Economic activities & sectors Find the odd one out and explain your choice: shipbuilding – agriculture - engineering – industry law – construction – information technology – media forestry – mining – entertainment– fishing healthcare – trade – distribution – energy utilities

Changes in economic activity CB, p 17 Solid line Dotted line Broken line p 19: III Tell your partner about Croatia’s economic activities.

Talking about your job p 19: Read how people describe their jobs. Guess what their jobs are and which sector they work in. → p 20: II Vocabulary III Pair work

Big companies in Croatia? Companies you would like to work for? Who owns and operates them?

PUBLIC SECTOR vs PRIVATE SECTOR Ownership? Public sector: Public sector: everything that is owned by the g_________ / s_______ for the benefit of all c_______. Private sector: Private sector: everything that is owned by private i_________ for the benefit of the o_______. overnment tate itizens ndividuals wners

UNIT 3: The public and the private sector Discuss the size of public sector in the three types of economies. → CB, p 23, task 1: Which sector? Read the text pp 23 & 24

PUBLIC SECTOR

PUBLIC GOODS: Goods and services provided by the state that can be consumed by everybody in a society. They are: 1. Non-rival (to rival = to compete)? 2. Non-excludable (to exclude somebody = to leave somebody out)? if one person can consume them, it is impossible to stop another person from consuming them. one person consuming them doesn’t decrease the amount available to others.

PUBLIC GOODS: Goods and services provided by the state that can be consumed by everybody in a society. They are: 1. Non-rival (to rival = to compete) 2. Non-excludable (to exclude somebody = to leave somebody out) one person consuming them doesn’t decrease the amount available to others. if one person can consume them, it is impossible to stop another person from consuming them.

ARE THE FOLLOWING PUBLIC OR PRIVATE GOODS? EXPLAIN BY USING THE CONCEPTS: NON-RIVAL & NON-EXCLUDABLE! Street lights Driving lessons Electricity National defence Public roads A hamburger

Why does the state have to provide public goods? Non-rival + non-excludable Hard to get people to pay to consume them. Private sector cannot make profit on them. Unprovided by private sector.

HOW ARE PUBLIC GOODS PAID FOR? Taxes (most often) Own profit/surplus (sometimes) Philantropy: donations (rarely) CB, p 24: task II Answer the questions HW: p 24 III Fill in the missing terms IV Fill in the gaps V What should be in the private / public sector? HW: p 25: The more, the merrier Read and get ready to discuss about privatization

Name some business in Croatia In what ways are they different? Size Legal form Business opportunities CB, p 29: Task I

→ CB, p 29 Size Ownership Legal form Business opportunities

Types of Businesses

Which type of business organization? Owners’ unlimited liability for debt Business is not a legal entity Owner manages the business Owners’ limited liability for debt Shareholders are not always managers Business is a legal entity Independent professions Crafts Limited liability companies Joint stock companies

Limited liability company OR joint stock company? Shareholders cannot sell shares to the general public Limited liability Management board, assembly, (supervisory board) Higher amount of minimum share capital General assembly, management board, supervisory board (or board of directors) Disclose accounts publicly Flotation (optional) Limited liability companies Joint stock companies

CB, pp 30 – 32 HW p 30 – 32: do all exercises p 33: Read & answer the questions above the text and get ready to discuss the questions below the text

Overview of tasks to do and texts to read p 24: III Fill in the missing terms p 24:IV Fill in the gaps p 25: Read The more, the merrier and get ready to discuss (use questions to get ready) p 30 – 32: do all remaining exercises p 33: Read Till death do us part - answer the questions above the text and get ready to discuss the questions below the text