable after a Hối phiếu trả chậm: The supplier issued a
(Time draft) specific number of days. Thanh toán sau một usance draft payable 90
khoảng thời gian nhất days after the shipment
/ˈjuː.zəns dræft/ or định. date.
/taɪm dræft/
Banker’s A usance draft drawn on a Chấp nhận ngân hàng: The banker’s acceptance
acceptance bank that stamps Ngân hàng cam kết thanh was used to finance the
“ACCEPTED” across its toán hối phiếu trả chậm. exporter’s shipment of
/ˈbæŋ.kərz face, making it a prime goods.
əkˈsɛp.təns/ obligation of the bank to
pay. Used for short-term
trade finance.

Bills for A negotiation instrument, Hối phiếu thu tiền: Hối The company submitted
collection drawn by a company or phiếu trình cho ngân hàng bills for collection to
individual, presented to the để thu tiền. receive payment from the
/bɪlz fər drawee bank for payment. importer’s bank.
kəˈlɛk.ʃən/

Clean collection A negotiable instrument Thu tiền trơn: Công cụ A clean collection is less
presented for collection thu tiền không kèm theo secure since it doesn’t
/kliːn kəˈlɛk.ʃən/ without any attached chứng từ. involve title documents.
document.

Documentary A collection item with title Thu tiền chứng từ: Chứng Documentary collection is
collection documents accompanying từ đi kèm hối phiếu và commonly used in
the draft, released to the được giao khi thanh toán. international trade to
/ˌdɒk.jəˈmen.tər.i drawee upon payment. secure payment.
kəˈlɛk.ʃən/

Advance A payment method where Thanh toán trước: Người Advance payment was
payment the buyer agrees to pay part mua thanh toán toàn bộ required to cover
or all of the value before the hoặc một phần trước khi production costs for the
/ədˈvæns seller sends the cargo. nhận hàng. custom order.
ˈpeɪ.mənt/
Invoice A commercial document Hóa đơn: Tài liệu thương The invoice included
issued by a seller to the mại thể hiện chi tiết hàng details of the shipment and
/ˈɪn.vɔɪs/ buyer, detailing the goods or hóa, số lượng và giá. payment terms.
services sold, quantities, and
prices.

Bill of exchange A written order by the seller Hối phiếu: Lệnh thanh The exporter drew a bill of
to the buyer to pay a certain toán một số tiền nhất định exchange to receive
/bɪl əv ɪksˈʧeɪndʒ/ sum at a specified time. trong một thời điểm xác payment after 60 days.
định.

Bill of lading A document issued by a Vận đơn: Chứng từ nhận The shipping company
carrier to acknowledge hàng của đơn vị vận issued a bill of lading after
/bɪl əv ˈleɪ.dɪŋ/ receipt of goods for chuyển. loading the cargo onto the
shipment. ship.

Document of title A legal document proving Chứng từ sở hữu: Xác The buyer presented the
ownership of the goods. nhận quyền sở hữu hàng document of title to claim
/ˈdɒk.jə.mənt əv hóa. the goods at the port.
ˈtaɪ.təl/

Issuing bank The bank that issues a letter Ngân hàng phát hành: The issuing bank provided
of credit on behalf of the Ngân hàng phát hành thư a letter of credit to support
/ˈɪʃ.uː.ɪŋ bæŋk/ buyer. tín dụng cho người mua. the buyer’s payment
obligations.

Collecting bank The bank that collects Ngân hàng thu tiền: Ngân The collecting bank
payment on behalf of the hàng thu hộ tiền cho forwarded the payment to
/kəˈlɛkt.ɪŋ bæŋk/ exporter or seller. người bán. the exporter after verifying
the documents.
Confirming bank The bank that confirms and Ngân hàng xác nhận: A confirming bank was
guarantees payment under a Ngân hàng đảm bảo thanh added to the letter of credit
/kənˈfɜrm.ɪŋ letter of credit. toán theo thư tín dụng. to provide additional
bæŋk/ security for the exporter.

Letter of credit A document issued by a Thư tín dụng: Bảo đảm The importer arranged a
bank guaranteeing that a của ngân hàng về thanh letter of credit to reassure
/ˈlɛt.ər əv ˈkrɛd.ɪt/ buyer will pay the seller on toán. the exporter of payment
time and for the correct security.
amount.

ANSWER THESE QUESTIONS:

1. What economic system was used by most European countries to promote self-sufficiency
before the 19th century?
2. What is the purpose of specialization?
3. What is GDP?
4. What was created by the United Nations after World War II?
5. When was the World Trade Organization (TWO) established? Why?
6. What was the goal of NAFTA?
Multiple Choices question

WHICH OF THE FOLLOWING IS A COMPARATIVE ADVANTAGE?

