LESSON NOTETAKING

CLASS NOTETAKING

Date: @February 10, 2025

Topic: Giới thiệu khái quát

Recall Notes
What is I.C all economic activities which are taking place in a country.

a national economy is an entity - bởi vì nó có hệ thống pháp luật riêng, có hệ

Concepts: thống tiền tệ riêng, có lãnh thổ, hệ thống chính sách, hệ thống quản lý → nó
được coi là 1 chủ thể.
National Econnomy
is the sum of national economies, Ref. UN

is not an entity; decentralized coordination (kh phải là một chủ thể vì kh có hệ

thống tiền tệ riêng)
World Economy
all economic activities take place between the nations of the world

international trade with products: goods and services

International economy
international financial flow: payments, investments, transfer or revenue
ba chủ thể chính trong
kinh tế quốc tế international flow of labor force: migration

international economics: is the science, the branch of international economy

thiên về nghiên cứu its aim is to provide basic background of knowledge in this field

Four major types of global Global interaction

interaction
1. Communication: the movement of information, including the transmission
beliefs, ideas, and doctrines;

2. Transportation: the movement of physical objects, including war material and

không chỉ học về kinh personal property as well as merchandise;
tế, còn học về các
3. Finance: the movement of money and instruments of credit;
công cụ để xây dựng/
đóng góp cho chính 4. Travel: the movement of persons
sách kinh tế Many international activities involve all four types of interaction simultaneously.

KEY CONCEPTS International relations (IR) or international affairs (IA): often called international
studies (IS) or global studies (GS), the study of the links between politics,
economics and law at the global level.

International economics (IE) is concerned with the effects of economic activity

WHAT IS IE about?
from international differences in productive resources and consumer preferences
and international institutions.

I.E explains the patterns and outcomes of transactions and interactions

between residents of different countries, including trade, investment, and
migration.

SUBJECT:

LESSON NOTETAKING 1
 Independent national economy, including territories.

Economic entities at a level lower than the national scale (companies,

corporations, enterprises, units)

Subjects at a level beyond the national framework: international institutions,

international organizations:

Group of international economic links of regional, inter-regional, global

character

Group of international monetary and financial institutions

United Nations group of organizations

Transnational companies (TNCs), multinational companies (MNCs), super-

natuonal companies

OBJECT:

Movement of Commerce/International Trade (Goods and Services)

Capital movement (investment, finance)

Currency conversion

Movement of labor

International cooperation …. and technology

🎲 International economics is often seen as “win-win” situation where countries

mutually benifit and gain from trade, rather than a “zero-sum”game where
I.E includes Seven key one nation’s gain is another’s loss.
issues

SEVEN key issues:

1. The gains from trade: one of the most important insights

When one country sells goods and services to another, both of them could
mutual benefit in almost every cases.

International trade allows countries to specialize in some products. As a

result, they could be more efficient because of large-scale production (mass
production)

Comparative Advantage: a product can be produced at a lower

opportunity cost compared to other countries.

Economies of scale, which brings many advantages: cost reduction,

process improvements; better resource allocation.

Opportunity
Oppoturnity
1 worker cost of A Specia
cost of A cloth
Wheat

Wheat Cloth

Compa
Country A 1 1 1 cloth 1 wheat advant
wheat

Compa
Country B 4 2 1/2 cloth 2 wheat advant
cloth

2. The pattern of trade - who sells what to whom?

LESSON NOTETAKING 2
 Differences in climate and natural resources can explain why Vietnam exports
rice and Russia exports oil and gas.

However, much of the pattern of trade is more subtle

3. Free trade and protectionism; and International policy coordination

How much trade to allow?

If a government must restrict trade, which policy should it use? How much
should it restrict trade? What will be the reactions of other countries?

(4) International policy coordination

4. The balance of payments

Goverments measure the value of exports and imports, as well as the value of
financial assets that flow into and out of their countries.

Is it always bad to run a trade deficit, and good to run a trade surplus?

