VOCABULARY – PART 1

UNIT 3: FOREIGN EXCHANGE TRADING

3. When central banks intervene in the foreign exchange markets at the intervention
points, this is called the system of ……fixed…..exchange rates. The opposite is called
the system of … floating….exchange rates.

4. If dealers buy currencies forward but do not sell forward simultaneously, their position
is said to be …long……

5. A ……premium……is the money the writer of an option receives from the buyer.

6……Central banks…. of the member countries were required to intervene in the

foreign exchange markets to keep the value of their currencies within 1 percent of the par
value.

7. A …forward transaction……….. means that delivery of a currency if specified to

take place at a future date.

8. Dealers, having concluded a forward contract, should always……hedge…….with an

offsetting contract, so as not to leave the position open.

9. Forward rates can be quoted either …outright…. or in terms of a …premium….. or

……discount……..on the spot rate.

10. ……Arbitrage……is the practice of transferring funds from one currency to another
to benefit from rate differentials.

11. Another verb for fixing exchange rates against something else is to ....peg........them.

12. Increasing the value of an otherwise fixed exchange rate is called.....revaluation.........

14. The current system is one of ........floating..........exchange rates.

15. A currency can appreciate if lots of ..........speculators..........buy it.

16. In fact we have manged floating exchange rates, because governments and
........central........banks sometimes intervene on currency markets.
 UNIT 4: PAYMENT IN INTERNATIONAL TRADE

1. Invoice: Lists of goods sold as a request for payment.

2. Clean collection: Payment by bill of exchange to which documents are not attached.

3. Documentary collection: Payment by bill of exchange to which commercial

documents (and sometimes a document of title) are attached.

4. Bill of exchange: Signed document that orders a person or organization to pay a fixed

sum of money on demand or on a specified date.

5. Bill of lading: Document that shows details of goods being transported; it entitles the

receiver to collect the goods on arrival.

6. Document of title: Document allowing someone to claim ownership of goods.

7. Issuing bank: Bank that issues a letter of credit (i.e. the importer’s bank).

8. Collecting bank: Bank that receives payment of bills, etc. for their customer’s account
(i.e. the exporter’s bank).

9. Confirming bank: Bank that confirms they will pay the exporter on evidence of
shipment of goods.

10. Letter of credit: Method of financing overseas trade where payment is made by a
bank in return for delivery of commercial documents, provided that the terms and
conditions of the contract are met

11. Promise or guarantee given to or by a bank = Undertaking

12. Load of goods sent to a customer = Consignment

13. Person or company that acts as a middleman in a transaction = Intermediary

14. Date when a bill of exchange is due for payment = Maturity

15. When the importer ..........accepts...........the bill of exchange, the bank will
........release............the documents of titles to the goods.
16. The exporter’s bank ......forwards..............the bill of exchange, together with the
commercial documents, to the importer’s bank.

17. At the same time, the exporter .......dispatches............the goods.

18. The exporter must take care to ........present..........the correct documents to the bank.

UNIT 5: MARKETING

1. Distribution channel: All the companies or individuals involved in moving a

particular good or service from the producer to the consumer.

2. To launch a product: To introduce a new product onto the market.

3. Market opportunities: Possibilities of filling unsatisfied needs in sectors in which a

company can profitably produce goods or services.

4. Market research: Collecting, analyzing and reporting data relevant to a specific

market situation (such as a proposed new product).

5. Market segmentation: Dividing a market into instinct group of buyers who have
different requirements or buying habit.

6. Packaging: Wrappers and containers in which product are sold.

7. Point of sale: Places where goods are sold to the public – shops, stores, kiosks,
market,

stalls, etc.

8. Product concept: An idea for a new product, which is tested with target consumers

before the actual product is developed.

9. Product features: Attributes or characteristics of a product: quality, price, reliability,

etc.

10. Sales representative: Someone who contacts existing and potential customers and

tries to persuade them to buy goods or services.

11. Conversional marketing is the difficult task of reversing negative demand, e.g. for
dental work, or hiring disabled people.

12. Stimulational marketing is necessary where there’s no demand, which often

happens with new products and services.

13. Developmental marketing involves developing a product or service for which there
is clearly a latent demand, e.g. a non-polluting and fuel-efficient car.

14. Remarketing involves revitalizing falling demand, e.g. for churches, inner city areas,
or aging film stars.

15. Synchro Marketing involves altering the time pattern of irregular demand, e.g. for
public transport between rush hours, or for ski resorts in the summer.

16. Maintenance marketing is a matter of retaining a current (maybe full) level of

demand in the face of competition or changing tastes.

17. Demarketing is the attempt (by governments rather than private businesses) to
reduce overfull demand, permanently or temporarily.

18. Countermarketing is the attempt to destroy unwholesome demand for products that
are considered undesirable, e.g. cigarettes, drugs, handguns, or extremist political parties

The classic product life cycle is Introduction, Growth, Maturity and Decline. In the
Introduction stage the product is promoted to create awareness. It has low sales and
will still be making a loss. If the product has few competitors, a skimming price
strategy can be used (a high price for early adopters which is then gradually lowered).
In the Growth phase sales are rising rapidly and profits are high. However, competitors
are attracted to the market with similar offerings. The market is characterized by
alliances, joint ventures and takeovers. Advertising budgets are large and focus on
building the brand.

In the Maturity phase sales growth slows and then stabilizes. Producers attempt to
differentiate products and brands are key to this. Price wars and competition occur as
the market reaches saturation. In the Decline phase there is a downturn in the market.
The product is starting to look old-fashioned or consumer tastes have changed. There is
intense price-cutting and many products are withdrawn from the market.
 UNIT 8: MULTINATIONAL CORPORATIONS

1. Most multinational companies are vast enterprises with networks of subsidiaries or

affiliates throughout the world. Originally, they expanded overseas because trade barriers
such as tariffs and quotas had been set up against their goods.

2. When incomes are rising and business is thriving, in other words, when there is an
economic booming in a country, a multinational may decide to establish a subsidiary
there. Later, however, the government of the country may only allow the company to
operate on a joint venture basis, in which case it will compel the company to reduce its
shares to a fixed percentage. It could even restrict the subsidiary by allowing only a fixed
proportion of profits to be registered / returned.

3. The OECD code gave guidelines on how multinationals should behave. None of its
provisions were legally effective and therefore some say it lacked legal teeth.

4. A factory whose production resources are not being fully utilized is said to be suffered
from overcapacity

UNIT 9: MERGERS AND ACQUISITIONS

1. ______shareholder value_____ What stocks in a public company are worth

Shareholder value

2. A company’s sales expressed as a percentage of the total sales in a market = Stock

3. ______portfolio_____ Organization comprising several companies

portfolio

4. Money paid to investment banks for work done = Fee

5. All the individuals or organizations that regularly or occasionally purchase goods or

services from a company. = Customer

6. Best, perfect or idea (adjective) = Optimum

7. Combined production or productivity that is greater than the sum of the separate parts
= Synergy

synergy

8. People or companies that try to buy and sell other companies to make a profit =
Raiders

9. Large corporation or groups of companies offering a number of different products or

services = Conglomerate

conglomerate

10. Buying a company in order to sell its most valuable assets at a profit =
Asset-stripping

11.____conglomerate_______ A collection of companies

12._____bid______ An offer to buy

13.____core competence_______ Most important activity

14._____vertical integration______ Controlling all stages of one particular type of

business

Takeover bids

In a takeover bid, another person or business makes an offer to the (1)................. to buy
their shares at a fixed price. The aim is to take control of the (2)......................

If it is a welcome takeover bid, the directors of the company advise the shareholders to
accept the offer. If the shareholders accept the offer, the result is usually called a
(3).........................

If the bid is unwelcome, the directors advise the shareholders against accepting it. The
bidders may then write to the shareholders explaining the advantages of the takeover, and
perhaps improving the offer for the share. This is known as a (4).............................. bid.

To avoid an unwelcome takeover bid, the directors may devise a (5)...................... – a

tactic that will mean the company is worth much less if the takeover bid is successful.
Alternatively, they may look for a (6)........................ – an alternative bidder for the
company whose takeover would be more welcome.

In an (7)......................., the bidder offers a price for each share regardless of how many
share it can buy. In a (8)......................., the offer price depends on the bidder being able
to buy enough shares to gain a (9)....................... in the target company.

1. shareholders

2. target company

3. merger

4. hostile takeover

5. poison pill

6. white knight

7. unconditional bid

8. conditional bid

9. controlling interest

UNIT 10: ARBITRATION

1. Everyone promises to obey the treaty-all major countries are signatories to it.

2. In the civil case, the plaintiff brought an action against the defendant for damaging
his car on purpose.

3. The price was negotiated between the buyer and the seller of the house, in a private
sale.

4. The bank agreed that the borrower should pay 12% on the loan, so the lender made a
fair profit!

5. Manufacturers sell their goods to wholesalers and in turn, retailers buy from them.

6. The relationship between a lawyer and client is bound by confidentiality.

7. The beer can be produced under license but the licensee must fulfill all the
requirements imposed by the licensor.

8. Some clothes companies sell their products on a franchise basis: each country has a
main franchiser, with numerous people working as franchisees.

9. A letter was sent to the manager complaining about working conditions. All the
members wrote their names. The letter read: ‘We, the undersigned, strongly protest
about conditions at work’.

10. Many projects require the cooperation of various partners. If they all agree to work
together, they become parties to the agreement.

TỔNG HỢP PART 1

1. If you…… hedge……………… you make transactions that are designed to

reduce risk regarding a particular price, interest rate or exchange rate.

2. A……… speculator………… anticipates future changes in a market and makes

risky transactions, hoping to make a gain.

3. ………… market segmentation……….. is dividing a market into an instinct

group of buyers who have different requirements or buying habits.

4. ……… Conversional marketing ………….. is the difficult task of reversing

negative demand.

