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Controls on Exports and Imports
Governments can make it more difficult for firms to export and import by using controls. Import duties (or tariffs) are taxes placed on imports to make them more expensive. Quotas can be imposed. If the UK government sets a quota of 10,000 Japanese cars per year then no more than 10,000 Japanese cars could be imported into the UK in that year. An embargo is a complete ban placed on certain goods, e. g., during wartime an embargo would be placed on trade with enemy countries. The UK Government may give subsidies (money) to firms in this country to help sell their goods more cheaply abroad. The firms would then be able to compete more easily with foreign firms. Governments use such controls for several reasons. A tax on imports raises money and gives a government money to spend. Controls on imports help the balance of payments. If a government can reduce the value of imports then a deficit on the balance of payments may be turned into a surplus. If fewer imports are bought there is more chance of home-produced goods being sold and workers will be needed to make these goods; this gives a boost to employment.
D. Vocabulary D.l. Read and learn new words. surplus (n) — an amount of something that is more than what is wanted, needed or used visibles (n) — imports and exports of goods balance (n) — accounting the difference between the total amounts of money coming into and going out of an account in a particular period of time insurance (n) — an arrangement in which a company collects premiums from a person or organization and in return agrees to pay them a sum of money if they are involved in an accident, have something stolen, or cause harm or injury to others clearing bank — a bank which is a member of the clearing-house (an Institution where claims by various banks against each other are offset; this greatly reduces the need for transfers of funds between banks) consumption (n) — the amount of goods and services used in a particular period of time bonded warehouse — also Customs warehouse] a warehouse in which imported goods are stored until taxes on them have been paid tax (n) — an amount of money that you must pay to the government on your income, property, goods, etc. that Is used to pay for public services ine (n) — money that someone has to pay as a punishment captive warehouse - wholesaling company stock, servicing only their own firms
Е. Fill in the prepositions. 1. International specialization pays countries to concentrate... the production of particular goods and services. 2. The United Kingdom buys... other countries... several reasons. 3. The incomes of workers result... a higher standard of living. 4. The balance of payments... current account... a country. 5. Exporters sell goods... credit. 6. Some banks can help... the exchange of foreign currency and... receiving money... and paying money... other countries. 7. Tax can be paid... goods, which leave the warehouse. 8. A deficit... the balance of payment may be turned... surplus. 9. An American firm receives interest... a UK bank. 10. The invisible balance is usually... surplus. 11. Some countries specialize... the production of goods.
F. Find an appropriate word or expression in the list below tocomplete each sentence. Balance of trade, specializes, transport, banking, embargo, visibles, tax, bonded, services, euro, insurance, yen. 1. When a country... it concentrates on the production of certain goods or services. 2.... is the name given to the trade in goods. 3. Another name for the visible balance is the.... 4. Invisibles is the name given to the trade in.... 5. Two examples of invisibles are... and.... 6. The units of currency of West Germany and Japan are the... and the.... 7. The ECGD provides... for exporters. 8. HM Customs and Excise control... warehouses. 9. A tariff is a... placed on imports. 10. An... is a complete ban on imports.
Practical lesson3.ECONOMIC INTEGRATION AND BUSINESS.
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