5. The balance of payments

6. Exchange rate…

📌 SUMMARY:
- Chủ thể KTQT: các quốc gia, các tổ chức quốc tế
- Đối tượng của KTQT:

TO SUMMARIZE:

International economics focuses on trade of goods and serviecs, flows of money and labor between
nations.

Through international trade, international finance and investment, countries are more interconnected
that ever before in the global economy.

Date: @September 4, 2023

Topic: What is International Trade Policy?

Recall Notes
International Trade Policy is a system of economic, administrative and legal
What is principles and measures.
International These are used to accomplish defined goals in international trade between
Trade Policy? countries over a period of time.

Types of International Trade Policies:

Embargoes: cấm vận

Subsidies: trợ cấp

Quotas: Hạn ngạch

Free trade agreements: Hiệp định tự do

Trade remedies: Biện pháp khắc phục thương mại

Tariffs: Thuế quan

Basic Policies
Policy on products for export/import

LESSON NOTETAKING 3
 Chính sách “Vành đai và Policy on market
con đường”: hỗ trợ xây
Expansion/entering foreign markets: mở rộng hoặc thâm nhập thị trường qte
dựng cơ sở hạ tầng tại các
đất nước khác → thâm Building a key/strategic market: Chính sách “Vành đai và con đường”, sáng
nhập thị trường, tăng sự kiến Korea-ASEAN solidarity Initative (KASI) (Sáng kiến đại đoàn kết ASEAN).
hiện diện của những cty Supporting policies
TQ đến các quốc gia khác
Policies that indirectly affect international trade activities such as investment,
trên TG.
exchang rate, etc.
Biên bản ghi nhớ: như một
bản hợp đồng không chính
thức

A SUMMARY Method:

Self-Determination: the goverment decides the international trade policy and its
Method to build up
measurements in the international trade policy applicable to the other countries.
International trade
policies Commonly used by major countries

The trend of reduction

Bargaining: The goverment negotiates with other countries to reach agreements

on policies and appropriate enforcement measures, bringing benefits to the
→ common use
parties involved.

—
Level of regulation by Free trade
the State
Goods and services can be bought and sold across international borders with
little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their
exchange.

Protectionism

Government policies that restrict international trade to help domestic

industries.

Protectionist policies are usually implemented with the goal to improve

economic activity within a domestic economy but can also be implemented
Trade Strategy for safety or quality concerns.
TQ: một mặt khuyến khích Trade strategy (hướng/ mức độ tiếp cận đối với nền kinh tế thế giới)
các công ty nội địa tăng
Inward-oriented policies: chính sách hướng nội → tự lực tự cường
cường sx, một mặt kk
người dân sd hàng nội địa Economic independence or self-reliance by developing countries.

Từ sau thời kì Covid, Inward-looking strategies impose a comprehensive regulation to the private
chủ tịch TCB xác định sector avowedly in the interest of import substitution.
nền kte TQ sẽ hướng
Selling to consumers in one’s own country and focusing on economic
nội
development.

China’s economy: shifted from export-led to domestic-led-growth.

CASE (inward-oriented
Outward-oriented polices: chính sách hướng về kinh tế, lấy xuất khẩu để phát
policies) - North Korea
triển

Towards export and trade.

Do not discriminate between production for the domestic market and

exports, and between purchases of domestic goods and foreign goods.

Risky for their own industries and prefer to erect protectionist barriers.

RECIPROCITY Trade-dependent countries in importing food: Japan, Jordan, Egypt, and

(Nguyên tắc tương hỗ Algeria.

LESSON NOTETAKING 4
 ⇒ BOTH strategies can be successful, most countries need to combine the two!

The granting of mutual concessions (nhượng bộ) in tariff rates, quotas, or other
commercial restrictions.
Most-favored Nation
Neither intended nor expected to be generalized.
(MFN):
nguyên tắc tối huệ quốc, VD: USMCA (chỉ có 3 quốc gia tham gia vào khối này được nhận những sự hỗ
tức là đối xử với một quốc trợ được thỏa thuận đặt ra.
gia giống như cách đối xử Most-favored Nation (MFN):
với các quốc gia khác.
Treating other people equally under the WTO agreements

Countries cannot normally discriminate between their trading partners

Grant some people a special favor (sch as lower customs duty rate for one of
their products) and the same for all other WTO countries.

