1.

Unit 1: Management
1.1. Write 2
- What is MBO? Name the main features of MBO? Benefits
+ MBO stands for Management by Objectives. It is a strategic approach to enhance
the performance of an organization. It is a process where the goals of the
organization are defined and conveyed by the managers to the members of the
organization with the intention to achieve each objective.
+ There are 6 main stages of MBO in order, which are Define organizational goal,
Define employee objectives , Continue monitoring performance and progress,
Providing feedback, Performance appraisal and Performance evaluation
+ Benefits : Improve the motivation of the employees as they have tasks and
missions which are suitable for their strengths and specializations. As a result,
they will appreciate their on-the-job roles and responsibilities. In addition, the
organization can benefit from the improved performance of their employees.
- What is management?
+ Management is all about performing pre-planned tasks on a regular basis with the
help of the subordinates. There are five main functions of management which are
Planning, Organizing, Coordinating, Commanding and Controlling.
- What is a manager?
+ A manager is a person in an organization responsible for carrying out the five
functions of management, including planning, organizing, coordinating,
controlling and commanding.
- What can a manager do with the subordinates when considering their performance and
behaviors?
+ A manager has the authority to hire, promote, discipline and fire employees based
on those behaviors and performance.
- What is a leader? Why is it possible for anyone to become a leader?
+ A leader is a person able to stimulate and inspire their followers to have passion
and personal investment in the success of reaching their goals in an organization.
+ Because the basis of leadership is the personal qualities of the leader. People are
willing to follow their leader because of who he or she is and what the leader
stands for, not because they have to due to the authority bestowed onto him or her
by the organization.
- How is a manager different from a leader?
+ A manager holds a management position and, therefore, has the responsibility and
authority to give orders from the organization. Subordinates do not have a choice
but to listen to the demands and wishes of their managers.
- What are five common roles of a manager?Explain them briefly
+ Planning: Setting aims and targets for the organization
 + Organizing: managing people and resources effectively towards achieving the
aims of the organization. Making sure the staff do not perform overlapping
performance
+ Coordinating: Bringing people and departments together so that they can work
effectively towards common aims.
+ Commanding: managers are more likely to guide, lead and supervise people than
just tell them what to do
+ Controlling: Checking that the original goals are being met and appraising staff.
[Link]
- Compare the differences between the leaders and managers
+ Scope of role: Managers are responsible for 5 fundamental functions in a business
which are planning, organizing, coordinating, commanding and controlling.
Leaders, on the other hand, can be anyone, not necessarily in the chain of
command of an organization.
+ Intentions: Managers are in charge of setting goals and keeping track to ensure
the accomplishment of the aims and targets of the organization. However, leaders
inspire followers, create ideas and motivate others.
2. Unit 2: Work and Motivation
2.1. Write 2
- Differentiate theory X and theory Y
+ Theory X: The average person does not like to work. Workers must be constantly
supervised so they will work. Motivation is from external factors, such as pay
schemes where the workers are paid more for increased output.
+ Theory Y: The average person is motivated by internal factors. To motivate
workers, it is necessary for the managers to find ways to stimulate the interest in
the work of the employees, for example by giving rewards, recognition and
incentives.
2.2. Essay
- The needs of Maslow: 5 levels
+ Physician needs: Food, water,....
+ Security needs: the feeling of safety from wild animals, other external
dangers.
+ Social needs: the acceptance from others in a society
+ Self-esteem needs: the recognition of others in a community, the respect
from surroundings
+ Self-actualization needs: the desire to develop their own potentials and
preferences comprehensively
- The Frederick Herberg’s motivation theory: 2 types of motivation
+ Hygiene factors: salary, job security, work conditions, vacations
+ Motivators:the challenging work, the recognition of one’s achievement,
involvement in decision-making, sense of importance to an organization)
3. Unit 3: Company structure
3.1. Write 2
- What is an organizational structure?
+ It is a system that outlines how specific activities are handled to fulfill a strategic
mission. Rules, roles and obligations are parts of these activities. It also
determines the flow of information between divisions within the organization.