5. ……… commodities…………... are raw materials such as agricultural products

and metals that are traded on special exchanges.

6. Rate of return is often measured in terms of profits realized on assets

employed.……

7. In some parts of the world, banks may be slow to (5)…… remit……payment to

the exporter’s bank.

8. Both words mean “a person who does business on behalf of another company”.
The word (5)……agent………..is used where there is a long-term relationship,
 earning commission, whereas the word (6)…broker……..is more common for
individual transactions.

9. In the (8)……Maturity……. phase sales growth slows and then stabilizes.

Producers attempt to (13)…differentiate……… products and brands are key to
this.

10. (7,10)……Product Withdrawal……… is the process of withdrawing products

from the market where they are no longer profitable.

11. Trend toward greater interdependence among national institutions and economies:
(13)… Globalization……………..

12. Inability of a nation to produce a good more efficiently than other nations, but an
ability to produce that good more efficiently than it does any other good: (10,9)
comparative advantage

13. Financial assistance to domestic producers in the form of cash payments, low
interest loans, tax breaks, product price supports, or some other forms:
(9)………… Subsidies……………….

14. Many authors argue that the marketing concept has replaced the (7,7)…Selling
concept…………….

15. The third ‘P’ is (5)…………place……….., which concerns where the product is
available.

16. Exporters are often paid by way of a ……exchange…………

bill of .............. ……

17. Another word for the intermediaries ………middleman………

between producer and customer is ……
…………….
 18. The person who uses something is …………customer……
called a consumer, the person who buy …....
something in a store is a……………

21. When investors establish a plant overseas, this is called ……Direct

investment…………… (6,10). If they buy shares or long-term debt obligations, this is
called ………Portfolio investment……… (9,10)

23. Producing in large quantities becomes cheaper because of ……Economies of

scale....... (9,2,5)

24. The …………GATT………… (4) was to set up in 1947 to encourage international

trade and to minimize protectionism.

25. We started with a ………raid………(4), buying all the stocks available on the stock
exchange. They got us 15% of their stocks. Then we made a……Takeover
bid………….. (8,3)

26…………General average……… (7,7) requires all parties concerned in the venture to

contribute to compensate for the losses caused to those whose cargo has been loss or
damaged.

27. A cash grant is called an … incentive………….. whose purpose is to………attract

FDI……………

29……Road transport………………… offers door to door delivery services.

30. The date at which a loan will be repaid: Maturity

31. Reduction in unit costs arising large scale production: Economies of scale

32. Total self-sufficiency and the consequent absence of foreign trade: Autarky
33. The difference between the money values of a country’s visible imports and exports:
Balance of trade

34. Having a responsibility or an obligation to do something, e.g to pay a debt: Liability

35. A document that shows details of goods being transported; it entitles the receiver to
collect the goods on arrival: Bill of lading

36. Central banks regulate the banking system; fix the minimum interest rate; issue bank
notes

37. Imposing trade barriers in order to restrict imports: Protectionism

38. Trade in services (banking, insurance, tourism and so on): Invisible imports and
exports.

39. An arrangement by which a customer can withdraw more from a bank account than
has been deposited in it up to an agreed limit; interest on the debt is calculated daily:
Overdraft

40. Multinational companies usually have subsidiaries in different countries

41. Most countries give foreign companies investment incentives to attract new
investment

42. Some companies prefer to grow organically, but it is quicker to grow by acquisitions

acquisitions

43. Operating all over the world while taking account of local cultural habits, beliefs and
preferences in each country or market means Globalization

44. Central banks generally fix a country’s minimum interest rate

45. In Feb 2000, Vodafone AirTouch succeed in its hostile takeover of Mannesmann

46. Television commercials, advertisements and endorsements are all means of invisible
goods

47. A product is not just an assembled set of components: it is something customers buy
to satisfy a need thay feel they have. The image and the design of the product are as
important as its specifications.
48. GATT was designed to promote free trade by reducing both tariff and nontariff
barriers to international trade

49. Open account is the least secure payment method to the exporter

50. Speculators buy or sell currencies in order to make a profit by making capital gainst
or by investing a higher interest rates

51. Clause A has the widest cover.

52. Synchromarketing involves altering the times pattern of irregular demand

53. In the Introduction stage of product life cycle, the product is promoted to create
awareness

54. The classic product life cycle is Introduction, Growth, Maturity and Decline

56. The first step of the procedure for documentary collection, the exporter task is to ask
his bank to draw a bill of exchange on the overseas buyer.

57. A country exporting more than it import has a trade surplus

58. If a country can produce something more cheaply than anywhere else in the world, it
has absolute advantage

59. A strategy of adapting products and their marketing strategies in each national market
that suit local preferences is multinational strategy

60. Strategy of offering the same products using the same marketing strategy in all
national markets is the global strategy

61. Countermarketing is the attempt to destroy unwholesome demand for products that
are considered undesirable

62. Points of sale are places where goods are sold to the public shops, stores, kiosks, and
markets. Stalls, etc.

63. Getting control of a company by buying over 50% of its shares: Takeover

64. When a company's top executives buy the company they work for: Management
buyout
65. Adding new and different products or services: diversifying

66. The difference between what a country pays for all it imports and receives for all its
exports: Balance of payments

67. The system in which a currency could be exchanged for a fixed amount of gold: Gold
standard

68. Some countries try to be self-sufficient in certain commodities so that they are not
dependent on imports

69. Among other things, a bill of lading contains details of the goods, their destination
and the name of ship carrying them

70. When two companies merge they usually have greater economies of scale than as
separate companies

71. Importing and exporting are the two aspects of foreign trade: A country spends
money on goods it imports and gain money through its exports

72. Adding trade in services to trade in goods gives you balance of payments

73. In the maturity phase of product life cycle, sales growth slows and then stabilizes

74. Remarketing involves revitalizing falling demands

76. In the documentary collection if the importer dishonors the bill, the exporter may
have to find an alternative buyer or ship the goods back

78. A company’s owners: Shareholders

79. All the money that a company will have to pay to someone else in the future,
including taxes, debts and interests mortgage payments: Liabilities (tiền nợ, khoản nợ,
tiêu sản)

80. Anythings owned by a business (cash investment, building, machines) that can be
used to produce goods or pay liabilities: Assets

81. The reduction in the value of a fixed asset during the year it is in use (charged against
profits): Depreciation (sự giảm giá)

Depreciation
82. The value of raw materials, work in progress, finished products stored ready for sale:
Inventory (kiểm kê, hàng hóa tồn kho, bản tóm tắt)

83. A business-level strategy in which a company exploits economies of scale is called a

low-cost leadership strategy.

Low-cost leadership strategy

84. A differentiation strategy is one in which a company designs its products to be

perceived by buyers as unique throughout its industry.

differentiation

85. A focus strategy is one in which a company emphasizes on serving the needs of a
narrowly defined market segment by being the low-cost leader, differentiating its product,
or both.

83. Unlike quotas, tariffs produce revenue for the government.

86. The best form of advertising is free word of mouth advertising, which occurs when
satisfied customers recommend products or services to their friends.

87 . Remarketing involves revitalizing falling demand, for example, for churches, for
city areas, or aging film stars.

88. Name recognition for arbitration is like Brand recognition for customer goods.

89. Manufacturers sell their goods to wholesalers and in return, retailers buy from them.

90. Advance payment is the most secured payment method for exporters.

91. Price wars and competition occur as the market reaches saturation

92. Originally, most multinational companies expanded overseas because trade barriers
such as tariffs and quotas had been set up against their goods.

93.The most complete insurance is against all risks.

94. The Bretton Woods Agreement stipulated that all members would express their
currencies in gold.
95. Prior to making a foreign direct investment, exporters can make a contract with a
distributor or with foreign manufacturer, who will be licensed to manufacture their
products. For this, the foreign manufacturer pays royalty.

96. Bartering is based on the exchange of goods for goods.

97. In the Maturity phase, price wars and competition occur as the market reaches
saturation

98. Attempting to reduce imports in favor of local production is called protectionism.

99. The import and export of goods is called visible trade.

100. Many economists encourage governments to abolish import taxes and have
completely free trade.

101. A number of international agreements make it illegal to dump goods on foreign

market at a price that doesn’t give a profit.

102. The comparative cost principle is that countries should make the things they can
produce the most cheaply.

103. Countries that export oil or manufactured goods tend to have a positive balance of
trade.

104. Autarky is the (possible) situation in which a country is completely self – sufficient
and has no foreign trade.

106. The WTO has established rules of trade between nations.

107. Futures are forward contracts for the purchase and sale of securities, precious
metals, etc…., at a fixed price.

108. Trade balance plus invisible transactions make up the balance of payments

109. A country with consistent deficits will see its negative balance of trade or
payments in relation to other countries.

111. In the UK the service sector employs more people than the manufacturing sector.

112. The people who work for a company are called employees..............
113 When it is approved, the merger...................of Vodafone AirTouch with
Mannesmann will be the world's largest.

114. The people you work with are your colleagues..............

115. Every company is looking for something which will give it a competitive
advantage

117. The majority of start-ups and new ventures..............fail within two years.

118 The main office of a large company is called the headquarters............

119. Wal-Mart is the word's largest retailer...................

120. In companies such as advertising agencies, people are vital intangible

assets.....................

121. A person who does a similar job to you, but in another company is your
counterpart..............

122. In a free trade area, governments can not impose a tariff on imports.

123. Many government organizations are inefficient because they are too
bureaucratic........ , with too many rules and regulations.

bureaucratic

124. Freelancers ..... are people who provide their services on an individual and
independent basis to different companies.

125 Most publicly quoted companies have both a chairman.............and a chief

executive.

126. The movement of money into and out of a company is known as ..cash flow

127. Most countries give foreign companies ...........tax incentives............. to attract new
investment.

128. Balance of payment is a record of a country’s ……………………..(transactions)

129. Some transactions are visible; others are ………………………(invisible) An

example of the latter is ……………………..(insurance)
130. Two forms of protectionism are tariffs and quotas

132. In cases where foreign currency is earned, a …………………….. is registered on

the balance of payments.