It is so important

1st article in the General Agreement on Tariffs and Trade (GATT)

2nd article in the General Agreement on Trade in Services (GATS)

4th article in the Agreement on Trade-Related aspects of intellectual

property rights (TRIPS)

Some exceptions are allowed

Different free trade agreement: các quốc gia có chung những hiệp định khác
với nhau

Give developing countries special access to their markets

The generalize
system of For e.g: The generalize system of preferences for developing countries:
preferences (GSP) chế độ thuế quan ưu đãi phổ cập

Raise barriers against products that are considered to be traded unfairly from
specific countries.
National Treatment
These exceptions under strict conditions
p.s: pbiet với MFN (NT đối
xử công bằng với hàng hóa GSP: chế độ thuế quan ưu đãi phổ cập
(nhập khẩu vs nội địa, các To create an enabling trading environment for developing countries.
doanh nghiệp nc ngoài và
15 countries grant GSP preferences
trong nước), MFN dx công
bằng với các nước. National treatment

Treating foreigners and locals equally/ giving others the same treatment as one’s
own nationals
Instruments in
Imported and locally produced goods should be treated equally.
International trade
The same should apply to foreign and domestic services, and to foreign and
local trademarks, copyrights and patents

This principle only applies once a product, service or item of intellectual property
has entered the market. (nhấn mạnh “has entered the market”)
bởi vì nó còn có vai trò gia
—
tăng sự cạnh tranh →
không chỉ là barriers mà Tariffs:
còn là measures A protectionist tool, increases the prices of import
Những hoạt động trong phi Might have unintended side effects: higher consumer prices, less efficient,
thuế quan (10) innovative domestic industries, trade war, etc.

Non-tariff import management measures

LESSON NOTETAKING 5
 Protectionist or competitive for trade: they imply welfare redistributions by
addressing market imperfections (xiong and beghin, 2014)

“Non-tariff barriers” by which emphasizes their protectionist scopes has

been replaced “non-tariff measures”, in order to emphasize their potential
role of hampering or facilitating trade (Santeramo and Lamonaca, 2019)

Tariff rate quotas Measures to encourage the export promotion

VD: trong hạn ngạch Credit supports

(<1000kg gạo, thuế 32%,
Subsidies policy: trợ cấp
vượt quá từ 1001 trở đi áp
100%) Dumping of goods: bán phá giá

Dumping of foreign exchange

Trade Agreements (FTA)

Voluntary Import Expansion (VIE)

Tariff rate quotas

Tariff rate quotas (TRQs): allow a pre-determined quantity of a product to be

imported at lower import duty rates (in-quota duty) than the duty rate normally
Voluntary export application to that product
restraint
arrangement (VERs) For TRQs, under minimum access, the EU applied a relatively uniform
reduction. Most in-quota tariffs have been set at 32 percent of the out-of-
Hạn chế xuất khẩu tự
quota MFN intial (base) tariff.
nguyện: để tránh các hạn
chế thương mại từ nước mà Exceptions include milled rice, durum and quality wheat which are subject to a
họ xuất khẩu cho zero in-quota tariff.

Will be closer to 40 percent of the out-of-quota tariff.

