UNIT 1: MANAGEMENT

1.
Motivation - factors that influence the
behavior of workers
towards achieving business
goals.
2.
Job satisfaction
: The enjoyment a worker gets
from feeling
that they have
done a good
job. There
are three ways to motivate workers to be more committed to their job and work more effectively:
3.
Job rotation -(
swapping workers
round and only doing a specific
t
ask for a limited time
before
swapping round again).
4.
Job enlargement- (extra tasks are added to the job to make it
more interesting
)
5.
Job enrichment- (adding tasks that require more skill
and/
or responsibility
)
6.
Theory X- The average
person does not like work
. Workers must be constantly
supervised
so they will work. Motivation is from external factors, e.g. pay schemes where the workers are
paid more for increased output.
7.
Theory Y- The average person is motivated by internal factors. To motivate workers,
you need to find ways to help workers take
an interest in their work
, e.g. give rewards,
incentives.
8.
Maslow’s hierarchy of needs: A theory of motivation which states
that five categories
of
human needs dictate an individual's behavior. Those needs are physiological needs,
safety needs, love and belonging needs, esteem needs, and self-actualization needs.
9.
Frederick Herzberg’s motivation theory- Humans have
t
wo sets of needs
: one is for the
basic needs, which he
called hygiene factors
or needs, and
the second is for a human
being to be able to grow psychologically, which he called
motivational needs
or
motivators.
10.
Hygiene factors-The factors that must be present in the workplace to
prevent job
dissatisfaction.
11.
Management- The process used to accomplish organizational goals through
planning,
organizing, leading, and controlli
ng people and other organizational resources.
12.
Supervisor-
An individual who is in charge of a certain group off tasks
, or a certain area
or department of a business.
13.
Chief Executive Officer- The most
senior m
anager responsible for the overall
performanc
e and success of a company.
14.
Planning - A management function that includes
ant
icipating
trends
and determining
the
best strategies and tactics to achieve organizational goals and objectives.
15.
Organizing -A management function that includes
designing
the structure of
the
organization and
creating c
onditions and systems in which everyone and everything
work together to achieve the organization's goals and objectives.
16.
Leading - Creating a vision for the organization
and guiding, training,
coaching
, and
motivating others to work effectively to achieve the organization's goals and objectives.
17.
Controlling - A management function that involves
establishing
clear standards to
determine whether or not an organization is progressing toward its goals and objectives,
rewarding
people for doing a good job, and taking corrective action if they are
not.
18.
Organizational structure-
The levels of management
and division of
responsibilities
within an organization.

1. What is a manager?
-> An individual who is in charge of a group of tasks or a certain area or department of a
business.
2. What can a manager do with the subordinates when considering their performance, and
behaviors?
-> A manager can set clear expectations, provide regular feedback, reward outstanding
performance to motivate and address performance issues or take disciplinary action if
performance is below expectations.
3. What is a leader?
-> An individual who creates a vision for the organization and guides, coaches, and motivates
others to work effectively to achieve the common goals.
4. Why is it possible for anyone to become a leader?
-> Because leadership is a skill and anyone has the potential to influence and inspire positive
changes to achieve the business goals.
5. How is a manager different from a leader?
Managers carry out 4 functions: planning, organizing, leading and controlling, they have
authority and good at supervising.
On the other hands, leader just carry out the main leading function, they have no formal, tangible
authority and good at motivating and influencing.
6. What are the five common roles of a manager? Explain them briefly
These are planning, organizing, commanding, coordinating and controlling.
Planning: Establish overall objectives, develop strategies and create action plans
Organizing: Structure the organization, create system and condition in which everyone works
together.
Commanding: Give clear instruction, provide guidance, motivate employees and maintain
discipline.
Coordinating: facilitate teamwork, make sure that all department work well together to achieve
the common goals
Controlling: Monitor performance, evaluate efficiency and take corrective actions as needed.
14. Why do managers have to be good at communication and motivation?
Managers need strong communication and motivation skills because these are essential
for building trust, driving productivity, and achieving organizational goals. Effective
communication clarifies tasks and expectations, while motivation inspires employees to
work towards a shared vision, leading to higher engagement, reduced conflict, and better
overall performance.

