Assignment about Trade

Trade is the voluntary exchange of goods, services, or both of which also called commerce or transaction. Evidently, this topic is familiar to almost everyone, in particular students of economics major. To mention about trade, we can point out a lot of subtopics related such as modern trends of trade, benefits and drawbacks of trade, and so on. In this Market leader course book, the authors cover almost featured knowledge about trade in the structure of 5 parts I. Start up with discussion about globalization II. Vocabulary related to “ trade” III. Reading: Fair trade IV. Language skills for negotiation of a business deal V. Case study about negotiation

FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

Assignment:

TRADE

Intructor: MS ….

Group 2 :

1 Nguyễn Thị Hồng vân

2 Nguyễn Nga Hằng

3 Nguyễn Thị Thu Hiền

4 Phạm Thị Lan Hương Class : A2 – K46

Major: International Business

Hanoi, 18th , January, 2010

Introduction

Trade is the voluntary exchange of goods, services, or both of which also

called commerce or transaction Evidently, this topic is familiar to almost everyone, in particular students of economics major

To mention about trade, we can point out a lot of subtopics related such as modern trends of trade, benefits and drawbacks of trade, and so on In this Market leader course book, the authors cover almost featured knowledge about trade in the structure of 5 parts

I Start up with discussion about globalization

II Vocabulary related to “ trade”

III Reading: Fair trade

IV Language skills for negotiation of a business deal

V Case study about negotiation

Our group has spent much time researching this topic and now presents here the most remarkable information which is certainly useful for you

Please let us know if there are any problems with our assignment

I STARTING UP - GLOBALIZATION

Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology This process has effects

on the environment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world

Globalization is not new, though For thousands of years, people - and, later, corporations - have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages Likewise, for centuries, people and corporations have invested in enterprises in other countries In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914

This current wave of globalization has been driven by policies that have opened economies domestically and internationally In the years since the Second World War, and especially during the past two decades, many governments have adopted free-market economic systems, vastly increasing their own productive potential and creating myriad new opportunities for international trade and investment Governments also have negotiated dramatic reductions in barriers to commerce and have established international agreements to promote trade in goods, services, and investment Taking advantage of new opportunities in foreign markets, corporations have built foreign factories and established production and marketing arrangements with foreign partners A defining feature of globalization,

therefore, is an international industrial and financial business structure Moreover, the survival in the new global business market calls for improved productivity and increased competition Due to the market becoming worldwide, companies in various industries have to upgrade their products and use technology skillfully in order to face increased competition

Technology has been the other principal driver of globalization Advances in information technology, in particular, have dramatically transformed economic life Information technologies have given all sorts of individual economic actors -consumers, investors, businesses - valuable new tools for identifying and pursuing economic opportunities, including faster and more informed analyses of economic trends around the world, easy transfers of assets, and collaboration with far-flung partners

Globalization is deeply controversial, however Proponents of globalization argue that it allows poor countries and their citizens to develop economically and raise their standards of living, while opponents of globalization claim that the creation of an unfettered international free market has benefited multinational corporations in the Western world at the expense of local enterprises, local cultures, and common people Resistance to globalization has therefore taken shape both at a popular and at a governmental level as people and governments try

to manage the flow of capital, labor, goods, and ideas that constitute the current wave of globalization

To find the right balance between benefits and costs associated with globalization, citizens of all nations need to understand how globalization works and the policy choices facing them and their societies

II VOCABULARIES

Vocabularies Explaination Structure and idioms Example

English Vienamese Global

['gloubəl]

involving the entire earth; not

provincial in scope

Toàn cầu global strategy :

chiến lược toàn cầu

Many people wish they could

global tour Tax

[tæks]

especially a pecuniary burden which is imposed

by authority

Thuế + sales tax: thuế

doanh thu + to levy a tax on something:đánh thuế

vào cái gì

The car tax

in VN is very high

Liberalise

[‘libərəlaiz]

to free from narrow views or prejudices; to make less strict

Mở rộng tự do

There is a move to liberalise economy Barrier

['bæriə]

an object like a fence that prevents

moving forward from one place to another

hàng rào + to barrier the way:

chặn đường + to barrier in: cản không cho vào

+ to barrier out: cản không cho ra

We must try our best to break the tax barrier.

