Chương 3: international trade môn Thương mại quốc tế | Đại học Thái Nguyên

CHƯƠNG 3: INTERNATIONAL TRADE (thương mại quốc tế) Goals of chapter 3:
International trade is crucial for economic growth and partner benefits. To
participate effectively, parties must understand transaction methods, prices, and
exchange rates, as well as master principles, policies, and measures to maximize
benefits, minimize drawbacks, and build sustainable economic relations. 3.1 3.1.1
3.1.1.1: Concept of International Trade
1. Definition of Imports and Exports:
Import: A product purchased from international sources for domestic consumption.
Export: A product produced domestically and sold to international buyers.
Countries typically export products they can produce efficiently.
2. Role of International Trade:
International trade is the earliest form of international economic relations and
continues to play a vital role in the economic development of each country and the world.
3. Objectives of Research in International Trade from Different Perspectives: Global Perspective:
oAnalyze trade activities based on common global interests.
oPromote world economic development.
oUnderstand and regulate trade relationships through international legal systems.
oResolve conflicts and harmonize benefits among nations. National Perspective:
oExamine a country’s trade activities with the world.
oPropose short- and long-term policies aligned with international practices.
oSupport domestic economic entities while balancing national, business, and consumer interests.
Business (Enterprise) Perspective:
oStudy government and partner policies.
oDevelop effective business strategies.
oMaximize economic benefits from import-export activities.
3.1.1.2: Methods of providing international services
1. Characteristics of International Trade Activities: Objects of Exchange:
oInternational trade involves goods and services, which have different characteristics.
oThis leads to the distinction between international trade in goods and
international trade in services.
2. International Trade in Goods: Forms of Goods:
oTangible goods: Physical products like machinery, raw materials, consumer goods.
oIntangible goods: Industrial designs, know-how, product brands. Ownership vs. Usage:
oFor tangible goods: Prices are determined for both ownership and usage.
oFor intangible goods: Prices are usually for usage rights only, not ownership. Diversity & Movement:
oThe types and exchange methods of goods are diverse and evolving.
oDue to geographic distance, goods physically cross borders, often
accompanied by services such as shipping, warranty, insurance, international payments, etc.
3. International Trade in Services: Nature of Services:
oTypically intangible and consumed simultaneously with provision.
oTrade involves the right to use the service, not ownership. Movement:
oDepending on the service and geographic factors, services may or may not cross borders. Economic Role: oActs as a for the nationa source of foreign currency l economy.
4. Participants in International Trade:
Economic entities of different nationalities: governments, companies, economic groups. Main objective: in the international market. profit-seeking
Each transaction involves multiple parties as buyers or sellers. 5. Special Trading Methods: a. International Auction:
Publicly organized event where buyers openly bid for goods.
Favors the seller and is used for special or hard-to-evaluate items, such as:
oFurs/skins: New York, London, Liverpool
oRaw wool: Sydney, London, Liverpool
oTea: Calcutta, Nairobi, Columbia oFlavors: London, Amsterdam
oVegetables: Amsterdam, Antwerp b. International Bidding:
Buyer announces purchase conditions; sellers submit offers.
Favors the buyer; winner is chosen based on lowest price and best conditions.
Common in construction, equipment procurement, and goods with set technical specifications. c. Commodity Exchange:
A specialized market where brokers trade large volumes of standardized, interchangeable goods.
Provides a centralized reference for international pricing. Major Commodity Exchanges:
oNon-ferrous metals: London, New York
oCoffee: London, New York, Rotterdam, Amsterdam
oCotton: Bombay, Chicago, New York
oWheat: Winnipeg, Rotterdam, Milan, New York
3.1.2.2: Methods of providing international services Types of Services: 5. Educational services
6. Environmental services (e.g., sanitation, waste treatment)
7. Financial services (e.g., banking, insurance) 8. Health and social services 9. Tourism and travel services
10. Entertainment, cultural, and sporting services 11. Transportation services
12. Other services (not listed above)
According to the WTO, there are four modes of international service delivery:
1. Cross-border supply: Services move across borders to consumers (e.g., international TV broadcasts).
2. Consumption abroad: Consumers travel abroad to receive services (e.g., tourism, studying overseas).
3. Commercial presence: Providers set up branches or subsidiaries in the consumer’s
country (e.g., banks, insurers).