UNIT 2: MOTIVATION
1. What is motivation?
-> It are factors that influence the behavior of worker towards achieving business goals
2. What are the most common ways to increase a worker’s motivation? Give examples of
monetary and nonmonetary rewards.
Motivation can be increased by:

● Monetary rewards (for example: commission, bonuses, salary increases,…)

● Non-monetary rewards (Job advancement and promotion, training and mentoring

program, recognition and praise)
● Introducing ways to give job satisfaction.

3. What is job satisfaction?

The enjoyment that workers get from feeling that they have done a good job.
4. How can companies raise the job satisfaction of their workers?
Companies can raise job satisfaction through 3 ways:

● Job rotation: swapping workers round and only doing a certain task in a limited time
before swapping again.
● Job enlargement: adding more tasks, extra tasks to make more interesting

● Job enrichment: adding tasks required more skills or responsibility

5. Distinguish Theory X and Theory Y

Theory X: The average worker does not like working, they should be supervised constantly,
motivation is from external factors like bonuses, pay more for increased output.
Theory Y: Worker is motivated from internal factors, company should motivate and inspire them
to take interest in their work. Theory Y searches and discovers the ways in which an employee
can make significant contributions in an organization.
6. What are hygiene factors?
These are factors that must be present in a company to maintain basic employees' needs and
prevent workers from disatisfaction.
7. Describe briefly Maslow’s Hierarchy of Needs.
Maslow’s Hierarchy of needs state 5 categories of human needs. These are physiological needs,
safety needs, love and belonging needs, esteem needs and self-actualization needs.

UNIT 3: HIERARCHY / COMPANY STRUCTURE

1. What is an organizational structure?
-> The level of management and division of responsibility within an organization
2. Define a chain of command.
-> The structure in an organization which allows instructions to pass down from senior manager
to lower levels.
3. What is the main advantage of a chain of command?
It provides a clear and well-defined hierarchy within an organization, the hierarchy establishes
clear lines of authority and ensure that everyone knows who they report and who reports to them.
Everyone knows what decisions they are able to make, and who they can give instructions to.
4. Describe briefly a functional organizational structure.
A functional organizational structure split an organization into specialized departments based on
their major area of responsibility like marketing, finance, production,…department

5. In what ways can dividing a business functionally cause problems?

Coordination between departments is difficult and departments may become isolated and focused
on their own goals, leading to lack of collaboration and communication across the organization.
People may focus more on the success of their department than that of the company
6. Describe briefly a matrix organization.
a matrix organization is a structure where employees report to multiple managers. The
matrix structure cuts across the departmental lines of a hierarchical chart and creates project
teams made up of people from all departments or divisions.
7. What is the potential disadvantage of matrix management systems?
There is less direct control from senior managers as the teams may be empowered to undertake
and complete a project. Passing down authority to more junior employees can be difficult for
some senior managers to accept.
They can become more complex, making decision difficult
Potential advantages: encourage collaboration, increase efficiency, develop new skill sets.

8. What is centralization?

Centralization: The concentration of power and decision-making authority at the top levels of
the organization.

Decentralization: taking decision away from the centre of an organization- way from the
Head Office

9. Why is it not usually possible to organize a large organization in a single hierarchy?

Because their activities are too complicated.
10. What factors might lead companies to flatten their hierarchies?
The desire to save money and making decision easier, the use of IT system, and the need to
reduce costs during a recession
11. Under what circumstances might teams not be effective?
If they do not have a strong leader, and need to make a lot of decisions.
12. According to the text, what kind of managers might not want to delegate decision
making?
The owners of small businesses, because they want to control as much as possible

