HW check:

1. HW check: • Submit a short text about internal theories of the business cycle. 2) MK, p 117 - Reading 2 Read the text and give headings to paragraphs 1 D 2 C 3 E 4 A 5B THE DISCUSSION - preview Two opposing theories: Which one argues in favour of increasing/inflating money supply? Why? What is the opposite argument? Match theories to desired aims:stable price level low unemployment Keynsianism ? Monetarism ?

2. HW check: • Submit a short text about internal theories of the business cycle. 2) MK, p 117 - Reading 2 Read the text and give headings to paragraphs 1 D 2 C 3 E 4 A 5B THE DISCUSSION - preview Two opposing theories: Which one argues in favour of increasing/inflating money supply? Why? What is the opposite argument? Match theories to desired aims: Keynsianism low unemployment Monetarism stable price level

3. TEAMWORK: Discussion (MK, p 118) • Which of the arguments do you find more convincing? • Which is more important, fighting inflation or unemployment? • In an economic crisis, should governments rescue banks that have taken too big risks, and large companies in old industries, or invest in new, efficient start-up companies in innovative new industries? • Which companies in Croatia are “too big to go bankrupt”? • Which industries should the government invest in?

4. POP QUIZ

5. Put the following words in order: consumer, retailer, manufacturer, wholesaler

6. manufacturer→ wholesaler →reatailer → consumer What do they represent? The p_od_ct’s d_ _ _ _ib_t_on cha_ _el

7. DISTRIBUTION CHANNEL Producer Wholesaler/distributor Retailer Consumer How do you shop for X? (say a number 1-7) Why? Online(Internet) or telephone or mail order sales Agent Own sales force

8. Retail and wholesale trade

9. Services provided by wholesaler A - For the producers B - For the retailers 1__ Advising them of current market trends 2__ Offering choice of products from many producers 3__ Finishing goods by grading, packing and branding 4__ Reducing transport costs 5__ Making mass production possible by ordering in large quantities → reducing production costs 6__ Supplying small quantities to suit their needs

10. Services provided by wholesaler A - For the producers B - For the retailers 1_A_ Advising them of current market trends 2_B_ Offering choice of products from many producers 3_A_ Finishing goods by grading, packing and branding 4_A_ Reducing transport costs 5_A_ Making mass production possible by ordering in large quantities → reducing production costs 6_B_ Supplying small quantities to suit their needs

11. Services provided by wholesaler wholesaler • For the producer: • Reducing transport costs • Advising producer of current market trends • Finishing goods by grading, packing and branding • Making mass production possible by ordering in large quantities → reducing production costs • For the retailer: • Offering choice of products from many producers • Supplying small quantities to suit retailers’ needs

12. SUPPLY THE RIGHT WORD: • ___________ is the business of selling large quantities of goods at low prices to other businesses, rather than to the general public.

13. SUPPLY THE RIGHT WORD: • I can get the goods wholesale. • He sells bananas (by) wholesale. • He’s a wholesaler. • It’s a wholesale price. • Robu mogu nabaviti u veleprodaji. • Prodaje banane u veleprodaji. • On je trgovac na veliko. • To je veleprodajna cijena. • Wholesaling is the business of selling large quantities of goods at low prices to other businesses, rather than to the general public. • TRANSLATE

14. Retailing FINISH THE LINE… The retailer buys goods or products in large quantitiesfrom… manufacturers or importers, either directly or through a … wholesaler, and then sells individual items or small quantities to … the general public or end users, usually in.. a shop.

15. TRANSLATE To je maloprodajna cijena. On prodaje olovke na malo. Ovaj dućan bavi se maloprodajom knjiga. Knjiga se prodaje po maloprodajnoj cijeni od 50 c. Njegovo iskustvo u maloprodaji uključuje upravljanje određenim brojem dućana. Tijekom recesije maloprodaja trpi. Lutka će se u maloprodaji prodavati za ca 5 EUR. It’s aretail price. (adj.) He sells pencils retail.(adv) This shop retails books. (v.) The book retails at 50 cents.(v.) His experience in retail includes managing a number of shops. (n.) The retail trade is suffering during recession. (adj.) The doll will retail for about EUR 5. (v.)

16. RetailingSTORM CLOUDS OVER THE MALLAs consumer spending slows, rival strategies are being put to the test(RB, p 39) I Look at the title and subtitle – can you guess what the article is about – ANTICIPATING II Read topic sentences to inform your expectations – PREDICTING III Read paragraph by paragraph & do exercise on p 40 Underline words & expressions you find interesting

17. STORM CLOUDS OVER THE MALL(RB, p 19) Pg 1 high street the generic name (and frequently the official name) of the main street of a town where many shops and businesses are. Name the high street in Zagreb? How is business there? ... his British retailing institution... is? Boots brace for an awful Xmas get ready for the pressure of Xmas What do you think Zagreb shopkeepers are bracing for? Correct the mistake in paragraph summary: Consumer spending rises in Europe, competition is intense and some retail chains decide to merge with rival chains.

