International Trade week 20

• Handel
• MBO
• Studiejaar 2

International Trade

• Course period 4 - 6 weeks
  
• Combination of Business/English (B1+/B2 level)
  
• Objective: introduction into basics of International Trade
  
• Portfolio in OneDrive - weekly tasks
• What's in it for you?

International Trade

Today:

• What is international trade?
  
• Export logistics: who is who in the export journey?
  

International Trade
Definition?

International Trade - video 6 min.

Write down these questions and use the video to answer them:

• What is free trade?
• What is "comparative advantage"? 
  
• What is "economies of scale"?

Two reasons for choosing free trade are:
1) comparative advantage
2) economies of scale

Explain these in your own words: 1) .............................2).................................

International Trade

Comparative advantage: the difference in countries' resources and production levels (e.g. the Netherlands is good at growing tulips and making cheese, so they export these. They import rice, because our country's climate is not fit to grow rice)

Economies of scale: a greater production increases efficiency and lowers cost 

Why would people favor free trade?

International Trade

Protectionism = protecting a country's domestic industry from foreign competition by taxing imports (or: close borders)

• Pro: (at first) competitive advantages, new jobs in own country
  
• Con: less choice, higher prices, slows down economy
  

Free trade = opposite of protectionism (or: international trade)

• Pro: all economies grow, focus on comparative advantage (specialization)
  

Export logistics - people & process

The next Maersk/IBM video (3 min.) briefly explains the people/processes/documents involved in the export of goods.

IBM offers a computer programme to monitor the logistic chain and to track a container's journey from door-to-door.

Who is who in your export journey?

What is the difference between the Dutch "expeditie" and "expediteur"

What is the difference between "export" and "uitvoer" in the Netherlands?

Task 1+2 - Portfolio

• Form groups of 3
• TASK 1:  Go to www.shippingsolutions.com/export-documentation-procedure
• Find out the differences between: shipper, carrier and freight forwarder
• Describe the differences in 200 words (English) and save document as TASK 1_International Trade Portfolio
  
• TASK 2: Find one example of a free trade economy and one of a closed border economy. Describe what these countries do in terms of taxes on goods and how this is meant to affect their economy. Use 200 words (English) and save document as TASK 2_International Trade Portfolio