UNIT 4: MANAGING ACROSS CULTURE

1. Why is it important for companies to be aware of local cultures?
Because local cultural habits, beliefs and principles can easily affect the performance of their
business in each country
2. Describe the characteristics of businesspeople from Multi-Active, Reactive, and, Linear
Active cultures.
Multi-Active: They attach more importance to feelings, emotions and intuition, and relationship
and connections, they like to do many things at the same time, they are flexible, good at
changing, improvise (ứng biến)
Reactive: They prefer to listen and establish the other’s position, avoid confrontation, don’t want
to lose face, try to formulate approaches which suit both parties.
Linear active: They are organizational and rational, act logically, plan in advance, like to do one
thing at a time, respect rules, regulations and contracts.
3. What is culture? What factors are likely to be governed by cultures?
The complex system of values, traits, morals, and customs shared by a society. Culture is a
powerful operating force that molds the way we think, behave and communicate.
4. What is context? (ngữ cảnh)
It is the most important cultural dimension, refers to the stimuli, environment, or ambience
surounding an event
5. Describe the major features of low- context and high-context cultures and give example
of countries adopting low-context and high-context cultures.
High-context culture communicates through the use of contextual factors through body
language, gesture, status of an individual and the tone of voice during speech (China, Japan
and middle eastern countries ) and rules are not explicitly stated.
Low-context culture enjoys communication through written or verbal speech and rules are
directly explicitly stated.(US, germany,…)
6. What does the Power Distance Index measure?
It measures how people in different societies cope with inequality in other words how they
related to empowerful individual
7. Indicate the differences in the relationship between subordinates and their supervisors in
low-context cultures and high-context cultures.
In high-context culture, subordinates expect formal hierarchies and embrace authoritarian and
power relationships.
In low-context culture, subordinates consider themselves equal to their supervisors and express
their idea and participate in decision making.

UNIT 5: RECRUITMENT

19.
Hierarchy- The levels of
management in any
organization,
from the highest to the
lowest.A level of hierarchy
refers to managers/
supervisors, other employees
who are
given a similar level of
responsibility in an
organization.
20.
Chain of command- The
structure in an organization
which allows instructions to be
passed down
from senior management to
lower levels of management.
21.
Span of control-
The number of subordinates
working directly
under a manager
.
22.
Directors- Senior managers
who lead a particular
department or division of a
business.
23.
Line managers- People who
have responsibility for people
below them in the
hierarchy
of an organization.
24.
Supervisors- Junior managers
who have direct
control over the employees
below them
in the organizational structure.
25.
Staff managers- Specialists
who provide support,
information and assistance to
line
managers.
26.
Delegation- Giving a
subordinate the authority
to perform a
particular task.
27.
Decentralization- Taking
decisions away from the center
of an organization- way from
the
Head Office.
28.
Glocalization- is a combination
of the words "globalization" and
"localization." The term is
used to describe a product or
service that is developed and
distributed globally but is
also adjusted to accommodate
the user or consumer in a local
market.
29.
Culture- is defined as the
complex system of
values, traits, morals, and cust
oms
shared
by a society.
30.
Context- refers to the
stimuli, environment,
or ambience
surrounding an event.
31.
The Lewis
model- was developed by
linguist and leading
cross-cultural specialist
Richard [Link]. The model divides humans into 3 clear categories, based not on
nationality or religion but on BEHAVIOUR, namely,
Linear-active/'[Link]/ tuyến tính,
Multi-active and Reactive.
32.
High-context culture- is a culture by which
the rules of
communication
are primarily and
dominantly transmitted through the use of contextual elements. These include specific
forms of body language, the social or familial status of an individual, and the tone of
voice employed during speech. High-context cultures usually do not have rules that are
explicitly written or stated.
33.
Low-context culture-refers to a culture whereby
most communications
take place
through verbal language and rules are directly written out or stated for all to view.
34.
Power distance- is the distribution of power among individuals within a culture and how
well
unequal levels of power
are accepted by those
with less
power
.
35.
Employee selection- the process
of evaluating candidates
for a specific job
and selecting
an individual for employment based on the needs of the organization.
36.
Recruitment- the process from identifying that the
business needs to employ
someone
up to the point at which applications have arrived at the business.
37.
Job description-
identifies and records the responsibilities
and tasks r
elating to a job.
38.
Job description-
outlines the responsibilities and duties
t
o be carried out by someone
employed
39.
Job specification- a document which outlines the
requirements, qualifications, expertise,
physical characteristics, etc., for a specified job.

