IB
Class A306
Reviewed
Teacher's name Nguyễn Thị Quỳnh Nga
Note
Chương 1
1. International trade: capital (more mobile in a country than among
countries)/goods/services across international borders
2. 4 modes of supply: cross-border (Netflix, online), consumption abroad (du học
liên kết, bay), commercial presence (RMIT), presence of a natural person (có
thầy)
3. How can government imply taxes to Netflix, Grab?
Goods and Services tax (GST)
applies the destination principle: a concept of international taxation which allows
for value added taxes to be retained by the country where the taxed product is being
IB 1
, sold (*accepted among countries in the IRAS-OECD Regional GAT/VAT conference).
They are collected on imports and rebated on exports.
Tax collected form foreign suppliers ⇒
domestic office ⇒
reverse charge (avoid
administrative burden on foreign supplier) ⇒
domestic recipient
Australia: domestic recipient ⇒ supplier (SA, SB = 1 entity)
4. Characteristics of globalization: interdependence, integration, interconnection
5. Globalization of markets: merging of distinct and separate national markets ⇒
global market ⇒ no trade barriers (easier to sell), preferences of consumers turn
into global norm (somewhat negative)
6. Globalization of production: sourcing of goods&services takes advantage of the
difference in cost and land/labor/energy/capital ⇒
lower cost, improve quality
7. Global value chain
⇒ khong co
phan nao
thuc su co
significant
value
8. smile curve
⇒ manufacturing has the least value-
added
⇒ can determine what has the most
value-added to focus on
IB 2
, 9. Advantages and disadvantages of the global market:
Advantages: new customer base, cover revenue lost of the mother company, attract
new talent pool, increase brand’s prestige,…
Disadvantages: unfamiliar problems (law, social norms, consumer buying patterns,
regulations of foreign countries, language and culture barriers, logistics obstacles,
…) + levels of uncertainty (changes in regulations of foreign country, foreign
currency,…)
10. Factors increase globalization:
1/ Invented modern means of payment, reduce cost of shipping, cost of communication
advancement in communication, social media
2/ reduce trade barrier: labor moves easily among countries, FTAs ⇒ remove tariffs and
⇒
non-tariffs lower cost
IB 3
, 3/ Development of services that support IB: now we go by train, boat,… (transportation);
consulting (legal issues); banking; insurance
nếu muốn buôn bán gỗ với nam phi, sẽ cần đồng rand. với sự phát triển các dịch vụ
đồng tiền, từ đó có thể trao đổi đồng rand dễ dàng hơn
4/ customers are more aware of products, want products with higher quality, various
selections, and lower prices
5/ increase in global competition: Pepsi vs cocacola ⇒ cocacola has subsidiary in
Vietnam ⇒ pepsi will follow
Kinh Do expand to other countries competing with foreign companies ⇒ purpose:
reduce risk, increase revenue, become monopoly,…
6/ unkraine issues in politics might lead to unstable international business
7/ some project needs more capital, one country cannot resolve the issue ⇒
governments of countries may come up with treaties to build the project together
11. Two macro drivers of globaliztion
the decline in trade barrier
technological changes
11. Anti or support globalization?
12. IB operating modes:
merchandise exports and imports (tangible goods)
service exports and imports (intangible goods): tourism and transportation, service
performance (banking, insurance,…), asset use (trademark, copyrights,…)
investments: foreign direct investment & foreign portfolio investment
14. factors affecting the ability to operate abroad (explain more)
IB 4
IB
Class A306
Reviewed
Teacher's name Nguyễn Thị Quỳnh Nga
Note
Chương 1
1. International trade: capital (more mobile in a country than among
countries)/goods/services across international borders
2. 4 modes of supply: cross-border (Netflix, online), consumption abroad (du học
liên kết, bay), commercial presence (RMIT), presence of a natural person (có
thầy)
3. How can government imply taxes to Netflix, Grab?
Goods and Services tax (GST)
applies the destination principle: a concept of international taxation which allows
for value added taxes to be retained by the country where the taxed product is being
IB 1
, sold (*accepted among countries in the IRAS-OECD Regional GAT/VAT conference).
They are collected on imports and rebated on exports.
Tax collected form foreign suppliers ⇒
domestic office ⇒
reverse charge (avoid
administrative burden on foreign supplier) ⇒
domestic recipient
Australia: domestic recipient ⇒ supplier (SA, SB = 1 entity)
4. Characteristics of globalization: interdependence, integration, interconnection
5. Globalization of markets: merging of distinct and separate national markets ⇒
global market ⇒ no trade barriers (easier to sell), preferences of consumers turn
into global norm (somewhat negative)
6. Globalization of production: sourcing of goods&services takes advantage of the
difference in cost and land/labor/energy/capital ⇒
lower cost, improve quality
7. Global value chain
⇒ khong co
phan nao
thuc su co
significant
value
8. smile curve
⇒ manufacturing has the least value-
added
⇒ can determine what has the most
value-added to focus on
IB 2
, 9. Advantages and disadvantages of the global market:
Advantages: new customer base, cover revenue lost of the mother company, attract
new talent pool, increase brand’s prestige,…
Disadvantages: unfamiliar problems (law, social norms, consumer buying patterns,
regulations of foreign countries, language and culture barriers, logistics obstacles,
…) + levels of uncertainty (changes in regulations of foreign country, foreign
currency,…)
10. Factors increase globalization:
1/ Invented modern means of payment, reduce cost of shipping, cost of communication
advancement in communication, social media
2/ reduce trade barrier: labor moves easily among countries, FTAs ⇒ remove tariffs and
⇒
non-tariffs lower cost
IB 3
, 3/ Development of services that support IB: now we go by train, boat,… (transportation);
consulting (legal issues); banking; insurance
nếu muốn buôn bán gỗ với nam phi, sẽ cần đồng rand. với sự phát triển các dịch vụ
đồng tiền, từ đó có thể trao đổi đồng rand dễ dàng hơn
4/ customers are more aware of products, want products with higher quality, various
selections, and lower prices
5/ increase in global competition: Pepsi vs cocacola ⇒ cocacola has subsidiary in
Vietnam ⇒ pepsi will follow
Kinh Do expand to other countries competing with foreign companies ⇒ purpose:
reduce risk, increase revenue, become monopoly,…
6/ unkraine issues in politics might lead to unstable international business
7/ some project needs more capital, one country cannot resolve the issue ⇒
governments of countries may come up with treaties to build the project together
11. Two macro drivers of globaliztion
the decline in trade barrier
technological changes
11. Anti or support globalization?
12. IB operating modes:
merchandise exports and imports (tangible goods)
service exports and imports (intangible goods): tourism and transportation, service
performance (banking, insurance,…), asset use (trademark, copyrights,…)
investments: foreign direct investment & foreign portfolio investment
14. factors affecting the ability to operate abroad (explain more)
IB 4
