1. 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.

2. Instruments of payment

3. 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

4. Watch and fill in the gaps on your handout
Cash in advance, letters of credit, open account

5. 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

6. 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

7. 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

8. 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

9. Types of payment methods

10. Exchange rates

11. 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?