Student: Chau Man Khanh Final Assignment Student ID: 231121699218

THE UNIVERSITY OF ECONOMICS

UNIVERSITY OF ECONOMICS

FINAL ASSIGNMENT
INFORMATION AND DIGITAL LITERACY
FOR UNIVERSITY SUCCESS

Student’s name: ……ĐÀO TRỌNG NHÂN……..

Student’s ID: ……………241121699225…………
Class: ……………………….50K01.2-E…….……..

Danang, January 2024

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Student: Dao Trong Nhan Final Assignment Student ID: 241121699225

TOPIC:
THE IMPORTANCE OF INTERNATIONAL TRADE AND THE CURRENT
SITUATION IN VIETNAM

APPENDIX
I. INTRODUCTION.....................................................................................................3
I.1. Purpose of the research.............................................................................................3
I.2. Research methodology..............................................................................................3
II. WHAT IS THE DEFINITION OF INTERNATIONAL TRADE?:.........................3
II.1. Definition…………………………………………………………………………..3
II.2. Role………………………………………………………………………………...3
III. WHAT ARE THE BENEFITS AND DRAWBACKS OF INTERNATIONAL
TRADE?................................................................................................................................4
III.1. Benefits.....................................................................................................................4
III.2. Issues and challenges................................................................................................5
IV. UNDERSTANDING GLOBAL ECONOMICS: EXCHANGE RATE, SUPPLY
AND DEMANDS, AND METHODOLOGIES.....................................................................6
IV.1. Global exchange rate.................................................................................................6
IV.2. Supply and demand...................................................................................................7
IV.3. Methodologies...........................................................................................................7
V. CONCLUSION:........................................................................................................8
LIST OF REFERENCES.......................................................................................................9
Turnitin check result............................................................................................................12

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 Student: Dao Trong Nhan Final Assignment Student ID: 241121699225

I. INTRODUCTION
Since the World War II, the world met to hold what is now known as the United
Nations in 1945. On top of that, it leads to the globalization of every nation around the
world, with the rise of other regional economic alliances across the world. In the business
context, economists flourished a term: ‘International trade’. Goods or services produced in
one country for use elsewhere are called “ International trade” (Kim, 2020).
I.1. Purpose of the research
This research aims to give audience a deeper interpretation of the importance of
international trade. Furthermore, it will provide readers with profound insight into the
current situation related to foreign trade in Vietnam, and present several challenges and
opportunities that the country has been encountering.
I.2. Research methodology
The research is conducted based on the data and information consulted from
reliable authoritative databases, academic journals and peer-reviewed articles,
government reports and official statistics including the General Statistics Office of
Vietnam and other relevant sources (e.g., industry reports, news articles). After that, the
information gathered was analyzed thoughtfully and carefully to reach the informed and
precise conclusion on the topic of the research.
II. WHAT IS THE DEFINITION AND THE ROLE OF INTERNATIONAL
TRADE:
II.1. Definition:
What international trade basically means is the exchange of goods or service of
goods in between different countries. They can also happen between a nation or
economy, and the rest of the world. Choosing to study that field of international trade
means that you can see the impact of such trade in the national and global economy.
International trade is not a new trend but the field of actors is always attempting to
change international trade based on the requirements of the economy. Market goods and
services flows affect production, sales, imports, and exports particularly. The
organization of trade flows as well as all the capital exchanged is called international
trade.
II.2. Role:
International trade allows focusing on large scale trade, which will enhance the
global economy. This economic role helps in a great deal in the development of all the
participating countries. Third, it will always generate new possibilities of economic
opportunities due to exchange of goods and services between the various countries. But
middle-income countries have a growth opportunity; they can access markets of rich
countries. For these developed countries, they can still use the international trade to gain
or even maintain their economic power.
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 Student: Dao Trong Nhan Final Assignment Student ID: 241121699225