- Key principles of Wikinomics
+ Openness: Encouraging access to information and resources, both within and
outside of an organization, foster innovation and creativity
+ Peering: harnessing the collective intelligence and expertise of a diverse group of
individuals rather than relying solely on internal resources
+ Sharing: Enabling individuals and organizations to freely share and collaboration
projects; often facilitated by digital platforms and tools.
+ Acting globally: leveraging the global reach of the Internet to connect with
individuals and organizations from different parts of the world.
- Define a chain of command
+ A chain of command is a series of positions of authority or rank within an
organization that are ordered from lowest to highest.
- What is the main advantage of a chain of command?
+ The significant advantage of a chain of command is the clearance. Everyone
knows exactly what decisions they are able to make and what they are not able to.
They also know their role in the chain of command to centralize on their tasks to
maintain the productivity of the organization
- Describe briefly a functional organizational structure
+ It is known as a bureaucratic organizational structure, which divides a corporation
into departments based on the specialization of its employees.
- In what ways can dividing a business functionally cause problems?
+ The main disadvantage of dividing a business functionally is the lack of the
employees’ responsibility for the performance of a whole organization. They
prefer to do their goals for their own departments and do not have intentions of
developing a company as a whole.
- What is the potential disadvantage of matrix management systems?
+ Matrices involving several departments working together, which can cause
complexity and confusion for the management process.
- What is centralization?
+ A centralized structure makes choices from top to bottom, which means that the
decisions can be biased. On the other hand, a decentralized structure enables
every member of the organization to raise their voice for the joint development of
the business .
- Under what circumstances might teams not be effective?
 + The reasons for the ineffectiveness of teamwork might be poor communication,
the lack of trust, unclear goals, inadequate leadership, unresolved conflicts,
insufficient resources, ineffective team composition, the lack of recognition, and
external pressures.
4. Unit 4: Managing across culture
4.1. Write 2
- The Geert Hofstede’s 6D Models ( Vietnam- Power distance and Individualism)
- Why is it important for companies to be aware of local cultures?
+ Because they want to be successful in foreign markets. Each country has their
own cultures and customs;therefore, companies need to be aware of local cultures
to ensure effective communication, build strong relationships, adapt products and
services to local preferences, comply with legal and ethical standards, enhance
employees’ satisfaction, navigate the global market successfully, and foster a
positive brand image.
- Describe the characteristics of businesspeople from Multi-Active, Reactive and Linear-
Active
+ Multi-active cultures value feelings, emotions and intuitions, and relationships
and connections
+ Reactive cultures attach more importance to listening,responsiveness and indirect
communication in order to avoid losing other faces.
+ Linear active cultures prioritize efficiency, organization, acting logically and
direct communication in business interactions
- What is culture? What factors are likely to be governed by cultures?
+ Culture is defined as the complex system of values, traits, morals and customs
shared by a society
+ Culture influences human behaviors and shapes values, beliefs and norms, which
inturn, guide the thoughts, feelings and actions of each individual in a society.
- What is context?
+ Context refers the stimuli, environment, or ambience surrounding an event
- Describe the major features of low-context and high-context cultures and give examples
of countries adopting low-context and high-context culture
+ High-context culture is a culture by which the rules of communication are
primarily and dominantly transmitted through the use of contextual elements.
These include specific forms of body language, gestures, the social or familial
status of an individual, and the tone of voice employed during speech. (Asian
countries: China, Vietnam, Japan, Korea,...)
+ Low-context culture refers to a culture whereby most communications take place
though verbal language and rules are directly written out or stated for all to view.
( North America, Scandinavia, Germany)
- What does the Power Distance Index measure?
 + PDI is the degree to which the members of a group or society accept the hierarchy
of power and authority. It is one of six dimensions in the Geert Hofstede’ s 6D
Model.
- Indicate the differences in the relationship between subordinates and their supervisors in
low-context cultures and high-context cultures?
+ In high-power-distance cultures, subordinates expect formal hierarchical
structures and embrace relatively authoritarian, paternalistic power relationships.
Employees in this culture tend to rarely share viewpoints and prefer to listen and
follow their boss.
+ In low-power-distance cultures,on the other hand, subordinates consider
themselves as equal as their supervisors or managers. They confidently raise their
voices and actively participate in decision-making. Relationships between high-
powered individuals and people with little power tend to be more democratic,
egalitarian and informal.