131. A limit to the quantity of goods that can be imported is a quota.

134. The long term and short term loans and borrowings at home and abroad are the
…………………….. Accounts

135. The three main business areas which have traditionally been resolved by arbitration
are construction, commodities and transportation.

136. Economies of scale are the situation of reductions in costs resulting from increased
production.

137. Billions of dollars leave the USA every year because the country has a big trade
deficit.

3. Insurance companies can be considered as professional_____takers.

4. There ……….. …………… ……………… is an extremely valuable mechanism

5. _____and_____involve letting potential customers know about a new product both

before it is made and after it becomes available for sale.
1.
Selling a bill or a financial instrument at a _discount______ means selling it at less
than 100%.
(1/1 Điểm)
2.
A clean _floating_____ exchange rate is determined by supply and demand.
(1/1 Điểm)
3.
__exchange_____ controls used to limit the amount of a country's money that
residents were able to change into foreign currencies.
(1/1 Điểm)
5.
_Hedging______ means trying to insure against unfavorable price movements by way
of futures contracts.
(1/1 Điểm)
6.
A _monopoly____ is a market in a particular product in which a single producer can
fix an artificial price.
(1/1 Điểm)
10.
Dealers using two foreign exchange markets to benefit from rate differentials are said
to engaged in __arbitrage___.
(1/1 Điểm)
—---
A person who receives an international payment is called the _beneficiary_______.
(1/1 Point)
2.
The world price of coffee is not fixed. It is largely controlled by __market forces____
_______.
(1/1 Point)
3.
Import tariffs and quotas are types of ___trade barriers___ ______.
(1/1 Point)
4.
The absence of trade barriers is known as ___free trade___ _______.
(1/1 Point)
5.
Charging a high price for a new product is known as market __skimming_____.
(1/1 Point)
6.
Another word for ‘operating costs’ is __overheads______.
(1/1 Point)
7.
A ___force majeure___ ______ is an unforeseen event such as strike, riot or natural
disaster which prevents a contract from being fulfilled.
(1/1 Point)
Force majeure
8.
A devaluation can have a favorable effect on the trade balance because it can help
increase __exports____.
(1/1 Point)
9.
___gold convertibility___ _______ ended in the early 1970s.
(1/1 Point)
Gold convertibility
1.
A _____marketing network__ ________ consists of the company and its supporting
stakeholders - customers, employees, suppliers, distributors, retailers, agencies,
university scientists, and others - with whom it has built mutually profitable business
relationships.
(1/1 Điểm)
2.
Letters of credit can be _traded____ like other financial assets.
(1/1 Điểm)
3.
A bill of __lading___ proves the ownership of goods.
(1/1 Điểm)
4.
The export of services is good for a country’s balance of ___payments___.
(1/1 Điểm)
5.
Selling a new product cheaply in order to get a large market share is called
market_penetration____.
(1/1 Điểm)
6.
Apart from inside customs unions like the EU and NAFTA, goods imported abroad are
generally subject to __tariffs___.
(1/1 Điểm)
7.
The price of labor and materials determines a product’s __direct cost____ ______.
(1/1 Điểm)
8.
A___wholesaler__ is an intermediary who stocks goods and delivers them to retaile
in rs.
(1/1 Điểm)
9.
As well as labor and materials (and profit), the price of a product also covers the
manufacturer’s __overheads____.
(1/1 Điểm)
10.
If there’s a problem with the letter of credit, I suggest you contact the __issuing
bank_____ _______.
(1/1 Điểm)

The ___premium_____ for this cover will be at the rate of 90p% of the declared value
of 1500GBP.
(1/1 Điểm)
2.
 We would be grateful if you would quote us your rate for cover against all
__risks______ for this consignment.
(1/1 Điểm)
3.
___Indemnity_____(9) is a basic principle in insurance that the person who is insured
should be in the same financial position after a loss as s/he was before.
(1/1 Điểm)
4.
A licensing agreement is a contract between a __manufacturer_______ and a licensee
in another country.
(1/1 Điểm)
5.
Insurance arrangements are made through _brokers_______.
(1/1 Điểm)

6. A partial loss of a consignment, which may not affect other consignments on the same
carrying vessel, is a particular average

7.
Regular shippers may often take out a ______floating__ policy, which gives automatic
cover for a fixed value of shipments, depending on the previous year’s value, if the
insurance company is told when each shipment is made.
(1/1 Điểm)
8.
Ships’ cargoes are covered by ____Marine policy____ ________.
(1/1 Điểm)
9.
A loss by one shipper, but which is shared by all the shippers with cargoes on the same
carrying vessel, is the ___General average_____ ______ .
(1/1 Điểm)
10.
Natural disasters usually mean that insurance underwriters suffer heavy
______losses__.
 1. Because of the ___globalization____ of business, an increasing number of mergers
are cross-border deals.
2. One aim of all companies which sell goods or services is to increase their
____market share____ _______.
3. Cultural ___differences_____ are one of the potential pitfalls of international
mergers.
4. Companies that handle all aspects of their business internally, such as the big oil
companies, are known as ___vertically_____-integrated companies.
5. In ______joint ventures__ _______, two or more companies collaborate on
specific projects.

7.The amount of cash that remains after a company has paid taxes and other cash expenses is
cash flow projection

7. Traders sometimes agree to trade currency in the future for an agreed rate. A “long position”
means that the trader will make a profit if the currency goes up.

8. A “short position” means that the trader will make a profit if the currency goes down.

9. When the government doesn’t control the exchange rate in any way, the currency is freely
______.

10. Changes in the values of currencies are called currency fluctuation.

2. Conversional marketing finds out why people dislike the product, and redesigns it, lowers
prices, and uses more positive promotion.

7. Synchro Marketing alters the pattern of demand through flexible pricing, promotion, and
other incentives, e.g. for public transport between rush hours, of for ski resort in the summer.

11. Counter marketing is the attempt to increase prices, reduce availability, make people sacred
for products that are considered undesirable

1.The first stage in marketing a product is to develop brand awareness.

3.Sooner or later, every product will reach its decline stage.

4.The majority of products available at any particular time are in their maturity stage.

5.Most new product failures are the result of market research.

7.During the growth stage, more and more people adopt a new product.

8."We have to consider which are the best media to reach our target market".

10.Our marketing slogan is that "products are bought rather than sold"

designing new products and bringing them to the market (10) innovating

to expand into new fields (9) diversify

To unite, combine, amalgamate, integrate or join together (5) merge

buying another company's shares on the stock exchange, hoping to persuade enough other
shareholders to sell to take control of the company is known as a (4) raid

a public offer to a company's shareholders to buy their shares, at a particular price during a
particular period, so as to acquire a company is known as a (8, 3) takeover bid

to merge with or take over other firms producing the same type of goods or services (10, 11)
horizontal integration

joining with firms in other stages of the production or sale of a product (8, 11) vertical
integration

a merger with or the acquisition of one's suppliers (8, 11) backward integration

a merger with or the acquisition of one's distributors (7, 11) forward integration

PART 2: ANSWER THE QUESTIONS – TACN 3

1. What are the differences between FDI and FPI?
- FPI: the purchase of shares and long-term debt obligations from a foreign entity.
Portfolio investors do not aim to take control of a corporation. They can liquidate
their investments at market price any time.
FDI: the establishment of a plant or distribution network aboard. Investors can
acquire part or all of an existing foreign company either to control or share control
over sales, production, research and development. Capital fund will be tied up for
a long time
2. What do insurance contracts by land and by air follow? Why?
Insurance contracts by land and by air follow marine insurance practices because:
Insurance for the goods carried by sea has been largely standardized. For the goods
carried by land and by air, this is not yet the case.
3. What are the reasons behind a horizontal merger?
 - To reduce competition
- To increase market share
- To acquire additional equipment and plants
- To achieve the synergy and the economies of scales.
4. Why do poor and developing countries sometimes criticize multinational
companies?
because:
- The multinational companies have mostly used capital provided by local banks
and investors and not bought in capital. As a result, there is a shortage of
capital to finance for the local business. Foreign firms have taken the lion’s share
of available capital.
- Technology applied to production by multinational companies is unsuitable
for poor and developing countries. It is developed for industry society, not for
local destinations because it is expensive and complicated. For instance, in
agriculture, most of them do not need the tractors which are expensive to buy and
operate, they only need the better hoes and ox-plows.
- Another disadvantage of technology is that it may lead to a higher
unemployment rate. By using modern technology which has higher efficiency
than humans, the demand for employment may decrease.
5. How do central banks intervene in the foreign exchange markets?
The central bank is a country’s chief of banks which is owned by the government.
It regulates the commercial banks and holds gold and foreign currencies reserves. It can
intervene by buying and selling its own currency in the foreign exchange markets, so that
currency keeps a certain value.
6. What makes some countries more attractive to FDI than others?
Eclectic theory gives an explanation about why some countries attract more FDI
than others. This theory shows that foreign firms undertake FDI when the features of a
location combine with the ownership and internalization advantages to make some
countries more attractive than others.
The typical multinational company pools all its resources to achieve the highest
efficiency and receive the maximum return on their intervestment. Managerial skills,
capital, raw materials, interest rates are utilized to the benefit of many world markets.
7. What is the difference between selling concept and marketing concept?
Selling concept assumes that people sell what they have by persuading their
customers although the goods and services may be nonessential with their customers.
 Marketing concept assumes that people research the markets to find the demands
which are not met and fill it by manufacturing and selling the products and services their
customers really need.
8. What does insurance premium depend on?
Insurance premium depends on the mode of transportation, the nature of goods,
the scope of cover, distance, past claims experience and packing.
9. What is the foreign exchange market?
Foreign exchange market is a market in which the foreign currencies are bought
and sold and in which currency prices are determined.
Foreign exchange market is a mechanism through which currencies are traded. It is
not a real market but a system of telephones of telex between banks, customers and the
middlemen.
10. What are investment incentives?
Investment incentives are the benefits such as low interest-bearing rate, capital, tax
credit, cash incentives provided by the government to attract more foreign investments.

