Unit 2. International Trade

Avoided, utilized, diversifying, delivery, customs, dependence, supplier, terms, cleared, insures, transportation, shipment, participants

10. Ask questions to fit these answers:

1. In the area of exports and imports there is a huge variety of participants.

2. Exporting can be viewed as a means of foreign market entry.

3. Domestic firms can utilize exports to absorb products that cannot be sold locally.

4. The negotiations will probably include a demand by the exporter to have some guarantee of payment made on the importer’s behalf.

5. The goods must be cleared by customs inspectors in the receiving country.

1. Remember the words:

- export

- import

- absolute advantage

- comparative advantage

- quota

- tariff

- embargo

- economic union

- exchange rate

- duty

- subsidies

- economic independence

2. Read and translate the text:

Nations trade with each other for the same reason that business companies and individuals within a domestic trade: they expect to have profit. They benefit because trade permit them to have things they need and to exchange their surplus goods and services.

Some countries have unique climate or soils, others have valuable raw materials, skilled labour forces or favourable geographic situation.

Because of a lack of natural resources, most nations are not capable to produce certain goods or services. For instance, Colombia has the right climate to grow coffee beans or Morocco has the suitable conditions for producing bananas. Ukraine is incapable to do this because of unsuitable climate. So, coffee and bananas are an important export product for Colombia and Morocco and an important import for Ukraine.

Another example for the importance of overseas trade is a supply of raw materials. For countries raw materials are major imports. Most of the countries in Western Europe must import oil. They lack this product which is an important source of energy for the industries.

A country that has many skilled workers can produce complex goods such as computers. A lot of engineering or scientific equipment are exported but without skilled workers it would be impossible.

Nations will gain because of differences in terms of climate, natural resources, labour force skills and technology. These special conditions give one country an advantage over others in production of certain goods or services.

A country which has the ability to produce a product at a lower cost than the other country is said to have an absolute advantage in making that item. For example the USA has an absolute advantage in the production of computers, Brazil has an absolute advantage in growing coffee beans.

A country that has the ability to produce a product relatively more efficiently than another, is said to have a comparative advantage.

International trade allows countries to specialize in the goods and services that they produce best, satisfying their other needs by importing commodities that they do not produce themselves.

3. Answer the following questions:

1. Give reasons why nations trade with each other.

2. Why do they benefit?

3. What special conditions give one country an advantage over others in production of certain goods or services?

4. What is an absolute advantage?

5. When do we say that one country has a comparative advantage in making certain item?

6. What does an international trade allow countries to do?

4. Match the words in column one with their synonyms in column two:

1. essential a) merchandise

2. welfare b) purchaser

3. commodity c) important

4. consumer d) prosperity

5. to reduce e) to manufacture

6. to alter f) to lower

7. to produce g) to change

8. advantage h) effectiveness

9. efficiency i) benefit

5. Make a proper selection:

1. value

2. welfare

3. advantage

4. commodity

5. consumer

6. self-sufficient (само забезпечений)

7. prosperity

8. inputs

a) a primary product, such as coffee, copper, cotton, tin;

b) a condition in which a person or community is doing well financially;

c) producing enough food or raw materials to satisfy its own requirements;

d) the worth of something to its owner;

e) health, comfort and prosperity;

f) something that puts you in a better position than other people;

g) factors of production – resources used in the process of production such as land, labour, capital;

h) a person who buys goods and services for his or her own use or consumption.

6. Translate into English:

1. Через торгівлю країни можуть отримувати товари та послуги, які вони не можуть виробляти самі.

2. Багато країн спеціалізуються на тих товарах чи послугах, які вони виробляють особливо ефективно.

3. Великобританія виробляє лише половину потрібних їй продовольчих товарів. Отже, решту їй доводиться імпортувати з інших країн.

4. Міжнародна торгівля дозволяє виробництву розширюватись через розширення ринку.

5. Зовнішня торгівля багато в чому відрізняється від внутрішньої.

6. Часто країни торгують одна з одною не з економічних, а з політичних причин.

7. Важливим фактором в міжнародній торгівлі є географічне розташування країни.

8. Країна довгий час знаходилася в глибокій економічній кризі.

7. Translate the following statements paying attention to economic terms in bold type with different word-building elements:

1. That car burns so much gasoline that it is not economical.

2. Economics is at the centre of most governmental concerns.

3. She is an economist who works for the government.

4. He lost his job, so he has to economize by not buying expensive things.

5. The national economy is strong now.

6. He economized by using buses instead of taking taxies.

7. She sold her house at an economic price.

8. She cooks very economically.

9. Despite the efforts of the government, the black economy continues to grow.

8. Write the appropriate word or phrase in the following spaces:

1. The greater experience of our company gives us … over our competitors.

2. People have come to want more … …, like tape-recorders, fridges and washing machines.

3. During the war customers queued for long hours for basic … like sugar and oil.

4. I would devote my life to the child’s ….

5. This country is … in energy suppliers.

6. The sales girl … the jewels for money.

7. Everyone realizes … of friendship.

8. The subsidies have been seen as giving farmers an unfair … over small holders.

9. What will happen to … of my property?

10. Office suppliers are … at many stores in the city.

11. Italy gained … … over many countries in mass-producing wine.

Дата добавления: 2014-11-29