Trade Business Introduction 2024 Fall PDF

IUT_SBL_2024_Fall Trade Business Seulki Lee Professor / Ph.D. Schoo...

IUT_SBL_2024_Fall Trade Business Seulki Lee Professor / Ph.D. School of Business & Logistics INHA UNIVERSITY IN TASHKENT Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited.  ❖ Concept of Trade What is TRADE ? Commerce : activities and procedures involved in buying & selling things International Commerce : activities and procedures involved in buying & selling things btwn countries Trade : activities of buying, selling or exchanging goods or services International Trade : activity of buying, selling or exchanging goods or services btwn countries Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 2  ❖ Concept of Trade Range of International Trade All economic transactions between countries International Trade + Investment + Finance Trade between countries + Movement of production factors International Trade + International Investment Trade between countries International Trade Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 3  ❖ Concept of Trade Barter and Monetary Economy Barter Monetary Economy Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 4  ❖ Concept of Trade Absolute advantage Produce only goods where you are most efficient, trade for those where you are not efficient It is not enough.. Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 5  ❖ Concept of Trade Comparative advantage US is an absolute advantage over UK, but UK can produce 2 sets of pottery $30 $20 at a corn’s cost $60 $30 corn US imports pottery and UK imports corn, which is benefit for each other Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 6  ❖ Classification of Trade Classification of International Trade Private Trade by Entity Type Public Trade State Trade Free Trade by Government Protective Trade Trade Entity Interference level Government-managed Trade Trade by Agreement North-South Trade by Relations East-West Trade Visible Trade by Product type Invisible Trade Horizontal Trade Trading product by product level Vertical Trade Inter-industry Trade by product category Intra-industry Trade Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 7  ❖ Classification of Trade Classification of International Trade Export Trade by Direction Import Trade Merchandising, Commission trade Entrepot, Intermediary Trade Trade Route by Route Transit Trade Roundabout Trade Overland Trade by Mode Seaborne Trade Airborne Trade Compensation Trade by Linkage Triangular, Triple Trade Trade Type OEM Special Knock-down Turn-key Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 8  Triangular Trade Excess of Import from Korea Excess of Import from Japan Import medium grade intermediate Import high grade intermediate goods such as Textile raw materials, goods such as Iron, Chemicals, Chemicals, Metals from Korea Metals from Japan Excess of Import from China Import medium and low priced industrial products from China Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 9  Merchandising Trade Commission trade B C A Entrepot trade Intermediary Trade C B - Goods arrive at ‘A’ country but do not clear customs → keep in the bonded warehouse(area) A - Ownership of goods transferred from ‘B’ to ‘A’ D - Buyer is not determined - Get the profit from difference of buying & selling Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 10  OEM ODM OEM (Original Equipment Manufacturing) ODM (Original Development Manufacturing) ODM OEM Nike Samsung Made in Thailand Made in Thailand (manufactured by subcontractors) (manufactured by designers) Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 11  Knock-down CKD (Complete Knock Down) SKD (Semi Knock Down) http://l2.yimg.com/bt/api/res/1.2/TEgAY6oP1tfYhVEeL1d3BA--/YXBwaWQ9eW5ld3M7Y2g9MTM2ODtjcj0xO2N3PTIwMDA7ZHg9MDtkeT0wO2ZpPXVsY3JvcDtoPTQzMTtxPTg1O3c9NjMw/http:/media.zenfs.com/en_us/News/ap_webfeeds/5c3348e9c6f3db1b1c0f6a706700714f.jpg DKD (Disassembled Knock Down) Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 12  ❖ Trade and Globalization Sugar trade and plantation Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 13  ❖ Trade and Globalization Silkroad trade Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 14  ❖ Trade and Globalization Spice Trade Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 15  ❖ Trade and Globalization Cotton trade and the industrial revolution https://encrypted-tbn3.gstatic.com/images?q=tbn:ANd9GcT_rslMZAGpQ6_Hlhlej5opGayPDUC4XDbh2Xs7AR44qWkNkdHL Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 16  ❖ Trade and Globalization Triangular trade and the opium war Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 17  ❖ Trade and Globalization Protective trade and block economy Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 18  ❖ Trade and Globalization Black Swans & World Trade Prof. Seulki Leeⓒ Unauthorized reproduction is prohibited. 19