Unit XII

WORD-STUDY

Exercise 1. Check the translation in a dictionary, read and translate the words listed below.

Nouns

fashion, aircraft, benefit, competition, courtesy, barter, scarcity, purchase.

Verbs

prosper, expose, convince, ease.

Adjectives

idle, efficient, competitive, successful, profitable, temporary, retaliatory.

Exercise 2. Make up nouns from the following adjectives using suffixes: a) Model: adjective +-ty-(-cy-)=noun (efficient – efficien(cy); possible, intensive, scarce, current.

Exercise 3. Match the Russian equivalents to the given collocations.

a)based on the notion of; with a level playing field; to remove restrictions; in order to; a temporary scarcity; state-supported banks; international tension; to underline measures

b)на равных условиях; снять ограничения; основанный на понятии; временная нехватка; для того чтобы; банки, поддерживаемые государством; предпринять меры; международная напряжённость

UNDERSTANDING A PRINTED TEXT

HOW IS FOREIGN TRADE ENCOURAGED?

When every country is allowed to do what it does best-letting the French excel in fashion, the Japanese in electronics, and the Americans in aircraft, for example-the world economy prospers. With free trade, whoever produces the best product at the best price can sell these products around the world, benefiting consumers everywhere.

By encouraging foreign trade, countries expose their own producers to foreign competition, which can be disastrous for many poorly managed companies. This can lead to short-term layoffs and idle factories. In the long run, however, foreign competition usually forces companies to be more efficient and more competitive, helping the country to become a successful and profitable member of the global economy.

Free trade is based on the notion of open markets. With a level playing field, companies in one country can compete openly with companies in other countries to sell their goods in foreign markets.

When a government wants to encourage a new trading partner, it removes restrictions and barriers to its internal market. This courtesy, called most favored nation status in

51

the United States, is provided to countries whose political and economic policies are seen to merit favored status. Countries may also encourage trade by allowing importers and exporters to barter goods. For example, in order to overcome a temporary scarcity of hard currencies in the Soviet Union, Pepsi-Cola traded soft drinks for vodka, which was then sold for dollars, yen, or marks in the West.

When a country wants to encourage its own exports, it can provide incentives to make the products more competitive on the world market. Some countries provide loans or grants to foreign buyers of a country's goods and services through statesupported export-import banks. These "ex-im" banks provide low-cost loans-called export credits-that help stimulate exports. These loans are sometimes criticized for going too far, encouraging exports at the expense of producers in other countries.

At times, countries might want to encourage imports of foreign goods and services to decrease international tensions resulting from trade imbalances. When Germany and Japan were criticized for running large trade surpluses in the 1980s, for example, they undertook measures called "external adjustment" to increase their imports. One way to encourage imports is to increase the value of a country's currency, making foreign goods and services less expensive than locally-made products.

Another way to encourage imports is to give the economy a shot in the arm by lowering interest rates, stimulating purchases at home and abroad. This cheaper money usually means more sales of goods such as televisions and automobiles. In countries such as Germany, where many consumer goods are imported, lowering the interest rates can encourage imports of everything from Vietnamese rice to Canadian sporting goods.

Another way to encourage imports would be to reduce cultural barriers that may limit purchases of foreign products. For example, the Japanese government undertook a program in the 1980s to convince Japanese consumers to buy more foreign products (such as U.S. beef) in an effort to ease the threat of retaliatory trade sanctions from its unhappy trading partners.

COMPREHENSION CHECK

Exercise 1. Complete the sentences with the proper verbs from the column on the

4.In the long term foreign competition usually … companies to be more efficient and more competitive.

5.Another way to encourage import is … purchases at home and abroad.

52

Exercise 2. Choose the correct term according to its definition.

1.Foreign markets where companies in one country can compete openly with companies in other countries are called …

a)international markets

b)open markets

c)internal markets

2.Export-import banks provide low-cost loans, called … that help stimulate exports. a. export credits

b. credits

c. import credits

3.Products made by the companies in their own country are called …

a.imported goods

b.locally made products

c.barter goods

INCREASE YOUR VOCABULARY

Exercise 1. Match the synonyms.

LANGUAGE ACTIVITY

Exercise 1. Insert articles where necessary.

1.… French excel in fashion, … Japanese in electronics, … Americans in aircraft.

2.With free trade, … best products can be sold around … world at … best prices.

3.… foreign competition usually forces companies to be more efficient and more competitive.

4.Countries may also encourage trade by allowing … importers and supporters to barter goods.

5.… Germany and Japan undertook measures to increase their imports,

Exercise 2. Insert the proper prepositions (to, in, at, of, by).

1.This country sells its goods … foreign markets.

2.Some countries provide loans or grants … foreign buyers … a country’s goods and services.

3.One way … encouraging imports is increasing the value … a country’s currency.

4.… lowering interest rates countries stimulate purchases … home and … abroad.

53

5. … countries such as Germany, many consumer goods are imported.

Exercise 3. Translate from English into Russian paying attention to modal verbs: can, may, must, should.

1.The meaning of the German currency “mark” can be derived from the small cut marks in the coins.

2.You should do this work without any help.

3.He couldn’t say anything about the economy of Spanish-speaking countries in Latin America.

4.This question is important for you, you must solve it yourself.

5.You may go to the south only after your final examination.

6.Dollars held by foreigners could be converted into gold until 1971.

7.The teacher said we might use a dictionary if necessary.

8.The students must be provided with all necessary equipment for their lab. work.

Exercise 4. Substitute modal verbs for their equivalents.

Model: may – is allowed to …

Can, should, could, is able to…, are to …, must, was able to, was allowed to…, might.

Exercise 5. Change modal verbs into their equivalents, translate the sentences.

1.No brief description can offer clean guidance to the content and character of economics.

2.The scope of economics must be indicated by the facts with which it deals.

3.Adam Smith was the first economist who showed that a system of prices and markets can coordinate people and economic growth.

4.Economics must help government monetary and fiscal politics.

5.Such events could take place in many countries.

6.You may do it yourself.

7.The governments develop banking and financial institutions that can finance export production and sales.

Exercise 6. a) Pay attention to the Modal Verbs with Passive. Choose the correct modal verb.

Можно назвать (must, may, can) be called Можно передать (must, cannot, can) be transferred Нельзя найти (shouldn’t, mustn’t, cannot) be found Нужно обеспечить (can, must, may) be provided Можно извлечь (must, can, mustn’t) be derived

b) Read and translate the sentences with Modal Verbs +Passive Infinitive.

1.Books on this subject can be found in every library.

2.His good example must be followed.

3.Lomonosov may be called the founder of higher education in Russia.

4.Many complicated tasks can be solved by highly qualified specialists.

5.In some cases restrictions and barriers can be removed to the internal market.

54