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Extra reading

Import / Export

Word focus

tax (n) – the money that you have to pay to the government, especially from money you earn or as an additional payment when you buy something

to impose (v) – to establish officially

duty (n) – a tax that you pay on something you buy, especially goods you have bought in another country

tariff (n) – a tax on goods coming into a country or going out of a country

excise (n) – a government tax that is charged on certain goods that are sold in the country, for example alcoholic drinks and petrol

taxpayer (n) – a person or organization that pays taxes

tax rate (n) – the part of your income or the part of the price of something that you pay in tax

tax evasion (n) – a crime when someone uses illegal ways to pay less tax to evade (v) – to avoid something using deception (or a trick); to escape tax avoidance (n) – the use of legal methods to reduce a tax bill

to avoid (v) – to keep away from doing something by legal means

quota (n) – a maximum amount of goods officially allowed in a particular period of time

measure (n) – an official action, taken to deal with a particular problem

to protect (v) – 1. to keep someone or something from harm, damage, bad influences 2. to try to help an industry in your own country by taxing foreign

goods that are competing with it , so limiting the number that can be imported

to eliminate (v) – to get rid of something unnecessary or unwanted; to remove smth. to deliver (v) – 1. to take goods or mail to a place

2. to provide or achieve something that other people benefit from to promote (v) – to help something develop, grow, become more successful etc., or

encourage something to happen

to ensure (v) – to make (something) certain to happen; to guarantee to abolish (v) – to bring to an end by law; stop

abolition (n) – bringing something to an end; stopping something

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Read and translate the text.

International trade is the exchange of goods and services between different countries. Depending on what a country produces and needs, it can export and import.

Governments can control international trade. The most common measures are tariffs (or duties) and quotas. A tariff is a tax imposed on imported goods, and a quota is a maximum quantity of a product allowed into a country during a certain period of time. These measures are protectionist as they raise the price of imported goods to

“protect” domestically produced goods.

International organizations such as the WTO (World Trade Organization) and EFTA (European Free Trade Association) regulate tariffs and reduce trade restrictions between member countries.

The European Economic Community (EEC) was founded in 1957 in order to create a common market in which tariffs and quotas between member countries would be progressively eliminated. The six original member countries were Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. From 1993 to 1995 the European Economic Community membership was increasing. Denmark, Ireland, the UK, Greece, Portugal and Spain joined the community. In November, 1993 the organization became the European Union (EU). In 1995 membership increased to 15 countries as Austria, Finland and Sweden joined the Union. In 1999 the single European currency, the euro, was launched.

Now the EU is a unique economic and political partnership between 27 European countries. It has delivered half a century peace, stability and prosperity to Europe, helped raise living standard, launched a single European currency, and is progressively building a single Europe-wide market in which people, goods, services, and capital move among member states as freely as within one country.

Tasks to perform

1. Give English equivalents of the words and word partnerships used in the text.

2. Complete the sentences with the appropriate words given below.

1.The purpose of the European Union is to reduce costs, increase employment, in other words, to … economic growth.

2.Slavery was stopped by the law in the US in the 19th century. The … of slavery brought freedom to the black population of the US.

3.The administration decided to get rid of or …. all spending restrictions on federal grants.

4.The US has for years established an officially allowed amount of Chinese imported goods, i.e. …. .

5.France and Germany imposed tax or … on grain coming into their countries.

6.A government tries to help industry or farming in its own country by taxing foreign goods that compete with it. So limiting the number of goods that can be imported is called … .

7.Good government can provide or ….. a high level of services while maintaining fiscal, i.e. connected with government taxes, debts, and spending discipline.

8.Sometimes aggressive companies sell their goods at a low price in importing countries. Their aim is to kill the local competition. Such kind of selling goods is called …. .

3.Complete the text about free trade by completing sentences 1-6 with a-f below.

1.Free trade exists when goods can be sold freely and flow between countries …

2.Protectionism is where countries try to protect home producers …

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3.One way they do this is by using tariffs…

4.Another way is by using quotas which limit …

5.Domestic manufacturers often complain that foreign competitors…

6.Exporters, on the other hand, often complain about …

a)… from foreign competition and cheap imports.

b)… complicated bureaucracy and complex customs regulations.

c)… without restrictions.

d)… the number of quantity of goods that can be imported.

e)… which are a kind of tax on imported goods.

f)…. try to destroy them by dumping their goods at very low prices.

4.Complete these sentences with the words in italics from exercise 3. Translate

the sentences.

1.This …… is awful; just look at all these forms we’ve got to fill in.

2.Government …… limit the import of luxury cars to just 200 each year.

3.We can’t compete with their prices because they keep selling their products cheaply; they must be ….. their goods to put us out of business.

4.These new import ….. make our products fifty per cent more expensive than before.

5.…… is a very good idea in principle, but in practice we need ….. to help domestic manufacturers to survive.

5. Translate the following text into English.

Свободная торговля происходит без каких-либо ограничений, при отсутствии каких-либо тарифов, квот и валютного контроля на основе свободного перемещения товаров и услуг между странами. Свободная торговля увеличивает экспортные возможности и создаёт богатство страны. Производители в странах с небольшим населением могут расширять свои внутренние рынки за счёт нахождения новых внешних рынков.

Свободная торговля выгодна и для потребителя тоже. Она создаёт конкуренцию между производителями, повышает качество товаров и услуг, позволяет удерживать цены на низком уровне, предоставляет людям более широкий выбор товаров и услуг.

Кроме того, свободная торговля содействует укреплению мира. Странам не надо больше бороться за рынки сбыта или доступ к природным богатствам.