Large nations

Large nations, like the United States and Russia, are less dependent on world market because they are provided with such economic fundamentals as natural resources, good agricultural land and effective manufacturing enterprises.

Self-sufficiency of such nations can be ensured by the government policies, but it is impossible for more dependent nations. Although large and rich nations are less self-sufficient today than they were 30 years ago, they are still able to rely mainly on their domestic resources and production for national prosperity.

The USA is an example of a country with a free market economy and strong economic fundamentals. American government does not participate directly in foreign trade. As the United States has always been more interested in the development of domestic market American government often uses protective tariffs to support domestic producers. More than 90 percent of the national total trade has been done on the country’s territory. Thus, the USA was able to maintain its economic security through a policy of protection that has restrained trade with other nations in favour of a domestic market where industry and agriculture have been free to develop and expand to meet domestic demand.

At present a variety of policies are being followed by different countries in the world economy. However, all these policies are being used in order to provide a certain degree of economic security for a nation. The economic security of any nation is based on economic nationalism recognized as the only practical economic way of life in the modern world. But, on the other hand, policies of restrains in trade may prevent the growth of world economic well-being.

Vocabulary

fundamentals - основы to maintain - поддерживать

policies - политический курс to restrain - ограничивать

to recognize – признавать in favour of - в защиту

protective tariffs – ограничительные таможенные тарифы

to meet domestic demand - удовлетворять потребности внутреннего рынка

Text 12

Small nations

People of every nation try to achieve as high level of living as possible. They also seek economic security to make their level of living constant. But nations vary in area and population, so security can only be relative. Nations with large territories but which are not too large in population, such as the USA, Canada, Australia, may have a relatively high degree of economic security because they are supplied with proper amounts of natural resources, manufacturing companies, trade facilities and efficient means of communication.

In contrast, some nations are small in area and large in population. They can ensure economic security only if they cooperate effectively with other people. For example, Belgium is a small country of about 31,000 square kilometers and with a population of about 10 million. The Belgians can maintain a relatively high level of living but they should produce at home as large quantities of foodstuffs and other necessities as possible. They have to buy raw materials and sell their products in the world market. The obtained profits are used to import additional foodstuffs and other necessities of life that the Belgians must use to maintain their level of living.

Thus, the Belgians have to turn to world market for three reasons: 1) they have to buy raw materials; 2) they must sell the manufactured goods;3) they have to buy additional quantities of the necessities of life. The Belgians greatly depend on world markets, so they should welcome any international action that can ensure the stability of prices in world markets.

Notes

to seek - стремиться obtained - полученный

relative - относительно to turn to - выходить на

to maintain - поддерживать to welcome - приветствовать