Hoafng Thu Giang

gianght@ftu.edu.vn
0913078990
End-of-term:
P1: gap filling: 3p
P2: QnA: 3p
P3: essay: 4p

Embargo
Local content requirement: tỷ lệ yêu cầu nội địa
Bureaucratic: thủ tục hành chính rườm rà (làm chậm tiến độ nhập, xuất hang); nhiêu khê
Host country: nước tiếp nhận đầu tư
Home country: Nước đầu tư
Undertake FDI (v)
FDI >< FPI Portfolio (shares, bond)
M&A
 Horizontal (Same) and Vertical (along the supply chain) Merger
Foreign Exchange: Ngoại hối
- Hard currency: Đồng tiền mạnh = COvertable currency
- Strengthening >< Weakening Currency
- Appreciation >< Depreciation
- Devaluation: phá giá đồng tiền
- Dumping >< price escalation
- Anti-dumping duty
- Derivatives
- Future (tương lai), Forward (kỳ hạn), Option (quyền chọn),
- Hedging, ABitract
Cash on delivery
Mode of Payment in International Trade
Cash against invoice
Cash with order
Letter of credit
Advance Payment
Collection in Payment: Nhờ thu
Open Account: Ghi sổ
Issuing bank: Người mua yêu cầu ngân hang của mình phát hành tín dụng cho người bán => Người mua
yêu cầu mở thư tín dụng => Imported bank
Beneficiary: Người thụ hưởng
Applicant
Advising bank: Expored bank: ngân hang thông báo
The LC amount: giá trị của thư tín dụng
Unit 2: International trade
- 4 QnA
- 17 + 8 33(TRANG 35) Gap filling
- Topic: The role/importance of international trade/free trade

Hold absolute advantage in: Có lợi thế tuyệt đối ở cgi

Terms:
- International trade: Purchase, sale, or exchange of goods and services across national borders
- Exporting: sending goods to another country for sale or trade
- Importing: Bringing in goods from another country for sale or trade
- Trade surplus: Condition that results when the value of a nation’s exports greater than the value of
its imports
- Trade deficit: Condition that results when the value of a nation’s imports greater than the value of
its exports
- Mercantilism: A trade theory which holds that a government can improve the economic well-
being of the country by encouraging exports and stifling imports to accumulate wealth in the form
of precious metal.
- Neo-mercantilism: A trade theory which holds that a government can improve the economic well-
being of the country by encouraging exports and stifling imports.
- Absolute advantage: A trade theory which holds that nations can increase the economic well-
being by specializing in goods that they can produce more efficiently than anyone else. \
- Theory of comparative advantage: A trade theory which holds that nations should promote those
goods for which they have the greatest relative advantage.
- Factor endowment/proportion theory (lý thuyết tỷ lệ nhân tố): A trade theory which holds that
nations will produce and export products that use large amounts of production factors that they
have in abundance and will import products requiring a large amount of production factors that
they lacks.
- (Bỏ) Heckscher-Ohlin theory: A trade theory that extends the concept of comparative advantage
by bringing into consideration the endowment and cost of
- (Bỏ) Leotief paradox:
- International product life cycle (IPLC) theory: A theory of the stages of production of a product
with new ‘know-how’: it is first produced by the parent firm, then by its foreign subsidiaries, and
finally anywhere in the world where costs are the lowest; it helps explain why a product that
begins as a nation’s export often ends up as an import.
- Embargo: A complete ban on trade (imports and exports) in one or more products with a
particular country.
- GATT: The General Agreement on Tariffs and Trade – a treaty that was designed to promote free
trade by reducing both tariff and non-tariff barriers to international trade.
- WTO: An international body dealing with rules or trade between nations.

METHODS OF PROMOTING TRADE:

The most common instruments used by governments to promote trade are:
 - Subsidies
 A subsidy is financial assistance to domestic producers in the form of cash payments, low-interest
loans, tax breaks, product price supports, or some other form.
o Subsidy is intended to assist domestic companies in fending off international competitors
o Critics charge that subsidies amount to corporate
- Export Financing: Tài trợ xuất khẩu
1. Governments often promote exports by helping companies finance their export activities
2. Government can offer export financing – loans to exporters that they would not otherwise
receive or loans at below-market interest rates.
3. Another option is to guarantee that the government will pay a company’s loan if the
company should default on repayment – called a loan guarantee.
- Foreign Trade Zone: Khu ngoại thương: Thuế = 0 hoặc thấp, thủ tục thông quan dễ dàng
1. Most countries promote trade with other nations by creating what is called a foreign
trade zone (FTZ) – a designated (được quy định) geographic region in which
merchandise is allowed to pass through with lower customs duties (taxes) and/or fewer
customs procedures.
- Special Government Agencies: Các cơ quan chuyên biệt
1. Most nations have special government agencies responsible for promoting exports
2. These agencies organize trips abroad for trade officials and businesspeople and open
offices abroad to promote home country exports

BARRIERS TO TRADE
- Reasons for the creation of trade barriers: 9 reasons
1. To protect local jobs by shielding home-country business from foreign competition.
2. To encourage local production to replace imports
3. To protect infant industries that are just getting started
4. To reduce reliance on foreign suppliers
5. To encourage local and foreign direct investment
6. To reduce balance of payments problems
7. To promote export activity
8. To prevent foreign firms from dumping (Selling goods below cost in order to achieve
market share).
9. To promote political objectives such as refusing to trade with countries that practice
apartheid or deny civil liberties to their citizens.
COMMONLY USED BARRIERS
- Price-based barriers: Tariff
1. Tariff
2. Import tariff
 Specific duty/tariff
 Ad valorem duty
 Compound duty: 8l
3. Export tariff
4. Transit tariff (thuế quá cảnh): A tax levied on goods passing through
- Quantity limits: quota, embargo (a quota set at zero)
- International price fixing: cartel: control the price and quantity
- Financial limits: Exchange controls (restrict the flow of currency)
- Foreign investment control: Limits on foreign direct investment or the transfer or remittance of
funds
NON-TARIFF BARRIERS to TRADE
QUOTAS
- Autarky: tự cung tự cấp
- Barter: trao đổi hang đổi hang
- Counter-trade: mua bán đối lưu
UNIT 3:
Terms, Definition, Theories
- Balance of payments – BOP: A statistical summary of a country’s total trade, other economic
transactions and financial flows at a given time.
1. 2 major components of BOP:
 The current account: shows trade in good and services, income, and unrequited
transfers (eg: ) over a specified period
 The capital account: records currency inflows and outflows due to international
dealings in financial assets, such as investments and loans.
- Balance of trade: in standard usage, this is the balance between exports and imports in an
economy.
- Code of conduct: (quy tắc ứng xử) usually a non-biding (k ràng buộc) intergovernmental
instrument that seeks to regulate certain types of behaviour of government or private
corporations. Codes of conduct are as difficult to negotiate as binding agreements since
signatories normally expect to observe them in good faith.
- Commercial/trade policy: A term now disappearing and in general use being replaced by trade
policy with which it has co-existed for decades. It covers governmental acts, policies, and
practices which influence trade in goods and services.
- Competition policy: approaches of governments to the promotion and protection of competition.
It consists of competition laws and policies achieving similar aims. Competition policy is often
seen as promoting especially the interests of the consumers.
- Competition policy and anti-dumping measures: anti-dumping laws are designed to protect
domestic producers and sellers of goods, whereas competition laws are meant to protect
consumers and importers.
- Competitive advantage: the theory states that the success of a firm or an industry is based on cost
advantages in the production of a relatively standardized product or product-based advantages
related to the development of differietiated
- Contingent multilateralism: Multilateral action should be taken whenever possible to improve
market access, but sometimes preferential liberalization in the form of free-trade agreements and
unilateral action would be better.
- Contingent protection: protective mechanism, also called commercial defence mechanisms, that
are legal under the WTO agreements. They may be triggered to counter the effects of dumping,
subsidies, and unexpected import surges causing injury to domestic industry. Such mechanisms
include: anti-dumping measures, countervailing duties and safeguards.
- Internationalization: The extension of economic acitivity across national borders to harness the
benefits of lower costs in other economies, with countries specializing in a particular stage of
production.
1. It is the result of dcreasing costs of transport and communication which promotes the
integration of markets for goods, services, technology, ideas, capital and human
resources.
2. Internationalization allows countries to retain their economic independence and
globalization weakens national sovereignty.
- Globalization: describes the increasing integration of national economic systems through
- Protectionism: A climate of economic policy formulation which sees merit in preventing the
exposure of domestic producers to the rigours of the international market.
 1. The basic means for achieving this are tariffs, subsidies, voluntary restraint arrangements
and other non-tariff measures, with an emphasis on the less transparent measures.
- Free trade: In principle, the free movement across borders of goods, services, capital and people.
In practice,
- Mercantilism: A 17th-century set of views, still much alive, which holds that the aim of
international trade should be the accumulation of an increased share of global wealth in the form
of bullion. In the modern world the aim is to accumulate
- Trade liberalization: a general term for the gradual or complete removal of existing impediments
to trade in goods and services.
- Trade policy: the complete framework of laws, regulations, international agreements and
negotiating stances adopted by government to achieve legally binding market access for domestic
firms. Trade policy also seeks to develop rules providing predictability and security for firms.
- Trade: the sale and distribution of goods and services across international borders.
- Bilateral trade agreement: an agreement between two countries setting out the conditions under
which trade between them will be conducted.
- Multilateral trade agreemnts: Intergovernmental agreements aimed at expanding and liberalizing
international trade under non-discriminatory, predictable and transparent conditions set out in an
array of rights and obligations.
- Multilateralism: an approach to the conduct of international trade based on cooperation, equal
rights and obligations, non-discrimination and the participation as equals of many countries
regardless of their size or share of international trade.
UNIT 4:
A merger is an agreement that unites two existing companies into one new company.
A merger is the voluntary fusion of two companies on broadly equal terms into one new legal entity.
Firms that agree to merge are roughly equal in terms of size, customers, and scale of operations.
Mergers are most commonly done to gain market share, reduce operational costs, expand

Conglomerate merger:
Congeneric Merger:
Market Extension Merger: occurs between companies that sell the same products but compete in different
markets. Companies that engage in
Horizontal Merger:
Horizontal mergers are
Vertical merger occurs
Vertical mergers are done to increase synergies achieved through cost reduction, which results from
merging with one or more supply companies.

 Acquisition
- An acquisition is a transaction in which one company
- The goal of an acquisition is to gain control of the target’s
- Types of acquisition:
1. Friendly acquisition:
2. Reverse acquisition:
3. Back flip acquisition:
4. Hostile acquisition:
Topic writing: The benefits and drawbacks of FDI in Vietnam (Vietnam: host country: thu hut dau tu nuoc
ngoai)
UNIT 6: PAYMENT in INTERNATIONAL TRADE
International trade:
International payment: the transmission of some commonly accepted liquid asset in exchange for
goods, services, or non-liquid assets across borders.
Open account: means the exporter ships the goods to the buyer and just waits till a fixed date as agreed
in their contract for payment from the buyer. => favor buyer
Documentary letter of credit: A document issued by a back, whereby the bank replaces the importer as
the paying party. The exporter is basing his risk of getting paid on the bank rather than on the
importer. The bank will have to be reimbursed by the importer. ver
Types of Letter of credit:
- Revocable letter of credit: thư tín dụng hủy ngang
- Irrevocable letter of credit: Thư tín dụng k hủy ngang
- Deferred payment letter of credit:
- Red clause letter of credit:
- Transferable letter of credit:
- Revolving letter of credit: thư tín dụng tuần hoàn
- Back to back letter of credit: thư tín dụng giáp lưng
- Standby letter of credit: thư tín dụng dự phòng
- Advised (K ktra)
- Confirmed letter of credit
- Usance draft:
- Banker’s acceptance
- Clean collection: nhờ thu trơn
Present/submit the document: xuất trình chứng từ
Creditworthiness: khả năng thanh toán >< creditunworthiness
Solvency: Khả năng thanh toán
Default: mất khả năng thanh toán
Trade bans: Cấm vận thương mại
Custom clearance: thông quan
 Modes of Payment
- Advance payment: Importer pays an exporter before it is shipped
1. Sign the contract: buyer
2. Instruct payment: buyer
3. Make payment: buyer
4. Credit the account (ghi có): seller’s bank credit the contract amount/price/sum to the
seller’s account
5. Ship the goods: seller ship the goods
+ Risks of Advance Payment
  No guarantee
+ Reasons for adopting Advance Payment:
 Unwilling to ship goods prior to receipt of payment, for reasons off country risk

- Documentary collection
- Letter of credit
- Open account: an ex
1. Sign the contract:
2. Arrange shipment and forward shipping documents (to the buyer): seller
3. Instructs payment: buyer
4. Makes Payment: Buyer
5. Credit the account: seller credit the account of the buyer
+
TOPIC for essay: What are the advans and disadvans of LC
UNIT 7:
The benefits and drawbacks of digital marketing
UNIT 8: LOGISTICS AND TRANSPORTATION