11. What are the risks faced by exporters in the 4 common payment methods? 
In opening an account payment method, the exporter loses all control of the
delivered goods and trusts that the payment will be made by the importer in accordance
with the original sale contract.
In the LC payment method, very few risks arise for the exporter because the
potential areas of the buyer risk and the government risk are eliminated. However, the
exporter has to present the documents in compliance with terms and conditions of the
credit. If the exporter fails to do this, the exporter will lose the protection of the credit.
In bills of collection payment method, the risk the exporter faces is that the
importer fails to accept the bill of exchange or refuse part of the accepted bill when
it is due. In this case, the exporter has to consider shipping the goods back to their home
country, finding other buyers or even abandoning their consignment, all of which are so
expensive for the exporter.
In advance payment method, the exporter does not have any risk relating to
non-payment
12. Name five activities that any State Bank or Central Bank of any country in the
world always does.
- The government’s bank and banks’ bank (lender of last resort)
- Managing the gold and foreign exchange reserves and the government’s stock
register
 - Controlling the nation’s retire money supply
- Regulating and supervising bank industry
- Implementing the monetary policy
- Setting the interest rate - used to manage both inflation and exchange rate and
ensuring it work
13. Briefly describe spot and forward transactions. Give an example of each.
Spot transaction is a transaction in which currencies are sold and bought today
with delivery 2 business days.
Forward transaction is a transaction in which currencies are traded in the future
with payment and delivery at the future date.
14. What are the key reasons for the failure of M&A?
- Differences in culture: cultural barriers, clash of cultures.
- Over-optimism: managers are just too optimistic about prospects for the enlarged
group; they have unrealistic expectations about the future success of the new
company.
- The way the two companies are combined.
15. At which stage in the product life cycle would manufacturers differentiate their
products? Why?
In maturity stage manufacturers differentiate their products by attractive packaging,
incentive offers, competitive prices, creative advertising.
Sales growth slows and then stabilizes.
Price war and competition occur as the market reaches saturation.
16. What is the best way of advertising? Why?
The best form of advertising has always been word- of- mouth advertising: people telling
their friends about good products and services. It is cheap, effective and trust-worthy.
17. What are three main business areas which have traditionally been resolved by
arbitration?
Construction, commodities, transportation.
19. What is the difference between documents against payment and documents
against acceptance?
DA: the documents against acceptance: In this case, the documents are released to the
importer only when the payment is done.
DP: the documents against payment: In this case, the documents are released to the
importer only against the acceptance to payment.
21. Why would the government impede free trade?
- Political motives:
- The gain influence
 - To preserve national security
- To protect jobs
- To respond to “unfair” trade
- Cultural motives
- Cultures of countries are replaced by others
- The influence of culture of the United State
- Economic motives:
- To pursue strategic policies
- To protect infant industries

22. How does a documentary collection differ from a letter of credit as a means of
financing international trade?
In the documentary collection payment method, the bank only plays as an agent. The
bank does not provide financing or substitute its credit for that of the buyer as in the LC
payment method. It only does as the instructions of the importer and the exporter to
receive returns as fee. It is not responsible for the payment to the exporter if the importer
fails to pay.
23. What are some financial considerations in making a foreign direct investment?
Return on the investment, cash flow project, the sources of working capital, interest rate
24.What are the objectives of FDI?
- Resource seeking FDI: seek and secure natural resources (raw materials, minerals,
lower labor costs) for the investing company
- Market seeking FDI: identify and exploit new markets for the firms’ finished products
- Efficiency seeking (global sourcing FDI): restructure its existing investments to
achieve an efficient allocation of international economic activity of the firms
- Strategic asset/capabilities seeking FDI: pursue strategic operations through the
purchase of existing firms and/or assets to protect O specific advantages to sustain or
advance its global competitive position.
25. Why is letter of credit the popular method of payment in international trade?
Because it is more secure. The bank must pay even if the importer defaults on payment.
- L/C because it protects both sides:
+ Safer for the exporter as it makes sure he will get his money for the goods sold
provided that he presents the correct documents
+ Ensure the importer that he will get the goods bought as long as he pays for them or
agrees to pay on a fixed date in the future.
26. What are the advantages of arbitration over litigation?
- Arbitration is much less formal than litigation and requires much less time and money.
+ Speed: quick, take less time
+ Cost effectiveness: cheap
- Reliability of the arbitrators: The arbitrators are usually more sophisticated and
knowledgeable than juries. They are more justice because arbitrators are chosen by both
parties.
- Keep the disputes away from the public eye, because arbitration takes place in
private, unlike litigation in the court → Confidentiality → protect the reputation
27. What are the reasons for companies to look for foreign markets? / Why do the
companies go internationally?

• Their national markets become saturated.

• Some countries set up trade barriers – usually tariffs or quotas – against a
company’s products.
• Cheap labor and natural resources abroad, especially in developing countries.
• Expand sales
• Diversify sales
• Gain experience
28. What factors are needed considering when choosing the mode of transportation?
● Nature of the goods
-Dimensions
-Weight
-Value
-Fragility
-Perishability
-Pilferability
• The time factor: Fast transport
- Reduce distribution cost
- Reduce cost of finance tied up in transit
- Require less insurance cover
- Means earlier use/ resale of goods
• Freight rates
-Sea freight rates
-Air freight rates
29. What benefits do multinational companies bring to poor and developing
countries?
- Provide the capital which poor countries need for their economic growth, together with
local savings, and finance their industries.
- Share technology with local businesses, introduce scientific and technical methods to
production increasing the productivity of their workers.
- Produce a wide variety of goods, employ thousands of people all over the world, pay
good wages and multinational companies are responsible for raising living standards.

30. Which market is bigger, the producer market or consumer market? Why?

The producer market is actually larger than the consumer market, since it contains:

all the raw materials, manufactured parts and components that go into consumer goods,

capital equipment such as buildings and machines,

Supplies such as energy and pens and paper,

services ranging from cleaning to management consulting, all of which have to be

marketed. 

31. When is foreign project said to be viable? What is a nonviable project?

The project is viable only when reliable access to outside financing is available.
Non-viable project is one where the expected rate of return, or profits realized on assets
employed, is likely to be lower than from a comparable investment in the host country.
32. Briefly describe the importance of the gold standard?
The gold standard is a system which helps determine the value of currency based on gold.
Thanks to this system, the values of different currencies can be compared in terms of one
another.
33. Distinguish need, want, demand
- Needs are human basic requirements such as air, water, clothes, food,... to
survive. People also have strong needs for education, entertainment,...
- Wants are needs directed to specific objects which can satisfy the need.
- Demand are wants along with payment ability to specific products.
34. What do clients look for from an arbitration service?
Speed, cost effectiveness, confidentiality, reliability of arbitrations, protecting reputation,
decision.
35. Why is there a high percentage of failure of mergers and acquisitions?
- The way the two companies are combined
- Cultural differences: Cultural barriers or clash of cultures.
- Over-optimism: managers are just too optimistic about prospects for the enlarged
groups. They have unrealistic expectations about the future of the new company.
36. What should companies do to lengthen the product’s lifecycle?
- Find new customers by innovating products
- Find new target markets or expand markets to continue selling
- Change packing
- Change the way of advertising, add more functions
37. Why would an exporter ask for a confirmed letter of credit?
Because the exporters want to make sure that they would be paid at maturity. When
a LC is confirmed, all the risks of the issuing bank are then borne by the confirming bank
for a fee. If the issuing bank goes out of business, the confirming bank is still obligated to
honor the draft.
38. What are the harmful effects of a large trade deficit?
- Employment: Affect economic growth and stability. If imports are more in demand
than exports, domestic jobs may be lost to those abroad.
- Currency Value: The demand for a country's exports impacts the value of its currency.
As the demand for exports falls compared to imports, the value of a currency should
decline.
- Interest Rates: A downward pressure on a country’s currency devalues it, making the
prices of goods denominated in that currency more expensive - it can lead to inflation.
- FDI: a trade deficit must be offset by a surplus in the country, capital account and
financial account.
- Large trade deficits largely affect consumer preferences which are mitigated in the
long run.
39. What are the reasons behind a vertical merger?
- To guarantee their supply and cost of raw materials and components
- To be closer with their customers, by cutting out the wholesaler for instance,
directly dealing with their retailers.
40. Why does the exchange rate fluctuate?
Because the value of currency is determined by demand and supply (the market
mechanism). Buy speculators often interfere with this mechanism
41. Who can change the marketing mix? How?
Marketers can change the mkt mix though the features of products, its distribution, the
way it is promoted, its prices - to increase sales.
42. What is the role of the banks in international trade?
● Active role: When the Banks get involved in the payment process, supporting
both the exporter and the importer to complete their obligations so that the
contract is carried out as agreed. For example, in the documentary credit method
of payment.
 ● Passive role: When the bank only does things as requested. For example, just
transferring money to the account of the seller/exporter.
43. What payment methods do you know that are used when exporting or
importing goods?
● Open account
● Letter of credit
● Bill for collection
● Advance payment
44. When do people use the 4 payment methods?
- Open account is only used for the most trusted customers;
- LC is typically used when an importer’s credit rating is questionable, When the
exporter needs a LC to obtain financing, and when the market’s regulations require
it; new partners
- Advance payment is common when 2 parties are unfamiliar with each other, if there
is more demand than supply for that kind of commodity;
- Bill for collection is commonly used when there is an ongoing business relationship
between the 2 parties. 
45. Ways government intervenes trade

