Ex. 29. Put these sentences into reported speech.

 

1. The shop-assistant said to the customer: “The price does not include the cost of packing”.

2. She asked the manager: “How long have you doing business with this company?”

3. The secretary said to me: “I’m trying to contact this enterprise now”.

4. The tax inspector asked: “Do you always reduce the prices at the end of the year?”

5. The sales manager said: “We have already solved the problem”.

6. The secretary said: “We are discussing the prices at the moment”.

7. The reporter asked: “What is your company producing now?”

8. The banker said to the customer: “The recent devaluation of dollar has caused a setback in

business”.

9. The sellers asked the buyers: “When will you come here to discuss our new price-list?”

10. His friend asked me: “What do you know about this company?”

 

 

Ex. 30. Translate into Russian. (Conditionals)

 

1. If incomes are rising, the demand for goods and services will tend to increase.

2. If the consultant had done more careful research, he would have identified the gap in the

market.

3. If a government cuts taxation, it gains a lot of popular support.

4. If the price of butter fell, the demand for margarine would probably fall.

5. If the market for our product expands, we will have a 20 per cent increase in turnover next

year.

6. If we had installed the equipment we would have become more competitive.

7. If wages rise, unemployment will increase.

8. We would have to reduce out workforce if the bank refused to extend out credit.

9. If the government hadn’t introduced the tax incentive scheme, we would have faced serious

financial difficulties.

10. If the supplier of such a commodity were to raise the price, many buyers would turn to the

close substitutes.

 

_____________________________________________________________________________

FINAL QUESTIONNAIRE

_____________________________________________________________________________

1.

2. What is the central problem of economics?

3. What questions must every society provide answers to?

4. What is traditional economy based on?

5. What does planned economy rely upon to provide the answers to the three major

economic questions?

Traditional economy

1. In what way are the answers to most What, How and Who questions decided?

2. Where are usually traditional economy systems found?

3. Where do most of the people in traditional economy live in?

4. What are the main activities of people living in traditional economy?

5. In what way are the goods and services produced in traditional economy?

6. How do most individuals live in traditional economy?

7. What happens to people when the harvest is poor?

8. When does a surplus exist?

9. How is a surplus distributed?

10. Where may the most part of the product go?

11. How are the remains distributed?

 

Command economy

1. Why is planned economy sometimes called command economy?

2. Who owns factories, land and natural resources in command economy?

3. Who takes all the decisions in planned economy?

4. Is there any private property in command economy?

5. Who allocates raw materials, workers and other factors of production in command ec.?

6. Who decided in the former Soviet Union what was to be produced and in what quantities?

7. Is there a society which is a completely command economy?

8. Who decides in command economy what the nation is to produce?

9. How many years ahead does the state plan in command economy?

10. Is planned economy easy to operate?

11. Should there be work for everybody?

12. Does the state use its control over the economy?

13. What can the state ensure to its population?

14. Are the needs of population met?

15. Does the state produce enough luxury goods for the wealthy?

16. Why is there no incentive to work hard?

17. Who are the profits paid to?

18. Can citizens start their own business?

19. Does the government produce goods which people want to buy?

20. What is the major problem faced by command economy?

21. Does command economy respond fast to changes in people’s tastes and fashion?

22. Can the planners predict changes in demand?

23. What leads to delays and queues for some products?

 

Free market and mixed economies

 

1. Does the government play any role in the management of the economy?

2. What is the free market system based on?

3. Who owns the means of production?

4. Is there any government control over land, capital and labour?

5. Why does business produce goods?

6. According to what are the workers paid wages?

7. What is the basic reason for so many different styles, fabrics and brands of clothing for

consumers?

8. What is the market economy directed by?

9. Who decides what is to be produced in market economy?

10. Are consumes free to choose what they want to buy?

11. Why are the workers encouraged to work hard?

12. What keeps prices low?

13. Does government provide health and education available for everybody?

14. What happens in the economy if government doesn’t control it?

15. What might business be encouraged to create in order to increase prices?

16. Is there a country in the world with completely free market economy?

17. What system has the mixture of market forces and government participation led to?

18. What is public sector in mixed economy made up of?

19. Where does the money for state health and education services come from?

20. What sectors does the mixed economy consist of?

21. What is a private sector of mixed economy made up of?

22. What important industries and organizations does the government control in many

countries?

 

 

UNIT 6 INTERNATIONAL ECONOMICS

Text 1

WHAT IS INTERNATIONAL TRADE?

VOCABULARY

embraces - охватывает

has been gaining increasing significance – приобретает всевозрастающее значение

flow of funds – приток капитала (денежных средств)

makes everyone better off – делает каждого состоятельным

interlinked global economy – взаимосвязанная мировая экономика

to impose restrictions – вводить ограничения

customs duties – таможенные пошлины

specific tariffs -специфические тарифы (пошлины)

a tax per unit of the commodity – пошлина (налог) на единицу товара

ad valorem – пошлины “ад валорем”, т.е. с объявленной цены

regulations – нормы, инструкции

artificial – искусственный

retaliated – ответили тем же

 

 

The study of economics would be incomplete without an understanding of the nation’s role in the world economy. The study of the world economy is known as “international economics”. International economics embraces two broad areas of interest: international trade and international finance. World trade has been gaining increasing significance among nations. Why do nations trade? The answer is that nations have different quantities and qualities of economic resources and different ways of combining them. As a result, each country can produce certain goods more efficiently, or at relatively lower costs, than others.

When Honduras exports bananas to Switzerland, they can use the money they earn to import Swiss chocolate, or to pay for Kuwaiti oil, or a vacation in Hawaii. The basic idea of international trade is the use of foreign currencies to pay for the goods and services crossing international borders. Although global trade is often conducted in U.S. dollars, the trading itself involves various currencies. Japanese TV set is paid for in euros in Berlin or Rome, and German or Italian cars are paid for in U.S. dollars in Boston. Indian tea, Brazilian coffee, and American films are sold around the world in currencies as diverse as Turkish liras and Mexican pesos.

Whenever a country imports or exports goods and services, there is a resulting flow of funds: money returns to the exporting nation, and money flows out of the importing nation. Trade and investment is a two-way street, and with a minimum of trade barriers, international trade and investment usually makes everyone better off.

In an interlinked global economy, consumers are given the opportunity to buy the best products at the best prices. By opening up markets, a government allows its citizens to produce and export those things they are best at and to import the rest, choosing from whatever the world has to offer.

Despite the fact that trade is of great importance for each nation, all countries impose restrictions of one form or another to protect some of their domestic industries. The restrictions may be of several types: tariffs, import quotas, nontariff barriers. Tariffs are customs duties or taxes imposed by a government on the importation of a good. Tariffs may be specific, in the form of a tax per unit of the commodity, or ad valorem, based on the value of the commodity. Import quotas are laws that limit the number of units of a commodity that may be imported during a specified period. Nontariff barriers are any laws or regulations, other that tariffs, that nations impose in order to restrict imports. For instance, to “protect the health and safety” of their citizens, many countries establish higher standards of quality for various kinds of imported goods than for similar goods produced domestically.

Some trade barriers will always exist as long as any two countries have different sets of laws. However, when a country decides to protect its economy by erecting artificial trade barriers, the result is often damaging to everyone, including those people whose barriers were meant to protect.

 

 

WORD STUDY