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