Quiz (Day 2) Some economists think that if all countries followed the comparative cost ___, we could all buy better and cheaper goods. A _ __.

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Presentation transcript:

Quiz (Day 2) Some economists think that if all countries followed the comparative cost _____, we could all buy better and cheaper goods. A ___ __ ____ is a legal document between the shipper of goods and the carrier detailing the type, quantity and destination of the goods being carried. A government can ___ tariffs on imported goods if they want to ___ the consumption of domestically produced goods. What are the technological drivers of globalization? List 4 trade barriers. Explain what an infant industry is. Write a sentence with income gap.

Instruments of payment

What do buyers and sellers want in a trade transaction? They want to be protected: The buyer wants to get the goods on time the goods should be the quality and quantity he/she ordered The seller wants to get paid in full

Watch and fill in the gaps on your handout Cash in advance, letters of credit, open account https://www.youtube.com/watch?v=4yN8BV-GuZ4

Documentary collection: Documents against payment goods Importer (Buyer) Exporter (Seller) payment shipping documents payment shipping documents shipping documents Exporter’s bank Importer’s bank payment

Documentary collection: Documents against acceptance goods Importer (Buyer) shipping documents Exporter (Seller) Importer signs (accepts) bill of exchange (a promise to pay later) shipping documents Payment at a future date shipping documents shipping documents Exporter’s bank Importer’s bank

Match up the phrases Cash in advance Open account Letter of credit Documentary collection A bank guarrantee that the buyer will pay on time. The buyer gets the goods and pays at a future date Documents of ownership exchanged through the banks of the buyer and the seller The seller is paid before the buyer gets the goods

Match up the phrases: Solution Cash in advance Open account Letter of credit Documentary collection The seller is paid before the buyer gets the goods The buyer gets the goods and pays at a future date A bank guarrantee that the buyer will pay on time. Documents of ownership exchanged through the banks of the buyer and the seller

Types of payment methods

Exchange rates

Watch and listen https://www.youtube.com/watch?v=rEYDuTS93PA till 0:38 Which country has adopted the euro most recently? Who had access to the first banknote? Where did he get it from? Why did the country adopt the euro? Are all people enthusiastic about their new currency?