- Tariffs: Government tax levied on a product as it enters or leaves a country

- Quotas: Restriction on the amount of goods that can enter or leave a country
- Embargoes: complete ban on trade in one or more products with a particular country
- Local content requirements: laws stipulating that a specified amount of a good be
supplied in the domestic market.
- Administrative delays: regulatory control designed to impair the rapid flow of imports
- Currency controls: restrictions on the convertibility of a currency into another.
46. Why might the Vietnamese government urge the Vietnamese consumers to “Buy
Vietnamese”?
Because it wants to protect jobs in Vietnamese industries and improve the Balance of
Payments on the current account.
47. Three ways in which businesses benefit from international trade
- obtain a number of raw material requirements from abroad(visible imports)
- sell a large proportion of finished products abroad(visible exports)
- hire specialist services from abroad. One way in which it could achieve this is by a
consultancy arrangement with a foreign firm (invisible imports).
48. What is the difference between the balance of trade and balance of payment?
A country’s balance of trade includes imports and exports only. Its balance of payments
considers all business transactions with other countries, including imports and exports
of goods and money earned from or paid for services and investments such as tourism or
shares in companies.
49. Why do we have to buy Marine Insurance on Goods?
The insurer shall be liable for all risks or some risks of loss to the insured goods
under Marine Insurance on Goods. In another way, the insured will be compensated
under Marine Insurance on Goods when risk of loss to the insured goods happens.
50. Give some examples of loss which are within scope of insurance for each
condition A, B or C.
Some examples of loss:
- Condition A: Ship sinks resulting in damage to goods, explosion of ship causes loss of
goods,…
- Condition B: Goods are on fire, total loss of any package is lost overboard,…
- Condition C: Loss of insured goods is caused by general average sacrifice, loss of
insured goods in consequence of the carrying vessel being missing,…
51. What does “exclusion” mean?
The insurer shall not be liable for loss to the insured goods by risk of exclusion. In
another way, the insured will not be compensated when loss to the insured goods happens
by risk of exclusion.
52. The insured amount is 90,000 USD and goods are covered by three companies. If
total loss happens, how much will each insurance company be liable for?
Article 20 of Marine Insurance on Goods provides as follows: “the liability of all the
insurers shall be limited to the insurable value with each insurer liable for such proportion
part as the respective insured amount bears to the aggregate of the insured amount”. Each
insurance company will indemnify 300,000 USD.
53. Why do buyers and sellers insure their cargoes?/ Why do people insure their
goods?
Because the handling and transportation of goods always involves the risk of loss or
damage. Owners of the goods protect themselves against these risks by insuring their
goods in transit. Who will be responsible for insuring the goods and for what part of their
journey will be written into the agreement made between seller and buyer.
54. What agreement is usually made in an insurance contract?
In an insurance agreement one party, usually an insurance company, undertakes to
indemnify the other party (the insured) if loss or damage is suffered due to a specified
event (the risk). In return, the insured pays an agreed amount of money (the premium).
The terms of the agreement define what risks have been insured against (the cover).
56. reasons behind diversification mergers
- to move into a sector which promises greater growth or profits
57. Why does the exchange rate fluctuate?
- government mandate
- general economic conditions
- the trader conducting it
- the size of the transaction
58. Are low prices always good? why?
not always
● pros:
- attract customer
- launch new product line
- reduce production cost (cost to stored for a long time)
- people with low salary can afford the goods
● cons:
- price may not play an important role in the purchasing decision in some situations.
- anger past customer
- affect the brand
59. Why do agricultural workers in the third world find their conditions worse by
the actions of MNCs?
Bigger farms are using imported machinery to increase production but employing fewer
and fewer workers
60. What can give a country an absolute advantage or comparative advantage in
goods and services over other countries?
factors of production
climate
division of labor
economies of scale
Screen reader support enabled.
61. How many ways of acquiring a company are there? What are they?
2 ways, a raid or a takeover bid
62. Why do economists generally believe in free trade?
63. What are the reason for buying and selling foreign currency
to make transactions and to make profit, secure risk
1. What is the role of banks in 4 methods of payment
Advance payment: No roles, there is not much bank's involvement because both parties
directly deal with each other or intermediary to transfer money, if needed
Open account: No roles
LC:
Greatly support of the bank in the
payment process

Bills for collection: Passive role of the bank, the bank only do what is required and
receive collection fee
1. What happened to the world foreign exchange market in the early 1970s? Why?
Gold convertibility ended because the Federal Reserve no longer had enough gold to
bank to dollar, due to inflation. Because Bretton Woods System influence heavily on the
stability of dollar

2. What are the roles of advertising in the 4 stages in the product life cycle?
 1- why is there a high percentage of failure of M&A
2- why companies merge

Why there has been increase in merger and acquisitions?

What do businesses do to protect themselves against risks?
Why do companies merger with each other?
Why there is high percentage failure in merger and acquision?
gains and losses of a policy towards foreign investment
2. Why do most governments impose tariffs and quotas.
1. Why do the government of some countries encourage multinationals to set up
production or sales facilities in their midst while others discourage this type of
foreign investment?
2. Why do people insure their goods?

Part 3:
ESSAY WRITING – TACN3
UNIT 1: INTERNATIONAL TRADE
1. What are the advantages and disadvantages of free trade?
With the rapid globalization of world economies, free trade has become an
essential part of international trade. It can not be denied that free trade brings a lot of
outstanding benefits for both parties but there will also be some drawbacks. This essay is
going to discuss both sides of free trade.
There is no doubt that free trade agreements are superb for the parties. First, it is
clear that it is an ideal opportunity to increase the GDP of a nation. By promoting trade
between the two countries, the amount of goods produced grows rapidly to meet the
demand of the whole foreign country instead of just domestically as before. Second,
trading freely creates a more competitive business environment which promotes domestic
companies to develop day by day by innovative production methods, the use of new
technology, marketing and distribution methods. As a result, domestic consumers have
more choices of lower-priced and higher-qualified products. Thirt, by using the
advantages of each other, the parties can reach higher benefits. EVFTA, for instance, has
increased more export items from EU to Vietnam such as electronic components,
machines,... which are EU strengths and important inputs of Vietnam.
On the other hand, free trade might be unfair with countries where local
producers, suppliers and employees are so sensitive. Although according to economic
theory, more competitive environments encourage enterprises to develop, in fact, in
developing economies, big multinationals can use their economies of scale to push local
firms out of business.
In conclusion, free trade brings both positive and negative impacts depending on
the ability of each country at the time. To maximize benefits from trade liberalization
agreements, both governments and businesses need to change and develop in accordance
with the new era.

UNIT 2: FOREIGN DIRECT INVESTMENT

1. What are the advantages and disadvantages of FDI to the host country?
With the rapid globalization of world economies, FDI has become an essential part
of an open and successful international economic system and a major mechanism for
development. It can't be denied that FDI brings a lot of advantages for a host country but
there will also be some drawbacks. This essay is going to discuss both sides of FDI.
To begin with, foreign direct investment can make a positive contribution to a host
economy. Firstly, thanks to FDI, the resources such as capital, modern technology and
managerial skills,... can be transferred to the host country. Thus it can improve the
efficiency of economic operation and development. Second, FDI creates a more
competitive business environment in which both internal and external companies have to
improve day by day to survive and develop. As a result, domestic consumers have more
choices of lower-priced and higher-qualified products. In addition, FDI can also improve
human resources by getting exposure to globally-valued skills and generate new
employment opportunities for the host country. Lastly, FDI brings higher revenues in the
form of taxes, strengthening the exchange rate of the country.
However, FDI also has some disadvantages to the host country. FDI may lead to
modern day economic colonialism, which exposes host countries and leaves them
vulnerable to foreign companies’ exploitation. Another negative effect of FDI is that
inflow of massive FDI can overheat the economy, as shown in the inflation that occurred
in Vietnam over a couple of years. On the other hand, in the long run, the balance of
payments position of the host economy is jeopardized with the investor outlay. When the
initial investment starts to turn profitable, normally capital will return to the country it
originated from.
In conclusion, although there are certain disadvantages, the advantages of FDI are
much more considerable. FDI not only serves as a source of capital inflow into host
economies, but also helps to enhance the competitiveness of the domestic economy
through transferring technology, strengthening infrastructure, raising productivity, and
generating new employment opportunities.
2. Why do some countries attract more FDI than other countries?
With the rapid globalization of world economies, FDI has become an essential part
of an open and successful international economic system and a major mechanism for
development. However, the benefits of FDI do not accrue automatically and evenly
across countries, sectors and local communities. This essay is going to write about why
some countries attract more FDI than other countries.
According to Eclectic theory, there are three determinants of FDI, including
Ownership, Location, and Internalization advantages which determine the extent, form
and pattern of a company's international production; it is also known as the OLI-Model.
Firstly, the ownership advantage is the precondition for the company to initiate FDI. It
can be not only material such as capital and resources, but also immaterial like
technology and managerial skills. The location advantage refers to a certain location that
can provide some specific advantages to the company in the host country, e.g. access to
cheap inputs, existence of raw material, special taxes or tariffs. The internalization
advantage is obtained by directly controlling production and distribution via foreign
branches or subsidiaries on the purpose of cost reduction.
Corresponding to the three advantages of the host country, in Dunning’s theory,
there are three primary motivations of international investors to invest abroad: market,
efficiency (cost reduction), cost resource. The market-seeking investors aim at acquiring
large and fast growing markets. The efficiency-seeking investors pay more attention on
how to minimize the total cost, such as choosing a location close to home country in
terms of geographic distance, in order to reduce the expense of transportation, or locating
in a country with lower labor cost. Resource-seeking investors weigh more of abundant
and steady supply of raw materials and energy sources from the host country.
To sum up, FDI has always been an important factor in the overall development of
each country's economy and it needs to be promoted more strongly. Exploiting the full
potential and national advantages will help some countries attract more FDI than other
countries.
3. Some governments have begun to insist that foreign companies can only operate
on a joint-venture basis. What can be gained and lost by such a policy towards
foreign investment ?
Some countries, especially developing countries have favored joint ventures when
foreign direct investment is allowed at all. It can not be denied that this policy brings a lot
of advantages for both host countries and investors but there will also be some
drawbacks. This essay is going to discuss both sides of foreign investments - related
policy which is joint-venture.
 There are a number of positive contributions to both host countries and investors.
Firstly, in host countries' views of joint ventures, this policy helps them protect
sovereignty, improve technological and managerial skills. Joint ventures are a good way
to ensure that foreign firms will not control key decisions in the economy. By being a part
of a joint venture with foreign partners, it is expected that local engineers and managers
will learn from their foreign counterparts. Secondly, multinational enterprises also see
benefits in joint ventures and voluntarily enter into them in order to enter markets easily.
In developing countries, some firms enter into joint ventures voluntarily with local firms
to incorporate their knowledge of managing the local labor force, the market, and to help
in interactions with the government.
However, joint ventures
To sum up,
UNIT 3: FOREIGN EXCHANGE TRADING
1. “For hundreds of years, the monetary system of most countries has been
based on the exchange of metal coins and printed pieces of paper. However,
because of recent developments in technology, the international community
should consider replacing the entire system of coins and paper with a system
of electronic accounts of credits and debits”. Discuss the extent to which you
agree/ disagree with the expression above. Support your point of view with
reasons/ examples from your own experience, observations or reading.
With the rapid development in technology during recent years, a large number of
people have used electronic accounts in payments. Some people including the author of
the topic strongly support the entire replacement of a monetary system by electronic
accounts. Although it seems to be a brilliant idea when applying modern technology in
human life, in my opinion, the physical currency can not be altered because of some
following reasons.
First of all, the traditional monetary system is deeply rooted in almost all societies.
People have long been used to coins and paper money as a medium of exchange and a
standard of value. While coins and paper money are freely convertible to gold, a tangible
asset and ensured by the government that they are valuable, credit cards seem to be more
risky. In addition, metal coins and printed pieces of paper have high historical and artistic
values. Most countries emphasize the design of coins and paper money, as they are the
most important way to show national pride. For instance, the famous image of
Vietnamese leader Ho Chi Minh President is shown in every Vietnamese coin and paper
money.
On the other hand, technology isn't always foolproof. Disasters involving
high-tech like the data breach of 70 million Target’s customers in 2013 are the evidence.
Credit and debit may provide a convenient way for their customers to use as a payment
tool and manage their money but it also has a potential risk of leaking private
information. Therefore, it is not wise to totally rely on electronics. When failures occur in
payment devices or systems, coins and paper money are the best alternatives to electronic
transactions.
In sum, although theoretically the replacement may bring the easier way to people
and can avoid certain problems, in practice, the recent developments in technology can
only change some aspects of the existing monetary system, not the entire one.

