51. What role does international trade play in the us economy?

The US is the world's largest trading nation. Since it is the world's leading importer, there are many US dollarsin circulation all around the planet. The dollar is also used as the standard unit of currency in international markets for commodities such as gold andpetroleum. Large foreign economies such asChina,Japan,Arab states of the Persian Gulf, and the European Union own huge dollar reserves (especially as the US is more in debt) so there is a fear that they will move away from the dollar.

In 2008 the US had $144.1 billion surplus on trade in services and $821.2 billion deficit on trade in goods. In order to fund the national debt(also known as public debt), the United States relies on selling UStreasury bondsto people both inside and outside the country, and in recent times a growing percent of buyers are international.

52. Why are transportation-related businesses considered to be an important part of the service industry?

Transportation is the movement of people and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space.

It is almost universally accepted that transport has played a predominant role in the economic development of all modern civilizations. All modern economies are dependent upon transportation of some form to move people and goods to and from other economies. Access to other economies enables trade and facilitates the specialization of labor and capital, leading to greater productivity growth and higher wages. Without such access, many productivity-improving developments would not occur, resulting in lower average productivity and lower wages. This is because isolated areas would be focused on local needs, production volumes would be low, specialized goods and innovation from outside the area would be unavailable, and there would be no or limited demand for goods (or services) in which the isolated area could specialize.

52. What can you say about the US agriculture?

Agriculture is a major industry in the United States and the country is a net exporter of food. Farms are owned by the people who operate them and by business corporations. Farming is largely mechanized and scientifically controlled.

The dominant trend in American agriculture can be summarized in two words — increased productivity. American agriculture produces more food products than any other capitalist country.

The principal crops grown in the country are: corn, wheat, soy-beans, sugar-cane and sugar beets, sunflower, tobacco, rice, cotton. The United States harvests a lot of vegetable. Florida and California are famous for their fruit production.

Animal husbandry is also developed in the country. The highlands in the West of the country are famous for their dairy and beef cattle breeding, pig raising, sheep farming. Wool production, leather and textile industries are also developed there. Poultry-farming and vegetable growing are concentrated in the countryside.

52. What place does the United Kingdom hold in the world and in Europe?

The United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is a developed country, with the sixth largest economy by both nominal GDP and purchasing power parity in the world and the third largest in the Europe.

It was the world’s first industrialized country and the world’s foremost power during the 19th and early 20th centuries, but the economic and social cost of two world wars and the decline of its empire diminished its leading role in global affairs.

The UK nevertheless remains a major power with strong economic, cultural, military, scientific and political influence. It is a recognized nuclear weapons state and has one of the highest defence spending in the world. It is a Member State of the European Union, a member of the G8, NATO, OECD and the World Trade Organization.

52. What type of the economy does Great Britain have?

The United Kingdom is the sixth largest economy in the world by both nominal GDP and purchasing power parity (PPP).

The UK’s economy is primarily based on private enterprises and free market. The questions of What, How and for Whom to produce are made by individuals and firms acting in their own best interests. Producers are free to make whatever they think will sell. Consumers are free to spend their money or buy whatever goods and services they wish to have.

However, some industries were nationalized after World War II. Now the country has a mixed private- and public-enterprise economy. The government controls the coal-mining and electric power industries, ferrous metallurgy and shipbuilding. Part of public transport, civil aviation and national bank are also managed by the state.

So, today we can define The UK’s economy as a limited regulated free market economy, somewhere between the US and continental Europe.

52. What is the basic unit of currency in Britain? What did the British government decide about euro?

The Pound Sterling, commonly called the pound, is the official currency of the United Kingdom, its Crown dependencies and the British Overseas Territories. It is subdivided into 100 pence.

Relatively recently there was debate over whether or not the UK should abolish its currency Pound Sterling and join the Euro. The British Prime Minister, Gordon Brown, pledged at the time to hold a public referendum based on certain tests he set as Chancellor of the Exchequer.