4.2. Essay
- The model of 6D in Vietnam
5. Unit 5: Recruitment
5.1. Write 2
- How important is training? And what are the different types of training?
+ Training has a direct impact on an organization’s productivity and performance.
Training gives employees a better understanding of their responsibilities, the
knowledge and skills they need to do that job. This will improve their confidence,
which can positively impact performance.
+ There are three types of training: induction training, on-the-job training and off-
the-job training.
- What are induction training, on-the-job training and off-the-job training?
+ Induction training is an introduction given to a new employee, explaining the
business’s activities, customs, culture, and procedures and introducing them to
their fellow workers.
+ On-the-job training is the internal training that occurs in the actual workplace,
where employees learn by performing tasks and duties under the supervision of
more experienced colleagues or mentors.
+ Off-the-job training is external training that takes place outside the workplace,
often in a separate training facility or classroom environment and trains the
theoretical concepts, skills and knowledge related to the job roles.
5.2. Essay
- On-the-job training vs Off-the-job training
- Recruiting vs Headhunting
- Advantages and disadvantages of Induction Training, On-the-job training,Off-the-job
training, External Recruitment and Internal Recruitment
6. Unit 6: Classification of business
6.1. Write 2
- What are the features of different forms of business organizations: Sole traders,
Partnership, Private and Public Limited Companies, Franchises and Joint
Ventures? What are the advantages and disadvantages?
● Sole traders
+ Features: single owner, complete control and simple set up
+ Advantages: full control, easy decision-making and direct profits
+ Disadvantages : limited resources, personal liability and lack of
specialization
● Partnerships
+ Features: owned by two or more individuals, shared responsibility
+ Advantages: shared workload, diverse skills, potential for more
capital
+ Disadvantages: shared profits, interpersonal conflicts and
unlimited liability
● Private limited companies
+ Features : limited liability and shares held privately
+ Advantages: limited liability, easier capital rising, perpetual
existence
+ Disadvantages: restricted transfer of shares, regulatory compliance
● Public limited companies
+ Features: publicly traded shares, widespread ownership
+ Advantages: access to public capital and liquidity of shares
+ Disadvantages: stringent regulations, loss of control and public
scrutiny
● Franchises
+ Features: franchisee pays for the right to use a proven business
model
+ Advantages: established brand and support from the franchisor
+ Disadvantages: franchise fees, limited independence and shared
profits
● Joint ventures
+ Features: collaboration between two or more entities for a specific
project
+ Advantages: shared risks and costs, combined expertise
+ Disadvantages: potential for conflicts, shared profits and limited
duration
- What are the different stages of economic/business activities?
+ Stage 1 is called the primary stage of production, which involves the
extraction of the Earth’s natural resources
 + Stage 2 is called the secondary stage of production involving taking the
materials and resources from the primary sector and converting them into
manufactured or processed goods.
+ Stage 3 is called the tertiary stage of production including providing
services to both consumers and other businesses.
- What business activities are included in the quaternary sector?
+ Some people now describe the economy as having a quaternary sector
consisting of information services such as computing, ICT ( information
and communication technologies), consultancy (offering advice to
businesses) and R&D ( research and development, particularly in the
scientific fields). Broader definitions add the news media, libraries,
universities and colleges and other intellectual activities, including culture
generally.
- How different is the private sector from the public sector in mixed economies?
+ In mixed economies, the private sector and public sector differ in their
ownership, objectives, and sources of funding. Privately-owned businesses
driven by profit motives characterize the private sector, while the public
sector consists of government-owned or controlled entities with a focus on
public welfare and services. The private sector operates for profit, relies
on market forces, and is more competitive, while the public sector
provides public goods and services, is funded through taxation, and is
accountable to the government and the public.
6.2. Essay
- Franchise
- Public sector vs Private sector and Privatization
7. Unit 7: Production
7.1. Write 2
● What is production?
- The production process is an essential part of any business. It is a process of
turning raw materials and ideas into products and services. It is important to
develop efficient and effective production processes because they heavily impact
business performance.
● What are the benefits and limitations of different production methods?