4. Presence of natural persons: Individuals temporarily move to another country to
provide services (e.g., consultants, coaches).
Commercial presence is the most important and most detailed mode in trade agreements.
3.1.2.3 Business forms is international trade in goods Direct Import and Export
The preferred method in international trade.
Requires high economic development and meeting national regulations.
Involves strong market knowledge, information access, and risk prediction. Entrusted Import and Export
Used when traders cannot meet direct import-export requirements.
Another party is entrusted to carry out the trade on their behalf. Counter-Trade (Barter)
Export is directly tied to import; the seller is also the buyer.
Goods exchanged must be equal in value.
Rare today; only suitable for small transactions and matched demand. Export Processing
A country receives raw materials from abroad, processes them, and exports the finished product.
Seen as a form of foreign trade.
Common in developing countries to integrate into global markets.
Vietnam, for example, processes goods (e.g., textiles, footwear) for the EU, Japan, etc.
Re-Export and Border-Gate Transfer
Re-export: Reselling imported goods without processing.
Border-gate transfer: A form of re-export where goods move directly from exporter
to importer via a third country.
Used when direct trade is not possible due to political or trade barriers.
Involves three parties—exporter, re-exporter, and importer (triangular transaction). On-Spot Export
Selling goods to foreigners within the domestic market.
No cross-border movement, but treated like an export.
Economically efficient—saves on transportation, storage, and enables quick payments.
Common when combined with services for foreign clients. 3.1.3: International price 3.1.3.1
a) International price concept
1. Definition of International Price:
International price is the monetary expression of the international value of goods and services in the world market.
2. Factors Affecting International Price:
Prices for the same product can vary across different markets or even within the same market.
Therefore, determining an international price must meet two main conditions: a. Representative Price:
oMust reflect the typical price of regular transactions in the global market.
oOften based on prices from countries with the largest export or import volumes for that product. Examples:
Thailand’s rice export prices → international rice price
Brazil’s coffee export prices → international coffee price
b. Priced in Strong Currencies:
oMust be expressed in strong, freely convertible currencies such as: US Dollar (USD) Euro (EUR) Japanese Yen (JPY) British Pound (GBP)
3. Forms of International Price Expression: Based on Price Reliability: oReference price oOffering price oListed price at exchanges oActual contract price oAuction price oBidding price Common Price Terms:
oCIF (Cost, Insurance, Freight) = FOB price + international insurance + shipping cost
oFOB (Free on Board) varies by region, such as the "American FOB" system,
which includes several subtypes.
3.1.3.2. Factors affecting international price
International Price Fluctuations
International prices on the world market are , showing trends of increase, highly volatile
decrease, or temporary stability. Several key factors influence these fluctuations: a) Competition
Competition causes prices to move in different directions depending on the parties involved: Seller-to-seller competition:
oOccurs when supply > demand oLeads to lower prices Buyer-to-buyer competition:
oOccurs when demand > supply oLeads to higher prices Buyer vs. Seller competition:
oA natural market dynamic where buyers want low prices and sellers want high prices.
oOutcome depends on each side's competitiveness and unity.
In today’s global market, competition includes non-price factors like advertising,
technical services, and warranties. b) Manipulation
Price manipulation causes price discrepancies, even within the same market. Two main types: High manipulated prices:
oResult from collusion among sellers, often in industrial products and
machinery from developed countries.
oThese prices are kept stable through production regulation. Low manipulated prices:
oFound in raw materials and agricultural goods from developing countries.
oSellers cannot collude, resulting in lower and more volatile prices.
