Distribution channels

Explain these terms

Distribution channel Direct channel Indirect channel Wholesaler - retailer Retail outlets

Watch and answer the questions

http://www.youtube.com/watch?v=EmjA6O2HIus

1. How does franchising work?

2. Why is it good for the franchisor (big company)?

3. What are the advantages for franchisees (small business)?

4. What examples for franchises are mentioned in the video?

Domestic trade

Explain these terms

Domestic trade - international trade Transportation costs Transaction costs Final consumer Trade bloc

International trade

Explain these terms

Globalization Comparative cost principle Opportunity cost The invisible hand of the market (Adam

Smith) Trade barriers

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

Explain these terms

Infant industry Free trade - protectionism

Watch and answer the questions

http://www.youtube.com/watch?v=7njIlZ2xYq0

1. How does the speaker define free trade and protectionism?

2. What is the chief tool for protectionism?3. What is the result of tariffs on prices?4. What are the examples for free trade zones?5. How does free trade affect the economy of

these two areas?6. Can you think of arguments for protectionism?

Exchange rates

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?

Instruments of payment

What do instruments of payment ensure?

Protect buyers and sellers Make sure that the buyer gets the goods and that the seller gets paid.

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

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

Types of payment methods

LEAST SECURE

MOST SECURE

EXPORTER (seller)

IMPORTER (buyer)

OPENACCOUNT

DOCUMENTARY COLLECTION

LETTERS OF

CREDIT

CASHIN

ADVANCE

OPENACCOUNT

DOCUMENTARY COLLECTION

LETTERS OF

CREDIT

CASHIN

ADVANCE

Documentary collection: documents against payment

goodsExporter(Seller)

Importer(Buyer)

shipping docum

ents

Exporter’s bank

shipping documents

Importer’s bank

shipping docum

ents

paymentpayment

payment

Documentary collection: documents against acceptance

goodsExporter(Seller)

Importer(Buyer)

shipping docum

ents

Exporter’s bank

shipping documents

Importer’s bank

shipping docum

ents

Payment at a future date

Importer signs (accepts) bill of exchange (a promise to pay later)

shipping documents

Incoterms

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

What kinds of misunderstandings can arise between importers and exporters?

Language Legal differences from country to country Transport system (safety?)

What can happen if confusion is not cleared out?

Late or lost goods Additional costs Legal action legal costs

INCOTERMS

Ne

ed fo

r

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

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

Documents used in export

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

Insurance

How does insurance work?

http://www.youtube.com/watch?v=ID9aevs-els

Write down the key words that you hear

Revision

https://www.youtube.com/watch?v=u_LXw26BbOA

Till 7:40

Which topics from English for Business 3 are mentioned in this video?

Meetings

Reasons to hold a meetingMatch up the phrases

generating making informing solving training

people employees ideas problems decisions

Reasons to hold a meetingSolutions

generating making informing solving training

ideas decisions people problems employees

Tasks before the meetingSupply the verb

The chairperson ________ meeting ________ the venue and time ________ the agenda

Participants _______ contributions _______ an apology if they cannot attend

Tasks before the meetingSupply the verb

The chairperson announces meeting states the venue and time circulates the agenda

Participants perpare contributions send an apology if they cannot attend

The chairperson’s tasks during the meetingSupply the verbs _____ the meeting _____ the meeting _____ the meeting _____ all participants in the discussion _____ the discussion on track _____ a minute-taker (who will then _____

the minutes) and finally _____ the meeting

The chairperson’s tasks during the meetingSolutions 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

Replace the Croatian words with their English translation

Watch and listen

http://www.youtube.com/watch?v=L_kZT8t75J4 http://australianetwork.com/businessenglish/stories/ep04.ht

m