— (VERs)

Voluntary export restraint arrangement (VERs) are arrangements made by the

Voluntary Import
government or an industry of an exporting country to voluntarily limit exports in
Expansion
order to avoid the imposition of mandatory

May be affected through:

Quota agreements

Consultation agreements; and

Adiministrative co-operation agreements

Japan imposed a VER on its auto exports into the US as a result of American
DUMPING pressure in the 1980s.

thị phần: quan trọng, VIE

thị phần của 1 doanh
A voluntary import expansion (VIE) is an agreement to increase the quantity of
nghiệp trong 1 thị
imports of a product over a specified period of time.
trường càng cao thì
quyền lực của DN đó To allow more imports via lowering tariffs or dropping import quotas
càng lớn. In 1980: suggested by the U.S as a way of expanding US exports into
biện pháp: áp thuế Japanese markets.
chống bán phá giá. ‘ Japan was asked to increase its volume of imports on specified products
including semiconductors, automobiles, auto parts, medical equipment and
flat glass.
FREE trade DUMPING
agreements
Dumping: a situation of international price discrimination, where the price of a
product when sold in the the importing country is less than the price of that
product in the market of the exporting country (WHO)

LESSON NOTETAKING 6
 Foreign firms dump products at artificially low prices in the imported market:

Exported countries unfairly subsidies products or

Companies have overproduced and are now selling the products at reduced
prices in other markets.

FREE trade agreements

Has completed signing 15 FTAs at bilateral and regional levels and is negotiating 2
FTAs.

The most prominent are 3 new generation FTAs including:

Trade policy of
Comprehensive and progressive agreement for trans-pacific partnership
developing countries
(CPTPP)

FTA between Vietnam and European Union (EVFTA)

FTA between Vietnam and the United Kingdom and Northern Ireland (UKFTA);
and
⇒ Các biện pháp hạn chế
One of the world’s largest FTAs within the ASEA framework is the Regional
nhập khẩu cũng đồng thời
Comprehensive Economic Partnership (RCEP).
hạn chế xuất khẩu
Vietnam government’s policy line

Undertaking

‘Proactively and actively integrate into the world.

“Improve the effienciency of international integration in the fields of culture,

society, science-technology, education-training and other fields”.

Trade policy of developing countries

Import - Substituting Industrialization (ISI) - công nghiệp hóa thay thế nhập khẩu

Infant/new manufacturing industries in developing countries cannot initially

compete with well-established manufacturing in developed countries.

The basic strategy for industrialization has been to develop industries

oriented toward the domestic market by providing exports subsidies, OR using
trade restrictions (i.e., tariffs, import quotas) to encourage the replacement of
imported manufactures by domestic products.

Aspect Japan Mexico

Time period 1950s-early 1960s 1940s-early 1980s

economic stability but reliance on

Context post-war devastation
foreign

automobiles, textiles, steel, consumer

Infant industries steel, automobiles, electronics
goods

high tariffs, import quotas,

Protection high tariff, import quotas,
government-owned enterprises,
measures subsidies
limited foreign investment

Protect and develop domestic Replace imports with local production

Main goal
industries and maintain domestic focus

Long-term high tariffs & import

Temporary protection, gradually
restrictions
removed tariffs
→ restrict investment in innovation
Trade policy → Focus on technology and
→ Domestic-focused
innovation
→ Limit international
→ Gradual export expansion
competitiveness
Result of Import -
Japan - chỉ bảo hộ cho tới khi - too protectionism
substituting
những ngành công nghiệp đủ sức - quá bao bọc, cả những ngành không
Industrialization
cạnh tranh ⇒ bảo hộ để cạnh chiến lược (consumer goods)

LESSON NOTETAKING 7
 Aspect Japan Mexico
tranh. - trong thời gian quá dài
- thời gian ngắn - không mang tính chất tạo lợi thế
- tập trung phát triển các ngành cạnh tranh (vì nó hạn chế đầu tư nước
chủ chốt ngoài)
- vẫn nhận đầu tư nước ngoài → - nằm dưới sự ở huuuwx của doanh
phát triển được công nghệ. nghiệp nhà nước → hạn chế sự cạnh
tranh → quan liêu, lạc hậu về công
⇒ chỉ là bước đệm, sau đó phải nghệ
chuyển qua gđ xuất khẩu

global leader in steel, automobiles,

Result industrial stagnation, ineffciencies
and electronics

Results

Favoring/ promoting manufacturing through protection must lead to

competitiveness, not dependency.