Border

['bɔ:də]

A boundary; a frontier of a state

or of the settled part of a country

biên giới

considered the natural border bettwen the

Asia and the Europe Custom

['tærif]

The taxes that must

be paid to the government when goods are brought

in from other countries

Thuế nhập khẩu; hải quan

+ preferential tariff:quan thuế ưu đãi

+ to raise tariff barriers:

lập hàng rào quan thuế

We must raise tarriff barriers agaist foreign goods.

Subsidize

['sʌbsidaiz]

to aid or promote,

as a private enterprise, with public money

Trợ cấp subsidized

industries: các ngành công nghiệp được bao cấp

country, there have many

subsidised industries Quota

['kwoutə]

number or amount

of people or things that is officially allowed

imports are controlled

by strict quota

Restriction

[ri'strik∫n]

The act of restricting, or state

of being restricted;

confinement within limits or

bounds

sự hạn chế + without restriction:

không hạn chế

+ to impose restrictions:

buộc phải hạn chế

There are currency restriction

on the sums allowed for foreign travels Licence

['laisəns]

The document granting such permission

Giấy phép Bằng chứng chỉ

+ marriage licence:

giấy đăng ký kết hôn + driving licence:

bằng lái xe

John has just lost his driving licence

[kəm'plai]

act in accordance with someone's rules, commands,

or wishes

tuân theo, chiếu theo, đồng ý làm theo

+ to comply with the rules: tuân theo luật lệ

+ to refuse to comply: từ chối không tuân theo + to comply with a request: đồng ý làm theo theo lời thỉnh cầu

They refused to comply with

resolution

Deregulation

[di:,regju'lei∫n]

Freeing a trade, a business activity

Sự bãi bỏ quy định

The government has passed the

deregulation

service Dump

['dʌmp]

To get rid of goods

by selling them at

a very low price, often in another country

Bán phá giá dump on sb: to

criticize sb severely

or treat them badly

Dumping is abandoned

in many countries

Break into

[breik]

change pace Xâm nhập + Break into tears:

òa khóc + Break in the clouds: tia hy vọng

trying to break into the Japanese market Laisser faire

['leisei'feə]

an axiom of some political

economists, deprecating interference of government by attempts to foster

Chính sách tự

do kinh doanh

Laisser faire economy: nền kinh tế tự do kinh doanh

We have turned to laisser faire since 1986.

commerce, manufactures, etc Regulation

[regju'lei∫n]

A rule or order prescribed for management or government

Sự điều chỉnh the regulation of

share prices: sự điều chỉnh giá cổ phần

The new regulation

of share prices seems

to be very useful Phase out

[feiz]

Terminate gradually/ slowly bring to an end

Rút lui dần khỏi cái gì

Subsidies to farmers will

be phased out by next year

Niche

[ nitʃ]

particularly well suited to the person who occupies it

chỗ thích hợp + niche in the temple

of fame: quyền được người ta tưởng nhớ

đến công lao + niche market: thị trường mục tiêu

He found his niche in the

academic world

Boom

[bu:m]

happening that

fortune (as a sudden opportunity

to make money)

A state of economic

prosperity Grow vigorously

Sự nở rộ

Sự hưng thịnh Phát triển mạnh mẽ, tăng vọt ( giá

cả)

+ Boom city: thành phố phát triển

+ A boom year: một năm nở rộ

The only

satisfy the golf boom was to build more

courses.

Dominate

[ 'dɔmineit ]

be greater in significance than

be in control

chiếm ưu thế;

có ảnh hưởng lớn, chi phối, thống trị

to dominate one's emotions: nén xúc động

As a child

dominated

by his father

Fair trade

[feə treid]

Trade that satisfies certain criteria on the supply chain of

involved, usually including fair

producers; often with other social and environmental considerations

Bình đăng thương mại

Fair trade law: luật thương mại công bằng

Fair trade laws were passed by many states during the Great

Depresssion

Tackle

['tækl]

to make a determined effort

to deal with a difficult problem

or situation

Ngăn chặn,

xử lý

Tackle sb (about sth): to speak to sb about a problem or difficult situation

The government is

determined

to tackle inflation Premium

[´pri:miəm]

payment or reward (especially from a government)

Phần thưởng đặc biệt

+ To put a premium

on something:

khuyến khích cái gì, xúi giục cái gì

+At a premium: cao hơn giá qui định;

(nghĩa bóng) được đánh giá cao

Shares are selling at a premium.

