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International trade ppt


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International trade ppt

  1. 1. INTERNATIONAL TRADE <ul><li>By Group 6 – LS 403 (SY 2010-2011) </li></ul>
  4. 5. STATISTICS <ul><li>Exports as Percent of GDP: </li></ul><ul><li>31. 7% of GDP (2009) </li></ul><ul><li>Current account balance </li></ul><ul><li>by percentage of GDP </li></ul><ul><li>4.1% of GDP (2010) </li></ul>
  6. 7. <ul><li>EXPORTS – goods or merchandise that are sold to other countries in order to earn dollars </li></ul><ul><li>IMPORTS – goods or merchandise bought </li></ul><ul><li>from foreign countries </li></ul>Some terms…
  7. 8. Some terms… <ul><li>TRADE DEFICIT – occurs when a value of a nation’s export is less than the value of its imports </li></ul><ul><li>Exports < Imports </li></ul><ul><li>TRADE SURPLUS – occurs when a value of nation’s export is greater than the value of its imports </li></ul><ul><li>Exports > Imports </li></ul>
  8. 9. <ul><li>United States </li></ul><ul><li>Japan </li></ul><ul><li>Hong Kong </li></ul><ul><li>China </li></ul><ul><li>Germany </li></ul><ul><li>Holland </li></ul><ul><li>Singapore </li></ul><ul><li>South Korea </li></ul>Top Trading Partners of the Philippines
  9. 10. Major Export Commodities of the Philippines <ul><li>Transport Equipment </li></ul><ul><li>Garments </li></ul><ul><li>Fruits </li></ul><ul><li>Coconut Oil </li></ul><ul><li>Petroleum Products </li></ul><ul><li>Copper Products </li></ul><ul><li>Electronic Products </li></ul>
  10. 12. <ul><li>Some of the goods and services we are provided of come from outside the country. </li></ul>
  11. 13. <ul><li>Create jobs </li></ul><ul><li>International trade also motivates workers to produce the goods or services better </li></ul>
  12. 14. <ul><li>Supply and demand affects global events </li></ul><ul><li>*EXAMPLES: </li></ul><ul><li>Oil </li></ul><ul><li>Political conditions </li></ul>
  13. 15. <ul><li>“ Globalization is the integration of economies and cultures through a global network of political ideas through communication, transportation and </li></ul><ul><li>trade.” </li></ul>
  14. 18. deals with the exchange and distribution of goods and services made for local consumption includes the marketing of different goods and services to various parts of the country
  15. 19. “ middlemen” Rounding up and movement of PRODUCTS within the country are made possible by them.
  16. 20. CONNECTS THE PRODUCERS AND THE CONSUMERS producers consumers middleman
  17. 21. include brokers and jobbers who buy products IN BULK or large quantities which they sell afterwards sell the product directly to the consumers *retailers have great influence on them
  18. 22. “ middlemen”  The prices of products GO HIGHER because of the PROFIT they need. <ul><li>Without middlemen, </li></ul><ul><li>it would be HARD </li></ul><ul><li>to get goods and services </li></ul><ul><li>easier and </li></ul><ul><li>quicker . </li></ul>
  19. 23. FACTOR DOMESTIC TRADE INTERNATIONAL TRADE <ul><li>Mobility in factors of production (land, labor, capital and entrepreneur) </li></ul>Free to move from one state to another within the same country Quite restricted
  20. 24. FACTOR DOMESTIC TRADE INTERNATIONAL TRADE 2. Movement of goods Easier to move goods without much restrictions Restricted due to complicated custom procedures and trade buyers like tariffs, quotas, or embargo
  21. 25. FACTORS DOMESTIC TRADE INTERNATIONAL TRADE 3. Currency Same Different 4. Markets Limited market due to limit in population Broader markets 5. Language and Culture Barriers Speaks and practice same culture Communication challenges due to language and cultural barriers
  22. 27. <ul><li>separation of tasks within a system (definition) </li></ul><ul><li>means a nation produces a certain product with cheaper cost </li></ul><ul><li>excess production can be used to export to other countries </li></ul>
  23. 29. “ countries will benefit by concentrating on the production of those goods in which they have a * relative advantage ” * When the product is more advantageous to the customers than the competing brands
  24. 30. Sometimes, a country finds it cheaper to acquire imports than produce it. The cost of production might be cheaper in other countries that may be due to their difference in climate, labor force or capital.
