Nguyễn Phương Thảo 22051545 BT KTQT

Bài 1:
The mercantilist view on trade is an economic theory that was prominent in Europe
from the 16th to the 18th century. Mercantilism is based on the idea that a nation's
wealth is measured by its stock of gold and silver, which can be increased through a
positive trade balance (exporting more than importing). This approach emphasizes the
accumulation of wealth through trade, colonization, and protectionist policies such as
tariffs and quotas to maintain a trade surplus. Mercantilist policies include:
Encouraging exports: Governments encourage the production and export of goods to
bring in foreign currency.
Discouraging imports: Governments impose high tariffs and other barriers to restrict
imports and promote domestic production.
Accumulating wealth: A country's economic strength is measured by its stock of
precious metals, which is increased through a trade surplus.
Colonial expansion: Acquiring colonies provides access to raw materials and new
markets for exports.
*Should Vietnam follow mercantilist views on trade?
Modern trade theories: Modern economic theories such as comparative advantage
and open markets emphasize the benefits of free trade. These theories argue that trade
can lead to higher productivity, efficiency, and economic growth by allowing countries
to specialize in the production of goods and services in which they have a comparative
advantage.
Potential disadvantages of mercantilism: Following mercantilist policies can lead to
trade imbalances, retaliation from trading partners, and reduced economic efficiency.
Protectionist policies may lead to higher costs for consumers and limited choices.
Additionally, an overreliance on exports can make a country vulnerable to external
market shocks.
Global trade environment: In today's interconnected global economy, countries
benefit from open trade and international cooperation. Mercantilist policies can disrupt
global supply chains and damage trade relationships.
Vietnam's situation: Vietnam has benefited from international trade and globalization
in recent years, with a growing export sector and participation in various trade
agreements. Adopting mercantilist views could harm its trade relationships and limit
access to global markets.
Bài 2:
Adam Smith's theory of absolute advantage states that a country should specialize in
producing and exporting the goods that it can produce most efficiently, and import the
goods that it can produce less efficiently. This is because a country can gain from trade
by exporting goods that it has a comparative advantage in producing, and importing
goods that it has a comparative disadvantage in producing. In the case of Vietnam and
China, Vietnam has a comparative advantage in producing rice, while China has a
comparative advantage in producing cloth. Therefore, Vietnam should specialize in
producing and exporting rice, and import cloth from China. This would allow both
countries to gain from trade.
Example:
Suppose Vietnam can produce 1 unit of rice with 1 hour of labor, while China can
produce 1 unit of rice with 2 hours of labor. At the same time, Vietnam can produce 1
unit of fabric with 2 hours of labor, while China can produce 1 unit of fabric with 1
hour of labor.
Based on the above example, we can see:
- Vietnam has an absolute advantage in rice production because it can produce with
lower labor costs than China (1 hour compared to 2 hours).
- China has an absolute advantage in fabric production because it can produce with
lower labor costs than Vietnam (1 hour versus 2 hours).
Therefore, according to Smith's theory of absolute advantage, Vietnam should
specialize in the production and export of rice (the item has an absolute advantage),
and import fabric from China (the item has an absolute disadvantage). Similarly, China
should specialize in fabric production and export, and import rice from Vietnam.
By specializing according to their absolute advantage, both countries can produce
more goods at lower total production costs, leading to economic growth and benefits
for consumers.
Bài 3:
a. In Vietnam, the opportunity cost of one unit of producing table is 2 clothes. In
China, the opportunity cost of one unit of producing table is 4 clothes.
b. Vietnam has a comparative cost advantage in producing tables. China has a
comparative cost advantage in producing cloths

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