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English of Global Economics. Учебное пособие

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That effort matters for Peru. The alpaca is a cultural symbol — its much-prized cousin, the vicu shield. It also holds the key to helping more than 150,000 of the poorest Peruvian families.
Peru has some 3,5 million alpacas — 80% of the world’s total and, you might think, a dominant market position. Yet the country’s Association of Exporters, a business lobby, backed by several congressmen, wants to ban export of live alpacas. As a result of such exports, there are now herds of around 60,000 alpacas in both Australia and the United States, with smaller ones elsewhere. The association claims that thanks to its ability to carry out genetic improvement, in 20 years Australia could overtake Peru as a producer of alpaca fibre.
That is improbable. If true, it would be an indictment of the mismanagement of the industry in Peru. Ms Vasquez’s grandmother tended alpaca herds for a near-feudal absentee landowner. In the 1970s, a military government expropriated Peru’s large estates. Her village formed part of a vast co-operative, appropriately called La Gigante. That collapsed a decade ago, its herds and land split up among families.
Dozens of official reports, plans and national strategies, and promises of technical help, have failed to overcome a vicious circle: most herders are poor, have too few animals, and cannot afford the improvements in breeding, pasture management and shearing needed to raise fibre quality and yield. The National Council of South American Cameloids, a government body, claims that a herd of around 300 is needed to cover a family’s basic needs. But the average herd numbers just 21 animals, yielding only $600 per year in fibre.
No one is going to help them change this industry. If they want things to be better, they need to do it themselves. So Ms Vasquez’s extended family have gathered their animals into a single, profitable herd. She is taking part in a government-backed pilot project to improve breeding. Several of her animals have produced wool as soft as that of the vicu
Her village has joined forces with others to sell in bulk to the three wool processing firms in an effort to expand their bargaining power. The firms, recognizing that they have done little to help the herders, have set up an institute to deal directly with them, cutting out middlemen. Rather than banning live exports, perhaps Peru should work harder to make the most of its natural and
5
cultural heritage
.
ña, is on the country’s national
ña.
Unit Two
AGRICULTURE
alpaca [l!pkə] альпакá; pen загон; shaggy лохматый; mainstay опора; vicu
ña [v(a)i!kju:nə] лама-вигонь, викунья; live [laiv] живой; indictment
[in!daitm мельный собственник (проживающий за пределами страны и получа ющий доход от своей собственности); shearing [! to sell in bulk продавать оптом; to cut out middlemen устранять по средников.
Ex. 11. Read the following text and try to analyze what is positive
ənt] обвинительный акт; absentee landowner отсутствующий зе
ʃiəriŋ] стрижка (овец);
and what is negative in genetic modification. Which position would
you support?
Scientists first discovered the technique of genetic modification in the 1970s. It has great potential and is moving ahead very rapidly. Some of them say that it is the beginning of an industry transformation that in a few years will be looked at as greater than the computer revolution. Others believe in the benefits that genetic modification can bring to humanity, but say biotechnology companies are introducing the new technology too quickly and with insufficient research because its effects on the immune system are not easily predictable.
The development of genetics and similar technologies has revolutionized mankind’s understanding of the structure of the gene. The cost of unravelling this structure today is just $150 compared to $2.5 million in the mid 1970s. As a result, researchers have established the genetic map of many organisms and can transfer genetic material from one organism to another relatively easily.
It is now possible to breed, virtually overnight, plants and animals with improved nutritional and health benefits to humans. This compares to the thousands of years it has taken to breed the familiar varieties we see today. Scientists can insert genes from one organism into another to produce, for example, extra vitamins, less fat and substances that are in short supply or difficult to manufacture.
Biotechnology companies have rushed to produce characteristics such as resistance to drought, disease and insects in food crops that previously did not have them. Many new crops require less processing in the factories and fewer additives. Because they have genes that make them last longer, there is less wastage.
Another possible benefit is the reduced use of pesticides, fertilizers and energy compared to conventional farming methods.
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Farmers do not need to till the soil, lessening soil erosion and reducing labour and machinery. Potato that is resistant to the Colorado beetle could save tons of pesticides, a lot of containers and a great amount of fuel.
Biotechnology is big business and enormous potential profits are at stake. The global crop protection market is worth $20 billion. Companies like Monsanto, Dupont and Novartis spend billions on the research and production of genetically modified food. They acquire new companies, form joint ventures, buy up seed businesses and increase their processing capabilities. Research institutes have become dependent on the financial support of these companies because of government cuts. By the end of the century four to five companies will dominate global seed supplies.
