Foreign Trade

1. What is now called international trade has existed for thousands of years long before there were nations with specific boundaries. Foreign trade means the exchange of goods and services between nations, but speaking in strictly economic terms, international trade today is not between nations. It is between producers and consumers or between producers in different parts of the globe.

Nations do not trade, only economic units such as agricultural, industrial and service enterprises can participate in trade.

2. Trade based on comparative advantage still exists: France and Italy are known for their wines, and Switzerland maintains a reputation for fine watches. Alongside this kind of trade, an exchange based on a competitive advantage began late in the 19th century. Several countries in Europe and North America having reached a fairly advanced stage of industrialization, competitive advantage began to play a more important role in trade. With relatively similar economies countries could start competing for customers in each other's home markets. Whereas comparative advantage is based on location, competitive advantage must be earned by product quality and customer acceptance. For example, German manufacturers sell cars in the United States, and American automakers sell cars in Germany, both countries as well as Japanese automakers competing for customers throughout Europe and in Latin America.

3. Thus, international trade leads to more efficient and increased world production, allows countries to consume a larger and more diverse amount of goods, expands the number of potential markets in which a country can sell its goods. The increased international demand for goods results in greater production and more extensive use of raw materials and labour, which means the growth of domestic employment. Competition from international trade can also force domestic firms to become more efficient through modernization and innovation.

Вправа V. Прочитайте З абзац тексту і дайте письмову відповідь на запитання:

What are the advantages of international trade?

V ВАРІАНТ

Вправа І. Перепишіть та письмово перекладіть наступні речення. Пам'ятайте, що об'єктний та суб'єктний інфінітивні звороти відповідають підрядним реченням:

1. The manager expected raw materials to be delivered in time.

2. The currency exchange rate is reported to have reduced.

3. This new business was believed to improve the situation in the market.

4. This company is said to receive high profits.

Вправа II. Перепишіть та письмово перекладіть наступні речення, звертаючи увагу на різницю в перекладі залежного та незалежного дієприкметникових зворотів:

1. Money plays an essential role in macroeconomy affecting prices, interest rates and all economic activity.

2. Only being provided with the required resources, an enterprise can work efficiently and increase its output.

3. With a financial panic everyone wanting his money at the same time, the bank is unable to pay.

Вправа III. Перепишіть та письмово перекладіть наступні умовні речення:

1. If this system of accounting proved to be effective, they would adopt it.

2. If he has much money, he will produce this commodity within a domestic economy.

3. If the value of imports exceeds the value of exports, then the trade balance will be deficit.

Вправа IV. Прочитайте текст. Перекладіть письмово на українську мову 1, 4, 5 абзаци тексту: