Trade in the global economy

WTO documents English: https://www.wto.org/english/docs_e/legal_e/legal_e.htm Vietnamese: http://trungtamwto.vn/wto − General agreement on tariffs and trade 1994 − The Uruguay Round Agre

INTERNATIONAL TRADE POLICY

READING MATERIALS

3 WTO documents

English: https://www.wto.org/english/docs_e/legal_e/legal_e.htm

Vietnamese: http://trungtamwto.vn/wto

− General agreement on tariffs and trade (1994)

− The Uruguay Round Agreement

− Agreement on implementation of article WII of the general agreement on tariff and trade 1994

− General Agreement on Trade in Services

− Trade-Related Aspects of Intellectual Property Rights

− Understanding on rules and procedures governing the settlement of disputes

− Agreement on Technical Barriers to Trade

− Agreement on the application of Sanitary and Phytosanitary Measures

− Agreement on import licensing procedure

− Agreement on safeguards

− Agreement on Subsidies and Countervailing Measures

−

Vietnam - Eurasian Economic

RCEP (ASEAN+6) Vietnam - Israel Vietnam - EFTA

4

Union

Vietnam - EU ASEAN - Hong Kong

CLASS RULES

class

SUBJECT OBJECTIVES

policy instruments, international trade doctrines, WTO principles and international economic integration issues

policy, including the basis of application, principles to be applied

to the application of tools of international trade policy

CONTENT AND TIMETABLE

1.5 History of Trade 1.6 The future of trade

2 Migration and Foreign Direct Investment

2.1 Map of migration 2.2 Map of foreign direct investment

2 classes

2 TOPIC 2: TARIFF

MEASURES

1 A brief history of the WTO

2 Tariff under WTO

3 The Gains from the trade

4 Import tariffs for a small country

5 Import tariffs for a large country

5 classes + 1 class (exercise)

CONTENT AND TIMETABLE

NON-TARIFF

MEASURES

1 Definition

2 NTMs classification under UNCTAD

3 Why are NTMs necessary

TOPIC 1

TRADE IN THE

GLOBAL ECONOMY

READING MATERIALS

Worth Publisher, Fouth edition)

Economics Addison Wesley Publisher)

1.1 Basic of World Trade

1.2 Map of the World trade

1.3 Trade compare with GDP

1.4 Barriers to trade

1.5 History of Trade

1.6 The future of trade

2.1 Map of migration

2.2 Map of foreign direct investment

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1.1 Basic of World Trade

Differences between COMMERCE and TRADE?

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1.1 Basic of World Trade

What is trade?

buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties

(Adam Hayes, 2020)

What is international trade?

- Trade across border

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1.1 Basic of World Trade

An export is a product sold from one country to

another.

An import is a product bought by one country

from another.

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1.1 Basic of World Trade

exports and its total value of imports (usually including both goods and services).

countries that import more than they export, run a trade deficit.

between two countries.

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Global value chain

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Global value chain

Global value chains (GVCs) refer to international production sharing, a

phenomenon where production is broken into activities and tasks carried out

in different countries.

A small countries can participate in the global value chain by two ways:

taking advantage of cheap labor)

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1.1 Basic of World Trade

Touch screen, camera:

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1.1 Basic of World Trade

US trade balance in iPhones with: CHN TWN DEU KOR ROW World

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1.1 Basic of World Trade

Drawbacks of Trade Balance with Gross:

- Products are counted several times

- The Gross way focuses on the specific origin of product However, because of the global value chain, products are now

“made in the world”

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- Which is traded most?

- The role of least - developed countries?

- The role of Vietnam in global trading activities?

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1.2 Map of the World trade

Review 2021

- Overview of the world trade in 2020?

(Page 10)

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1.2 Map of the World trade

- Which is traded most?

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1.2 Map of the World trade

- Which region of the World

trade the most, and which trade

the least?

Statics in 2019

How about in 2020?

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1.2 Map of the World trade

- The role of least - developed countries?

- The role of Vietnam in global trading

activities?

Vietnam recorded the biggest increase in

the world ranking, improving its position

from 39th in 2009 to 23rd in 2019.

=> Global value chain

How about in 2020?

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1.3 Trade compare with GDP

In order to compare trade with GDP, we use Openness Index.

=> Why small countries tend to have higher trade value compared to GDP and the opposite situation happens with large countries?

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1.4 Barriers to trade

The trade barriers refer to all factors that influence the amount

of goods and services shipped across international borders

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1.5 History of Trade

1.6 Future of Trade

First Golden Age

Second Golden Age

Future of Trade

now

- Low – wage labor

- Low skill labor

Developed countries

- High – wage labor

- High skill labor

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2 Migration and Foreign Direct Investment

2.2 Map of foreign direct investment

Horizontal FDI: The majority of foreign direct investment occurs between

industrial countries, when a firm from one industrial country owns a company

in another industrial country We refer to these flows between industrial countries as horizontal FDI.

Vertical FDI: The other form of foreign direct investment occurs when a firm

from an industrial country owns a plant in a developing country, which we call vertical FDI Low wages are the principal reasons that firms shift production abroad to developing countries.