Exercise 7. Fill in the missing words in the text below and then translate into Ukrainian. Use Vocabulary-2 and Exercise 2A.

Many countries put some (1) on foreign trade, mainly to (2) their own

(3). There exist the following (4) of restricting imports : (5), quo­tas, exchange (6) and subsidies.

Tariffs are taxes placed on imports. They protect home (7) by increasing the

__ (8) of foreign (9) in the home (10). They also raise (11) for the

government.

Quotas are the most serious (12) to trade, because they place an (13) limit

on the quantity of foreign goods entering a country. For example, a country may limit the

(14) of foreign cars to 500 000 each year, or the import of footwear to 5 million pairs

of shoes each year.

Imports can only be (15) with foreign (16). The government can limit im­ports, therefore, by restricting the amount of foreign currency (17) to firms wishing

to (18) goods.

A tariff raises the price of a foreign (19) in the home market. By (20) home

producers, a government can (21) the prices of goods made by (22) firms.

Subsidies, therefore, help to protect home producers from foreign competition.

But some arguments may be presented against (23). First, tariffs, quotas and ex­change controls restrict the (24) of goods available to home (25), and prices

will be higher than they would be under (26) trade. Second, when a country restricts

its imports, it is restricting other countries’ (27). These countries may well

(28) by restricting their own imports. This would lead to the general (29) of world

trade. Countries which decided to restrict their imports would find their own exports being restricted. And third, protecting a home industry from foreign competition may cause it to become less efficient.

Exercise 8. Work in pairs. Translate the following two texts into Ukrainian. Use Vocabulary 3—4 and Exercises 3A-4A in case of difficulties.

Text 3

Historically, the United States has from time to time experienced a strong impulse to­ward economic protectionism - the practice of using tariffs or quotas to limit imports of foreign goods in the interest of protecting native industry. At the beginning of the repub­lic, statesman Alexander Hamilton advocated a protective tariff as a way to encourage American industrial development. By and large his advice was adopted. Throughout the 1800s, domestic political considerations, including the desire to expand exports of such ^lmP°rtant commodities as cotton, determined U.S. trade policy.

U.S. protectionism peaked in 1930 with the enactment of the Smoot-Hawley Act, a ^tariff law which intensified the effects of the Great Depression. Smoot-Hawley sharply

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increased U.S. tariffs and quickly met with foreign retaliation. The act contributed to the world economic crisis.

The U.S. approach to trade policy since 1934 has been a direct outgrowth of this experience, and following the Second World War, the United States endorsed trade lib­eralization.

Text 4

Many U.S. leaders argued that the domestic stability and continuing loyalty of U.S. al­lies would depend on economic recovery. U.S. aid was important to this recovery, but these nations needed export markets - particularly the huge U.S. market - in order to regain economic independence and achieve economic growth.

Secretary of State Cordell Hull understood this connection long before the Second World War. He wrote in support of the Trade Agreements Act of 1934, which provided the basic legislative mandate to cut U.S. tariffs:

“Nations cannot produce on a level to

sustain their people and well-being unless they have reasonable opportunities to trade with one another. The principles underlying the Trade Agreements Program are therefore an indispensable cornerstone for the edifice of peace.”

The Reciprocal Trade Agreements Act of 1934 gave the president the authority to negotiate trade agreements with individual countries, and greatly reduced duties on their exports to the United States in return for similar concessions on U.S. exports to their countries

Exercise 9. Translate the following texts into English. Work in pairs. TEXT 5

Підтримка США лібералізації торгівлі відіграла ключову роль у створенні Загаль­ної угоди про тарифи і торгівлю (ҐАТТ) - міжнародного зведення тарифних та тор­говельних правил. Цю угоду підписали 23 країни у 1947 році, а на кінець 80-х років її учасниками було вже понад 90 країн. Крім визначення правил і норм міжнародної торгівлі, ҐАТТ неодноразово виступала з ініціативою багатосторонніх торговельних переговорів, причому в кожних з них США брали активну участь, а часом і виступа­ли в ролі лідера.

Офіційна позиція США полягала у застосуванні до торговельних угод певних принципів, на яких зокрема ґрунтується ҐАТТ. Перший принцип - відсутність дис- кримнації у торгівлі. Згідно з цим принципом (який також відомий під назвою ‘режим найбільшого сприяння країні’), на всіх торговельних партнерів поширюється такий митний і тарифний режими, який надається так званій ‘країні найбільшого сприян­ня’ (КНС). Нині Сполучені Штати дотримуються саме такої політики при здійсненні торговельних операцій з усіма своїми партнерами, за винятком тих, чиє партнерство не допускається законом через зовнішньополітичні причини.

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