A. Making the best of something
B. Making the most of something
C. Making something for the lowest cost
D. All of these answers are correct

A CRITICISM OF GLOBALIZATION IS THAT WORKERS IN DEVELOPING COUNTRIES

ARE OFTEN SUBJECT TO WHICH OF THE FOLLOWING!
A. Not enough work
B. All of these answers are correct
C. Sweatshops
D. Too much money

IN ORDER TO HELP PREVENT FUTURE VIOLENCE, FRANCE AND WHICH COUNTRY

AGREED TO CONSOLIDATE MUCH OF THEIR ECONOMIES AS A PRECURSOR TO
THE EUROPEAN UNION?
A. Germany
B. Spain
C. Denmark
D. Italy

NAFTA SERVES WHICH CONTINENT?

A. Asia
B. Africa
C. South America
D. North America

A....... SETS A NUMERICAL LIMIT ON HOW MUCH OF A PRODUCT CAN BE

IMPORTED INTO A COUNTRY.
A. free trade agreement
B. subsidy
C. government protection
D. quota

IF A HIGH TARIFF IS IMPOSED ON A SPECIFIC BRAND OF HANDBAGS COMING

FROM FRANCE, WHAT IS A LIKELY EFFECT OF THIS ACTION?
A. Only the very wealthy will be able to afford the handbag, leading to consumer complaints.
B. The market will be flooded with fake, black market handbags bearing the same name at lower
prices.
C. People will be even more interested in the handbag due to the cost and buy more.
D. Consumers will decide the handbag is not worth the money and shop for other brands.

HOW DO TARIFFS AND QUOTAS BENEFIT A COUNTRY!

A. By letting inefficient domestic industries go out of business.
B. By protecting domestic industries and jobs.
C. By increasing overall prices for domestic companies.
D. By decreasing national security by encouraging embargoes.

HOW DO QUOTAS AND TARIFFS IMPACT THE SUPPLY OF GOODS AVAILABLE TO

CONSUMERS AND DOMESTIC PRICES IN GENERAL!
A. They decrease the supply of goods and increase prices.
B. They decrease the supply of goods with no change in prices.
C. They increase the supply of goods and increase prices.
D. They increase the supply of goods and decrease prices.

WHICH OF THE FOLLOWING IS NOT ASSOCIATED WITH FOREIGN TRADE!

A. Current account
B. Exports
C. Surplus
D. Mutual funds
ALL OF THE FOLLOWING ARE TRUE, EXCEPT THAT THE CURRENT ACCOUNT…….
A. is also known as the capital account
B. can be referred to as a current deficit or surplus
C. is made up of foreign trade dealing with net exports of goods and services, foreign investment
income, and current transfers
D. includes foreign aid or gifts paid to other countries

WHICH OF THE FOLLOWING IS NOT A COMPONENT OF THE CURRENT ACCOUNT?

A. Amount of investment income paid from foreign firms
B. Value of personal savings accounts
C. Amount of services imported and exported
D. Amount of goods imported and exported

LATERVIA IS A VERY SMALL COUNTRY THAT HAS EXPORTS OF $100,000, IMPORTS

OF $20,000, NET INCOME FROM ABROAD $250,000, AND NET CURRENT TRANSFERS
$200,000. WHAT IS LATERVIA'S CURRENT ACCOUNT!
A. $250,000
B. $530,000
C. $570,000
D. $370,000

WHY CAN THE CURRENCY EXCHANGE RATE HAVE A LARGE IMPACT ON THE
TRADE BALANCE?
A. Because an undervalued currency can cause negative interest rates.
B. Because inflation causes a decrease in prices globally.
C. Because an overvalued currency can make exports less competitive.
D. Because it directly causes the GDP to increase.
ASSUME THE FOLLOWING EXCHANGE RATES: 1 DOLLAR = 102 JAPANESE YEN I
DOLLAR = 0.6 BRITISH POUND L DOLLAR = 0.91 SWISS FRANC I DOLLAR = 13
PESOS. WHICH OF THE FOLLOWING IS THE LEAST AMOUNT OF MONEY?
A. 38 Swiss francs
B. 27 British pounds
C. 5100 Yen
D. 507 Pesos

IF THE EXCHANGE RATE BETWEEN THE U.S. DOLLAR AND MEXICAN PESO IS 13
PESOS TO I U.S. DOLLAR, HOW MANY DOLLARS WOULD A GALLON OF ICE
CREAM COSTING 52 PESOS BE?
A. 13
B. 2
С. 4
D. 52

WHICH OF THE FOLLOWING STATEMENTS REGARDING AN EXCHANGE RATE IS

NOT TRUE!
A. It is the rate at which one country's currency can be traded for another country's currency.
B. It exists so firms and countries can trade and do business with each other.
C. It is often necessary when individuals travel outside of their home country.
D. Fixed exchange rates are determined by supply and demand forces.