40.
Internal recruitment- when a vacancy is filled by someone who is an existing employee of the
business.
41.
External recruitment- when a vacancy is filled by someone who is not an existing employee and
will be new to the business.
42.
Induction training-introduction given to a new employee, explaining the business's activities,
customs and procedures and introducing them to their fellow workers.
43.
On-the-job training- occurs by watching a more experienced worker doing the job.
44.
Off-the-job training- involves being trained away from the workplace, usually by specialist
trainers to do a specific job

1. What are the different between job description and job specification
Job description focuses on the responsibilities, duties of a specific job, outline what tasks need to
be performed, what outcome are expected,…
Job specification focuses on the skills, knowledge, abilities, qualifications, and other
requirements needed to perform the job effectively, outlines how the work will be done, what
skills and knowledge are necessary and what qualifications are required.
2. How do you draw up a job description and job specification?
Job description lists out title, location, job summary, working environment, duties to be
performed on the job
Job specification lists out qualifications, experience, training, skills, emotional attributes, mental
capabilities of an individual to perform the job
3. How do you choose suitable ways of advertising a vacancy – either internally or
externally?
Internal advertising: Post job openings on your company’s internal communication platform,
employee referrals and department announced
External advertising: Advertise on popular job board, online job portals or media platforms like
Linkedln, Twitter; partner with universities or colleges to recruit freshers or engage recruitment
agencies.
4. How important is training? And what are different types of training?
Training increase skills, knowledge and improve employees’s attitude to encourage them to
accept change and raise awareness (for example to improve custom service)
These are: induction training, on the job training and off the job training
5. What are induction training, on-the-job training and off-the-job training?
Induction training: this is given to all new recruits. It aims to introduce them to the people they
will be working closest to and explain the internal structure, outline the procedures of the
company.
On the job training: employees watch or work closely with experienced members of staff . this
method is suitable for unskilled and semi-skilled jobs
Off the job training: This covers all the courses away from the place of work. This could take
place in a specialist training centre of the company or it could be organised by an outside
organization. These course may be expensive but important to business.
6. What are the advantages and disadvantages of internal recruitment?
Advantages Disadvantages

• It is quicker and cheaper than external • No new ideas or experience come into the
recruitment business. Other companies may have different
• The person is already known to the business ways of working and these ways may be
and their reliability, ability and potential are better in some respects, including making the
known. business more efficient. Internal recruitment
• The person also knows how the organisation does not allow for
works, its structure and what is expected from these working practices to be brought into the
its employees. business and this is a major limitation when
• It can be very motivating for employees to the industry is changing rapidly.
see their fellow workers being promoted – it • There may be rivalry among existing
makes them work harder if they consider that employees and jealousy towards the worker
promotion is possible for them too. who gains promotion.
• The quality of internal candidates might be
low.

7. What are the advantages and limitations of external recruitment?

Advantages Disadvantages
• External applicants might bring new ideas • It takes longer to fill the vacancy.
and this can improve the effectiveness and • It is more expensive than internal
efficiency of the business. recruitment because of advertising costs and
• There will be a wider choice of applicants the time spent interviewing candidates
with different skills and experience.
• It avoids the risk of upsetting workers when
someone who is internal is promoted