The development of global planning and production of food could be the means to eradicate poverty and hunger, but it will not happen if left in the hands of the biotechnology companies. The intense competition for markets and to realize a profit on investments undermines the possibility of planning in a co-operative and systematic way. The companies are now demanding the removal of restrictions on their world-wide right to exploit the new technology and beat their rivals.
The demand for deregulation have greatly increased concerns about the safety of genetically modified food. When scientists move genes between organisms of the same species and between different species, entirely new problems are posed. It is difficult to predict how the introduced genes will interact with existing ones, or what the possible side effects on humans or the environment will be. Testing on laboratory rats may not reveal possible effects on humans or other species.
Besides the safety problems, the effects on agricultural practices have been enormous as the biotechnology companies reach into every corner of the world. In India farmers have grown certain varieties of rice for thousands of years, but companies have patented many of these strains and put them beyond the budgets of small farmers. Other farmers find themselves increasingly tied to the biotechnology companies. When they buy Monsanto’s modified soya beans, for example, they have to spray with Monsanto’s Roundup herbicide that kills all other plants. Only Monsanto’s seeds and beans survive because they contain a gene that makes them resistant to the herbicide. Farmers must sign contracts that say they must not sow the seeds or beans produced
Unit Two
AGRICULTURE
by their crop the following year, and companies are developing “terminator technology” to prevent new seeds germinating.
In the 1980s the seed producers said the introduction of high yielding hybrid crops in the “Green Revolution” would end hunger and help poor farmers. Instead, the result has been the increased development of huge agribusinesses in the West overproducing and creating “food mountains” whilst millions starve in the Third World.
The World Trade Organization has stopped countries banning modified food or crops, even when there have been referenda or mass protests and petitions. The US government has threatened trade war measures against Europe over import restrictions. Many European governments have retaliated by delaying the planting of modified crops, but European biotechnology companies believe this plays into the hands of US and Japanese companies which will dominate the market as a result.
The new biotechnology offers enormous opportunities but there is a possibility that human beings will completely redesign themselves in the next one thousand years. The redesigning of animals and plants is just the first step on the way
to unravel разгадывать, объяснять; additives добавки; wastage потери; to till the soil подготавливать почву к посеву; soil erosion эрозия поч- âû; to eradicate poverty искоренять бедность; species [!spi:
менения) вид, разновидность; to interact взаимодействовать; side effects побочные эффекты; herbicide гербицид; to patent патентовать; strains усилия; to germinate прорастать; referendum (pl referenda) референдум; to play into the hands of smb сыграть кому-либо на руку.
6
.
ʃi:z] (pl áåç èç-
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Ex. 12. Read the following text and explain what is cloning. Can
cloning be one of the sources of food supply? What are the pros
and cons of the matter, as you see it?
Cloning is the creation of an identical animal from the DNA of another animal. When the media report on cloning in the news, they are usually talking about only one type called reproductive cloning. Reproductive cloning is a technology used to generate an animal that has the same nuclear DNA as another currently or previously existing animal. Dolly’s success is truly remarkable because it proved that the genetic material from a specialized adult cell could be reconstructed to generate an entire new organism.
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Scientists have been cloning animals for many years. Since Dolly, researchers have cloned a number of large and small animals including sheep, goats, cows, mice, pigs, cats and rabbits. All these clones were created using nuclear transfer technology. Hundreds of cloned animals exist today, but the number of different species is limited. Attempts at cloning certain species such as monkeys, chickens, horses and dogs have been unsuccessful. Further improvements in cloning technologies may be needed before many species can be cloned successfully.
Reproductive cloning is expensive and highly inefficient. Many cloned animals have not lived long enough to generate good data about how clones age. Appearing healthy at a young age unfortunately is not a good indicator of long term survival. Clones have been known to die mysteriously. For example, Australia’s first cloned sheep appeared healthy and energetic on the day she died, and the results from her autopsy failed to determine a cause of death. More than 90% of cloning attempts fail to produce viable offspring.
Various arguments have been put forward in favour of using cloning to preserve endangered species. Many rare animals are reluctant to breed in captivity. In this case cloning would be an alternative way of creating new individuals. There are two main concerns about using cloning to conserve rare species: it might lead people to think of extinction as a temporary state and it might therefore detract from attempts to preserve rare habitats. Cloning from just one individual means there would be very little genetic diversity in any new group of animals.
Unit Two
***
Today scientists say that milk and meat from cloned cows and bulls is likely to be safe for human consumption. A pilot study found that both met industry standards, making a first step towards the introduction of meat and dairy products from clones.
