Description
Trade : Transfer of ownership of goods from one person to another by getting something in exchange from buyer
Chapter 2: The Dynamic Environment of
International Trade
Sakinah Shukri
@MSUmalaysia
? Trade : Transfer of ownership of goods from
one person to another by getting something
in exchange from buyer
? International Trade: beyond national boarders
? Why we need International Trade
-Globalize our product
-Demand from other country
-Competitionhttp://www.trade.gov/mas/ian/build/groups/public/@tg_ian/docum
ents/webcontent/tg_ian_003364.pdf
? The system of accounts that records a
nations international financial transactions.
? Maintained on a double entry bookkeeping
? Transaction is annually and need to be
balanced
? International Economic Position (central bank,
gov agency, treasuries )
1.Current Account (Value.of Company)
exports, imports, service to transfer fund
activity
2.Capital Account
Direct investment, portfolio investment, short
term capital movement
3.Reserves Account
Export and imports of gold
Foreign exchange & liabilities
A Economic policy of retraining trade to protect
the infant market
It will help to protect fair competition between
goods and services
? 8 Policies
? Protect of infant industry
? Protect home market
? Need to keep money at home market
? Encouragement of capital accumulation
? Maintenance of the standard of living and real
wages
? Conservation of natural resources
? National Defense
? Bargaining
Government establish the barrier, control
activity
? Tariffs
? Quotas
? Voluntary Exports Restraints (VER)
? Boycotts and embargoes
? Monetary Barriers
? Standards
? Anti dumping penalties
1. Tariffs- tax imposed by a government on
goods entering at its borders
2. Quotas- specific unit or dollar limit applied
to a particular of goods
3. Voluntary Export Restraints- Similar to
quotas but follow market agreement
(Textile)
4. Boycott and Embargoes- gov restriction
against a particular product
5. Monetary Barrier- through blocked currency
and exchange rate
6. Standards- protect and check quality and
health
? New anti dumping penalties had emerged to
form a new tariff and non tariff.
? Keeping foreign market out of a market
? “Predatory market”- a foreign producer
intentionally sells its product in the United
States for less than the cost of production.
General Agreement on Tariffs and Trade
1. Trade shall be conducted on a non
discriminatory basis
2. Protection shall be afforded to domestic
industries through customs tariffs
3. Consultation shall be the primary method
used to solve global trade problems
-legal basis for further negotiations and aimed
eliminating barriers
? World Trade Organization
- Sets many rules governing trade
- Provide a panel exports to hear and
systemize rules
- Issues binding decision
- Equal representative
- Bond their market and open more activity
? Global Institutional
? Help to maintain stability in the financial
markets and by assisting countries that are
seeking economic development and structure
? Stabilize foreign exchange rate
? Promote growth international trade
? Reduce poverty and improve standard of
living
1. Lending money to gov
2. Assistance to gov development project
3. Lending money to private sector
4. Provide investor “non commercial risk”
5. Promote growth of international investment
? WTOhttp://www.wto.org/english/thewto_e/whatis
_e/tif_e/org6_e.htm
? Sak.Onkvisit., & John J.Shaw.,(2009)
International Marketing: Strategy and
theory.5
th
edn.Milton Park.Routledge
?http://www.oecd.org/eco/growth/2501905.p
df (Trading between Develop and Developing
Countries)
doc_920754712.pptx
Trade : Transfer of ownership of goods from one person to another by getting something in exchange from buyer
Chapter 2: The Dynamic Environment of
International Trade
Sakinah Shukri
@MSUmalaysia
? Trade : Transfer of ownership of goods from
one person to another by getting something
in exchange from buyer
? International Trade: beyond national boarders
? Why we need International Trade
-Globalize our product
-Demand from other country
-Competitionhttp://www.trade.gov/mas/ian/build/groups/public/@tg_ian/docum
ents/webcontent/tg_ian_003364.pdf
? The system of accounts that records a
nations international financial transactions.
? Maintained on a double entry bookkeeping
? Transaction is annually and need to be
balanced
? International Economic Position (central bank,
gov agency, treasuries )
1.Current Account (Value.of Company)
exports, imports, service to transfer fund
activity
2.Capital Account
Direct investment, portfolio investment, short
term capital movement
3.Reserves Account
Export and imports of gold
Foreign exchange & liabilities
A Economic policy of retraining trade to protect
the infant market
It will help to protect fair competition between
goods and services
? 8 Policies
? Protect of infant industry
? Protect home market
? Need to keep money at home market
? Encouragement of capital accumulation
? Maintenance of the standard of living and real
wages
? Conservation of natural resources
? National Defense
? Bargaining
Government establish the barrier, control
activity
? Tariffs
? Quotas
? Voluntary Exports Restraints (VER)
? Boycotts and embargoes
? Monetary Barriers
? Standards
? Anti dumping penalties
1. Tariffs- tax imposed by a government on
goods entering at its borders
2. Quotas- specific unit or dollar limit applied
to a particular of goods
3. Voluntary Export Restraints- Similar to
quotas but follow market agreement
(Textile)
4. Boycott and Embargoes- gov restriction
against a particular product
5. Monetary Barrier- through blocked currency
and exchange rate
6. Standards- protect and check quality and
health
? New anti dumping penalties had emerged to
form a new tariff and non tariff.
? Keeping foreign market out of a market
? “Predatory market”- a foreign producer
intentionally sells its product in the United
States for less than the cost of production.
General Agreement on Tariffs and Trade
1. Trade shall be conducted on a non
discriminatory basis
2. Protection shall be afforded to domestic
industries through customs tariffs
3. Consultation shall be the primary method
used to solve global trade problems
-legal basis for further negotiations and aimed
eliminating barriers
? World Trade Organization
- Sets many rules governing trade
- Provide a panel exports to hear and
systemize rules
- Issues binding decision
- Equal representative
- Bond their market and open more activity
? Global Institutional
? Help to maintain stability in the financial
markets and by assisting countries that are
seeking economic development and structure
? Stabilize foreign exchange rate
? Promote growth international trade
? Reduce poverty and improve standard of
living
1. Lending money to gov
2. Assistance to gov development project
3. Lending money to private sector
4. Provide investor “non commercial risk”
5. Promote growth of international investment
? WTOhttp://www.wto.org/english/thewto_e/whatis
_e/tif_e/org6_e.htm
? Sak.Onkvisit., & John J.Shaw.,(2009)
International Marketing: Strategy and
theory.5
th
edn.Milton Park.Routledge
?http://www.oecd.org/eco/growth/2501905.p
df (Trading between Develop and Developing
Countries)
doc_920754712.pptx