6. Lectures complex (theses of lecture) Theme of the lecture №1. The essence and role of international trade in the world economy

Thesis:

International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (Silk Road, Amber Road), it’s economic, social, and political importance has been on the rise in recent centuries.

International economics is concerned with the effects upon economic activity of international differences in productive resources and consumer preferences and the institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and migration.

The International Labour Organization (ILO) is a United Nations agency dealing with labour issues, particularly international labour standards anddecent work for all. Almost all (185 out of 193) UN members are part of the ILO.

The ILO registers complaints against entities that are violating international rules; however, it does not impose sanctions on governments.

A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services (including labor) in exchange for moneyfrom buyers. It can be said that a market is the process by which the prices of goods and services are established.

A closed household economy is a society's economic system in which goods are not traded. Instead, those goods are produced and consumed by the same households.

Economic security or financial security is the condition of having stable income or other resources to support a standard of living now and in the foreseeable future.

Literature: 1-36.

Theme of the lecture №2. Pricing in the world markets

Thesis:

Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a fundamental aspect of financial modeling and is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and place. Price is the only revenue generating element amongst the four Ps, the rest being cost centers.

Pricing is the most effective profit lever. Pricing can be approached at three levels. The industry, market, and transaction level. Pricing at the industry level focuses on the overall economics of the industry, including supplier price changes and customer demand changes. Pricing at the market level focuses on the competitive position of the price in comparison to the value differential of the product to that of comparative competing products. Pricing at the transaction level focuses on managing the implementation of discounts away from the reference, or list price, which occur both on and off the invoice or receipt. There are numerous terms and strategies specific to pricing:

• Line pricing

• Loss leader

• Price/quality relationship

• Premium pricing

• Demand-based pricing

• Multidimensional pricing

Literature: 1-36.