UNIT 6: CLASSIFICATION OF BUSINESS

The primary production- of industry extracts and uses the natural resources of Earth to
produce raw materials used by other businesses.
46.
The secondary production- of industry manufactures goods using the raw materials
provided by the primary sector.
47.
The territory production- of industry provides services to consumers and the other
sectors of industry.
48.
A mixed economy- has both a private sector and a public (state) sector.
49.
Public sector- the sector of the economy in which organizations are owned and controlled by
the state (government)
50.
Private sector-The sector of the economy in which organizations are owned and
controlled by individuals.
51.
Privatization- The sale of state-owned assets such as public corporations to the private
sector.
52.
Sole trader- a business owned and operated by one person.
53.
Limited liabilities- the liability of shareholders in a company is limited to only the amount
they invested.
54.
Unlimited liabilities- the owners of a business can be held responsible for the debts of
the business they own. Their liability is not limited to the investment they made in t
he
business.
55.
Partnership- a form of business in which two or more people agree to jointly own a
business.
56.
Shareholders- the owners of a limited company. They buy shares which represent part-
ownership of the company.
58.
Limited private companies- businesses owned by shareholders but they cannot sell
shares to the public.
59.
Limited public companies- businesses owned by shareholders but they can sell shares
to the public and their shares are tradable on the Stock Exchange

1. What are the different stages of economic/ business activities?

These are 3 stages of economic activities:
Primary stage: The stage involves the extraction the Earth’s natural resources to produce raw
materials
Secondary stage: the stage involves the manufacture goods made form the raw materials
provided by the primary sector
Tertiary stage: the stage involves the provider services to consumer and other sectors of industry
2. What business activities are included in the quaternary sector?
Research and development: This includes activities such as scientific research, technological
development, and innovation.
Financial consulting: This includes activities such as financial planning, investment advice, and
risk management.
Education: This includes activities such as teaching, research, and administration.
Media: This includes activities such as journalism, broadcasting, and publishing.
Entertainment: This includes activities such as film production, music recording, and gaming.
3. How different is the private sector from the public sector in mixed economies?
Private sector: Businesses are owned and operated by individuals or groups of individuals,
businesses are driven to make profit, aim to maximize profits for their owners or shareholders
Public sector: Organizations are owned and operated by the government, organization are not
driven to make profit, but by providing services to the public and achieving social or economic
goals.
4. What are the features of different forms of business organisations: Sole traders,
Partnerships, Private and Public Limited Companies, Franchises, and Joint Ventures?
What are their advantages and disadvantages
Business organisation Feature Advantages Disadvantages
Sole trader A business owned ● Easy to set up ● Unlimited
and operated by an and manage liability (personal
individual ● Full control assets at risk)
over decisions ● Limited
● Keep all access to capital
profits ● Difficult to
take time off
●  High
workload
Partnerships A business owned ● Shared ● Potential for
and operated by two responsibility disagreements and
or more people ● Increased conflict
access to capital ● Unlimited
● Combined liability for all
expertise partners
 ● Easier to take ● Difficult to
time off dissolve the
partnership
● Limited life
span
Public Limited A business owned by ● Unlimited ● Complex to
Companies a large number of access to capital set up and manage
shareholders who can ● Professional ● High costs of
buy and sell shares on management compliance
the stock market ● Some
problem to control
(loss control for
original owners)
Franchise A business that ● Access to ● High initial
operates under a training and support costs
license granted by ● Brand ● Strict
another company recognition adherence to
● Lower risk of franchise guidelines
failure
Joint venture A business ● Shared ● Potential for
partnership between resources and disagreements
two or more expertise ● Loss of
companies to work ● Reduce risk control
on a specific project ● Increased ● Limited life
market share, access span
to new markets ● The
communication
between partners is
not great

