POP QUIZ Analysis. Bonus points won: Gvajec 1Grljević 2Janječić ½ Heina 1Jurjević 2Hapač 1 Grubišić 1Jovičić 2Jambrišak 1 Hušnjak 1Horvat T 2Ivanjko 1

POP QUIZ

Analysis

Bonus points won:

Gvajec 1 Grljević 2 Janječić ½

Heina 1 Jurjević 2 Hapač 1

Grubišić 1 Jovičić 2 Jambrišak 1

Hušnjak 1 Horvat T 2 Ivanjko 1

Karačić 1 G.-Čabo 2 Gregurić 2

Jelavić 1 Grubišić L. ½ Habus 1

Kević 2 Jambrović ½ Keleminić 2

Jurić 1 Kalingar 1

Josipović 1 Guštin 1

Jurković 1 Horvat L. 1

• Fill in the gaps in sentences using grammatically correct forms of verbs rise, raise, slash, arise.

1) The financial crisis ___________ in 2008.

• 2) The Central Bank should ____________ the interest rates to boost the economy.

• 3) The value of stocks __________________ significantly since last October.

• 4) They had no competitors and they ________ their prices.• 5) Trying to recover their research and development costs

and they ____________ their prices.

• 6) In 2007 the Banks ____________ the interest rates to make loans more attractive.

aroseslash

has risen

raised

raised

slashed

• Fill in the gaps in sentences using grammatically correct forms of verbs rise, raise, slash, arise.

7) The market value of Facebook __________________ significantly since the beginning of this year.

8) Since our last meeting a new problem ____________.

9) In 2003, the FED ____________ the interest rates to boost the economy.

10) In October, the value of stocks ________ significantly.

has risen

has arisen

slashed

rose

Arise (tenses?)

1. The financial crisis ___________ in 2008.

8. Since our last meeting a new problem ____________.

Slash (tenses)

The Central Bank should ____________ the interest rates to boost the economy.

In 2007 the Banks ____________ the interest rates to make loans more attractive.

In 2003, the FED ____________ the interest rates to boost the economy.

Rise (tenses?)The value of stocks ________________ significantly since last October.

The market value of Facebook ___________ significantly since the beginning of this year.

In October, the value of stocks ____________ significantly.

Raise (tenses?)

They had no competitors and they ________ their prices.

Trying to recover their research & development costs they ____________ their prices.

Graph description: NOUNS (RB, p 31-32)

INTERNATIONAL TRADE + * EU*

RB, p 45-55

MK, U 27

Trade

• DEFINE “TRADE” USING THESE:activity / buying / selling / exchange / goods /

services / within / between countries

Trade

The activity of buying, selling or exchanging goods and services within a country or between countries. (commerce)

Source: Longman Business English Dictionary

Visible = exchange of goods

Trade

Visible

Invisible Trade

= exchange of services

Visible

Invisible Trade

Counter-(Barter) = direct exchange, without the use of money

From the country To the country

Visible Visible

Invisible Trade TradeInvisible

Counter-Counter

(Barter) (Barter)


Visible Visible


Counter- EXPORTS IMPORTSCounter

(Barter) (Barter)


B A L A N C E

Visible Visible

Trade Trade

EXPORTS IMPORTS

Balance of trade

B A L A N C E

Visible Visible


Counter- EXPORTS IMPORTSCounter

Trade in goods +

Invisible trade (services) =

Balance of payments

(Barter) (Barter)OUTGOING INCOMING

Visible

Trade Invisible

EXPORTS Counter

(Barter)

Visible

Invisible Trade

Counter- IMPORTS

Trade deficit

(Barter)

BA

LA

NC

E

Balance of tradeBalance of payments

Visible

Trade Invisible

IMPORTS Counter

(Barter)

Visible

Invisible Trade

Counter- EXPORTS

Trade surplus

(Barter)

BA

LA

NC

E

Balance of tradeBalance of payments

→ RB, p 45, task I

International tradeTeamwork:

1)Brainstorm reasons for importing foreign products: e.g. honey

Why import honey?

What makes imported honey cheaper?

What could make imported honey more expensive?

