INTERNATIONALTRADE

INTERNATIONAL TRADE

GLOBAL TRADE, WORLD TRADE,FOREIGN TRADE, REGIONAL TRADE

vs.

HOME TRADE, LOCAL TRADE, DOMESTIC TRADE, INWARD TRADE

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.)

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

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.

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.

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.

Balance of Payments vs Balance of TradeFill 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.

Source: http://www.britannica.com/EBchecked/topic/630560/visible-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 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.

Source: http://www.britannica.com/EBchecked/topic/630560/visible-trade

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

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

Trade - Headlines

UK trade deficit narrows slightly(Jan, 2013)

US trade deficit declined in May (2012)

China posts massive trade deficit (March, 2012)

China posts surprise trade surplus (March, 2013)

Which of the three headlines are explained here?

a rise in the sale of goods and services to other areas of the global economy

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.

cheaper oil that reduced imports and an increase in exports to Europe and China.

Translate the following: Izvoz zlata popravlja trgovinsku

bilancu Aug, 2012 Bez deficita tekućeg računa platne

bilance u 2013 Banka, Dec, 2012 Hrvatski izvoz zaostaje za izvozom

usporedivih zemalja, a njegov se udio na tržištu EU-a u 2012. godini, nakon višegodišnje stagnacije, počeo i smanjivati. No, obzirom na slabu potrošnju, izvoz će sljedeće godine biti veći od uvoza.

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

Match the two columns: Comparative To raise Real Absolute Comparative Factors of Division of

labour production income cost principle living standards advantage advantage

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)

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)