Say if the statements are true or false. Prove your point. Answer the questions

Answer the questions.

Difference Between Absolute Advantage and Comparative Advantage

A nation's absolute advantage is measured in relation to other nations. A nation has an absolute advantage in the production of a product any time it can produce that product at a lower cost than can other nation. A nation's comparative advantage is measured in relation to all of the goods and services the nation produces. A nation has a comparative advantage in those products that have the lowest opportuni­ty costs.

By specializing in the production of the product it can pro­duce mo.st efficiently, each nation is able to make the best use of its available resources. International trade then allows each nation to enjoy the most products at the lowest opportu­nity costs.

Words and Expressions

absolute advantage - абсолютное преимущество

calculate the economic benefits - подсчитывать экономиче­скую выгоду

comparative advantage - сравнительное преимущество

cost n - стоимость

decrease in self-sufficiency - уменьшение экономической самостоятельности

economic interdependence - экономическая взаимозави­симость

international trade - международная торговля

manufactured goods - промышленные товары

narrow range of products - ограниченный ассортимент про­дукции

productivity n - производительность

specialization n - специализация

unequal distribution of resources - неравномерное распре­деление ресурсов

voluntary exchange of goods - добровольный обмен товара­ми

well-developed means of production for goods - хорошо раз­витая база средств производства товаров

well-tapped natural resources - хорошо разработанные природные ресурсы

1. What does the term 'international trade' denote?

2. What concepts are at the basis of international trade? 3 What does absolute advantage mean?

4. What does comparative advantage mean?

5. Can you explain the difference between absolute and comparative advantage?

1. The term international trade denotes the voluntary exchange of goods and services between people in dif­ferent nations.

2. Absolute advantage means that using the same resources one nation can produce a product at a higher cost than can a second nation.

3. At the basis of international trade are the concepts of specialization and economic interdependence.

4. Comparative advantage is the disadvantage that arises from the inability to produce a product at a lower opportunity, cost relative to other products.

5. By specializing in the production of the product it can produce most efficiently, each nation is able to make the best use of its available resources.

14* Complete the following sentences by choosing the one correct variant (a, b or c) that best completes the sen­tence.

1. At the basis of international trade are the concepts of_______________________.

a. well-developed means of production

b. specialization and economic interdependence

с well-tapped natural resources

2. A nation's absolute advantage is measured in relation to___________________________.

a. natural resources

b. means of production

с. other nations

3. A nation's comparative advantage is measured in rela­tion to__________________________.

a. all the goods and services the nation pro­duces

b. voluntary exchange of goods

с labor force

4. Brazil enjoys an absolute advantage over the United States in_________________________.

a. coal production

b. coffee production

с steel production

5. The United States enjoys an absolute advantage over Brazil in the production of_____________________.

a. manufactured foodstuffs

b. convenience goods

с manufactured goods

Unit 4. DISCUSSION

15 Study the expressions in the Useful Language box, which are used to express different language func­tions. The list of expressions in each function can be continued. Think of expressions which can be added to each function.

Дата добавления: 2014-12-29