UNIT 7: PRODUCTION
1. What is the production and operation management?
Production: the process of converting inputs such as land, labour, and capital into salable goods,
such as shoes and cell phones
2. What is lean production? How can lean production be achieved?
Lean production is the production of goods and service with the minimum waste of resources
Lean production can be achieved by identifying, eliminating and minimizing waste. This might
involve streamlining processes reducing inventory, improving quality control, make lean
production a way of life by constantly seeking new opportunities for improvement
3. What is job production, batch production and flow production?
Job production: the production one at a time
Batch production: the production in batches. Each batch passes through one stage of production
before moving onto the next stage
Flow production: the production of very large quantities of identical goods using a continuously
moving process.
4. What are the benefits and limitations of different production methods?
Type of Advantages Disadvantages
production
Job production • It is most suitable for personal services• Skilled labour is often used.
or 'one-off' products. • The costs are higher
• The product meets the exact because it is often labour
requirements of the customer. intensive.
• The workers often have more varied • Production often takes a
jobs (they don't carry out just one task). long time
• It is flexible and often used for high- • Products are specially made
quality goods and services meaning that a to order and so any errors can
higher price can be charged be expensive to correct.
• Materials may have to be
specially purchased leading to
higher costs.
Batch production • It is a flexible way of working and It can be expensive as semi-
production can easily be changed from finished or finished products
one product to another. will need moving about.
• It still gives some variety to workers' • Machines have to be reset
jobs. between production batches
• It allows more variety to products which which means there is a delay
would otherwise be identical. This gives in production and output is
more consumer choice (for example, lost.
different flavours of ready-meals). • Warehouse space will be
• Production may not be affected to any needed for stocks of raw
great extent if machinery breaks down materials and components.
This is costly.
Flow production • Costs are kept low and therefore prices It is a very boring system for
are also lower. the workers, so there is little
 • It is easy for capital-intensive job satisfaction, leading to a
production methods to be used - reducing lack of motivation for
labour costs and increasing efficiency. employees.
• Capital-intensive methods allow • There are significant storage
workers to specialise in specific, repeated requirements - costs of
tasks and therefore the business may only inventories of raw materials/
need relatively unskilled workers - little components and finished
training may be needed. products can be very high.
• It may benefit from economies of scale • The capital costs of setting
in purchasing. up the production line can be
• Low average costs and therefore low very high.
prices usually mean high sales. • If one machine breaks down
• Automated production lines can operate the whole production line will
24 hours a day. have to be halted.
• Goods are produced quickly and
cheaply.
• There is no need to move goods from
one part of the factory to another as with
batch production, so time is saved.

63. JIT( Just-in-time)-is a production method that involves reducing or virtually eliminating the
need to hold inventories of raw materials or unsold inventories of the finished product.

Inventories: the stock of raw materials, work-in-progress and finished goods held by a business.

UNIT 8: LOGISTIC
 What is logistics?
Logistics - the marketing activity that involves planning, implementing, and controlling the
physical flow of materials, final goods, and related information from points of origin to
points of consumption to meet customer requirements at a profit

 What is the supply chain?

 What is inbound logistics?

Inbound logistics- the area of logistics that involves bringing raw materials, packaging,
other goods and services, and information from suppliers to producers
Material handling- the movement of goods within a warehouse, from warehouses to the
factory floor, and from the factory floor to various workstations.
 What is outbound logistics?
Outbound logistics- the area of logistics that involves managing the flow of finished
products and information to business buyers and ultimate consumers (people like you and
me).

Differentiate between pull-push strategies

- Pull strategy: a company manufactures according to current demand, which is satisfied
from (a small) inventory. When pieces are removed from stock, replacements are
automatically ordered from suppliers. One example of an industry that operates under this
strategy is a direct computer seller that waits until it receives an order to actually build a custom
computer for the [Link] a pull strategy, companies avoid the cost of carrying inventory
that may not sell. The risk is that they might not have enough inventory to meet demand if they
cannot ramp up production quickly enough

- Push strategy: production is based on estimates of future demand and begins according to
the planned production lead [Link] example, warm jackets get pushed to clothing retailers as
summer ends and the fall and winter seasons start. Under a push system, companies have
predictability in their supply chains since they know what will come when – long before it
actually arrives. This also allows them to plan production to meet their needs and gives them
time to prepare a place to store the stock they receive.
68. Reverse logistics- the area of logistics that involves bringing goods back to the
manufacturer because of defects or for recycling

 What is logistics management?