When assessing the tests, Gordon Brown concluded that while the decision was close, the United Kingdom should not yet join the Euro. In particular, he cited fluctuations in house prices as a barrier to immediate entry. Public opinion polls have shown that a majority of Britons have been opposed to joining the single currency for some considerable time and this position has now hardened further.

52. What are the main branches of Ukrainian industry?

Industry is the most important area of Ukraine’s economy. In the current structure of Ukraine’s industry a great proportion is occupied by heavy industry, especially the steel, machine-building and coal industries.

A considerable part is played by the food and light industries. About two-fifths of Ukraine’s people work in industry, and about a fifth work in agriculture. Most other Ukrainians have jobs in service industries.

Many of Ukraine’s heavy industries are concentrated in the Donbas region. A large industrial output is yielded by the mining, ferrous metallurgy, chemical and machine-building industries.

The machine-building is presently the largest branch of industry. Automobiles and buses, locomotives and railway cars, airplanes and ships, machine tools and metallurgical equipment are produced at Ukraine’s plants and factories.

However, today’s industries are unable to satisfy the consumers’ wants because of different reasons. All the problems must be solved in the course of new economic reforms.

52. Why is steel industry the most important sector of the national economy?

Ukraine has strong preconditions for the steel industry development, among them the most important one – the presence of rich deposits of iron ore. As result now Ukraine’s iron and steel industries are very important segments in the economy.

First of all, steel is used as resource in many national industries: metallurgy, machine-building, construction, transport and others. Relatively cheap domestic steel helps these industries to decrease their production costs and remain competitive in the home and world market.

Second reason of being so important is that steel industry is a great consumer of fuel, energy and water and influences greatly on Ukrainian fuel and power complex.

Finally, Ukraine is one of the world top 10 steel exporters. Steel accounts for about 40 per cent in Ukrainian export and helps the country to take its niche in the world trade system and to bring foreign currency necessary for payments for imported goods.

52. What does Ukraine import?

Ukraine encourages foreign trade and investment and takes active part in world trading process.

Imports of goods and services to Ukraine over the last five years grew significantly. Ukraine imports commodities that are necessary both for national production and final consumption. The structural composition of Ukrainian imports brings homogeneous and stable character. The largest shares of goods imported belong to energy resources (from 25 to 30%), machinery and equipment (18-20%), chemical products (about 14%). Rapid growth of vehicles imported is also observed.

Imports of energy is explained by the lack of own power carriers while imports of machinery is the result of the focus of national economy on raw materials processing. The growth of vehicle imports is the result of increasing in revenues and needs of households, as well as inability of domestic producers to meet demand both in quality and quantity.

The main services imported are transportation, financial and consulting services.

52. Why is Ukraine dependent on energy imports?

Energy issues play the largest role in the Ukraine’s daily economic and political life. Ukraine’s energy situation since independence has been characterized first by two elements: first, the country’s dependency on imported energy sources – especially on Russian ones – and, second, its low levels of energy efficiency.

Energy resources are one of the major factors in production of GDP. The greatest consumer is Ukrainian industry. Both Ukraine’s energy production system and its economy as a whole are sorely outdated making the process of energy consumption too intensive and inefficient. As a result, despite having a population of only 47 million, Ukraine is the seventh largest gas consumer in the world.

The output of own energy resources is far not enough to satisfy the needs of economy. That’s why Ukraine imports above 40% of energy resources used in production. So, Ukrainian economy is highly dependent on energy imports and if it stopped the state would be destroyed.

52. What factors make Ukraine’s agriculture one of the key economic sectors?

Ukraine has very favourable conditions for the development of agricultural production: fertile soils, temperately warm climate, a well-developed industry processing agricultural raw materials. Ukraine is one of the world’s most productive farming regions and is known as the breadbasket of Europe. About 20% of Ukrainian people work in agriculture.