2. Ways of making money in foreign exchange market?

With the rapid globalization of world economies, foreign exchange market has
become an essential part of international trade. However, the benefits of foreign exchange
market do not accrue automatically and evenly across all parties. This essay is going to
write about three ways to create money through foreign exchange market
To begin with, arbitrage is the practice of transferring funds from one currency to
another to benefit from rate differentials. For instance, local supply and demand factors
may result in a dollars spot rate in London that differs from the rate in New York. If the
spot rate is higher in London, an arbitrage dealer would quickly buy dollars with pounds
in New York and sell the dollars in London for pounds. In arbitrating, at least two
markets are entered.
In addition, hedging is a fundamental method of making money. A hedge is an
investment position in order to offset potential losses/gains that may be arised from a
companion investment. For example, if they buy forward thirty days, they should
immediately sell forward thirty days for the same amount. Obviously, traders try to
realize a profit margin between the two transactions.
Last but not least, speculation is the act of trading in an asset, or conducting a
financial transaction, that has a significant risk of losing most or all of the initial outlay,
in expectation of a substantial gain. With speculation, the risk of loss is more than offset
by the possibility of a huge gain; otherwise, there would be very little motivation to
speculate.
To sum up, trading in the foreign exchange market may bring a large amount of
money for the parties involved by three ways: arbitrage, hedging and speculation.
However, traders should note that “high risk, high return”, there are many risks in this
market so they have to have large knowledge and experience before deciding to take part
in this market.

UNIT 4: PAYMENT IN INTERNATIONAL TRADE

1. Why is Letter of credit the commonest payment method in international trade?
Write an essay of 300 words about the answer to the following questions: What is
the commonest method of payment for trade between countries? Why?
To succeed in today’s global marketplace and win sales against foreign
competitors, exporters must offer their customers attractive sales terms supported by the
appropriate payment method. Among four common payment methods, letter of credit is
the most favorable and popular one in international trade because of its outstanding
advantages for both sellers and buyers.
To begin with, there are some ways in which letters of credit can help sellers,
including reducing the risk relating to non-payment and enabling sellers to manage their
cash flow. Firstly, payment will be made due because of the bank's guarantee. This is
especially valuable when the importer’s credit rating is questionable with the exporter.
Even if the buyer fails to pay, the bank will pay the seller for the goods when the exporter
presents to the bank the documents in compliance with the terms of the letter of credit. In
addition, having letters of credit in place will ensure exporters receive payment on time,
which can go a long way in helping them manage their cash flow.
On the other hand, at the buyers’ side, letters of credit can help them to
demonstrate their solvency and receive delivered goods as per the sale contracts. First,
letters of credit serve as proof to their supplier that they will fulfill their payment
obligations when importers want to make an important purchase with unfamiliar
exporters. Moreover, this method also protects the importer from the risk of wrong goods,
missing goods or inferior goods. The buyer could reserve the right to refuse receiving
goods or canceling the contract if the seller does not deliver goods in accordance with the
letter of credit.
To sum up, letter of credit is the most common choice of all importers and
exporters around the world because it is a convenient way and reduces the risk of both
buyers and sellers.
2. What are the advantages and disadvantages of an open account method of
payment?
To succeed in today’s global marketplace and win sales against foreign
competitors, exporters must offer their customers attractive sales terms supported by the
appropriate payment method. While an open account is the lowest-risk method for the
buyer, it brings the highest risk of non-payment for the seller. This essay is going to write
about both sides of this method.
Open account trading offers several advantages for both parties, especially the
buyer. Firstly, the system is attractive to buyers because it gives them the opportunity to
examine the goods before they have to make payment, thus avoiding risks such as
non-delivery, late delivery, failure to receive goods or faulty goods. Secondly, offering
open account terms will make the exporters more competitive, which can increase
repeat business and help them build both market share and customer loyalty. Thirtly, it
can save time and money for both exporter and importer as they deal directly with
each other – not much involvement of banks.
However, an open account places the highest risks of non payment on
exporters. In this method, the exporter loses all control of the delivered goods and
trusts that the payment will be made by the importer in accordance with the original
sale contract. Thereby, in the case of the payment-related failure of the importer, the
exporter might incur extra costs for debt collection or even litigation and arbitration,
which is more difficult with the absence of documents and banking channels.
In conclusion, an open account is advantageous to the importer in terms of cash
flow and cost, but it is a risky option for the exporter. Though open account terms will
definitely enhance export competitiveness, exporters should carefully examine the
political, economic and commercial risks as well as cultural influences to ensure that
payment will be received in full and on time.

UNIT 5: MARKETING
1. Do you think that offering low prices is always good? Why?
Product pricing is an important element of a marketing strategy. Having the low
price can be advantageous to the marketing effort, but the strategy also has several
disadvantages. This essay is going to write about the negative impacts of offering low
prices.
To begin with, the low price strategy may work in the short term, but in the long
term, it is ineffective. If a seller gives a large number of discounts on their products every
day, consumers tend to value the good at the reduced price and no longer feel delighted
when they buy a bargain. For example, if a clothing store always reduces the price of
shirts from 100,000 VND to 50,000 VND, the consumer will think its real value is only
50,000 VND and the price strategy is invalidated.
In some categories and some locations, the pricing strategy is not only ineffective,
but also has drawbacks. First, in some high-end industries, a cheap product will not
satisfy the demand of customers. For example, at a luxury car showroom, customers
choose an expensive car to show their class instead of a cheap car which can be
affordable by most people. Second, low prices affect how the customers think about the
products. In some developed countries such as Japan and the United States, with a high
standard of living, low-priced products are not great choices, because in the customers’
point of view low prices are a sign of a low-quality product while local consumers often
focus on quality rather than price.
To sum up, customers often believe that they get what they pay for so the products
should be determined by their price equal to its value. Low prices can apply to promote
sales in the short term but can not be used as a strategy in the long run.