- Job production
+ Benefits: Customization, high-quality output, flexibility in production
+ Limitations: High cost per unit, longer production times, less economies of
scale
- Batch production
+ Benefits: Greater efficiency than job production, moderate flexibility,
economies of scale
 + Limitations : Intermediate level of customization, inventory management
challenges, setup time between batches
- Flow production
+ Benefits: high efficiency, low cost per unit, economies of scale, faster
production
+ Limitations : limited customization, inflexibility in changing products,
high initial setup costs.
● What is lean production? How can lean production be achieved?
- Lean production is a manufacturing philosophy and management approach that
focuses on minimizing waste and maximizing efficiency through the production
process. It originated from the Toyota Production System. Lean production aims
to deliver high-quality products or services to customers with the least amount of
resources, time and cost.
- Lean production can be achieved by implementing Continuous Improvement
(Kaizen), Just-In-Time (JIT) or Cell production.
● What is job production, batch production and flow production?
- Job production is the production of unique, customized products or services
tailored to individual customer requirements. Each item is typically made
separately
- Batch production is the production of a specific quantity of a product in a set
batch before moving on to the next production. It allows for more efficiency
compared to job production but still provides some level of customization
- Flow production or Mass production involves the continuous production of
standardized products at a high volume and rapid pace, often using assembly lines
and specialized machinery. It aims for efficiency and cost-effectiveness.
7.2. Essay
- What is lean production and how to achieve lean production?
- Benefits and limitations of job production, batch production, flow production
8. Unit 8
8.1. Write 2
- What is Logistics?
+ Logistics refers to the process of planning, implementing and managing the flow
of goods, services, information and resources from the point of origin to the point
of consumption. It plays a crucial role in various industries, including
manufacturing, transportation, e-commerce, and supply chain.
8.2. Essay
- Pull and Push strategy in logistics
9. Unit 9: Quality
9.1. Write 2
- What is TQM?
 + TQM stands for Total Quality Management, a management approach to improve
the efficiency and productivity of the organization. The concept of TQM involves
a significant change in the culture of a business, which means that each member
of the organization has to join in the process. TQM ensures the quality from every
step and stage of the process, demanding the responsibility from all departments.
- Differentiate between quality control and quality assurance
+ Quality control is the process where the finished products are assessed and
identified if there were defects
+ Quality assurance is the process of management of every stage of the whole
process to assure the goods do not exist any faults
9.2. Essay
- Quality Assurance vs Quality Control
10. Unit 10: Marketing
10.1. Write 2
- Differentiate Market segment and Market Segmentation
+ Market Segment: a subgroup of a larger market with similar needs,
characteristics, demographics or behaviors
+ Market Segmentation: The process of dividing a board market into
distinct, identifiable segments based on certain criteria such as
demographics, psychographics, behaviors or graphic location
- Differentiate Market Leader and Market Challenger
+ Market Leader: holds the largest share and often sets industry standards
+ Market Challenger: a firm that actively seeks to gain a larger market share
by challenging the existing market leader
- Differentiate Market Follower and Market Challenger
+ Market Follower: A company that observes and imitates the
comprehensive approach to increase the market share but have no
intentions of challenging the market leader
+ Market Challenger: A firm that actively seeks to gain market share by
challenging the existing market leader.
- Differentiate Market Nicher and Market Follower
+ Market Nicher: Targets a specific, specialized segment of the market with
unique services or products; do not focus much on increasing market share
but the revenues
+ Market Follower: Centralizes on both gaining market share and the
revenues
● What are the four stages of a production life?
- Introduction
+ The initial stage where the product is launched into the market
+ Sales are typically low, and marketing efforts focus on creating brand
awareness
 - Growth
+ Sales and market share experience rapid growth
+ Consumer awareness increases, and the product becomes more widely
accepted
- Maturity
+ Sales continue at a stable rate, but the rate of growth slows down
+ Competition may increase and marketing efforts focus on product
differentiation
- Decline
+ Sales and profits decline as the product reaches the end of its life cycle
+ Businesses may decide to phase out the product or introduce variations to
extends its life
10.2. Essay
- Marketing mix- 4Ps
- Production life ( the characteristics of 4 stages)
11. Unit 11: Advertising
11.1. Write 2
- What is advertising?