There are two main branches of agricultural production in Ukraine: crop production1 and animal husbandry. Crop production includes: grain and industrial crops, meadow culture, fruit and vegetable raising. Almost half of the cropping area is occupied by cereals. Among the industrial crops the leading position is occupied by sugar beet. Close to 40 types of vegetable crops are grown in Ukraine.

Animal husbandry is the practice of breeding of farm animals and their use. The most widespread branches of animal husbandry are: dairy and beef cattle breeding, pig raising, sheep farming and bee-keeping. The poultry industry is spread through all the provinces.

52. What products does Ukraine export?

Ukraine encourages foreign trade and investment and takes active part in world trading process.

Well-developed industry, especially steel industry, and agricultural sector are main suppliers of exported goods. The structure of export is characterized with predominance of raw materials while final goods are in minority. That shows Ukrainian inefficiency in world trade process and its dependence on developed countries with new technologies.

The largest share of exports belongs to ferrous metals and nonferrous metals (over 45%). Other Ukraine’s main exports are fuel and petroleum products, chemicals, machinery and transport equipment, food products. Agricultural products take the second place in the exports structure account for 15% of Ukraine’s exports. In general, there is a tendency of industry products to grow in exports structure (totally almost 85%).

The main trade partners of Ukraine are the CIS and Baltic States, Russia, USA, Germany, China, Italy, France, Poland, Turkey.

52. What criteria do you think people use when they choose their future profession?

There are several factors that influence the decision of young people to make their choice that concerns material and spiritual aspects of the future profession.

It is generally believed that professions should be both prestigious and interesting. Everybody wants to benefit from the social privileges provided by the profession. At the same time other factors are important. Much depends on the inclinations and interests of the person.

Another important factor is social environment. The profession of the parents often in this or that way influences the future profession of their children. Today we have dynasties of physicians, historians, lawyers, economists, pilots and military officers. It is impossible to forget about the material aspect of the future profession. It indicates the level of the society’s values. Today all professions can be classified as prestigious or not prestigious. The problem of prestige is subjective. All the professions are very useful.

52. What has inspired you to choose this speciality?

Four years ago I entered Kyiv National Economic University to study economics and management. In fact, my dream was and still is to have an enterprise or a firm of my own. To my mind to be a good leader of the company means to be competent in current economic processes.

A businessman should understand the reasons of economic problem and be able to discover the ways of their working out. It is not an easy task in the country with such unstable economy as economy in Ukraine.

I want to be a company leader who is not afraid of innovations, who is ready to consider the business experience of other companies – both Ukrainian and foreign, a leader who is interested in the prosperity of my own company as well as in prosperity of my country.

So, I hope I made excellent choice and after graduating from the university I’ll have an interesting job.

52. What is your future speciality?

Four years ago I entered Kyiv National Economic University to study economics and management. I chose the speciality of economy of enterprise. My speciality occupies the field of economy of enterprise and is almost universal. It includes studying of decision-making, financial analysis, human resources, marketing, statistics, management and planning.

After graduating the university I’ll have enough knowledge in economics, finance and marketing to work as economist or manager. But with no experience it is hard immediately to get very good job. So, I can start working as assistant of an economist or a financier, or an accountant, or a marketer.

Later making my carrier I can become Chief Executive Officer or Chief Financial Officer. In fact, my dream was and still is to have an enterprise or a firm of my own. So, getting enough theoretical knowledge and practical skills I can make my dream become true.

52. How long does the course of study last in your university?

Kyiv National Economic University offers a wide choice of programmes and courses for the students: Bachelor’s programmes in economics and management, Master’s programmes, postgraduate and doctorate programmes. They are aimed to develop individual and professional abilities of the students and represent different level of academic achievement.

Bachelor’s degree programmes in economics and management are profession-oriented and require four years of study. The first two years (the freshman year and sophomore year) are aimed at providing general education and preparing for more special studies. The last two years (the junior and senior years) are devoted almost entirely to the majors. The undergraduates major in those subjects which are essential for their future activity.