Scientists in the US and Japan cloned a bull and a cow using the “Dolly” technique of transferring genetic material from an adult cell to an egg. Two beef and four dairy clones were used in the study. Meat and milk from the clones was compared with that from normal animals of a similar age and breed.
The milk findings suggested that the genes of the cloned animals were working normally. Analysis of protein, fat and other
AGRICULTURE
variables revealed no significant differences in milk from the cloned dairy cows. More than 100 meat quality criteria were also examined, and of these 90% also showed no significant variations between normal and cloned beef. Levels of fat and fatty acids in the cloned beef were higher than normal. However, these fell within beef industry standards, and were viewed as desirable qualities in the Japanese Black breed of bull chosen for cloning. All the parameters examined in the study were within the normal range of beef and dairy products approved for human consumption. The scientists in Japan stressed that research was at an early stage. All the clones used in the study were derived from a single bull and dairy cow.
The US food and drug administration is due to rule soon on whether to allow the sale of meat and milk for human consumption from cloned livestock. A spokesman for the Food Standards Agency in the UK said before any cloned produce could be sold for human consumption in the country, it would need a “novelty
7
food” licence from European Union member states
DNA (deoxyribonucleic acid) ДHК (дезоксирибонуклеиновая кислота); nuclear transfer technology технология по пересадке ядра клетки; viable offspring жизнеспособное потомство; endangered species виды живот- ных, находящиеся под угрозой исчезновения; extinction вымирание; pilot экспериментальный; egg çä. яйцеклетка; criteria [krai!ti
criterion) критерий; findings полученные данные.
.
əriə](singl
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Ex. 13. The text tells what happens to people in the developing world
who get access to Western diets. Can you compare it with what
might happen to Western people who wouldn’t be able to have
a Western diet, for example, in a remote village in A frica?
For a long time people in the developing world have been made ill from becoming partly westernized. Some of the cases personify the greatest fear of well-meaning Western aid workers: the fear of hoping to do some good and instead making a mess of it. An example: A nomadic tribe perpetually wanders through a howling desert, searching daily for water for their goats and camels. A puddle of stagnant water here or there is all that saves them and their livestock from destruction. Obvious solution: haul in some drilling equipment and make these folks a well. Expected outcome: no need to wander the desert anymore, plenty of water in one convenient location. Unexpected additional outcome:
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the animals eat every leaf and tuft of grass for miles around, and the high density of animals and their owners now encamped around the well enable communicable diseases to spread through herds and human populations with great speed and virulence. Result: desertification, pandemics. Moral: don’t encourage Western centralization of resources until you have Western resistance to diseases that arise in dense populations.
Sometimes people in the developing world become ill from partial westernization because their bodies do not work the same way westernized bodies do. Think about subsistence farmers eking out a living on their few tropical acres, or nomadic pastoralists wandering the equatorial grasslands or deserts with their herds. Food and water are often scarce and unpredictable. Salt, essential for life and found in low levels in most foods other than meat, is something to trade riches for. In a few hundred generations bodies become mighty efficient at making use of such treasures. What happens when people in the developing world suddenly get access to Western diets, when the newly emerging middle class of the Third World gets to luxuriate in tap water and supermarkets stocked with processed sugars, a chicken in every pot and a salt shaker on every dinner table? Bodies that retain every bit of glucose and salt now get into big trouble. The price of a Western lifestyle is an increased risk of stomach ulcers.
Africa is a basket case, to the endless despair of those who have lived there and love it and its people. Find its corners that are still untouched by the maelstroms of this century, and the villagers thrive with wondrous skill and inventiveness. But much of the rest of the continent is a disaster — AIDS, malaria and protein malnutrition; deforestation and desertification; fuel shortages and power outages; intertribal clashes, numbing shuff les of military dictatorships and corrupt officials. Western economic manipulation, toxic pesticides dumped there because they are too dangerous to be legal in the West; decades of homelands turned into battlegrounds for proxy superpower wars.
Strong and pragmatic observations have been made about the malaise of the developing world. The observers view the economic problems of Africa as one of partial westernization. They write: “We borrowed the profit motive of the West but not the entrepreneurial spirit. We borrowed the acquisitive appetites of capitalism but not the creative risk-taking. We are at home with Western gadgets but are bewildered by Western workshops.
