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International Trade Foreign Trading

International Trade Foreign Trading. Week 2 International Business Management Universitas Ciputra 201 4. “Any new casettes ? Want to change those with mine?”. Why we trade one another?. Scarcity creates trade. And buy rare resources such as this:.

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International Trade Foreign Trading

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  1. International TradeForeign Trading Week 2 International Business Management UniversitasCiputra 2014

  2. “Any new casettes? Want to change those with mine?”

  3. Why we trade one another?...

  4. Scarcity creates trade

  5. And buy rare resources such as this: We sell our abundant resources such as this:

  6. Mankind civilization is build on the scarcity principles

  7. British Empire had invaded 9 out of 10 countries in the world (Copping, J. 2012)

  8. Imperialism evolves as Western countries’ response to its countries resource scarcity

  9. Keep this in mind: Rich natural resources is not always a blessing. It’s a curse (Sachs & Warner, 2001)

  10. Blood Diamonds

  11. Lagged countries exported raw materials. Developed countries exported processed goods

  12. Export Characteristics Lagged Country Advanced Country Processed Added value Rich in creativity High technology use Sell at higher price • Original Form • No/minimal added value • No/minimal creativity • No/minimal technology use • Relatively Cheap

  13. EksporIni… AtauIni?....

  14. Goods are not the only thing we trade. More important, we trade ideas. We trade intangible items as well the tangible.

  15. Hallyu Wave The industry’s revenues hit about $3.4 billion in 2011, according to the Korea Creative Content Agency (KOCCA), a government group that promotes the country’s cultural initiatives. K-pop’s exports also rose to $180 million last year — jumping 112 percent compared to 2010. Exports have been growing on an average annual rate of nearly 80 percent since 2007

  16. Advanced economy trades intangible items as good as tangible items. Creativity is the vital sources behind it.

  17. What about us?... What do we trade? • Smokes? • Terrorism? • House maid? • Raw natural resources (and not from the best quality after all…..)

  18. That’s why we need more entrepreneur!!

  19. Entrepreneur is…. • Adding value to the products • Able to take care of the natural and human resources sustainability • Bringing benefits for societies through the workplace creation • Bringing benefits for the nation’s economy

  20. Let Me Introduce You to…

  21. Ida BagusRaiBudarsa Founder of Hatten Wines

  22. Announcement • We’ll have the first individual presentation next week • 5 Presenters each week, align with the students’ list. • Find an article relates to the topic discussed at class. Remember not to take a same article with your friends. • What you should present are the article itself and your analysis/reflection. It lasts maximum 10 minutes

  23. Announcement Cont’d • Submit your presentation a day before to: christian.budiman@ciputra.ac.id • Don’t forget to put “EXIM” in the email title. Otherwise, I may lost it. • It’s 15% of your final grade. Treat it as an important one! • Good luck!

  24. Individually Assignment (to be submitted next week): Summary of text book chapter 1 and 2

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