Ex. 1. Match the words with their definitions.

_____ export _____ quality   _____ quota   _____ import _____ tariff _____ commodity   _____ citizen _____ decline

a. an article of commerce b. a tax levied by a government on imports or occasionally exports for purposes of protection c. a native registered or naturalized member of a state, nation, or other political community d. a movement downward or towards something smaller e. goods or services sold to a foreign country or countries f. a prescribed number or quantity, as of items to be manufactured, imported, or exported g. degree or standard of excellence, especially a high standard h. goods or services that are bought from foreign

 

Ex.2. You can form the opposite of some adjectives by adding a prefix.

complete - in complete

Choose un-, in-, or im- to form the opposites of the following adjectives.

 

possible - _____________________ important - _______________________

interested - ___________________ correct - _________________________

expensive - ___________________ successful ________________________

employed - ___________________ natural - __________________________

patient - ______________________ personal __________________________

Ex. 3. What are the opposites from the text of the following words?

 

1. The study of the national economy is known as “international economics”.

2. International economics embraces two narrow areas.

3. World trade has been gaining decreasing significance among nations.

4. International trade and investment usually makes everyone hard up.

5. By opening up markets, a government allows its citizens to produce and export those things

they are worst at.

6. Nontariff barriers are any laws or regulations that nations impose in order reduce imports.

7. ”To protect the health and safety” of their citizens, many countries establish lower standards

of quality for various kinds of imported goods.

8. When a country decides to protect its economy it erects natural trade barriers.

9. Whenever a country imports or exports goods and services, there is a resulting outflowof

funds.

 

Ex. 4. Fill in the gaps with a suitable preposition.

 

1. The study ____ economics would be incomplete _________ an understanding ____ the

nation’s role _____ the world economy.

2. _____ opening _____ markets, a government allows its citizens to produce and export those

things they are best _____.

3. When a country decides to protect its economy _____ erecting artificial trade barriers, the

result is often damaging _____ everyone.

4. __________ the fact that trade is _____ great importance _____ each nation, all countries

impose restrictions_____one form or another to protect some _____their domestic industries.

5. Indian tea, Brazilian coffee, and American films are sold _______ the world _____ currencies

as diverse as Turkish liras and Mexican pesos.

6. Tariffs are customs duties or taxes imposed _____ a government _____ the importation ____

a good.

7. Tariffs may be specific, ______ the form ______ a tax per unit _____ the commodity, or

ad valorem, based ______ the value _____ the commodity.

 

Ex. 5. Give sentences with the following phrases.

 

1. has been gaining increasing significance

2. flow of funds

3. to erect trade barriers

4. a two-way street

5. sets of laws

6. establish higher standards of quality

7. involves various currencies

8. interlinked global economy

9. to protect some of their domestic industries

10. sold around the world

COMPREHENSION

 

Ex. 6. Answer the questions.

 

1. What does “international economics”study?

2. Why do nations trade?

3. Does trading involve various currencies?

4. What does “flow of funds” mean?

5. How can international trade make everyone better off?

6. Why do all countries impose restrictions on the importation of goods and services?

7. What restrictions do the countries impose?

8. What is the difference between specific tariff and ad valorem?

9. What do some countries do in order to restrict import?

10. What happens when a country decides to protect its economy by erecting artificial trade

barriers?

 

QUESTIONS FOR DISCUSSION

 

1. What would happen to standards of living in your country if all foreign trade were prohibited?

How significant do you think this would be? In what areas would this impact be the strongest?

2. In order to restrict import many countries impose nontariff barriers. It encourages foreign

manufactures to produce high-quality goods in order to work up (завоевать) foreign markets.

It leads to the situation when high-quality imported goods are in more demand than the similar

goods produced domestically. Do you think it, in its turn, encourages domestic manufactures

to better the quality of domestic goods?

 

Text 2

IMPORT – EXPORT

VOCABULARY

visible exports and imports – видимые статьи экспорта и импорта

revenue and expenditure – доходы и расходы

earnings – доходы, поступления

comprises – включает в себя

shipping companies – судоходные компании

carrying foreign cargo – перевозка иностранных грузов

should balance with – должен быть сопоставим с...

a favourable balance of payments – благоприятный платежный баланс

best suited to engage in – больше всего подходит заниматься

customs boundaries – таможенные границы

import and export embargoes – запреты на ввоз и вывоз (эмбарго)

to some extent – в некотором роде

primary products – сырьевые товары

manufactured goods – промышленные товары

to establish the products – внедрять товар

sole agent – отдельный агент

on behalf of the company - от имени компании

sales office – торговое представительство

a subsidiary – дочерняя компания

a joint venture – совместное предприятие (СП)

 

International trade is the exchange of goods and services between different countries. Depending on what a country produces and needs, it can export (sell goods to another country) and import (buy goods from another country). Since these are tangible goods that visibly leave and enter countries, they are sometimes called as visible exports and imports.

Exporting and importing of goods are the major sources of international revenue and expenditure for most countries.

Service exports and imports refer to international earnings other than those from goods sent to another country. Services are also referred to as invisibles. International business comprises many different types of services. Earnings from transportation and from foreign travel can be an important source of revenue for international airlines, shipping companies, reservations agencies, and hotels. In a national level, such countries as Greece and Norway depend heavily on revenue collected from carrying foreign cargo on their ships. The Bahamas earns much more from foreign tourism than it earns from exporting goods.

Over a period of time the total value of exports should balance with the total value of imports. When exports exceed imports we say that the country has a favourable balance of payments. When imports exceed exports the balance of payments is said to be unfavourable. Governments can control international trade. The most common measures are tariffs and quotas. These measures are protectionist as they raise the price of imported goods to “protect”

domestically produced goods. International organizations such as the WTO (World Trade Organization) and EFTA (European Free Trade Association) regulate tariffs and reduce trade restrictions between member countries.

Economists have developed a theory for international trade which in its simple form suggests that each country should concentrate on the type of industry, product or service which it is geographically or otherwise best suited to engage in. If there were no tariffs, customs boundaries, import and export embargoes, trade would then flow freely throughout the world, with each country concentrating on the type of product it could most efficiently manufacture. To some extent this happens at the present time. In the case of primary products – agriculture, mining, oil extracting – countries have no option but to follow this simple rule. In the case of manufactured goods, through long tradition, usually based on historical factors, certain countries have become famous for particular products.

Companies can choose from various methods to establish their products in a foreign market. One option is to start by working with local experts such as sole agents or multi-distributors, who have a special knowledge of the market and sell on behalf of the company. This often leads to the company opening a local branch or sales office. Another option is to sell, or give permission to use patents and licences for their products. Companies may wish to start by manufacturing in the export market, in which case they can either set up a local subsidiary or a joint venture with a local partner.

 

 

WORD STUDY