Manipulation increases the price gap between industrial and agricultural products,
disadvantaging developing countries. c) Supply and Demand
Price changes reflect the balance between global supply and demand:
oSupply > Demand → Prices fall
oSupply < Demand → Prices rise
In some cases, manipulators intervene to maintain prices by controlling production
instead of letting prices fall.
d) Currency Value (Monetary Denotation)
Prices are influenced not only by product value but also by the value of the currency used.
If the currency loses value due to inflation, prices in that currency will rise, even if
product value remains the same.
3.1.3.3. Impacts of international price fluctuations on international economic relations
Impact of International Price Fluctuations on Economic Relations
a) Impact on International Trade Price Increase:
oBenefits exporters and harms importers.
oEncourages countries with comparative advantages to increase exports. Price Decrease:
oBenefits importers and harms exporters.
oLimits export activities of countries that previously had competitive advantages in the product.
b) Impact on International Investment When prices rise supply < demand (indicating ):
oAttracts more international investment into production to meet rising demand.
oEspecially likely if the product has a long life cycle.
oIncreases investment in countries with competitive advantages. When prices fall supply > demand (indicating ):
oInvestors reduce or delay investment due to risk of lower returns.
oInvestment declines in previously advantaged countries, especially if a long-
term price decline is expected. 3.1.4: Exchange rate
In open economies with growing international trade and financial relations,
payments become complex as they involve both domestic and foreign currencies.
This creates the need to compare values and purchasing power, which leads to the formation of exchange rates. 3.1.4.1 a) Definition of Exchange Rate
An exchange rate is the conversion price of one currency into another, reflecting the
comparison of purchasing power between two currencies.
It is influenced by both purchasing power parity and supply-demand relationships in the currency market.
b) Methods of Quoting Exchange Rates 1. Direct Quotation:
oValue of 1 unit of foreign currency expressed in local currency.
oCommon in countries with low-value currencies (e.g., Vietnam). oExample: 1 USD = 23,750 VND 2. Indirect Quotation:
oValue of 1 unit of local currency expressed in foreign currency.
oCommon in countries with high-value currencies (e.g., USA, UK). oExample: 1 USD = 120 JPY
Note: The direct quote method is used throughout the referenced book. c) Types of Exchange Rates
1. Based on Foreign Exchange Control Regimes Official Exchange Rate: oSet by the central bank.
oUsed for government-level or inter-agency transactions.
oIn Vietnam: based on average interbank rates from the previous day. Market Exchange Rate:
oUsed in commercial banks for public currency exchange.
oReflects both the official rate and market supply-demand.
oIncludes buying rate (bank buys foreign currency) and selling rate (bank sells foreign currency). oExample: USD/VND = 23,450 / 23,750
Buying rate: 1 USD = 23,450 VND
Selling rate: 1 USD = 23,750 VND Black Market Exchange Rate:
oFormed in unofficial markets (e.g., jewelry stores, street dealers).
oDriven by supply-demand, usually close to the market rate in stable economies. 2. Based on Transaction Time Opening exchange rate Closing exchange rate
Spot exchange rate (immediate transactions)
Forward exchange rate (future transactions) 3. Based on Payment Method Cheque exchange rate Draft exchange rate Transfer exchange rate Cash exchange rate
3.1.4.2: Factors affecting exchange rate
Factors Influencing Exchange Rate Fluctuations
Exchange rates constantly fluctuate due to multiple factors that affect currency purchasing
power or the supply and demand for foreign currencies. a) National Economic Growth
Fast and stable economic growth Stronger currency → , higher foreign currency
supply → Exchange rate decreases Slow economic growth W
→ eaker currency, higher foreign currency demand → Exchange rate increases b) Inflation Rate
Higher inflation (domestic currency) than foreign currency → Exchange rate increases
Lower inflation than foreign currency → Exchange rate decreases c) Balance of Payments (BoP)
BoP surplus (positive) → Foreign currency supply > demand → Exchange rate decreases
BoP deficit (negative) → Foreign currency demand > supply → Exchange rate increases Balanced BoP Stable exchange rate → d) Monetary Policy
Policies such as foreign currency management, reserve requirements, or interest rates influence exchange rate. For example:
oHigher interest rates on foreign currency deposits → Attracts foreign
currency inflow → Exchange rate decreases e) Psychological Factors
Socio-economic or political instability affects public perception.