+ Advertising is a form of communication that aims to promote or persuade an
audience to take a specific action, often to buy a product, use a service or support
an idea. It is a paid, non-personal message disseminated through various media
channels such as television, radio, print, online platforms, social media and more.
- What are the steps of Product Positioning?
● Product positioning : Establishing the market niche of a product- which may not
be as the brand leader and advertising to the appropriate segment of the audience.
+ Step 1: Know and understand the target audience
- Understand the needs, preferences, and pain points of the target
- Using demographics, psychographics and behaviors
+ Step 2: Identify the product benefits and features
- List and detail the features, advantages and benefits
- Understand how to fulfill the needs of the customers
+ Step 3: Find out the USPs
- Unique features
- Value propositions
- Answer the question ‘Why should customers choose this product?’
+ Step 4: Know the competitors
- Identify direct competitors, their strengths and weaknesses, their
positioning strategies
- Use this information to differentiate your product
+ Step 5: Promoting the brand
 - Develop a comprehensive marketing and branding strategy:
Advertising, Content Marketing, Social Media, Influencer
Collaborations, Events
+ Step 6: Sustain the positioning statement of the brand
(CONSISTENCY is the KEY)
- Maintain product quality
- Align messaging across all channels
- Evolve with market trends while staying true to the core
positioning

11.2. Essay
- Product positioning
12. Unit 12: Banking
12.1. Write 2
- What is banking?
+ Banking is the business of protecting money for others. Banks lend this money for
organizations and individuals, generating interest that creates profits for the bank
and its customers.
+ A bank is a financial institution licensed to accept deposits and make loans. They
may also perform other financial services.
+ The term “bank” can refer to many different types of financial institutions
including bank and trust companies, savings and loan associations, credit unions
or any other type of institution that accepts deposits.
- Define the commercial bank
+ A commercial bank is a financial institution that offers a range of services to
individuals, businesses and governments. These services typically include
accepting deposits, providing loans, facilitating payments, and offering various
other financial products and services. Commercial banks are profit-driven and
play a crucial role in the economy by mobilizing funds from savers and
channeling them towards productive activities through lending.
- The definition of an investment bank
+ An investment bank is a financial institution that primarily deals with large and
complex financial transactions for corporations, governments, and institutional
investors. Unlike commercial banks, investment banks do not typically take
deposits from the general public. Instead, they specialize in services such as
underwriting, mergers and acquisitions advisory, trading of securities, and the
issuance of securities. They often assist companies in raising capital by issuing
stocks and bonds in the capital markets.
13. Unit 13: Accounting and Financial Statements
13.1. Write 2
- What is management’s responsibility for the financial statement?
 + The management of a firm is ultimately responsible for the preparation and
presentation of the financial statements
- What are the limitations of the balance sheet?
+ The balance sheet generally does not employ market values in measuring
economic resources and obligations
+ There are a significant number of unrecorded assets and liabilities, such as human
capital
+ Many of the accounts reported on the balance sheet are based on estimates as
opposed to determinable amounts
- Why is the cash flow statement useful to the users of the financial statements?
+ Summarizes cash inflows and outflows for a firm over a period of time
+ Explains the change in cash and cash equivalents
+ Useful in explaining and reconciling many other significant changes in balance
sheet items
- What is financial statement articulation?
+ The interaction between assets, liabilities and equity elements with revenues and
expenses
+ The relationship among financial statements and financial statement elements
14. Unit 14: The business cycle
14.1. Write 2
- Why does unemployment rise during the recession phase of the business cycle?
+ Unemployment rises during the recession phase of the business cycle because
economic downturns lead to reduced consumer spending, decreased business
investment, and lower demand for goods and services. As businesses struggle,
they cut costs, including layoffs, resulting in increased unemployment.
- What is the difference between a recession and a depression?
+ A recession is a relatively short and mild economic downturn
+ A depression is a prolonged and severe contraction with widespread
unemployment and significant economic decline. Depressions are more intense
and enduring than recessions
- If a country is producing beyond its production possibilities curve, what phase of the
business cycle is it most likely experiencing?
