PRESENTATION ON TRADE POLICIES IN 2017

LOGO

Trade policies

Group 1
Class: Foreign Trade 1
UEH


 Cao Đình Hồng Châu
 Hồ Ngọc Khánh Chi
 Nguyễn Ngọc Giao
 Nguyễn Ngọc Kiều Hoa
 Nguyễn Thị Linh Nhu
 Trần Minh Quân
 Trần Thanh Tuyền

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OVERVIEW
I

II

III

TRADE POLICIES

CURRENT TREND OF WORLD TRADE
POLICIES

VIETNAM’S TRADE POLICIES

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TRADE POLICY


TRADE POLICIES

Definition
A set of rules, economic and administrative
measures, which are used to fulfill
the national objectives in its trade area


TRADE POLICIES
• Area of a trade policy:
IMPORT - EXPORT
• National objectives:
Economic Integration
Competitiveness position
• Measures:
Tariff, Quotas, TBT, Anti-dump legislation
Subsidies, Exchange rate….


TRADE POLICIES

TRADE POLICIES
Free trade policy
Definition:
Traders can act and transact
without interference from
the gov.
Features:
•Trade activities are free
from trade instruments of
gov.
•Prices are reflection of a
market economy.

Protectionist policy
Definition:
Traders act and transact with
interference from the gov
that support local producers.
Features:
•Trade activities are
intervened with trade
instruments of gov.
•Imports are limited and
exports are encouraged .


Free Trade Policy

PROS

CONS

• Local economy:
• Good & services:
plentiful, available
influenced by
international
• Competition: fierce –
improve diversifyBARRIERS conditions
quality , reduce prices • Market: volatility
• Encourage local
• Strong pressure on
producers to develop
local producers
capabilities


Protectionist Policy

PROS

CONS

• Supporting local
• Negatively impacting on
producer to compete
local producers, no
pressure to improve
and expand market.

• Causing trade injuries
• Balancing the BARRIERS
national BOP,
- Reducing total world
utilizing effectively
trade, global
the nation currency
integration
reserves
- Cutting local
consumer benefits


Trade Policies
Inward-oriented policy
Definition:
•Less linkage to world
economy
•Improving self sufficiency
with absolutely
intervention of government
•Use import-substituting
industrialization

Outward-oriented policy
Definition:
•Regard export as key to
develop
•Implementing labor
allocation

•Carrying on specialization
based on nation’s
advantages


Inward oriented trade policy
• Encouraging the
development of
strategic industries
• Mobilize and
promote all national
potential for
developing
• Less influenced by
world economy,
stable growth.

• Lack of
competitiveness in
world market
• Insufficient economy
due to resource
dislocation
• Unbalancing the BOP
• High national debt


Outward trade policy
•Effective specialization
•Higher competition

•Balancing the BOP
•More FDI

• Strongly influenced
by world conditions
• High volatility in
market


Outward Trade Policy
TYPES OF OUTWARD TRADE POLICY


GLOBAL TREND


GLOBAL TREND
THE WORLD TRADE IS INCREASING GRADUALLY

GLOBAL TREND


GLOBAL TREND

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GLOBAL TREND
TRADE AS A PERCENTAGE OF GDP ALSO INCRESING DRAMATICALLY

GLOBAL TREND


GLOBAL TREND
- Openness index of some developed countries

GLOBAL TREND


GLOBAL TREND
Openness index of some emerging countries

GLOBAL TREND


GLOBAL TREND
THE WORLD TARIFF RATES IS GOING DOWN

GLOBAL TREND


GLOBAL TREND

GLOBAL TREND


GLOBAL TREND

In overall, the world is following
the free trade policy.

GLOBAL TREND


PROTECTIONISM IS ACCUMULATING

GLOBAL TREND


PROTECTIONISM IS ACCUMULATING
Technical Barriers to Trade (TBT)

GLOBAL TREND
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