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  «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.

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

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 England. 2.An English person buys a ticket for the Dubrovnik summer festival. 3.An Italian working in England 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 England. 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? Where does money come from and go?  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? Where does money come from and go?  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. Trade – News Headlines  China posts massive trade deficit (March, 2012)  China posts surprise trade surplus (March, 2013)  China recorded a trade deficit in February 2014.  China exports fall as trade surplus hits record (FT, 8 Feb 2015)

16. Trade deficit or trade surplus?  ‘...faltering demand for Chinese goods in the EU and other markets, export factories slow to reopen after Chinese New Year, imports grow at a strong pace...’  ‘The majority of the slump in imports was the result of falling commodity prices, especially coal and oil…’ (FT)

17. Translate the following:  Izvoz zlata popravlja trgovinsku bilancu (Aug, 2012)  Bez deficita tekućeg računa platne bilance u 2013. (Banka, Dec, 2012)  Hrvatski izvoz porastao 8,7 posto, 63% robe ide u zemlje EU: Deficit u robnoj razmjeni s inozemstvom u prvih 11 mjeseci 2014. godine iznosio je tako 48,4 milijarde kuna, što znači da je manji za 895 milijuna kuna ili 1,8 posto u odnosu na godinu prije (VL, 10 Jan, 2015)

18. 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

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

20. 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)

21. 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)

22. 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