What are the possible consequences of excess capacity?

The company may be under utilizing its workforce .
It may be forced to produce additional, less profitable products.
It may have to reduce prices to stimulate demand.

UNIT 10: MARKETING

1. What is marketing?
2. What are four stages of a product life cycle?

3. Discuss marketing strategies.

5. Differentiate market segment and market segmentation

6. Differentiate market leader and market challenger, market follower and market
challenger, market niche and market follower

UNIT 11:ADVERTISING
1. What do you think makes an advertisement memorable: humour? originality? the use of
famous actors or personalities? endless repetition? nudity? other elements?

2. Do you find the advertisements on television generally: informative? persuasive? amusing?

well made? artistic? worth watching? an annoying interruption to the programmes? sometimes
better than the programmes?

3. Give examples of ads that you have enjoyed.

4. Give examples of ads that have persuaded you to buy the product.
5. Have you ever passed on advertising material by email or discussed products in blogs or
online forums, thereby helping advertise an organization's products or services?

UNIT 14:THE BUSINESS CYCLE

1. Why does unemployment rise during the recession phase of the business cycle?

2. What is the difference between a recession and a depression?

3. If a country is producing beyond its production possibilities curve, what phase of the business
cycle is it most likely experiencing?

4. During a downturn, to what extent should the government intervene in the economy, by
creating demand or jobs? How could it do these things?

UNIT 15: CORPORATE SOCIAL RESPONSIBILITY

1. What is corporate responsibility?

2. What do companies need to do to show they exercise good corporate responsibility?

3. Do you think making huge profits means companies can never be responsible?
4. Can a company survive if it shows no corporate responsibility?

5. Which of the following do you think are especially interesting for a company to highlight as
part of its CSR:
 Good working environment for employees
 A good environmental policy
 Policy of not using child labour, products tested on animals, etc.
 Donating a percentage of profits to good causes
 Employing people at risk of exclusion (for instance, people with disabilities, single mothers,
and unemployed people over the age of 45)

UNIT 17: INTERNATIONAL TRADE

1. Discuss whether imposing tariffs will benefit the domestic economy?
Tariffs can protect domestic industries from foreign competitor, allow them to grow and develop,
and tariffs also generate revenue for the government, which can be used to fund public services
or reduce budget deficits (thâm hụt ngân sách)
2. Explain the difference between international trade and free trade.
International trade may involve tariffs, quotas, and other trade barriers while free trade have no
trade barriers.
In international trade, government play a role in regulating and influencing trade. However,
government generally take a hand-off approach in free trade.
3. Identify three methods of trade protection that a country could use.
- Tariffs (thuế quan, thuế nhập khẩu): Tax levied upon goods transported from one custom area
to another, tariffs raise the price of the imported goods.
- Quotas (hạn ngạch): restriction on amount of the good can enter or leave a country during a
certain period of time
-Subsidies (trợ cấp cho nhà cc nội địa): these are government payment or financial assistance to
domestic producers.
4. Explain two benefits of free trade.
- Increased Economic efficiency: Free trade allowed resources allocated effectively. When
countries specialized their product that they have comparative advantage, production cost
reduced significantly and higher overall output
- Lower price for consumers: By reducing trade barriers, free trade allowed consumers can
purchase product from around the world with lower price.
5. Describe two disadvantages of international trade.
- Job losses in certain sectors: International trade can job losses in industries with high labor
costs or that lack comparative advantage because they cannot compete with foreign producers
- Higher price for consumers: Trade barriers can lead to higher price for imported goods,
consumer can face limited choice or expensive price for product sourced internationally.
6. Explain two reasons why countries might decide to trade with each other.
- Comparative advantage: countries can take advantage by specializing in production in which
they have comparative advantage. By trading with each other, countries can obtain goods or
services at a lower cost than if they produce domestically
- market expansion: International trade allows countries to access new market for their product,
so this can increase economic growth and job creation.