International trade. Complete the following sentences to summarize the text above:

Summarizing.

Complete the following sentences to summarize the text above:

1. International business is characterized by…

2. Companies can engage in international business through…

3. Exports and imports are …

4. Travel, tourism and transportation,… comprise international business.

5. Foreign investment is …

6. There are many factors that cause changes in the world trade: economic conditions,…

True-false questions:

1. International business is characterized by all business transactions that involve two or more countries and may be of governmental or private character.	
2. A company can engage in international business through various means: exporting and/or importing merchandise and services, direct and portfolio investment, and strategic alliances with other companies.	
3. Merchandise imports are tangible goods sent out of the country.	
4. International business doesn’t comprise performance of activities abroad.	
5. Portfolio investment doesn’t differ from direct investment.	
6. Economic conditions, technology, wars and political relationships are the main factors causing changes in the world trade and investment patterns.	

8Viewpoint:

As part of international business, does tourism play an important role in the economy of our country?

Lead-in: Why do most countries exchange goods and services?   Key words and phrases 1. to merit special attention –заслуговувати особливої уваги 2. to impose restrictions –накладати обмеження 3. currency –валюта, гроші 4. comparative costs –порівняльні витрати 5. demand and supply –попит та пропозиція 6. terms of trade –умови торгівлі 7. average price– середня ціна 8. foreign demand –зовнішній попит 9. domestic inflation –внутрішня інфляція 10. deterioration of trade– погіршення торгівлі

International trade merits special attention because it differs in several crucial respects from the exchanges of goods and services that take place within a country. First, there are more obvious “barriers” to trade between countries than to trade within countries. These can be simply the result of differences in economic structure, tradition, language or natural resources, or they can be restrictions imposed by governments on the movement of imports, exports, labour and capital. Secondly, different countries use differ­ent currencies, and trade is only possible where the currency of one country can be exchanged for the currency of another one. This fact alone is of little consequence where the relationship between currencies is fixed, but in practice the relative values of currencies often change, presenting us with a whole series of additional economic problems. Finally, economic conditions and government policies normally vary more significantly between countries than between regions of a country. Thus buoyant demand in the UK might cause the purchase of more goods and services from abroad than foreigners buy from the UK, resulting in balance of payments problems in the UK.

Дата добавления: 2014-12-24