1. Distribution channels

2. Explain these terms Distribution channel Direct channel
Indirect channel
Wholesaler - retailer
Retail outlets

3. Watch and answer the questions
How does franchising work?
Why is it good for the franchisor (big company)?
What are the advantages for franchisees (small business)?
What examples for franchises are mentioned in the video?

4. Domestic trade

5. Explain these terms Domestic trade - international trade
Transportation costs
Transaction costs
Final consumer
Trade bloc

6. International trade

7. Explain these terms Globalization Comparative cost principle
Opportunity cost
The invisible hand of the market (Adam Smith)
Trade barriers

8. Developed countries, developing countries, underdeveloped countries?
Which term defines which type of country?
Countries being industrialized
Not industialized, agrarian
Post-industrial economies, service sector important
p. 21

9. Explain these terms
Infant industry
Free trade - protectionism

10. Watch and answer the questions
How does the speaker define free trade and protectionism?
What is the chief tool for protectionism?
What is the result of tariffs on prices?
What are the examples for free trade zones?
How does free trade affect the economy of these two areas?
Can you think of arguments for protectionism?

11. Exchange rates

12. 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?

13. Instruments of payment

14. What do instruments of payment ensure?
Protect buyers and sellers
Make sure that the buyer gets the goods
and that the seller gets paid.

15. 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

16. 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

17. Types of payment methods
OPEN
ACCOUNT
DOCUMENTARY COLLECTION
LETTERS OF
CREDIT
CASH IN
ADVANCE
EXPORTER (seller)
LEAST SECURE
MOST SECURE
IMPORTER (buyer)
OPEN
ACCOUNT
CASH IN
ADVANCE
LETTERS OF
CREDIT
DOCUMENTARY COLLECTION

18. 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

19. 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

20. Incoterms

21. Think about the process of exporting/importing
Think about the process of exporting/importing. What types of costs, risks and tasks are there?
Cost of the goods purchased
Packaging
Fees to be paid for inspection of goods
Freight costs (transportation costs)
Export customs paperwork
Import customs clearance costs
Insurance

22. What kinds of misunderstandings can arise between importers and exporters?
Language
Legal differences from country to country
Transport system (safety?)

23. What can happen if confusion is not cleared out?
Late or lost goods
Additional costs
Legal action  legal costs
INCOTERMS
Need for

25. 11 Incoterms EXW: Ex Works FAS: Free Alongside Ship FOB: Free On Board
FCA: Free Carrier
CFR: Cost and Freight
CIF: Cost, Insurance and Freight
CIP: Carriage and Insurance Paid to
CPT: Carriage Paid To
DAT: Delivered At Terminal
DAP: Delivered At Place
DDP: Delivered Duty Paid

26. 11 Incoterms showing the transfer of obligations from the seller to the buyer

27. Documents used in export

28. What do you think each of these documents are for?
commercial invoice
bill of lading
insurance certificate
certificate of origin
quality and weight certificate
export license

29. Insurance

30. How does insurance work?
Write down the key words that you hear

31. Revision https://www.youtube.com/watch?v=u_LXw26BbOA Till 7:40
Which topics from English for Business 3 are mentioned in this video?

32. Meetings

33. Reasons to hold a meeting Match up the phrases
generating
making
informing
solving
training
people
employees
ideas
problems
decisions

34. Reasons to hold a meeting Solutions
generating
making
informing
solving
training
ideas
decisions
people
problems
employees

35. Tasks before the meeting Supply the verb
The chairperson
________ meeting
________ the venue and time
________ the agenda
Participants
_______ contributions
_______ an apology if they cannot attend

36. Tasks before the meeting Supply the verb
The chairperson
announces meeting
states the venue and time
circulates the agenda
Participants
perpare contributions
send an apology if they cannot attend

37. The chairperson’s tasks during the meeting Supply the verbs
_____ all participants in the discussion
_____ the discussion on track
_____ a minute-taker (who will then _____ the minutes)
and finally _____ the meeting

38. The chairperson’s tasks during the meeting Solutions
Opens the meeting
Runs the meeting
Concludes the meeting
Includes all participants in the discussion
Keeps the discussion on track
Appoints a minute-taker (who will then take the minutes)
Closes the meeting

39. Replace the Croatian words with their English translation

40. Watch and listen http://www.youtube.com/watch?v=L_kZT8t75J4