III. WHAT ARE BENEFITS AND DRAWBACKS OF INTERNATIONAL

TRADE?
The increasingly prevalent phenomenon of international trade may be related to its
advantages and disadvantages.
III.1. Benefits:
The benefit of international trade can be illustrated in a country in the demonstration
of development of their income and towards acquiring commercial strengths throughout
several years. Stanley (2011) said, countries with greater trade are favorable and can
dominate the whole economy on a global scale.” "This will turn the global trade into one of
the major means to reducing poverty”. This approach has been very inevitable as the
benefits of importing and exporting goods to other country have improved over the year's
mainly because of the demand and supply in demand and it provides holistic efficiency
(Carr and Indira, 2011).
Followed by the studies of Hata (2008) noted that “a country would try to jump to a
bigger GDP very quickly by assuming internationally ranging trade on that.” This is
because these nations can have higher product merit and have the intention of selling the
product to other countries to have exposure and gain possible income (ITA, 2011). In other
words, if one country wants to import products to others which need the Merchandises and
services its offers. It is also so that several ones can be obtained only in a specific country
that there exist differences in weather in other countries which consequently changes the
production of the same goods in each country.
 Improved competitiveness among countries and companies
 It is making use of international trade technology
 Extend the sales capacity of the remaining goods
 Keep cost competitive in your demanding market
 Increases the expansion of business and corporations.
 Enhance the immunity of the system to existing market dependence
 Seasonality market activity stabilize
Among many, if a company involves in the international trade then its performance in order
to market existing products and services around the world will be exceptional. After a
country engages in international trade, there is imported and exported of goods to the other
country or region just to impress other countries or regions to add on to their customer’s
satisfaction.

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Student: Dao Trong Nhan Final Assignment Student ID: 241121699225

III.2. Issues and challenges:

As Shah (2010) notes, he stated that this is in turn catastrophic that several
biggest finance stages have devastated. It is also another for which some
companies got to bankruptcy and they closed them down so that they could go
bankrupt. And that has affected the entire trade industry and even the leading in
international trade.
Then, WTO later implemented rules for such the foreign trade. According to
Anderson (1997); “The General Agreement on Tariffs and Trade (GATT) was an
international organization created in 1947 to reduce trade barriers through
multilateral negotiations. In January 1995, the GATT was replaced by a stronger
World Trade Organization (WTO), the result of eight years of GATT negotiations.
Today, member countries number 125 (nearly the whole world except China, some
former communist countries, and a number of small nations) and WTO rules apply
to over 90 percent of international trade”.
The fact that the range of its coverage is wider than the GATT agreement,
the agreement which has reduced tariffs among manufactured goods only, is one of
the reasons why the said agreement has caused different controversies and
misunderstandings. And even the GATT Uruguay round would make more sense
agreement. The biggest issue facing businesses in this world are the regulations of
these advocation.
Andersons and Cavagh (1998) asserts that the GATT Uruguay round “is
slated to result in average tariff reductions of 38 percent for developed economies,
reducing average tariffs worldwide from 6.3 percent to 3.9 percent. In comparison,
average tariff rates just after World War II were 40 percent. The most controversial
outcome of the Uruguay Round was the establishment of much stronger
enforcement mechanisms in the WTO”. To be unfair, its rule only favours the
powerful countries. Countries at developing level are struggling to compete and
trade, while countries still need to control the trade industry.

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Student: Dao Trong Nhan Final Assignment Student ID: 241121699225

IV. UNDERSTANDING GLOBAL ECONOMICS: EXCHANGE RATE,

SUPPLY AND DEMANDS, AND SOLUTIONS:
IV.1. Global Exchange Rate:
We had anticipated that because of the global crisis and recession, the powerful
players in the trade industry would depreciate. We know that in this case the ‘adjustment
has taken a very different path, with a collapse in asset prices and a massive deleveraging
of financial institution’ playing the central role in crisis. The prediction now is that after
the recession in 2012 the world exchange rates would discount. And now that the United
States controls international trade industry and is one of the world’s powerful traders.

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IV.2. Supply and Demand:

The causes of international trade are multifaceted and encompass both demand and
supply factors. International trade is influenced by various determinants such as
communication costs, exchange rate volatility, trade policies, and the impact of global
events like the COVID-19 pandemic. Peters et al. (2011) highlight the significant role of
international trade in explaining changes in emissions from both production and
consumption perspectives. Jindřichovská & Uğurlu (2021) emphasize the impact of
COVID-19 on international trade, causing both supply and demand shocks. Furthermore,
Abaidoo (2019) underscores the influence of factors such as institutional quality,
globalization, and macroeconomic fluctuations on international trade. These references
collectively demonstrate the complex interplay of demand and supply forces in shaping
international trade patterns.
Moreover, the literature also delves into the impact of international trade on
various aspects such as carbon intensity, economic growth, and technology diffusion.
Wang et al. (2023) found that international trade caused fluctuations in the carbon
intensity of human well-being, indicating the interconnectedness of trade with
environmental factors. Additionally, Sun & Heshmati (2010) discussed how international
trade, particularly involving high-quality intermediate goods, contributed to the diffusion
of technology, highlighting the supply-side impact of trade on technological
advancement.
Furthermore, the influence of trade policies on international trade flows is evident
from the work of (Zahangir, 2022), who emphasized the role of national and international
trade policies in shaping trade patterns. This underscores the significance of policy
decisions in influencing both demand and supply dynamics in international trade.
Motivated and inspired by the groundbreaking research of past scientists, in the following
part, the essay will provide a detailed interpretation on how international trade is
influenced by a multitude of factors encompassing both demand and supply forces.
IV.3. Methodologies:
International trade policies are designed to promote a better trade. It is obvious
that these policies should be fair because the policies are being controlled by the top
players in the globe and they should all favor for fair policies all the countries across the
globe which are involved in the international trade industry. Countries in the trade
industry that are governed by tariff, regulations, incomes, copyright laws or infringement;
advancement in technology; and the improvement or the other country’s concerning
country concerned following the occurrence of the trade industry.
If developing countries are involved then, it can be equitable to include them to
harbour in decision-making. Earlier, it was seen that some countries depend completely
upon international trade to increase GDP and hence it is natural for them to also
implement only policies. The reason why there already are some decreases between
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Student: Dao Trong Nhan Final Assignment Student ID: 241121699225

nations in the fields which could be prevented if WTO isn’t monopolised by very US
and European nations.
V. CONCLUSION:
In conclusion, international trade brought about the approach towards international
transactions and expansion of market profitability. This has resulted in a number of
benefits for the different countries cashed in on by the trade industry. The efficiency and
also the accessibility of information has also been affected by the technology. The
advantages are growth in GDP of sales as well as profits, which leads to growth in quality
of complements and services, rise in the bottom line and its size. It also increases the
remaining touched product extension at an international level making a global share and
decrease to depend on existing markets. However, there are problems with these benefits.
As earlier stated, implementation of and adherence to fair international trade
policies would enable the international trade industry minimize some problems related to
misunderstanding and disputes. Additionally, if copyright and infringement policies could
be strictly implemented; it would also solve other factors of the country’s property rights.
Technology has advanced and affected the interaction procedures in international trade
corporations where disparity countries are involved in the process of foreign transaction
have to change to fit into the new environment in the trade business.

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Student: Dao Trong Nhan Final Assignment Student ID: 241121699225

LIST OF REFERENCES

 Kim, S.M. (2021). Introduction to International Trade. In: Payment Methods and
Finance for International Trade. Springer, Singapore. https://doi.org/10.1007/978-
981-15-7039-1_1
 Clements, K.W., Wu, Y. & Zhang, J. Comparing international consumption
patterns. Empirical Economics 31, 1–30 (2006). https://doi.org/10.1007/s00181-
005-0012-y
 Le, T. A. T. (2022). Opportunities and challenges for Vietnam's trade in CPTPP.
Journal of University of Science and Technology.
https://jusst.org/wp-content/uploads/2022/03/Opportunities-and-challenges-for-
Vietnams-trade-in-CPTPP.pdf
 Research and analyze the risks in business activities of Vietnamese enterprises in
the context of international economic integration. (2022). Central European
Management Journal, doi: 10.57030/23364890.cemj.30.4.123
 Nhung, P. T. C., & Wang, Z. B. (2022b). Vietnam rice competitiveness in the
international trade market in recent years, opportunities and new challenges for
Vietnam rice export. American Journal of Industrial and
Business https://doi.org/10.4236/ajibm.2022.1212101
 Huu, N. D. (2021). Challenges in intellectual property policy in Vietnam
participating in the EU-Vietnam Free Trade Agreement (EVFTA). Journal of
International Trade and Economic Development, 11(3), 595-610.
https://pdfs.semanticscholar.org/9442/e5d11e2b4c16ec4a13698f5ad5a3936d1666.p
df
 The Ministry of Finance e-portal, National Institute for Finance. (2021). The US has
become the biggest trading partner of Vietnam's agriculture sector, from:
https://mof.gov.vn/webcenter/portal/vclvcstcen/pages_r/l/detailnews?dDocName=M
OFUCM214594

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 General Statistics Office of Vietnam. (2023). Overcoming difficulties, Vietnam has a
trade surplus of 12.25 billion ÚSD in 6 months of 2023, from:
https://www.gso.gov.vn/en/data-and-statistics/2023/07/overcoming-difficulties-
vietnam-has-a-trade-surplus-of-12-25-billion-usd-in-6-months-of-2023/
 TradingEconomics, Vietnam’s Balance of Trade, from:
https://tradingeconomics.com/vietnam/balance-of-trade
 Carr, I. (2011). International Trade Law. New York: Cavendish Publishing Limited.
 Hata, P. (2008, June 18). Benefits of International Trade. Retrieved 2011, from
Ezine@rticles: http://ezinearticles.com/?Benefits-of-International-
Trade&id=1259699
 International Trade Administration. (2011, June 3). International Trade
Administration Office of Industry Analysis. Retrieved from trade.gov:
http://www.trade.gov/mas/ian/index.asp
 Shah, A. (2011, June 5). Trade, Economy & Related Issues. Retrieved 2011, from
globalissues.org: http://www.globalissues.org/issue/1/trade-economy-related-issues
 Anderson, S., & Cavanagh, J. (1998, January 1). World Trade Organization.
Retrieved from Fpif.org: http://www.fpif.org/reports/world_trade_organization
 Peters, G., Minx, J., Weber, C., & Edenhofer, O. (2011). Growth in emission
transfers via international trade from 1990 to 2008. Proceedings of the National
Academy of Sciences, Vol. 108(21), pp. 8903-8908.
https://doi.org/10.1073/pnas.1006388108
 Jindřichovská, I. and Uğurlu, E. (2021). E.u. and china trends in trade in challenging
times. Journal of Risk and Financial Management, Vol. 14(2), pp. 71.
https://doi.org/10.3390/jrfm14020071
 Abaidoo, R. (2019). Policy uncertainty and dynamics of international trade. Journal
of Financial Economic Policy, Vol. 11(1), pp. 101-120. https://doi.org/10.1108/jfep
02-2018-0034.

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 Wang, S., Wang, J., Chen, X., Fang, C., Hubacek, K., Liu, X., … & Liu, Z. (2023).
Impact of international trade on the carbon intensity of human well-being.
Environmental Science & Technology, Vol. 57(17), pp. 6898-6909.
https://doi.org/10.1021/acs.est.2c07582
 Sun, P. and Heshmati, A. (2010). International trade and its effects on economic
growth in china. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1667775
 Zahangir, A. (2022). Most influential factors affecting international trade flows:
bangladesh context. Journal of Entrepreneurship and Business, Vol. 10(1), pp. 88
100. https://doi.org/10.17687/jeb.v10i1.861

Turnitin check result

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