18. STORM CLOUDS OVER THE MALL(RB, p 19) Pg 1 high street the generic name (and frequently the official name) of the main street of a town where many shops and businesses are. Name the high street in Zagreb? How is business there? ... his British retailing institution... is? Boots brace for an awful Xmas get ready for the pressure of Xmas What do you think Zagreb shopkeepers are bracing for? Correct the mistake in paragraph summary: Consumer spending declines in Europe, competition is intense and some retail chains decide to merge with rival chains.

19. Pg 2 Shopkeepers arenotoriousEeyores – known for being pessimistic (Winnie the Pooh’s donkey friend)

20. Pg 2 Shopkeepers arenotoriousEeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired?

21. Pg 2 Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired? sinking, declining

22. Pg 2 Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired? sinking, declining gas guzzling

23. Pg 2 Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired? sinking, declining gas guzzling guzzle – drink to excess, greedily QUESTION: Can you say beer guzzling?

24. Pg 2 Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired? sinking, declining gas guzzling guzzle – drink to excess, greedily QUESTION: Can you say beer guzzling? Correct the mistake in paragraph summary: While Britain’s and Germany’s GDP is falling, consumer confidence is on the rise around the world.

25. Pg 2 Shopkeepers are notorious Eeyores – known for being pessimistic (Winnie the Pooh’s donkey friend) mire = swamp, bog What is Germany’s economy like? Mired? sinking, declining gas guzzling guzzle – drink to excess, greedily QUESTION: Can you say beer guzzling? Correct the mistake in paragraph summary: While Britain’s and Germany’s GDP is falling, consumer confidence is on the rise around the world. declining

26. Pg 3 fuel bills are cutting into customers’ spending? Correct the SUMMARY: Rising fuel costs and household debt affect customers’ spending which in turn has a positive effect on the sales of weaker retail players. • Pg 4 Correct the SUMMARY: Britishsupermarket chains expand into more productareas, and this affects negatively high-street chains and department stores. • Pg 5 • An upmarket version of WalMart Which is it? appealing or catering to high-income consumers; of high quality Target Correct the SUMMARY: Retailers’ survivalstrategy relies primarily on meeting a wide array of customers' needs.

27. Pg 3 fuel bills are cutting into customers’ spending? SUMMARY: Rising fuel costs and household debt affect customers’ spending which in turn has a negative effect on the sales of weaker retail players. • Pg 4 SUMMARY: Giant supermarket chains expand into more product areas, and this affects negatively high-street chains and departmentstores. • Pg 5 • An upmarket version of WalMart Which is it? appealing or catering to high-income consumers; of high quality Target SUMMARY: Retailers’ survivalstrategy relies primarily on meeting customers' needs, and specialisation (niche market).

28. Pg 6 retailers can stumble in new markets to proceed unsteadily, encounter difficulties Throw in the towel (boxing?) admit/concede defeat, give up Swap stores for hypermarkets exchange Correct the SUMMARY: Secondly, retailersshould keep a foothold inas many regions as possible to reach economies of scale. Pg 7 Have noglobal clout - advantage, influence have no significant global influence Correct the SUMMARY: Many retail chains have global clout.

29. Pg 6 retailers can stumble in new markets to proceed unsteadily, encounter difficulties Throw in the towel (boxing?) admit/concede defeat, give up Swap stores for hypermarkets exchange SUMMARY: Secondly, retailers should only expand to regions where they are strong. Pg 7 Have no global clout - advantage, influence have no significant global influence SUMMARY: Only a few retail chains have global clout.

30. Pg 8 Give a retailer the benefit of the doubt adopt a favourable opinion even when evidence is uncertain To source products globally to obtain, to find a supplier SUMMARY: Thirdly, retailers need to winconsumer confidence through pricing, the biggest supermarkets own factories where they manufacture own-branded products cheaply. Pg 9 Replenish stocks Remember: Time is not replenishable... To supply what is lacking SUMMARY: Fourthly, some wholesalers introduce changes in the supply chain.

31. Pg 8 Give a retailer the benefit of the doubt adopt a favourable opinion even when evidence is uncertain To source products globally to obtain, to find a supplier SUMMARY: Thirdly, retailers need to win consumer confidence through pricing or service. Many retailers source high-quality products globally and brand them as their own. Pg 9 Replenish stocks Remember: Time is not replenishable... To supply what is lacking SUMMARY: Fourthly, some retailers introduce changes in the supply chain.

32. Pg 10 Correct the SUMMARY: Consumer spending declines because of the use of the Internet. Pg 11 A website can drive in-store sales stimulate the sales in brick & mortar stores Beef up a website strengthen, reinforce Correct the SUMMARY: Sales in virtual stores (c_ _ _ k -and-mortar stores) work against bricks-and-mortar sales.

33. Pg 10 SUMMARY: Consumer spending grows because of the use of the Internet. Pg 11 A website can drive in-store sales stimulate the sales in brick & mortar stores Beef up a website strengthen, reinforce SUMMARY: Sales in virtual stores (click-and-mortar stores) complement/add to bricks-and-mortar sales.

34. HW:RB, pp 41-42