also, what kind of trade policy do you think should the government adopt for the benefit of the country as whole

 WHOSE INTERESTS SHOULD BE THE PRIMARY CONCERN OF GOVERNMENT TRADE POLICY, THE INTERESTS OF PRODUCERS FIRMS AND THEIR EMPLOYEES OR CONSUMERS?. PART I• The frameworks: Definition & Fun

 WHOSE INTERESTS SHOULD BE THE

PRIMARY CONCERN OF GOVERNMENT TRADE POLICY, THE INTERESTS OF

PRODUCERS (FIRMS AND THEIR

EMPLOYEES) OR CONSUMERS?

 ALSO, WHAT KIND OF TRADE POLICY DO

YOU THINK SHOULD THE GOVERNMENT ADOPT FOR THE BENEFIT OF THE

Members of group

• Trần Bảo Kiều ID: 71106118

• Nguyễn Thị Thủy Tiên ID: 71106074

• Đỗ Thị Cẩm Thu ID: 71106146

• Nguyễn Hoàng Hoài Thương ID: 711060 73

• Nguyễn Phúc Như Thúy ID: 71106072

• Huỳnh Châu Phương Thảo ID: 71106062

PART I

• The frameworks: Definition & Fundamentals

PART II

• Primary concern of government trade policy

Conclusion

Part I: THE FRAMEWORK

Government trade policy

• Trade is the form that the ownership of goods and services is transferred from a person or entity to another by getting

something in exchange from the buyer, then this will build the network known as the market

What is producer ?

PRODUCER

In Social studies

In Science

• The consumer is the one who pays to consume the goods and services

produced.

Part I: THE FRAMEWORK

What is consumer ?

• Mercantilism makes a crude case for

government involvement in promoting exports and limiting imports

• The theory of Smith, Ricardo, Heckscher –

Ohlin from part of the case for unrestricted free trade

Trade theory

New trade

theory

Porter’s theory

of national

competitive

advantage

can be interpreted Part I: THE FRAMEWORK

Trade theory

• The theories of international trade also matter to international businesses

because firms are major players on the international trade scene.

Trade theory

Subsidies Tariffs

Import quotas

Voluntar

y export restraints

Antidumping policies

Local content requirements

Administrative policies

7

instruments

of trade

policy

GOVERNMENT TRADE POLICY

TO CONSUMERS

TO PRODUCERS

They must pay a higher price for imported product

The tariff affords producers some protection against foreign

competitors by increasing the cost

Tariffs

exports

TO CONSUMERS

TO PRODUCERS

TO WHOLE

They must pay a higher price for imported product

The tariff affords producers some protection against foreign

competitors by increasing the cost

of imported foreign goods The tariff increases the government

Subsidies are the money that government pays for suppliers

TO CONSUMERS

TO PRODUCERS

The import quota prevents domestic consumers from buying

an imported goods The extra profit that producers make when supply is limited by an import quota

be imported into a country.

the exporting country, typically

at the request of the importing country’s government

TO CONSUMERS

TO PRODUCERS

TO WHOLE

Consumers of the product in the

importing country suffer a reduction

in well-being as a result of the VER Producers in the exporting country experience a decrease in

well-being as a result of the quota The aggregate welfare effect for

y export

restraints

consumers of the product in the

exporting country experience an increase in well-being as a result of the VER

producers in the importing country experience an increase in

well-being as a result of the VER

requirements

TO CONSUMERS

TO PRODUCERS

Consumers face higher final prices

The revenue of domestic firm would increase

• Creating a lot of jobs for local

are designed to punish foreign firms that engage in dumping

dumping

policies

TO CONSUMERS

TO PRODUCERS

Increase consumer welfare

Protect the economic interests of domestic producers from unfair foreign competition

administrative policies to restrict imports and boost exports

policies

TO CONSUMERS

TO PRODUCERS

Domestic consumers will have to pay more for that product

Help prevent some competitive product appear in country

Part III: CONCLUSION

• The foreign trade policy can’t protect the producers’ and the consumers’ benefits at the same time

• The consumer’s income determines their benefit wanting

• The producer’s capability of productive

and the consumer’s income are relative to the country’s development of

GOVERNMENT SHOULD ADOPT

• Maximize one’s benefit at the condition that the other one’s lest loss, in order to get overall benefit.

THANK YOU !!!