4. Word study: Key Terms

1. gross domestic product (GDP)	валовий внутрішній продукт
2. outsourcing	укладення угоди із зовнішніми організаціями на виконання деяких видів робіт (бухгалтерський облік тощо)
3. crucial	вирішальний, критичний
4. provide the legal ground-rules	запроваджувати юридичну базу
5. producers of goods and services	виробники товарів та послуг
6. overriding purpose	першочергова мета
7. a forum for trade negotiations	форум для торгівельних переговорів
8. dispute settlement	врегулювання суперечок

Comprehension check

5. Answer the following questions. Do it in pairs.

1. What does international trade law include?

2. What is meant by globalization?

3. What is meant by industrialization?

4. How does globalization affect international trade?

5. How is international trade affected by international agreements and treaties?

6. Why is the WTO becoming more influential?

7. Why is free trade good for the economy?

6. Use all the information you have learnt so far in this Unit to describe the distinction between international economic law and international trade law.

Work in pairs. Take turns to describe some of the facts, give your reasons.

7. You are a member of the Ukrainian delegation at the International Conference devoted to the problems of risk in international trade. Make a list of questions which may arise at the International Conference.

Divide your class into two groups and try to answer these questions, giving your reasons and arguments, using the following information.

Companies doing business across international borders face many of the same risks as would normally be evident in strictly domestic transactions. For example:

- Buyer insolvency (purchaser cannot pay);

- Non-acceptance (buyer rejects goods as different from the agreed upon specifications);

- Credit risk (allowing the buyer to take possession of goods prior to payment);

- Regulatory risk (e.g., a change in rules that prevents the transaction);

- Intervention (governmental action to prevent a transaction being completed);

- Political risk (change in leadership interfering with transactions or prices);

- War and other uncontrollable events.

In addition, international trade also faces the risk of unfavorable exchange rate movements (and, the potential benefit of favorable movements).

Section c Language study

Vocabulary

8. Find logical links: which noun in b can go with the verb in a?

A	B
1. to include	a) trade
2. to encompass	b) convertibility
3. to impose	c) trade agreements
4. to restrict	d) development
5. to sign	e) rules and customs
6. to promote	f) additional costs
7. to handle	g) law
8. to convert	h) exchange rate
9. to fix	i) money
10. to invest	j) currency