I. Reading Exercises:

Exercise 1. Read and memorize using a dictionary:

international trade, buyer, seller, to establish, branches abroad, mercantile agents, selling agents, buying agents, independent authority, commission agents, wholesaler, home trade, decision maker, macroeconomic models, a representative agent model, a heterogeneous agent model.

Exercise 2. Answer the questions:

1) Who has higher degrees of independent authority?

2) What functions do merchant shippers fulfill?

3) How can you describe an agent is economics?

4) Whet do economists often use representative agent models?

Exercise 3. Match the left part with the right:

1. Agencies continue	a) two common types of agents in partial equilibrium models of a single market.
2. But they have	b) continue to handle a very large volume of business.
3. Buyers and sellers are	c) play multiple roles in the economy.
4. Each of these agents may	d) the additional work of attending to shipping arrangements.

Exercise 4. Open brackets choosing the right words:

The more personal and informal style of this correspondence should (give/prove) of value to the student, for a good deal of the (subject/object) matter and idiom can be (supplied/applied) to matters other than those (decided/connected) with agencies.

THE SPEAKING MODULE

II. Speaking Exercises:

Exercise 1. Describe agency; agent; buyer; economist; trade using the suggested words and expressions as in example:

agency business; to provide; a particular service; for; people; organization; example: The agency is a business that provides a particular service for people or organization.

agent a person; a company; to represent; another person; especially; in business.

buyer someone; job; to choose; to buy; goods; for; a shop; a company.

economist someone; to study; the way; money; goods; be produced; be used; systems; business; trade.

trade activity; buying; selling; exchanging; goods; within; a country; between countries.

Exercise 2. Ask questions to the given answers:

1) Question: ___________________________________________?

Answer: A large organization may establish a manufacturing subsidiary or sales company in the foreign country.

2) Question: ___________________________________________?

Answer: They charge a commission for their work.

3) Question: ___________________________________________?

Answer: In economics, an agent is an actor or decision maker in a model.

THE WRITING MODULE

III.Writing Exercises:

Exercise 1. Complete the sentences with the suggested words:

from; but; or; also; for.

Mercantile agents may be selling agents or buying agents; both act on instructions _____ their principals, and receive payment _____ their services under some kind of agreement _____ contract. Brokers and factors are _____ mercantile agents, _____ agents with higher degrees of independent authority.

Exercise 2. Fill in the table with words and expressions from the text:

	types of agents	typed of roles	problems
Example: letters deal with	-	-	terms of operation, competition supplies.
macroeconomic models distinguish
agents may act as

Exercise 3. Compose a story on one of the topics (up to 100 words):

“Types of agents”

“The Concept of an agent”

“Difference between representative agent model and heterogeneous agent model”