+ If a country is experiencing excessive production from its production curve, it is
likely in the expansion stage of the business cycle, where unemployment is
decreasing and inflation is increasing. This is typically an unsustainable period
leading to the peak where the economy starts slowly receding.
- During a downturn, to what extent should the government intervene in the economy by
creating demand or jobs? How could it do these things?
+ During a downturn, the extent of government intervention in the economy varies,
but common measures are fiscal and monetary policies. The government can
increase demand by implementing stimulus packages, investing in infrastructure
 projects, providing financial assistance to affected industries and lowering interest
rates to encourage borrowing and spending.
14.2. Essay
- What causes the business cycle?
- What can the central bank and government do to effectively deal with this?
+ Interest rate adjustment
+ Economic stimulus
+ Regulatory reforms
15. Unit 15: Corporate Social Responsibility
15.1. Write 2
- What do companies need to do to show they exercise good corporate responsibility?
+ To demonstrate good corporate responsibility, companies should engage in ethical
business practices, prioritize environmental sustainability, contribute to
community development, promote diversity and inclusion, ensure transparency in
operations, adhere to legal and regulatory standards, and actively communicate
their commitment to social responsibility.
- Do you think making huge profits means companies can never be responsible for society?
+ NO. Making huge profits does not inherently mean that companies cannot be
responsible. Corporate responsibility involves ethical business practices, social
and environmental considerations, and community engagement. A company can
generate substantial profits while still prioritizing responsibilities through ethical
behavior, sustainability efforts, and positive contributions to society. Profitability
and responsibility are not mutually exclusive.
- Can a company survive if it shows no corporate responsibility?
+ A company may survive in the short term without demonstrating corporate
responsibility, but in the long run, lack of corporate responsibility can negatively
impact its reputation, stakeholder trust, and financial performance. Companies
that prioritize social and environmental responsibility are often more sustainable
and attractive to consumers, investors and employees.
15.2. Essay
- Discuss both view from reading 1 and 2: Should the business only focús on making
profits or even need to apply plilanthropy
16. Unit 16: Efficiency and Employment
16.1. Write 2
- What is the rationalization?
+ Rationalization is the reorganization of a company in order to increase its
operating efficiency. This sort of reorganization may lead to an expansion or
reduction in company size, a change of policy or alternation of strategy pertaining
in company size, a change of policy, or alternation of strategy pertaining to
particular products offered. Similar to a reorganization, a rationalization is more
widespread, encompassing strategy as well as structural changes. Rationalization
 is necessary for a company to increase revenue, decrease costs and improve its
bottom line.
- Do you think restructuring can help a business become more efficient?
+ YES. restructuring can potentially help a business become more efficient.
Business restructuring involves making significant changes to the organization’s
structure, processes or operations to improve overall performance and
competitiveness. This may include changes in management, workforce,
technology, or business models. The goal is often to streamline operations, reduce
costs, and enhance productivity. However, the success of the restructuring
depends on careful planning, effective implementation, and consideration of the
specific challenges and goals of the business.
- What is delocalization?
+ Delocalization typically refers to the process of relocating or dispersing business
activities or operations from a specific location to multiple locations or to a
different location altogether. This can be done for various reasons, such as cost
reduction, accessing new markets, mitigating risks, or optimizing supply chain.
Delocalization is often driven by the desire to diversify and adapt to changing
economic, regulatory, or market conditions.
- How can you interpret the term “ business efficiency”?
+ Business efficiency refers to the extent to which a company uses its resources
(time, money and labor) to achieve its objectives effectively. Efficient businesses
are able to maximize output and productivity while minimizing waste and
unnecessary costs. Key factors contributing to business efficiency include
streamlined processes, effective use of technology, optimized supply chains, well-
trained and motivated employees, and strategic decision-making. Metrics such as
return on investments, cost-effectiveness, and productivity ratios are often used to
evaluate and measure business efficiency. Achieving and maintaining business
efficiency is crucial for long-termed sustainability and competitiveness in the
marketplace.
- In a situation where there is growing unemployment, what are the advantages and
disadvantages of the following partial solutions?