International TradeRB 45-47

Free Trade

and Protectionism

READING: PROTECTIONISM AND FREE TRADE

Plan:

1) Reading groups of paragraphs: 1 + 2

3 + 4 + 5

6 +7

8 + 9

to learn about relevant concepts

(e.g. comparative cost principle, tariffs)

2) Focus on vocabulary: typical collocations

READINGPROTECTIONISM AND FREE TRADE

Read paragraphs 1 & 2 to explain:

THE COMPARATIVE COST PRINCIPLE

ABSOLUTE / COMPARATIVE ADVANTAGE

(REASONS & EXAMPLES)

Comparative advantageThe idea that countries should s________ in making the

products that they are particularly good at making, and should i______ products that other countries are better at making.

Longman Business English Dictionary

• Comparative advantage the advantage that one country has over another because it is better at making a particular product.

Longman Business English Dictionary

• Absolute advantage is the ability of a country to produce a particular good at a lower absolute cost than any other country.

http://www.investopedia.com

pecialize

mport

Absolute or comparative advantage?

• Brazil - coffee

• China - shoes

• USA - computers

• Canada - timber

• South Korea - hi-fi

Absolute advantage(climate)

Comparative advantage(low labour costs)

Comparative advantage(advanced technology)

Absolute advantage(natural resources)

Comparative advantage(educated, cheap labour force)

Reasons forTRADE LIBERALIZATION (Free trade)

• spe_______n• a______e/c________e

advantage• a_____s to markets • intern. c________n &

efficiency• efficient market

m_________m• freer m________t of

resources• f______m to choose

Reasons for TRADE LIBERALIZATION (free trade)

• specialization• absolute/comparative

advantage• access to markets • intern. competition &


mechanism• freer movement of

resources• freedom to choose

Collocations from pgs 1 & 2

rai______ living standard

spe______ in the production

c________ advantage ___ producing...

fac______ of production

div_______ of labour

ec_______ of scale

Collocations from pgs 1 & 2

raise living standard

specialize in the production

comparative advantage in producing...

factors of production

division of labour

economies of scale

Free trade vs. Protectionism

• International trade (imports and exports) without government r__________

• Trade of goods and services without trade b_______

• Protection of d________ industries against foreign c________

• Government restrictions are placed on the i______ of foreign competitors

(tariffs, quotas and subsidies)

estrictions

arriers

omestic

ompetition

mports

Read paragraphs 3, 4 & 5 to explain:

PROTECTIONISM AND REASONS FOR PROTECTIONISM

TYPES OF TRADE BARRIERS

TRADE LIBERALIZATION vs. PROTECTIONISM(reasons for) (reasons for)

• protect jobs (v____s)• protect d_______c ind.• strategic reasons

– i_____t industries

• political p______e• protect culture (?)• r______e• prevent d________g• reduce a b______e of

payment deficit• r_________e against

restrictions






TRADE LIBERALIZATION vs. PROTECTIONISM(reasons for) (reasons for)

• protect jobs (votes)• protect domestic ind.• strategic reasons

– infant industries

• political pressure• protect culture (?)• revenue• prevent dumping• reduce a balance of

payment deficit• retaliate against

restrictions






TRADE BARRIERS

• Tariffs

• Import quotas

• Embargo

• Subsidies

• Non-tariff barriers:

Import substitution

Safety norms

Customs difficulties and delays

Name the trade barrier1. Taxes on imported goods. They raise the price to

customers and make them less attractive.

2. Limits on the quantity of a product that can be imported into a country e.g. 200,000 cars.

3. Laws and safety guidelines.

4. Making it difficult to arrange all certificates necessary to import into a country.

5. When a country produces and protects goods that cost more than those made abroad.

6. Money paid by a government to producers of certain goods to help them provide low-priced goods without loss to themselves.