ALL OF THE FOLLOWING ARE TYPES OF EXCHANGE RATES THAT COUNTRIES

CAN USE, EXCEPT:
A. Fixed
B. Pegged
C. Infinite
D. Flexible
WHICH EXCHANGE RATE WOULD MOST LIKELY BE USED FOR A TRANSACTION
THAT WILL OCCUR AT A FUTURE DATE!
A. Forward
B. Future
C. Current
D. Present value rate

WHICH METHOD OF INTERNATIONAL PAYMENT INCLUDES THE SUBCATEGORIES

OF PAYMENT IN ADVANCE AND OPEN ACCOUNT?
A. Clean payment
B. Letter of credit
C. Consignment
D. Bill of exchange

WHICH METHOD OF INTERNATIONAL PAYMENT IS SIMILAR TO ACCEPTING A

WRITTEN CHECK!
A. Clean payment
B. Bill of exchange
C. Payment in advance
D. Consignment

HOW ARE INTERNATIONAL PAYMENTS IN ADVANCE TYPICALLY

CONDUCTED?
A. Cash on delivery (COD)
B. Wire transfer or credit card
C. Consignment
D. Cash or personal check

HOW DOES AN OPEN ACCOUNT PAYMENT METHOD WORK!

A. Payment is made to a third-party distributor
B. Items are delivered, then payment is made
C. Payment is made first, then items are shipped
D. Payment is held by the bank until items clear customs

THIS FORM OF PAYMENT GETS A BANK INVOLVED TO VOUCH FOR A BUYER'S

CREDITWORTHINESS.
A. Letter of credit
B. Bill of exchange
C. Clean payment
D. open account

LETTERS OF CREDIT CAN BE USED IN:

A. International trade
B. Either of these
C. Neither of these
D. Domestic trade

HOW OFTEN ARE REVOCABLE LETTERS OF CREDIT CURRENTLY USED IN

INTERNATIONAL TRANSACTIONS?
A. Always
B. Never
C. Rarely
D. Often

A BACK TO BACK LETTER OF CREDIT IS ACTUALLY

A. Two letters of credit, one of which is to be paid at sight and the other of which is deferred
B. Two letters of credit, one of which is face up and the other of which is face down
C. None of these
D. Two letters of credit, one of which is issued by the buyer's bank to pay an intermediary
and the other of which is issued by the intermediary's bank to pay the actual seller (s)
A CONFIRMED LETTER OF CREDIT MEANS THAT THE LETTER OF CREDIT HAS
BEEN:
A. None of these
B. Read by the beneficiary or their legal counsel
C. Approved by the buyer
D. Guaranteed by a second bank

A TRANSFERABLE LETTER OF CREDIT AUTHORIZES ANY PORTION OF THE

PAYMENT TO BE REMITTED TO WHOM INSTEAD OF THE BENEFICIARY!
A. The beneficiary's bank
B. A trading house
C. The actual suppliers) of the goods or services
D. Anyone

IDENTIFY TWO NAMES USED TO INDICATE FOREIGN DIRECT INVESTORS:

A. International enterprise and multinational business
B. International business firm and conglomerate
C. International conglomerate and multinational corporation
D. Multinational corporation and multinational enterprise

HOW CAN FOREIGN DIRECT INVESTMENT (FDI) BE BEST DESCRIBED?

A. When a government invests in another government
B. When a country looks for foreign aid
C. When an investor starts or acquires a business in a foreign country
D. When you invest in a foreign stock market or buy foreign bonds

WHICH OF THE FOLLOWING ARE POTENTIAL PROBLEMS THAT AN MNE MAY

FACE?
I. POLITICAL INSTABILITY IN THE FOREIGN COUNTRY
II. INCREASE COST OF PRODUCTION IN THE FOREIGN COUNTRY
III. UNDERDEVELOPED LEGAL SYSTEM IN THE FOREIGN COUNTRY
A. Il and III
B. I and II
C. I, II and III
D. I and III

ROBERT LIVES IN AMERICA AND HE WANTS TO MAKE A GREENFIELD

INVESTMENT IN MAURITIUS, WHICH IS A DEVELOPING COUNTRY.
WHAT TYPE OF INVESTMENT DOES ROBERT WANT TO MAKE!
A. He will be investing in clear-cutting rainforests
B. He will be creating a new foreign enterprise
C. He will be investing in agriculture
D. He will be investing in an environmentally friendly enterprise

A DEVELOPING COUNTRY IS INVOLVED IN FDI. WHAT CAN BE TRUE FOR THE

COUNTRY?
A. The country can gain from tax revenue
B. FDI can give rise to less corrupted government
C. Strategic alliance is not possible with FDI
D. FDI will decrease competition in the country

ROBERT LIVES IN AMERICA AND HE WANTS TO MAKE A GREENFIELD

INVESTMENT IN MAURITIUS, WHICH IS A DEVELOPING COUNTRY. NHAT TYPE OF
INVESTMENT DOES ROBERT WANT TO MAKE!
A. He will be investing in clear-cutting rainforests
B. He will be creating a new foreign enterprise
C. He will be investing in agriculture
D. He will be investing in an environmentally friendly enterprise