Write the appropriate word or phrase in the following spaces:
All the … in the debate had opportunity to speak.
The blockade prevented … of foreign food from reaching our shores.
The food is ready for … .
Lloyds has estimated that … will pay around billion dollars as a result of the accident.
Our baggage has … customs.
According to the … of the contract goods should be shipped in May.
This country is now a major international textile … .
This government’s on western economic aid is widely known.
All goods must be paid for before … .
10. Many car manufactures are … as rapidly as they can.
11. Solar energy is now being … to heat water in thousands of city homes.
12. They … paying tax on their profits.
13. I had to go through … when I came to this country.
Avoided, utilized, diversifying, delivery, customs, dependence, supplier, terms, cleared, insures, transportation, shipment, participants
Ask questions to fit these answers:
In the area of exports and imports there is a huge variety of participants.
Exporting can be viewed as a means of foreign market entry.
Domestic firms can utilize exports to absorb products that cannot be sold locally.
The negotiations will probably include a demand by the exporter to have some guarantee of payment made on the importer’s behalf.
The goods must be cleared by customs inspectors in the receiving country.
Unit 2. International Trade
Remember the words:
export
import
absolute advantage
comparative advantage
quota
tariff
embargo
economic union
exchange rate
duty
subsidies
economic independence
Read and translate the text:
Nations trade with each other for the same reason that business companies and individuals within a domestic trade: they expect to have profit. They benefit because trade permit them to have things they need and to exchange their surplus goods and services.
Some countries have unique climate or soils, others have valuable raw materials, skilled labour forces or favourable geographic situation.
Because of a lack of natural resources, most nations are not capable to produce certain goods or services. For instance, Colombia has the right climate to grow coffee beans or Morocco has the suitable conditions for producing bananas. Ukraine is incapable to do this because of unsuitable climate. So, coffee and bananas are an important export product for Colombia and Morocco and an important import for Ukraine.
Another example for the importance of overseas trade is a supply of raw materials. For countries raw materials are major imports. Most of the countries in Western Europe must import oil. They lack this product which is an important source of energy for the industries.
A country that has many skilled workers can produce complex goods such as computers. A lot of engineering or scientific equipment are exported but without skilled workers it would be impossible.
Nations will gain because of differences in terms of climate, natural resources, labour force skills and technology. These special conditions give one country an advantage over others in production of certain goods or services.
A country which has the ability to produce a product at a lower cost than the other country is said to have an absolute advantage in making that item. For example the USA has an absolute advantage in the production of computers, Brazil has an absolute advantage in growing coffee beans.
A country that has the ability to produce a product relatively more efficiently than another, is said to have a comparative advantage.
International trade allows countries to specialize in the goods and services that they produce best, satisfying their other needs by importing commodities that they do not produce themselves.