2. WHY IS “WORD OF MOUTH” AN EFFECTIVE WAY OF ADVERTISING

In the age of information, people are exposed to various forms of advertising every
day from a variety of sources such as newspapers, TV broadcasts, public events, social
media. Among these, word of mouth is becoming increasingly and a must-have
component of any ambitious brand’s marketing strategy. This essay is going to write
about the reasons for the attractiveness of this advertising method.
The first advantage of word of mouth is the high level of reliability. According to
the research of HubSpot, 75% of people don’t believe adverts, 90% trust suggestions
from family and friends and 70% trust consumer reviews. In addition, word of mouth
marketing could create brand loyalty because of building an engaged fan base rather
than a buy and bolt customer. Higher engaged customers buy more often and
recommend their friends more often, extending return on time spent on the strategy and
generating a high customer lifetime loyalty.
Another outstanding benefit of word of mouth is helping grow sales without the
ad spend. People who have used the product are not paid to express their opinions and
feelings from personal experience and evaluation, which saves costs for companies
compared to investment in other massive and expensive means of media. During recent
years, many famous brands from The Hustle to Bangs Shoes and more have used word
of mouth marketing to increase sales and fanbase.
Last but not least, when case studies were analyzed, researchers found that
increasing word-of-mouth could translate into a specific percentage of sales lifts, which
motivates companies to find ways to master this method of advertisement for their
marketing campaigns.
To sum up, the attractiveness of a word-of-mouth approach is not only cost
effective but also rapidly spreads recommendations for a business.
UNIT 6: TRANSPORT
1. What are the roles of transportation in the economy?
With the rapid globalization, transportation plays an important role in today’s
modern world.  An efficient transport system is essential for sustainable economic
development of the country and plays a significant role in promoting national and
global integration.
 First and foremost, transportation facilitates movement of raw material and other
requirements from the place of supply to the place of production. Without improved
modes of transportation it would have been harder for the industrial producers to produce
and then sell their goods to the wider markets. Therefore, efficient transport is an integral
part of the economic development of the nation.
In addition, transport also contributes to economic development through job
creation. It creates both direct and indirect employment opportunities. It also facilitates
movement of laborers and thereby encourages employment resulting in industrial
development and thereby economic development.
On the other hand, transportation has brought the countries closer. It not only caters
to the need of mobility but also provides comfort and convenience. The transport system
is doing a great job by easing the pain of covering vast distances of land thereby bringing
the countries closer.
Another important contribution of transport is increasing the mobility of labor and
capital, widens the market that leads to specialization and division of labor, which helps
in stabilizing prices. Without efficient transport it would not have been possible to
procure raw material, gather a large number of workers and distribute the finished goods.
Last but not least, transportation raises the standard of living, making possible
improved housing, clothing, food and recreation.
To sum up, transportation plays a significant role in the overall economic
development. It helps in removing the distance barrier, increasing productivity and
enhances competitiveness of the economy. Well-functioning transportation systems form
the basis for economic prosperity and social well being of societies.
2. What are the advantages and disadvantages of sea transport?
With the quick development of globalization, the demand of global transportation
has been increasing significantly. Among 4 modes of transport, sea transport is the most
favorable and popular mode of transportation in international trade. This essay is going to
provide some general features about sea transport, with both the advantages and
disadvantages.
Transportation of cargo by sea plays a crucial role due to its various advantages.
First, the biggest to mention is that sea transportation is affordable when compared to
rail, road, or air freight with fewer maintenance expenses. Sea transport has medium
fixed costs and low variable costs because of the ability to transport large volumes of
goods, it has the advantage of scale. Second, there are many types of cargo which can
be transferred by sea. While smaller shipments can be arranged in a group with other
cargo, the bulk cargo is fitted into single containers. Only sea transport has the ability to
deliver oversize and overweight cargo.
 On the other hand, sea transportation also has some weaknesses. The biggest
downside of this is slow speed. Because of long distances and influences of weather
conditions, it often takes a long time to carry the goods between two ports. Even if there
is a shipment taking over a month to arrive at the destination while the time is just a few
hours if shipping by air. Besides, sea transport requires heavier packaging. This is
completely easy to understand because the goods shipped on board are bulk, far
transportation and risky. Last but not least, sea transport sometimes makes the shipping
delayed due to bad weather or lacks flexibility.
In conclusion, sea transport is cheap and can carry many goods but it is still slow
and risky. So, the parties to the transactions should know these things to gain from trade
and avoid the risks in conveyance.
3. What are the advantages and disadvantages of air transport?
With the quick development of globalization, the demand of global transportation
has been increasing significantly. Air transport plays an important role in international
trade. This essay provides some general features about air transport, with both the
advantages and disadvantages.
Transportation of cargo by air plays a crucial role due to its various advantages.
The biggest to mention is that air transportation is the fastest means of transport. Even
if shipping a consignment takes over a month to arrive at the destination while the time is
just a day if shipping by air. As a result, air becomes the great choice if people want to
transfer lightweight perishable and urgent goods. Moreover, another benefit of air
transport is lower insurance premium, calculated based on potential risks of loss or
damage during transit, thanks to its high speed. To be more specific, the less time the
consignment spends on the plane, the shorter periods during which it is at risk, which
results in cheaper insurance.
On the other hand, air transportation also has some weaknesses. Firstly, the biggest
downside of this is the most expensive, which could be explained by high operating
maintenance costs of planes. In addition, Air transport depends on weather conditions.
Unfavorable weather such as fog, snow or heavy rain etc. may cause cancellation of
scheduled flights and suspension of air service. Furthermore, it has small carrying
capacity which limits its use because it can carry a maximum of 300 to 500 passengers
and also it is not suitable for transportation of bulky and heavy goods.
In conclusion, air transport is one of the most profitable means of transport for
humankind, shortening the distance between all the countries of the world, allowing
commercial exchange to be carried out in a safe and timely manner. However, there are
some disadvantages of air transport that must also be considered.
UNIT 7: MARINE CARGO INSURANCE
1. Why do people insure the goods?
With the quick development of globalization, the demand of global transportation
has been increasing significantly. However, transporting goods around the world always
faces a lot of risks, so people usually use insurance as a guarantee method. This essay is
going to discuss the specific reasons why people often insure their goods.
First and foremost, insurance frees the traders from anxiety and worries when
moving their cargos, especially cargos of high value. During a long-day voyage, many
events can occur that may cost the owner substantial sums of money. For example, loss
and damage could arise from: fire or explosion; theft or non-delivery; rough handling and
natural disasters. In order to minimize such impacts as loss of profits, productivity and
goodwill, the owner of the goods can insure their goods in transit.
Another reason is that it would help businesses share risks among the insured.
While goods are exposed to various kinds of risks and uncertainties which may cause
large losses, insurance is a co-operative device. Thus, the insurance company reduces the
risk of the insured in exchange for a small premium.
Last but not least, buying insurance for goods is often a contractual
requirement. For example, if the sale contract is negotiated for the delivery made in
accordance with CIF Incoterm 2020, the seller has to buy insurance. This act also protects
the buyer as they have to face the risk from the place of delivery in the gf seller's country
while they only actually receive the goods in the buyer's country.
In conclusion, insurance is used depending on the commercial terms of the
agreement, to protect cargo owners from the risk of lost or damaged goods by financially
compensating for partial or total loss according to the terms of insurance policy.
Businesses should consider buying cargo insurance if these advantages are what they are
looking for in trade.

UNIT 8: MULTINATIONAL CORPORATION

1. Why do only some countries put red carpets to welcome multinational companies?
There is no doubt that multinational companies are welcomed in some countries
because they can bring outstanding advantages for poor and developing countries.
However, sometimes even poor and developing countries criticize multinational
companies. This essay is going to write about the reasons for this difference.
Multinational companies can make a positive contribution to a host economy.
Thanks to multinational companies, the resources such as capital, technological and
managerial skills,... can be transferred and give a good effect to the host country. Thus
it can improve the efficiency of operation and economic development. Second,
multinational companies create a more competitive business environment in which
domestic consumers have more choices of lower-priced and higher-qualified
products. In addition, multinational companies can also improve human resources by
getting exposure to globally-valued skills and generate new employment opportunities for
the host country.
However, sometimes some poor and developing countries criticize multinational
companies because of their drawbacks. Firstly, in some cases, multinational companies
have mostly used capital provided by local banks and investors, and have not bought
in capital. Because of this, there is a shortage of money to finance local businesses.
Secondly, technology applied to production is unsuitable for developing countries. It
is too expensive and complicated to use and operate and especially makes workers
unemployed or employing fewer and fewer workers. Thirtly, their market dominance
makes it difficult for local small firms to thrive. In developing economies, big
multinationals can use their economies of scale to push local firms out of business.
Finally, in the pursuit of profit, multinational companies often contribute to pollution
and use of non-renewable resources which is putting the environment under threat.
In conclusion, although multinational companies have numerous positive impacts
on the host countries, there are still a lot of difficulties and high potential risks. That's
why only a few countries put red carpets to welcome multinational companies to their
countries to do business.
2. If you want to sell goods overseas, you can either export directly from your own
country or you can set up a factory in the foreign market. What are the advantages
and disadvantages of one of these methods?
To succeed in today’s global marketplace and win sales against foreign
competitors, exporters should have an effective method of entering the market from the
beginning. Among numerous methods, exporting directly seems to be the most favorite
way because it is easy and cost-efficient. The essay is going to write about both
advantages and disadvantages of exporting directly.
Exporting products plays a crucial role due to its various advantages. First and
foremost, as a usual entering foreign market method, exporting products also helps a
company expand their sales and products, reduce per unit costs, increase profits;
access to information on new technologies, marketing methods and foreign-competitor
strategies and extend the life cycle of the product. In addition, since the exporters directly
negotiate with foreign partners, they can understand market situations and market
demands. As a result, they have appropriate plans for each specific market to improve
business efficiency.
On the other hand, exporting products also has some weaknesses. Firstly, finding
information on foreign markets is unquestionably more difficult and time-consuming. In
less developed countries, for example, reliable information on business practices, market
characteristics, and cultural barriers may be unavailable. Secondly, they have to
overcome trade barriers such as tariffs, quotas and complicated technical
requirements on imported goods, export licenses and other documentation which
are imposed by the import government. Finally, when exporting, companies may need
to modify their products to meet foreign country safety and security codes, and other
import restrictions. At a minimum, modification is often necessary to satisfy the
importing country's labeling or packaging requirements.
In conclusion, exporting directly has a lot of outstanding advantages. However,
there are some disadvantages of air transport that must also be considered.