If people fear domestic currency devaluation, they hoard foreign currency,
increasing demand → Exchange rate increases 3.1.4.3:
Exchange Rate Impacts in a Market Economy
Exchange rates play a crucial role in economic development, social life, and international
economic relations. Their fluctuations affect international trade and investment in both short and long term.
a) Impact on International Trade
1. When Exchange Rate Increases
(Domestic currency depreciates, foreign currency becomes more expensive) Short-term effects:
oExports benefit, as exporters earn more in local currency or can offer competitive prices.
oImports become more expensive, reducing demand.
oTrade balance improves due to increased foreign currency supply and reduced demand. Long-term effects:
oFor export industries dependent on imported inputs, costs rise due to higher
import prices, reducing competitiveness and hurting exports. If increase is too rapid:
oIt causes economic shocks and negatively affects both imports and exports. oSome countries use to promote exports, but this "dumping exchange rates"
approach is not suitable for Vietnam.
2. When Exchange Rate Decreases
(Domestic currency appreciates, foreign currency becomes cheaper) Short-term effects:
oExports suffer, as exporters earn less in local currency.
oImports become cheaper, encouraging higher import volumes.
oTrade balance worsens due to reduced foreign currency supply and increased demand. Long-term effects:
oLower import costs reduce production costs for export industries that rely on
imported inputs, increasing export competitiveness. If decrease is too sharp:
oMay cause export stagnation and economic recession.
b) Impact on International Investment
1. When Exchange Rate Increases (Domestic currency weakens) Short-term effects:
oAttracts foreign investment (profits grow when converted to local currency).
oDiscourages outbound investment by domestic investors.
oCapital inflow rises, improving the capital balance. Long-term effects:
oA consistently rising exchange rate may signal economic instability, deterring foreign investment.
oDomestic investors may seek overseas opportunities, increasing capital
outflows and worsening the capital balance.
2. When Exchange Rate Decreases
(Domestic currency strengthens) Short-term effects:
oReduces foreign investment appeal.
oEncourages domestic investors to invest abroad.
oCapital outflows increase, negatively impacting capital balance. Long-term effects:
oBoosts foreign investment as confidence in the economy grows.
oDiscourages outbound investment.
oResults in more capital inflows and fewer outflows, improving capital balance. Additional Effects
Exchange rate fluctuations also influence other international activities such as:
Scientific and technological exchange
International labor exchange (labor viewed as a special good)
3.2: basic principles of the multilateral trading system
WTO Basic Principles in International Trade 1. Non-Discrimination
• Includes Most-Favored Nation (MFN) and National Treatment (NT).
• MFN: Members must give each other the same trade advantages they grant to any other
country. Exceptions exist for developing countries (e.g., GSP), free trade areas, and customs unions.
• NT: Foreign goods and services must be treated no less favorably than domestic ones
once they enter the market. Exceptions apply in areas like government procurement and certain service sectors. 2. Free Trade
• WTO promotes gradual liberalization, reducing tariffs and non-tariff barriers step by step.
• Aim: facilitate the free flow of goods and services and promote global trade development.
3. Transparency and Predictability
• Members must provide clear, stable, and predictable trade policies.
• Purpose: reduce risks for businesses and ensure a stable trade environment. 4. Fair Competition
• Prevents unfair practices such as dumping and excessive subsidies.
• Safeguard measures (like anti-dumping duties) can be applied to protect against unfair competition.
5. Encouraging Development and Economic Reform
• WTO supports developing countries through preferential treatment, technical assistance,
and flexible commitments to help them integrate into global trade. 6. Reciprocity
• Members should grant each other trade privileges to ensure fairness and sustainability.
• Can be positive (mutual benefit) or negative (retaliation in trade disputes, but only legal under WTO rules). 👉 In short:
The WTO principles aim to create a fair, transparent, and predictable multilateral trading
system based on non-discrimination, gradual liberalization, fair competition, development support, and reciprocity.