Unit Two
AGRICULTURE
We wear the wristwatch but refuse to watch it for the culture of punctuality. We have learnt to parade in display, but not to drill in discipline. The West’s consumption patterns have arrived, but not necessarily the West’s technique of production.” So the people are very often lost between the new world they have not quite yet
8
joined and the traditional one they can never return to
a tuft of grass пучок травы; virulence [!virjuləns] сила, ожесточ¸нность; pandemics повальные эпидемические заболевания; to eke [i:k] out a living перебиваться кое-как; a pastoralist [!p
[!glu:kous] глюкоза; ulcer [! рот (жизни); protein [!prouti:n] белок; deforestation обесл рубка леса; power outage [!autid
a basket case трудноизлечимый случай; malaise [m gadget техническая новинка.
lsə] ÿçâà; maelstrom [!meilstroum] водово
‚] перебой в подаче электроэнергии;
ɑ:stərəlist] скотовод; glucose
.
Jсение, вы
!leiz] болезнь;
Ex. 14. Debate on the following topics. Keep the conversation going
in a round table framework.
1. Farming in different countries (speak on any country you like).
2. Irrigation and water problems in dry areas of the world.
3. Soil fertility and the ways to maintain it.
4. Basic food in different parts of the world.
5. Food security and food crises. The reasons and ways out of
the situation.
6. Genetic modification and cloning.
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Unit Three
TRADE AND INVESTMENT
I. At the turn of the 20th century, agriculture and manufacturing
were the two most important sectors almost everywhere. Together, they accounted for about 70% of total output in Germany, Italy and France, and 40—50% in America, Britain and Japan.
International commerce was therefore dominated by raw materials, such as wheat, wood and iron ore, or processed commodities, such as meat and steel. In 1900 “crude materials ” and “crude food” made up 41% of America’s exports, by value, and 45% of its imports. The story in Britain was similar. Basic materials and foodstuffs, both processed and unprocessed, accounted for 75% of imports and 20% of exports. Over time, however, world output has shifted into more valuable finished manufactured goods, and now they, not raw commodities, dominate the f low of trade.
Measured by the volume of imports and exports, the world economy has become increasingly integrated in the years since the Second World War. A fall in barriers to trade has helped stimulate this growth. The volume of world merchandise trade is now about 16 times what it was in 1950, while the world’s total output is only five-and-a-half times as big. The ratio of world exports to GDP has climbed from 7% to 15%.
National economies are undoubtedly becoming steadily more integrated as cross-border f lows of trade, investment and financial capital increase. Consumers are buying more foreign goods, a growing number of firms now operate across national borders, and savers are investing more than ever before in far-f lung places.
International trade has been growing at a startling pace. While the global economy has been expanding at a bit over 3% a year, the volume of trade has been rising at a compound annual rate of about twice that. In 1997 some $5.2 trillion of goods was sent from one country to another, up from $2 trillion a decade earlier. Foreign products, from meat to machinery, play a more important
TRADE AND INVESTMENT
role in almost every economy in the world, and foreign markets now tempt businesses that never much worried about sales beyond their nation’s borders.
II. To economists, the real benefits of trade lie in importing
rather than in exporting. Politicians frequently urge consumers to favour domestically made goods, and portray a widening trade deficit as a bad thing. But economists know that the only reason for exporting is to earn the wherewithal to import. They say that the benefit which is derived from exchanging one commodity for another, arises, in all cases, from the commodity received, not the commodity given. This benefit arises even if one country can make everything better and more cheaply than all others. The basic theory that explains this is the principle of comparative advantage.
According to this theory countries should specialize in making the products that they are particularly good at making, and should buy import products that other countries are better at making. The principle of comparative advantage also says that total output will be greatest when each good is produced by that nation which has the lower cost. Japan, for example, has a large and well-educated labour force; skilled labour is abundant and therefore cheap. Hence, Japan can produce efficiently (at low cost ) a variety of labour-intensive goods whose production requires much skilled labour. In contrast, Australia has vast amounts of land in comparison with its human and capital resources and hence can cheaply produce such land-intensive commodities as wheat, wool, and meat. Brazil possesses the soil, tropical climate, rainfall, and ample supplies of unskilled labour requisite to the efficient low-cost production of coffee. Industrially advanced nations can produce cheaply a variety of capital-intensive goods, for example automobiles, agricultural equipment, machinery, and chemicals. So Japan has a comparative advantage in labour-intensive goods, and it should specialize in the production of cameras, video recorders, and consumer electronics. Australia should specialize in wheat, wool and meat production, Brazil — in coffee production and industrially advanced nations — in capital-intensive goods.
At first blush, real-world trade patterns would seem to challenge the theory of comparative advantage. Most trade occurs between countries which do not have huge cost differences. America’s biggest trading partner is Canada. Well over half the exports from France,
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