1. INTERNATIONAL TRADE

2.  GLOBAL TRADE WORLD TRADE  FOREIGN TRADE  REGIONAL TRADE vs.  HOME TRADE  LOCAL TRADE  DOMESTIC 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. Find 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 statement 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. « McConnell, Brue: Economics (1996)

6. 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

7. 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

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. PROTECTIONISM vs. FREE TRADE  trade barriers  protectionism  quotas  open borders  tariffs  laissez-faire  deregulation  strategic industries  liberalise  subsidise  infant industries  restrictions  customs duties  import substitution

11. How would you classify the words from the previous slide (protectionism vs. free trade)? In favour of free trade: Against free trade:

12. Match the two columns: (based on MacKenzie, 2002, in R: 31, 32)  Comparative  To raise  Real  Absolute  Comparative  Factors of  Division of  labour  production  income  cost principle  living standards  advantage

13. 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)

14. issues negotiated within the WTO  agriculture (subsidies distorting prices) e.g. 18 Dec 05, Hong Kong “World Trade Organisation ministers reached a compromise agreement in Hong Kong, that sets an end-date of 2013 for farm export subsidies and offers export help to the world’s poorest nations.” (Financial Times) “After securing commitments from others to reform their own export subsidies, the EU has offered to eliminate its export refund system by 2013, conditional on similar moves from others.” (europa.eu.int)  industrial products, services, intellectual property, investment, competition, transparency in government procurement, trade facilitation, anti-dumping, subsidies, regional trade agreements, trade and environment

15. 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  Fo tExplain the WTO position in the US Clean Air Act and the Endangered Species Act. How does the WTO justify its position? (WTO web-sites)