Injustice

[in'dʤʌstis]

the practice of being unjust or unfair

Sự bất công to do something an

injustice: đánh giá ai một cách bất công;

bất công đối với ai

The report exposes the injustices of the system Prosperity

[prɔ:sperəti]

the state of being successful,

especially in making money

vượng, sự phát đạt, sự phồn vinh, sự thành công

Our future prosperity depends on economic growth

[ ræ'pɔ:] relationship in

which people understand each other very well

understood the

importance of

establishing

rapport with clients

III READING

A Before reading:

1 What is Fair Trade?

Fair Trade is an organized social movement and market-based approach that aims to help producers in developing countries and promote sustainability The movement advocates the payment of a higher price to producers as well as social and environmental standards It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar,

tea, bananas, honey, cotton, wine, fresh fruit, chocolate and flowers

 India Produces Most Bananas but Ecuador is King of Banana Exports

( http://internationaltrade.suite101.com)

3 Typical problems which the exporters face when selling aboard:

- The protection of the government for domestic market (quota, tax, barrier )

- Domestic competitors

- Not good understanding of consumption habits

B Reading: UK develops taste for fair trade.

Summary: The banana and sugar cane growers are facing ruin and cannot break into the European or US market because of high tariffs and heavy subsidies But the growing “fair trade” market can protect them from depressed world commodity markets and the price war between giant multinationals Fair trade, according to its supporters, plays an important role in tackling the poverty Now, fair trade food is booming with the growth of more than 25% a year internationally and 100% a year

in Britain, the largest market after Switzerland Trading fairly was designed to reduce the injustices of the world trading system but ironically it could itself become a victim of the WTO because its rules prohibits differentiation between the products on the basis of their means of production However, the fair trade shows that charity is not needed to lift people out of poverty and that social and environmental standards can be put into trade

VI USEFULL LANGUAGE AND SKILLS This is the content of the meeting in which Ashbury company and KGC negotiates about the conditions and term of the order In this text , there are a lot of necessary useful language and skills which seem quite popular in negotiating.

The content of the meeting

is Hien, the owner of Ashbury Guitars And this is Ms Huong, our marketing director

the Director, from Kim guitar company

KGC : We come here to reach a deal with you today After discussing through

email, we should make clear some main points As you know, we agreed

to supply you 3 models: SG1000, SG500 and SG200 SG1000 has some special additional features which satisfy your requirement

own factory as I’m afraid that the quality of the goods are not guaranteed

if you use parts of other manufacturers

customers since these products are in great demand Maybe we think about a lower percentage, say 20?

percentage if all prices include transport costs to Pusan, Korea

will you offer?

a bit higher discount

say 2000, are you able to dispatch immediately?

if you order at a peak time, like just before May, it will be impossible to deliver that quickly

than 1st May in time for the music festivals sales period in California

KGC : We can understand that I think the delivery made in 2 shipments, 50% on

1st May and remaining 50% on 15th May seems more suitable

possible

won’t order from you again And what about payment? I want to pay a deposit of 50% immediately, remaining after 1 month after receiving goods

business If you were a regular customer, we would offer you 30 days’ credit

immediately after each shipment

the last?

the goods have been dispatched

payment Let’s see the guarantee.

everything agreed Please let me know if there are any problems.

small party to congratulate on our good relationship today?

KGC : Great It’s our honour.

* Note: The words which are highlighted are useful language in negotiation.

V CASE STUDY

1 MINUTES

A Context

- Date: 7th April, 2009

- Time: 9 A.m

- Place: Head office of Ashbury Guitars , San Francisco

B Participants:

- Kim Guitar Company: Ms Van Nguyen – The Director, Ms Hang

Nguyen – the Marketing director

- Ashbury Company: Ms Hien Nguyen – The Director, Ms Huong Pham – The Marketing Director

We can point out the terms and conditions agreed during negotiation as follows:

1 Models:

SG 1000, SG 500, SG200

SG 1000: special additional features

2 Quality:

All the guitars with 20% manufactured by other Korean firms

3 Quantity:

First order: