Topic 7: International trade

1. What is international trade?

International trade is the exchange of capital, goods, and services across international
borders or territories
2. What is free trade?
Free trade is a trade policy that does not restrict imports or exports as well as the idea
of the free market as applied to international trade.\
3. What is tariff?
A tariff is a tax on imports or exports between sovereign states. It is a form of
regulation of foreign trade. It is a policy that taxes foreign products to encourage or
protect domestic industry. The tariff is historically used to protect infant industries
and to allow import substitution industrialization.
4. What is quota?
A quota is a government-imposed trade restriction that limits the number or monetary
value of goods that a country can import or export during a particular period.
5. What are tariffs and quotas often called?
They are often called barriers to trade.
6. What is protectionism?
Protectionism is the economic policy of restricting imports from other countries
through methods such as tariffs on imported goods, import quotas, and a variety of
other government regulations
7. What is the relationship between protectionism and tariffs + quotas?
Protectionist policies can be implemented in four main ways: tariffs, import quotas,
product standards and government subsidies
8. What is infant industry?
An infant industry is a new industry, which in its early stages experiences relative
difficulty or is absolutely incapable in competing with established competitors abroad.
9. What is strategic industry?
A strategic industry is an industry that a government considers to be very important
for the country's economy or safety
10. Are they related to protectionism? Why/Why not?
Yes. Because infant industries need protection against international competition until
they become mature and stable. In economics, an infant industry is one that is new
and in its early stages of development, and not yet capable of competing against
established industry competitors.
11. What is dumping? What is it used for?
Dumping is a term used in the context of international trade. It's when a country or
company exports a product at a price that is lower in the foreign importing market
than the price in the exporter's domestic market.
12. What is subsidy? Is it related to dumping?
A subsidy is a benefit given to an individual, business or institution, usually by the
government.
13. What are the relationship between dumping and protectionism?
14. What are Vietnamese major trading partners?
15. Does Vietnam try to restrict imports? Why? Why not?
 16. Which industries could be usefully protected in your country until they had a
comparative advantage?
17. Are you ready use inferior and expensive products from inefficient producers?
Why/Why not?
18. “Vietnamese should use product made in Vienam” Do you agree with slogan? Why?
Whynot?

Topic 8: Corporate Social Responsibility

1. What does CSR mean?

Corporate social responsibility (CSR) is a self-regulating business model that helps a
company be socially accountable — to itself, its stakeholders, and the public
By practicing corporate social responsibility, companies can be conscious of the kind of
impact they are having on all aspects of society including economic, social, and
environmental. To engage in CSR means that, in the normal course of business, a
company is operating in ways that enhance society and the environment, instead of
contributing negatively to them.
2. “Companies have an obligation to maximize profits because shareholders expect
the maximum return on their investments”. Is it true?
Yes. Because Anyone who invests in a company always have a profit target. The better
profit companies have, the better profit shareholders have.
3. “Business is business”. Do you agree with this statement?
Business is business, That’s right. But Business is also a social activity. We have some
example for this. Advertisement is the way to impress people, make them use our
products, it is also a business. Such as CSR, through CSR programs, philanthropy, and
volunteer efforts, businesses can benefit society while boosting their own brands. It is
also a business.
4. “ A company has responsibilities to its suppliers, its customers, its employees, the
local community and society in general as well as to its shareholders” What do
you think about this view?
Stakeholders are individuals or groups to whom business has a responsibility.
Businesses are responsible to employees. They should provide a clean, safe working
environment. Organizations can build employees’ self-worth through empowerment
programs. Businesses also have a responsibility to customers to provide good, safe
products and services. Organizations are responsible to the general public to be good
corporate citizens. Firms must help protect the environment and provide a good place
to work. Companies also engage in corporate philanthropy, which includes
contributing cash, donating goods and services, and supporting volunteer efforts of
employees. Finally, companies are responsible to investors. They should earn a
reasonable profit for company owners.

Topic 9: The business cycle

1. What is the business cycle?
The term “business cycle” refers to economy-wide fluctuations in production, trade,
and general economic activity. From a conceptual perspective, the business cycle is
the upward and downward movements of levels of GDP and refers to the period of
expansions and contractions in the level of economic activities (business fluctuations)
around a long-term growth trend.
2. Can an economy avoid the business cycle? Why/Why not?
Yes. Because The economic or business cycle is managed by the government. The
biggest tool at its disposal to control the cycle is fiscal policy. In order to end a
recession, the government will employ expansionary fiscal policy and conversely, it
will use contractionary fiscal policy to stop the economy from overheating.
3. What are the main causes of expansion and contraction of the business cycle?
The cause of them is customer demand. The growing customer demand resulting from
a favorable economic environment leads you to respond to increasing orders by hiring
additional staff and ordering more supplies and materials. When demand starts
decreasing, you see fewer orders from customers and you buy fewer supplies for your
production.
4. During the downturn. What happen?
(A rise in unemployment; A rise in bankruptcies; Lower consumer spending and
consumer confidence; A reduction in asset prices)
When demand starts decreasing, you see fewer orders from customers and you buy
fewer supplies for your production. As demand shrinks below a certain minimum for
your company, you start cutting staff and your business contracts. The combined
effect of business contraction makes the unemployment rate increase and reduces
consumer confidence. Business investment drops and overall economic activity
decreases. Your business strategy must be to cut costs and avoid spending as profits
drop due to decreasing business volume.
5. What should government do to deal with the recession?
When confronted by a depression, the government must neither lend, nor borrow, nor
print money, nor tax and spend to stimulate, but instead should devote its meager
resources (as tax revenues will be down) to:
(Maintaining the legal framework (law courts and police);
Deregulation and reducing the size of government;
Ensuring people are not forced to resort to crime (camps for the destitute);
Ensuring the military is sufficiently resourced to deter external aggression;
Reducing taxes.
If these steps are taken, very quickly real growth, not fictitious capital, will provide
employment to every person who wants a job. There will then follow a long period of
high growth in living standards. The proof of this lies in the German post-war
experience).
6. What was GDP Vietnam in 2018?
GDP’s Vietnam is 240 billion dollar.
7. How well is Vietnamese economy doing at the moment?
Vietnamese economy in 2018 is estimated to grow 7.08%, the highest level in the last
10 years thanks to the main motivation is manufacturing and processing industry and
service sector.
8. As a student of Economic field, what impact do you think the business cycle can
have on you?
During the recession, enterprises fell into a difficult situation, dragging the stock
market down, interest rates were lower at this time to stimulate business and
consumer activities. So during the recession, it would be wise to invest in finance
because interest rates are low at this time. Similarly, in the process of growth, it is
good to start a business or reserve goods if you already have a business, because
people are more willing to spend this time.
9. What are the differences between depression and recession?
A recession is characterised as a period of negative economic growth for two
consecutive quarters. In a recession, unemployment will rise, output fall and
government borrowing increase.
A depression is a recession but much more severe and long lasting. There is no agreed
upon definition of a depression. But, generally a depression would have some of the
following characteristics.
• Decline in output for a prolonged period e.g. greater than 2 years.
• A drop in output of 10% or greater.
• Unemployment rate touching 20% (rather than the 10% rate associated with
recessions)
“A recession is when your neighbor loses his job; a depression is when you lose
yours.”
10. How long is the business cycle?
The time from one economic peak to the next, or one recessive trough to the next, is
considered a business cycle. From the year 1945 to the year 2009, the NBER defined
eleven cycles, with the average cycle lasting a bit over 5-1/2 years.