  25. 32. The purchaser cannot pay the goods and services that they avail. The buyer rejects goods and services as different from the agreed upon specifications.
  26. 33. Because of the trust given by a country to its buyer, it allows to take of possession of goods prior to payment. A change in rules within a country that may cause problems during transaction.
  27. 34. Intervention is a governmental action to prevent a transaction being completed. It is done in order to block goods coming from other places that must not enter the country’s territory. When a country changes its leader(s), it can result to change in transactions and prices due to the interference of the new government system.
  28. 35. In addition, the risk of unfavourable exchange rate movements can also happen due to the international trade.
  29. 37. <ul><li>is an economic policy of controlling or restraining trade between nations through methods such as tariffs and quotas </li></ul><ul><li>also through government regulations and laws designed to discourage imports and to prevent foreign domination of domestic markets and companies </li></ul>
  30. 38. <ul><li>charges imposed on the price of imports </li></ul><ul><li>causes an increase in the revenue of the government </li></ul><ul><li>encourages demand for domestic products </li></ul><ul><li>demand for imports decrease </li></ul>
  31. 39. <ul><li>Revenue Tariffs </li></ul><ul><li>a set of rates designed primarily to raise money for the government </li></ul><ul><li>Protective Tariffs </li></ul><ul><li>intended to artificially inflate prices of imports and protect domestic industries from foreign competition </li></ul>
  32. 40. <ul><li>a restriction on the quantity of imports a country is allowed to have </li></ul><ul><li>increase in the price of imports </li></ul><ul><li>encourage demand for domestic products </li></ul>
  33. 41. <ul><li>a worldwide organization that sponsors multilateral trade negotiating rounds increase in the price of imports </li></ul><ul><li>main objective: to increase world incomes and standards of living through the expansion of international trade </li></ul><ul><li>If the country opt to trade outside GATT, she will be subjected to higher tariffs and stricter trade restrictions </li></ul>
  34. 42. <ul><li>deals with the rules of trade between nations at a global or near-global level </li></ul><ul><li>operates a system of trade rules </li></ul><ul><li>an organization for liberalizing trade </li></ul><ul><li>a forum for governments to negotiate trade agreements and to settle disputes </li></ul>
  35. 43. <ul><li>it made substantial commitment on market access and at the same time continued to consolidate the liberalization program under the Tarrif Reform Program , undertaken unilaterally since the 1980s. </li></ul>
  36. 44. <ul><li>is the review/restructuring of the Philippine tariff system by the government </li></ul><ul><li>undertaken on a continuing basis to make the tariff structure responsive to the needs of the economy </li></ul><ul><li>changing patterns in trade and advancements in technology are taken into account </li></ul>
  37. 45. <ul><li>an agency under the Embassy of the Philippines and the DTI </li></ul><ul><li>provides commercial representation for the Philippines to foreign countries </li></ul><ul><li>Located in the world's major cities in North America, Europe, Middle East and Asia </li></ul>
  38. 46. <ul><li>Our mandate: </li></ul><ul><li>To promote and develop the growth of Philippine products and services in the world market; </li></ul><ul><li>promote inward foreign investments; </li></ul><ul><li>provide commercial intelligence to government and industry sectors; </li></ul><ul><li>and assist in bilateral and multilateral trade and economic negotiations. </li></ul>
  39. 47. <ul><li>It can be found in places like </li></ul><ul><li>Brussels (Belgium) </li></ul><ul><li>Silicon Valley (California) </li></ul><ul><li>Kuala Lumpur (Malaysia) </li></ul><ul><li>Chicago (Illinois) </li></ul><ul><li>Los Angeles (California) </li></ul>