Key lessons:

Temporary protection

Innovation & Efficiency-Driven Growth

Gradual Global Integration

📌 SUMMARY:

KEY LESSONS:

Temporary protection

Innovation & Efficiency-Driven Growth

Gradual global intergation

Date: @February 24, 2025

Topic: [3] EFFECTS OF TRADE POLICY

Recall Notes
Import tariffs and export subsidies: government interventions in trade

Create a difference between world market prices and domestic prices on goods.

i.e.: Chinese government provided subsidies to industries such as steel, solar

energy, and electronics.

Why are they used?

Income/ Welfare redistribution

Promotion of Key industries

Balance of Payments Stability

Compare Import tariffs Export subsidies

Impact on
Reduces imports Increases exports
trade

Encourage domestic producers to

Protect domestic industries
Objectives expand exports (making exported
(making
goods cheaper) → increase exports

LESSON NOTETAKING 8
 Compare Import tariffs Export subsidies

Producers: higher profits, Producers: increased profits,

employment industry growth production, global competitiveness
Domestic
Cosumers: higher prices Consumers: slightly higher prices
market
Governments: increased tax Governments: increased budget
revenue burden, tax rise

Worsens
Trade benefit Reduced (possibly leading to
dumping)

Reduces outflow of foreign

Increases influence inflow of
Balance of currency ⇒ improve (khi khuyến
foreign curency ⇒ short-term
payments khích trade trong nước thì ổn định,
improve
giữ được ngoại tệ)

CASE: US-KOREA BACKGROUND OF THE CASE

1980s, Korea’s exports of electronics, particularly Samsung and LG’s televisions,

were booming in the U.S market.

Voluntary Export Retraints (VER): Kore limited exports (1979-1982)

1984, the U.S imposed anti-dumping duties, arguing that Korean companies were
selling at below fair market prices and duties remained for 15 years.

U.S concerns: trade deficit, protecting domestic TV manufactures.

US Trade policy instrument used

Samsung moved production to Mexico and Thailand. The US responded by

launching an anti-circumvention investigation (điều tra chống lách luật).

1997: Korea files WTO dispute settlement case (Legal & diplomatic strategy:
collaboration between samsung & government)

Result: U.S dropped anti-circumvention investigation (1997), revoked duties

FROM THIS CASE (1998)

⇒ These instruments reflect a protectionist trade strategy used by the U.S to shield
domestic manufacturers from foreign competition (non-tariff measures).

⇒ Government-industry collaboration is key.

The Goods-Services ⇒ The importance of legal and institutional capacity

Continuum The Goods-Services Continuum

A service is an activity or series of intangible actions that typically occur through

interactions between customers and service providers, involving employees,
goods, or systems, aimed at solving customer problems

Goods services continuum:

Service (public need)

A goverment system or private type of activity, or for providing a particular

thing that people need

The Postal service

The National Park Service

The National Health Service

Four characteristics of
service The Ambulance Prison Service

Intangibility (tính vô hình) Four characteristics of service:

Intangibility (tính vô hình)

Non-physical: can seldom be tried out, inspected, or tested in advance

LESSON NOTETAKING 9
 Intangible products: travel, freight fordwarding, insurance, repair, consulting,
computer software, invstment banking, brokerage, education, health care,
accounting, etc,…

Prospective buyers are generally forced to depend on surrogates (yếu tố thay

thế) to assess what they’re likely to get.

Heterogeneity (Tính kh đồng nhất)

Each and every service experience is, by de facto, unique = variability, uniquenes
of service offerings

Unpredictable human factor:

The fifth characteristic
Classic demorgraphics: age, gender, ethnicity
of Service
Communication style: friendnes, gentle

Lookism: cute

Staff hierachy

Inseparability (Tính kh thể tách rời)

Services are produced and consumed at the same time.

The consumer is actually involved in the production process

Live theater/ concert/ travelling trip

Perishability (Tính dễ hỏng)

Cannot be stored for later sale or use

Empty seats in a flight, pre-booking, doctors treatment, a hair dressers haircut, a

movie or airline ticket.

