The International Trade Course 2022

ECONOMICS 1
International Trade
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1. Economic background
Vietnam
Vietnam is located in the continent of Asia and is surrounded by China, Laos and
Cambodia. Vietnam was a country that practiced agriculture until the French colonialists
appeared (Yang et al, 2015). These colonialists greatly influenced the country and introduced
manufacturing industries. Vietnam is grouped under the world’s poorest economies since her per
capita income is less than US $ 100 annually. At a moment, the country is among the lower-
middle income countries. Vietnamese export electrical appliances, coffee, footwear, wooden
commodities, seafood among others (Yang et al, 2015).
Australia
Australia is regarded as a country, a continent and an Island surrounded by Pacific and
Indian oceans. The country deals in exportation of minerals, ores, meat, inorganic chemicals,
machinery among others (Moor, 2017). Australia is among the richest countries and it was
researched that the country had the richest people with the highest number of adults attaining the
largest wealth. In 2018, the GDP per capita income of Australia was approximately US $ 56,352.
2.Trade or Gross Domestic Product is meant to measure economic globalization.
Economic globalization generally includes transportation of capital, goods, services, technology
among other economic issues. This type of globalization is composed of production, labour,
markets, technology, finance, corporations (Van Dai, 2018). Economic globalization contains
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several benefits such as promoting technological innovation, enjoyment of economies of scale by
companies, encouraging foreign direct investment by potential investors, spreading of equity
among people, rising of the states, encouraging interdependence among countries and so on.
Yes, there are other measures that could be used other than GDP and these include; Inflation,
Balance of Payment, Terms of Trade, Unemployment rate among others.
Other than other measures, openness allows nationals of an economy to freely interact with
nationals of other countries in terms of exchanging goods and services (Van Dai, 2018). This
makes it possible to have market for their produce and also acquire products that are not
available or rare in their country.
In addition, people of Australia and Vietnam are given a chance of expanding their businesses
both within their countries and abroad through openness one issue that other measures cannot
solve. Also, the costs of goods and services are reduced using openness while with other
measures the costs remain high.
3. Graphical Representation about Openness for Vietnam and Australia from 1985 to 2005
Figure 1: Openness for Australia
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