1. INTERNATIONAL TRADE

2. GLOBAL TRADE, WORLD TRADE, FOREIGN TRADE, REGIONAL TRADE vs. HOME TRADE, LOCAL TRADE, DOMESTIC TRADE, INWARD TRADE

3. EXPORTING AND IMPORTING (NOUNS AND VERBS) EXPORTER / IMPORTER Last year, the United States EXPORTED cotton to Italy, and IMPORTED olive oil from that country. Croatia should increase its EXPORTS. The country's IMPORTS are very high. (n.pl.) Vegeta is AN EXPORT for Croatia and AN IMPORT for Hungary. (n.sg.)

4. Opposites: deficit - earnings - debit - exports - trade liberalisation, free trade- visible trade - developed countries - surplus expenditure credit imports protectionism invisible trade developing countries, less developed countries (LDC), underdeveloped countries

5. BALANCE OF PAYMENTS  What transactions does it include?  Between whom?  Examples of transactions?

6. BALANCE OF PAYMENTS Whose transactions are covered? What transactions are covered?  «A nations' balance of payments records all transactions between its residents and the residents of other foreign nations (including individuals, businesses and governmental units). These transactions include all visible exports and imports, imports and exports of services, tourist expenditures, interest and dividends received or paid abroad, purchases and sales of financial or real assets abroad etc. « Source: McConnell, C.R.., Brue, S.L. (1996). Economics. The McGraw-Hill Companies.

7. BALANCE OF PAYMENTS  «A nations' balance of payments records all transactions between its residents and the residents of other foreign nations (including individuals, businesses and governmental units). These transactions include all visible exports and imports, imports and exports of services, tourist expenditures, interest and dividends received or paid abroad, purchases and sales of financial or real assets abroad etc. « Source: McConnell, C.R.., Brue, S.L. (1996). Economics. The McGraw-Hill Companies.

8. VISIBLE OR INVISIBLE TRADE? EXPORTS OR IMPORTS? e.g.This is an export for X, and an import for Y. 1.An Englishman buys some olive oil in France and takes it back to Great Britain. 2.An English person buys a ticket for the Dubrovnik summer festival. 3.An Italian working in Great Britain buys an Italian car in England.

9. VISIBLE OR INVISIBLE TRADE? EXPORTS OR IMPORTS? e.g.This is an export for X, and an import for Y. 4.A German buys a ticket to watch an American band play in Germany. 5.A Norwegian ship carries frozen lamb from New Zealand to Great Britain. 6.A Canadian ship owner insures his ship in London.

10. Balance of Payments vs Balance of Trade

11. Balance of Payments vs Balance of Trade Fill in the missing words: exports, credits, surplus, invisible, imports  The relationship of visible trade exports to imports is reflected in a country’s balance of trade. A 1… in the balance of trade occurs when exports exceed imports and a deficit occurs when 2… are greater than 3…. The balance of trade is the major component of a country’s balance of payments, which also includes debits and 4… resulting from 5… trade.balance of tradebalance of payments Source: http://www.britannica.com/EBchecked/topic/630560/visible-trade

12. Fill in the missing words: exports, credits, surplus, invisible, imports  The relationship of visible trade exports to imports is reflected in a country’s balance of trade. A SURPLUS in the balance of trade occurs when exports exceed imports and a deficit occurs when IMPORTS are greater than EXPORTS. The balance of trade is the major component of a country’s balance of payments, which also includes debits and CREDITS resulting from INVISIBLE trade.balance of tradebalance of payments Source: http://www.britannica.com/EBchecked/topic/630560/visible-trade

13. What does the BoP consist of? 3 parts?  Within the BOP there are three separate categories under which different transactions are categorized: the current account, the capital account and the financial account. In the current account, goods, services, income and current transfers (e.g. donations, foreign pensions) are recorded. In the capital account, physical assets such as a building or a factory are recorded. And in the financial account, assets pertaining to international monetary flows of, for example, business or portfolio investments, are noted. Source:www.investopedia.com

14. What does the BoP consist of?  Within the BOP there are three separate categories under which different transactions are categorized: the current account, the capital account and the financial account. In the current account, goods, services, income and current transfers (e.g. donations, foreign pensions) are recorded. In the capital account, physical assets such as a building or a factory are recorded. And in the financial account, assets pertaining to international monetary flows of, for example, business or portfolio investments, are noted. Source:www.investopedia.com

15. PROTECTIONISM vs.FREE TRADE (in favour or against free trade?)  trade barriers  protectionism  quotas  open borders  tariffs  laissez-faire  deregulation  strategic industries  liberalise  subsidise  infant industries  restrictions  customs duties  import substitution

16. Match the two columns:  Comparative  To raise  Real  Absolute  Comparative  Factors of  Division of  labour  production  income  cost principle  living standards  advantage

17. WTO “The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.” (www.wto.org)

18. Optional reading: Benefits & misunderstandings?  Explain how the WTO sees itself by showing its benefits and a list of possible misunderstandings. (WTO web sites)  Match the list with the ex. in MK, 2010, p.134/135  Explain the WTO position in the US Clean Air Act and the Endangered Species Act. How does the WTO justify its position? (WTO web-sites)

19. Examples of trade blocks  NAFTA  EU  ASEAN  TTIP?  TPP?

20. TTIP: PROS AND CONS VIDEO https://www.youtube.com/watch?v=_znzkaxwtnc http://ec.europa.eu/trade/policy/in- focus/ttip/about-ttip/ http://euranetplus-inside.eu/ttip-good-or- bad/?gclid=CKnLrePPsMQCFUnLtAodJ3MAVg TEXT: http://www.independent.co.uk/voices/comment/w hat-is-ttip-and-six-reasons-why-the-answer- should-scare-you-9779688.html

21. This is what the EU says about TTIP: http://ec.europa.eu/trade/policy/in-focus/ttip/about-ttip/ ‘With TTIP, we want to help people and businesses, large and small, by: opening up the US to EU firms helping cut red tape that firms face when exporting setting new rules to make it easier and fairer to export, import and invest overseas.’