● Job sharing
+ Advantage: Job sharing enables a team to have more ideas to solve a
problem
+ Disadvantage:People with interesting and responsible jobs are often
opposed to sharing them with someone else. For example, if you are a
brand manager, or the person responsible for dealing with particular
clients, investors, or investments, you probably don’t want to spend
Thursday and Friday at home worrying about what someone else is doing
with your job. It is also more expensive for companies to hire two part-
time workers for the same job.
 ● Decreasing working hours
+ People in boring jobs would probably be happy with a cut in working
hours, but not with the consequent reduction in income.
● Lowering the age of retirement:
+ Retiring at a younger age, or working fewer years of one’s life, perhaps
taking some years off, for example when your children are young, as many
women already do, equally involves a reduction of income. The burden on
current workers to pay the pensions of the previous generation is already
increasing, many countries want to raise the retirement age.
● Staff training programmes
+ Training programmes are presumably a good idea if there are or will be
jobs available that require the skills of the newly trained workers, but
some unemployed people still have few skills and lack the capacity to
learn others.
● Increasing the number of public sector jobs
+ Public sector jobs obviously have to be paid for out of tax revenue.
16.2. Essay
- Advantages and disadvantages of Rationalization?
- Why do the businesses have to conduct a layoff?
- How can the business improve the efficiency of employment?
17. Unit 17: International Trade
17.1. Write 2
- What is free trade?
+ Free trade is a largely theoretical policy under which governments impose
absolutely no tariffs, taxes, or duties on imports, or quotas on exports. In this
sense, free trade is the opposite of protectionism, a defensive trade policy
intended to eliminate the possibility of foreign competition.
- Differentiate the International trade and Free trade
+ International trade refers to the exchange of goods and services beyond national
borders. It entails the sale of exports and imports.
+ Free trade means that international trade can take place without any forms of
protection (barriers to international trade such as quantitative limits or taxes being
imposed on exports)
17.2. Essay
- Discuss whether imposing tariffs will benefit the domestic economy?
+ Imposing tariffs helps to raise tax revenues for the government. This will benefit
the economy as the money can be spent on healthcare and education. Also, tariffs
raise the price of imports and so may reduce the demand for imports. Tariffs can
also be used to protect infant industries, allowing them to grow and become
internationally competitive.
 + However, tariffs might not be effective as they simply cause other countries to
retaliate and impose their own tariffs. Also, for a country like Singapore that
relies on imports, tariffs raise the costs of imported raw materials and so can
cause cost-push inflation in the economy.
- Advantages of free trade
+ Allows a country to specialize in what is best at producing, thus improving
economic efficiency
+ No tariffs charged or quotas imposed on exports/imports, so encourages
international productivity
+ Increased competition can force firms to reduce costs (lower prices) and/or
increase their productivity
+ Access to larger global markets enables firms to take advantage of economies of
scale
+ Employment opportunities from higher export sales and/or from multinational
companies operating in the domestic country.
+ Firms have access to more raw materials and capital goods, which improves their
operational efficiency
+ Consumers have greater access to better quality goods and services, which can
help to improve their standard of living.
- Disadvantages of international trade
+ Domestic firms can go out of business if products from foreign firms are more
competitively priced and/or better quality, which can lead to domestic
unemployment.
+ International trade may allow the import of harmful products, which adversely
affects the economy and the well-being of a country’s people.
+ Economic dependence on other countries, which can put the country in a
vulnerable position if there is a political-economic conflict.
+ Trade rivalry between countries can lead to friction and even war between
countries, especially in the case of unfair tactics such as dumping.
- Reasons why countries might decide to trade with each other.
+ The lack of scarce resources in the domestic country, e.g Bangladesh does not
have sufficient supplies of crude oil and natural gas, whereas Brunei Darussalam
does not have the arable land needed to grow rice and tropical fruits, so they need
to trade with other countries
+ It is often cheaper to import products than to produce them domestically, e.g
Sweden could, theoretically, grow its own pineapples and bananas but it would be
more economical to purchase these from oversea countries such as Thailand, the
Philippines and India.
+ International specialization and trade can benefit consumers as there is more
competition, leading to more choices and improved quality of products
+ Employment opportunities can also arise from international trade and greater
volumes of output.