Non-Ownership

The consumer does not secure ownership of the service; but pays to secure
access to or use of the service.

Hotel room, banking services (Credit cards), Netflix, Chat GPT

📌 SUMMARY:

Date: @February 24, 2025

Topic: [3] FOUR MODES OF SUPPLY - SERVICES TRADE POLICIES

Recall Notes
The services sector has become

The backbone of the global economy

Roles of services: The most dynamic component of international trade

Technological advances have made it eassier to supply services across borders.

Digitally delivered services: xuất khẩu dịch vụ xuyên biên giới

Roles of services:

An effect of connectivity by:

Providing basic infrastructure to support trade in goods (logistics)

LESSON NOTETAKING 10
 Four modes of supply Facilitating supply chains and entering trade as value added embodied in
(phương thức cung cấp goods (after sale services, packaging)
dịch vụ):
Providing the backbone that enables e-commerce and online supply (IT
ecosystem)

Enhancing export diversification through cross-border electronic supply.

Four modes of supply (phương thức cung cấp dịch vụ):

Cross-border supply (include digital delivery) - cung cấp qua biên giới

Services flows from the territory of one member into the territory of another
member

Commercial presence I.e., banking, e-mail, Netflix

(Hiện diện thương mại)
Consumption abroad (Tiêu dùng ngoài lãnh thổ)
- vì nó có tính đảm
bảo, dễ dàng cung cấp Refers to situations where a service consumer moves into another member’s
territory to obtain service

I.e., tourist, study abroad patients broad

Commercial presence (Hiện diện thương mại)

A service supplier of one member establishes a territorial presence, including

through ownership or lease of premises, in another member’s territory to
CUSTOMER SERVICE provide a service.
trends for 2025
I.e., domestic subsidiaries of foreign insurance companies or hotel chains.

Presence of natural persons (Hiện diện cá nhân)

Persons of one member entering the territory of another member to supply a

service.

i.e. accountants, doctors, artists, or teachers.

CUSTOMER SERVICE TRENDS FOR 2025

1. Automation everywhere

In 2025, 80% of customer service and support organizations will use

generative AI to improve agent productivity and overall customer experience.

2. More robots: Generative AI in service grows

3. Focus on trust and privacy

A survey found that 34% of Gen X, half of Baby Boomers, and nearly a
The General Agreement on quarter of Gen Z and milennials don’t trust AI to protect their interests.
Trade in service (GATS)
4. Keeping the human touch (i.e. phone support, online chat, SMS)

5. Proactive, enterprise-wide service

GATS:

The World Trade Organization’s most important agreements

Came into force in January 1995

It has been negotiated by the Goverments themselves, and it sets the framework
within which firms and individuals can operate.
General Obligations:
The GATS has two parts:

The framwork agreement containing the general rules and disciplines (hiệp
định chung).

The national “schedules” which last individual countries’ specific

commitments on access to their domestic markets by foreign suppliers (lộ
trình cam kết).

LESSON NOTETAKING 11
 General Obligations:

MFN Treatment

Members are held to extend immediately and unconditionally to services or

services suppliers of all other members.

Exemptions:

Before the Agreement entered into force

Can be granted to new members at the time of accession.

Current members, by way of waiver under Article IX:3 of the WTO

Agreement.

National Treatment

A community that the member concerned does not operate discriminatory

measures benefiting domestic services or service suppliers.

The extension of national treatment in any particular sector may be made

subject to conditions and qualifications.

Transparency (minh bạch)

Punish all measures of general application

Establish national enquiry points mandated to respond to other members’

information requests.

Other generally applicable obligations:

The establishment of administrative review and appeals prcedure is and

disciplines on the operation of monopolies and exclusive suppliers.

Specific Commitments

Market access (thâm nhập thị trường)

Is a negotiated commitment in specified sectors.

Example:

Limitations on the number of services suppliers, service operations or

employees in the sector.

The value of transactions

The legal form of the service suppliers

The participation of foreign capital

📌 SUMMARY:

LESSON NOTETAKING 12