7. A government order to stop trade with another country.

Tariffs

Quotas

Subsidy

Safety norms

Import substitution

Embargo

Custom difficulties and delays

Barriers to free trade: tariffs, quotas, subsidies, customs duty, import licence,

complicated regulations for documents

TARIFFS• to impose / set a tariff• to place a tariff on sth• to eliminate / lift a tariff• high / low tariffs

QUOTAS• to impose / introduce / lift / set quotas• to increase / raise / reduce a quota• to comply with / exceed quotas

Barriers to free trade: tariffs, quotas, subsidies, customs duty, import licence,

complicated regulations for documents

SUBSIDY• government / state subsidies• to get / qualify for / receive a subsidy• to give / grant / pay / provide a subsidy

CUSTOMS DUTY

the customs duties on foreign cars

Collocations from paragraphs 3, 4 & 5 im________ tariffs & quotas / restrictionspro________ strategic / infant industriesab_________ sectorsl____ to structural unemploymentred________ a balance of payment deficitpr_________ against dumpingdes_______ or wea______ competitorsret________ against restrictionsa_________ economies of scales____ a limit to importspro______ revenue for the government

Collocations from paragraphs 3, 4 & 5 impose tariffs & quotas / restrictionsprotect strategic / infant industriesabandon a sectorlead to structural unemploymentreduce a balance of payment deficitprotect against dumpingdestroy or weaken competitorsretaliate against restrictionsachieve economies of scaleset a limit to importsprovide revenue for the government


ORGANISATIONS PROMOTING FREE TRADE & THEIR FUNCTION

Most favoured nation clause?

The final GATT agreement? (when and what?)

Which organization superseded GATT?

OPPOSITION TO FREE TRADE (who and why?)

Removing trade barriers

• Organisations set up to encourage the removal of barriers to free global trade:– IMF– World Bank– WTO

• Countries join or face exclusion from benefits of free world trade

Collocations from paragraphs 6 & 7

gr____ favourable conditions

opp_____ free trade

countera_____a fall in prices

pra______ import substitution

Collocations from paragraphs 6 & 7

grant favourable conditions

oppose free trade

counteract a fall in prices

practice import substitution


PROBLEMS & FEARS OF DEVELOPING COUNTRIES (IMF)

OTHER REASONS FOR DEVELOPING COUNTRIES TO REDUCE THEIR PROTECTIONISM


REASONS FOR DEVELOPING COUNTRIES TO REDUCE PROTECTIONISM:

1 need to repay huge d____ - IMF imposed obligation to export

2 s_______ of the East Asian “Tiger” economies

3 c_______ of the Soviet Union

4 potential ex________ from the t______ blocks (the EU, NAFTA)

PROBLEMS & FEARS OF DEVELOPING COUNTRIES (IMF)

1 need to repay huge debts - IMF imposed obligation to export

2 success of the East Asian “Tiger” economies

3 collapse of the Soviet Union

4 potential exclusion from the trading blocks (the EU, NAFTA)


Collocations from paragraphs 8 & 9:

p_____ the interest r______ the principalr______ (renew) a loanr _________ (postpone) repaymentsi________ severe conditionst_______ blocksl_______the economyl_______trade barriers

pay the interest repay the principalrollover (renew) a loanreschedule (postpone) repaymentsimpose severe conditionstrading blocksliberalize the economylower trade barriersHW: RB, p 47 Write the questions.RB, pp 48-49 Oh, sweet reason (compare with N on p 135)

MK, p 133 Education and protection – read and answer the questions

Collocations from paragraphs 8 & 9:

Discussion: For and against free trade

→ MK, p 134

Vocabulary, pp 132 & 134

Reading and discussing, p 135

Need the following phrases?• I am sure that...

• In my opinion... / I believe / From my point of view

• It is only fair / right to admit...

• It is difficult to take a firm stand on this, but ...

• Let me give you an example ... / If I may illustrate ...

• As / because of / since / consequently / therefore

• Firstly... Secondly... Thirdly...

• I am afraid that ...

• Although .... , I have to say ...

• Furthermore, ..../ Moreover,....

• However,...

Report writing task 2, RB p 25

• Teamwork:

Write a short report and hand it in.

Documents

POP QUIZ Analysis. Bonus points won: Gvajec 1Grljević 2Janječić ½ Heina 1Jurjević 2Hapač 1 Grubišić 1Jovičić 2Jambrišak 1 Hušnjak 1Horvat T 2Ivanjko 1