3.3: International trade policy
1. Position, Function, and Role
• International trade policy is part of a country’s foreign economic policy (along with
investment, monetary policy, etc.).
• It reflects the State’s will and goals in regulating international trade to serve socio- economic development. • Functions:
1. Protect the domestic market and national interests, supporting domestic enterprises.
2. Facilitate integration into international trade, using comparative advantages. 2. Contents of Trade Policy
• Commodity Policy: Define goods for export promotion, restriction, or prohibition;
regulate imports based on development needs.
• Market Policy: Build export-import markets via bilateral/multilateral agreements,
expand key markets, regulate foreign access to domestic markets.
• Supporting Policy: Use exchange rates, credit, investment, and currency management to
encourage exports and control imports.
3. Two Main Trends in Trade Policy a) Free Trade
• Driven by globalization, development needs, and economic theory.
• Aims to remove trade barriers, expand markets, and increase competition.
• Positive impacts: larger markets, cheaper imports, more competitive domestic
production, diverse and cheaper consumer goods.
• Conditions for success: strong economy, competitive domestic firms, stable world
market, friendly trade relations.
• Risks if conditions unmet: weak domestic industries may collapse, instability, crisis. b) Trade Protectionism
• Aims to restrict imports, boost exports, and protect domestic industries.
• Instruments: mainly tariffs and non-tariff measures.
• Justifications: protect infant industries, support weak sectors, raise state revenue, ensure macroeconomic stability.
• Positive impacts: stabilize trade balance, protect domestic producers, enhance competitiveness.
• Risks: long-term protection may reduce efficiency, stagnate domestic industry, limit
consumer choice, and isolate the economy. 4. Practical Application
• In reality, no country practices full free trade or complete protectionism.
• Countries combine both approaches depending on context. • Vietnam’s approach:
• Classifies goods into free trade, conditional, and banned.
• Reduces tariffs/non-tariff barriers with trade partners.
• Uses tariffs and protective measures for new industries to improve competitiveness
before full exposure to global markets.
👉 In short: International trade policy balances protection and liberalization to safeguard
domestic interests while integrating into the global economy. Countries adopt a mixed
approach, shifting between free trade and protection depending on economic conditions.
3.4 measures to implêmnt international trade policies 1. Classification
• By instrument: Tariff / Non-tariff
• By nature: Financial / Non-financial
• By tool type: Economic – Administrative – Technical
• By purpose: Promotion / Restriction 2. Measures to Promote Trade
• International Trade Agreements:
• Bilateral: Between 2 countries.
• Multilateral: Many countries (e.g., WTO, GATT).
• Plurilateral: Limited fields (e.g., GPA, Civil Aircraft).
➝ Legal framework, expand markets, resolve disputes. • Export Support:
• Subsidies: Red (prohibited), Amber (restricted), Green (safe).
• Export credits: Loans, guarantees, preferential financing.
• Exchange dumping: Currency devaluation to boost exports. 3. Trade Barriers • Financial barriers:
• Tariffs (import, export, transit; ad valorem, specific, mixed).
• Import deposits, domestic taxes (VAT, excise).
• Monetary tools (exchange control, interest rates, FX rates).
• Administrative/legal barriers:
• Prohibitions (security, health, environment).
• Quotas (tariff quotas, international quotas). • Import/export licenses. • Technical barriers (TBT):
• Standards on quality, safety, labeling, environment (e.g., ISO, HACCP). 4. Temporary Protection
• Anti-subsidy duties: Against subsidized imports.
• Anti-dumping duties: Against goods sold below normal value.
• Antitrust measures: Prevent monopoly, ensure fair competition 👉 In short:
International trade policy is implemented by:
• Promoting trade (agreements, subsidies, credits, devaluation),
• Creating barriers (tariffs, quotas, licenses, technical standards),
• Applying temporary protections (anti-subsidy, anti-dumping, antitrust).