UNIT 9: MERGERS AND ACQUISITIONS

1.The advantages and disadvantages of mergers and acquisitions.
Nowadays, mergers and acquisitions are one of the most effective ways for one
corporation to overcome entry barriers and new markets worldwide. It can not be denied
that mergers and acquisitions bring a lot of advantages for both parties but there will also
be some drawbacks. This essay is going to discuss both sides of mergers and acquisitions.
Mergers and Acquisitions (M&As) is a widely used strategy by the companies
throughout the world to strengthen their foothold in the market. The initial advantage
of M&As is that it provides a synergy that allows increased performance and reduced
cost. Once the corporations get together, it ensures higher profit as well as profit margins
in terms of monetary gains and work performance. Next, a combination of two
corporations or two businesses definitely enhances and strengthens the business
network by rising market reach. This offers innovative opportunities and new areas to
explore. With these edges, a merger and acquisition deal will increase the market power
of the corporation that successively limits the severity of the powerful market
competition, benefiting from economies of scale. This allows the united firm to take
advantage of high-tech technological advancement against degeneration.
However M&A have a low success rate with the high risks involved. A recent
study showed that around 87% of the consolidations have failed. The first thing is that
diversification can damage the company’s image, good will and shared values such as
quality, good service, innovation, etc. Staff redundancy is also a big problem if what
made the company special was human capital rather than its products and customer base.
When the top executives are replaced, it may have an effect on motivation.
Furthermore, there may be a conflict of objectives between different businesses,
meaning decisions are more difficult to make and causing disruption in running of the
business.
 To sum up, merger is a potential way for businesses to pursue fast growth and
other targets. Besides the attractive advantages of a merger, a deal of risks are waiting.
Business owners have to carefully weigh up the pros and cons before making a deal.

2. Why do companies merger with each other?

Nowadays, merging is one of the most effective ways for one corporation to
overcome entry barriers and new markets worldwide. This essay provides details on four
main reasons for the question: “Why do companies merge with each other?”
First and foremost, by merging, one corporation can reach the synergy and
economies of scale which creates a large opportunity to reduce costs. Forming a bigger
company brings more bulk purchases, discounts or negotiating strengths in dealing with
supply. Meanwhile, thanks to merging, the smaller companies benefit from the
research and finances of the larger companies to develop new items. Mergers can also
provide more predictable returns and faster market entry (product and geographic)
In addition, merging can increase the market power of one corporation. A
merger may expand two companies' marketing and distribution, giving them new sales
opportunities. A merger can also improve a company's standing in the investment
community: bigger firms often have an easier time raising capital than smaller ones.
Another reason for merging companies is that mergers can also be a solution for
larger companies looking to overcome the entry barrier. For example, by merging with
a company in a location with a lower rate, the larger company in a country with a high
corporate tax rate can reduce the number of taxes. While this action is often criticized, it
is very effective in lowering a company's taxes.
Last but not least, merging increases diversification by complementing a
current product or service. Two firms may be able to combine their products or services
to gain a competitive advantage over others in the marketplace.
To sum up, merger is a potential way for businesses to pursue fast growth and
other targets. Besides the attractive advantages of a merger, a deal of risks are waiting.
Business owners have to carefully weigh up the pros and cons before making a deal.
3. Why is there a high percentage of failure in mergers and acquisitions?
Nowadays, mergers and acquisitions are one of the most effective ways for one
corporation to overcome entry barriers and new markets worldwide. However, in fact,
M&A have a low success rate with the high risks involved due to the following main
reasons.
First and foremost, a clash of cultures may gradually lead to the breakdown of
mergers. Even companies in the same industry, serving the same customer segments, and
possessing the same core values can suffer from cultural differences. The employees are
unable to communicate and convey the ideas efficiently to others. As a result, a lack of
synergy in teams is marked and a low productivity is observed.
The second cause of mergers’ failure is unrealistic expectations about the future
success of the new company. When business owners set over-confident financial targets,
they tend to tensely fight over limited resources. Any negative economic outcome can
lead to frustration and, more seriously, result in a steady decline in the share price.
Last but not least, a high percentage of mergers are unsuccessful because of the
ways the companies are integrated. Two businesses often have very different strategies
and growth models. This requires the board of directors to comprehensively understand
the aim of merger then combine strategies suitably. Weakness or over-optimism in
management can push a new enterprise into a common trap.
To sum up, seemingly good deals can go bad and merger is no exception. The
success of mergers depends on how realistic the deal makers are and how well they can
integrate two companies while maintaining day-to-day operations.

UNIT 10: ARBITRATION

1. Why do businessmen prefer arbitration to litigation when dealing with their
disputes?
With the rapid globalization of world economies, international commercial
disputes have become more complicated. Both arbitration and litigation are two popular
legal techniques for settling disputes among parties today but arbitration seems to be
more favored. This essay below explains why businessmen prefer arbitration to litigation
when dealing with their disputes.  
Firstly, it takes less time to settle a dispute by arbitration than litigation in court.
While litigation officially goes through lots of procedures, the procedure of arbitration
is flexible and can be altered to suit the specific circumstances of each case. The
arbitrators tend to give the final and binding awards which are rarely appealed by either.
In contrast, the court often allows appeals and retrials, which prolong the resolution time.
Secondly, with a quicker and less complicated process, arbitration can be cheaper
and less formal than court. However, in some cases, depending on complexity and
forms, arbitration increases the costs versus litigation.
Thirdly, one of the most outstanding strengths of arbitration is the ability to keep
disputes away from the public eye. Unlike litigation in the court, arbitration takes place
in private. Thanks to this confidentiality, arbitration helps companies keep their business
secrets confidential as well as protecting their reputation and prestige.
Another reason for why businessmen choose the arbitration is the reliability of
the arbitrators who are specialists in that business field, more knowledgeable and
sophisticated than juries. Moreover, they are also more justice because they are appointed
by both parties according to specific international rules.
Besides the main advantages, the arbitration process is often less adversarial than
litigation which helps to maintain business relationships between the parties. In
Particular, it avoids national courts which may be perceived as corrupt and/or inefficient.
In conclusion, thanks to four main advantages mentioned above, arbitration
deserves to become a mainstay in resolving legal disputes.
What are the disadvantages of arbitration?
• Unlike judges, arbitrators’ fees must be paid by the parties. This can be expensive
compared to conventional court fees in many jurisdictions.
• Arbitration can be more expensive and time consuming than court proceedings for
larger, more complex disputes.
• Arbitration can be more time consuming because of problems with the availability of
arbitrators, especially if they are based abroad. In court proceedings, any available judge
can hear a case.
• Avenues for appealing and/or challenging awards are limited if you lose.
• Arbitrators sometimes lack the power to make certain interim orders against the parties
before publishing the final award.
• Unlike mediation, arbitration is an adversarial process. It is less likely that a commercial
relationship will survive after the process has ended.
• In disputes involving more than two parties, arbitration can be difficult to manage,
particularly where some aspects of the dispute are subject to arbitration and others to
litigation.

1. Why do some countries impede free trade?

2. What are the advantages and disadvantages of globalization? (đề mới vào năm
ngoái)
Nowaday, there are a large number of heated topics relating to globalization which
is a trend toward greater interdependence among national institutions and economies.
Although there are a lot of outstanding benefits of globalization for human society, it has
some drawbacks. This essay is going to discuss both sides of globalization.
There is no doubt that globalization brings positive contributions for all parties
taking part in. First and foremost, thanks to globalization, the resources such as capital,
modern technology and managerial skills,... can be transferred from a developed
country to a developing country. Thus, the host country can improve its efficiency of
economic operation and development and the home country can utilize local natural
resources such as raw materials, minerals and lower labor cost. Second, globalization
promotes trading between different countries which creates a more competitive business
environment. As a result, domestic consumers have more choices of lower-priced and
higher-qualified products.
On the other hand, along with better things, globalization also has some negative
impacts. First, increasing interdependence among different countries over the world
makes global serious problems spread rapidly. For example, in the covid-19 pandemic, at
the beginning, that virus was only found in China, but due to the movement of people
from one destination to other foreign destinations, after only several months, it became
one of the most popular viruses globally. In addition, globalization might be unfair with
countries having weak competitiveness. Although according to economic theory, more
competitive environments encourage enterprises to develop, in fact, in developing
economies, big multinationals, usually from developed countries, can use their economies
of scale to push local firms out of business.
In conclusion, globalization brings both positive and negative impacts. To
maximize benefits from globalization, all countries over the world need to change and
develop in accordance with the new era by joining hands to reduce global issues and
unfair competition.
3. What is a takeover bid? Why do some bids succeed and others fail?
4. Which multinational company do you most admire or dislike? Give reasons for
your answer. (đề rất cũ rồi)
Thanks to global integration, during recent years, Vietnam has become more and
more attractive with foreign investors. There have been a large number of famous
corporations over the world establishing plants and their distribution networks here.
Among them, in my opinion, the most favorite multinationals is SamSung limited
company because of some following reasons:
First and foremost, thanks to the establishment of big factories in Thai Nguyen and
Bac Ninh, the resources such as capital, technological and managerial skills,... can be
transferred and give a good effect to the local efficiency of operation and economic
development.
In addition, Samsung can also improve human resources and generate new
employment opportunities. Samsung has large plants in Vietnam which may bring the
thousands of jobs available in Vietnam. Moreover, employees of Samsung companies get
exposure to globally-valued skills. The training and skills upgradation can enhance the
value of the local human resources. Higher skills lead to higher labor costs which can be
used to improve their standard of living.
Last but not least, Samsung has built a beautiful image in customers’ eyes.
According to their strategic vision, they always operate and manufacture to achieve
sustainable development. Besides the aim to reach the highest profits as possible,
Samsung also concentrates on how to solve the environment-related issues and contribute
to the local community through volunteering activities.
To sum up, SamSung limited company has made a positive contribution to our
country. It has not only provided better services and products for domestic customers but
also improved local economic development by transferring technology, capital and
increasing local living standards.

5. Why do most governments impose tariffs and quotas? (đề mới vào năm ngoái)
With the rapid globalization of world economies, trading between different
countries over the world has been increasing significantly. However, the main factors
whose aim is to reduce this uptrend are tariffs and quotas still used widely. This essay is
going to explain why most governments impose tariffs and quotas.
To sum up, although a large number of economic specialist encourage trading
freely, most governments still impose tariffs and quotas as measures to
6. Why do people say that without foreign exchange trading, international trade itself
could not exist?