The Master’s degree programmes require one or two years of study beyond baccalaureate. The Master’s degree candidate follows a rather specific course of study, usually in a single field.

52. What subjects do you consider to be the most important for you to gain your professional skills?

All subjects necessary for gaining professional skills in field of management and economics are studied in Kyiv National Economic University. To my mind the most important subject for my future profession is the economy of enterprise also called business economics. This is many-sided course which includes studying of all aspects of the effective firm’s activity from attraction of resources to sales of final production.

General economic education occupies studying of statistics, probability theory, microeconomics, macroeconomics, economic-mathematical modelling, finance, marketing and others. The course of specialized subjects of Bachelor’s degree programmes include economic analysis, organization of production, cost management, innovation management, strategic planning, project analysis, potential of enterprise. The Master’s degree programme follows a rather specific course of study including financial management, human resources management, business evaluation and others.

Finally, it is impossible to select few important disciplines because good economist or manager must have all-round knowledge to be able to solve any problem.

52. What position would you like to hold?

Four years ago I entered Kyiv National Economic University to study economics and management. In fact, my dream was and still is to have an enterprise or a firm of my own. To my mind to be a good leader of the company means to be competent in current economic processes.

A businessman should understand the reasons of economic problem and be able to discover the ways of their working out. It is not an easy task in the country with such unstable economy as economy in Ukraine. However, it is especially important for our country to develop business and raise the economy of Ukraine on a higher level.

I want to be a company leader who is not afraid of innovations, who is ready to consider the business experience of other companies – both Ukrainian and foreign, a leader who is interested in the prosperity of my own company as well as in prosperity of my country.

52. Are people who have economic training in demand in modern society?

Today we can observe the growth of demand on computer professions like engineers, programmers, and on semiskilled professions. Does it mean that economic professions are not necessary for modern society? I think no because those who have economic training don’t need ready fish, they know how to get it.

Economists know how to survive and prosper. Their knowledge can be applied in almost any kind of business in the field of organization management. Besides, financiers, marketers, accountants, brokers are still very important in running the business. But now they theoretical and practical skills are much more improved than ones of previous generation.

Moreover, global competition makes people think as if everyone were an economist. That’s why basis knowledge in economics is important for every person who wants to succeed in his or her carrier and everyday life.

So, influenced by total globalization people have to get economic training to provide their living in comfort and prosperity.

52. Why is the economist’s education never really finished?

The world is changing dramatically every day. Globalization and competition act as drivers of modern economy. To survive and prosper both people and businesses have to adapt and develop in reaction to the changes.

Economists are not the exception; moreover they are the first to change and update their knowledge and skills. Economics is a practical science and any changes in real business life affect it greatly. In real world there is no permanent balance because innovative entrepreneurs want to win in strict competition and invent new products and technologies, organizational forms, ways of sale and distribution. All of this changes and improves economic concepts.

There is also the opposite process when scientists find new theories that are applied to everyday business life.

Therefore, economists are to study continuously both with new theoretical ideas and practical innovations because their success and survival depend on the level of updated knowledge.

1. What is economics?

2. What does the term “need” mean?

3. What is “a demand”?

4. What does economics deal with?

5. What is the difference between goods and services?

6. What kinds of goods do you know?

7. What are capital goods?

8. What does the term “value” mean in economics?

9. What is the reason people cannot satisfy all their wants and needs?

10. What are the factors of production?

11. What does the term “land” mean?

12. What does the term “labour” mean?

13. What is a wage rate?

14. What are the factors affecting the wage rate?

15. What is the difference between physical and financial capital?

16. What is entrepreneurship?

17. What is an economic system?

18. What are the major kinds of economic systems?

19. What is a command economy?

20. What disadvantages does the command economy have?

21. What is a market economy?

22. What advantages does a market economy have?

23. What is a modern market?

24. How do economists classify markets?

25. What is pure competition?

26. What is monopolistic competition?

27. What is monopoly?

28. What is demand?

29. How do prices affect the quantities demanded?

30. What factors is demand influenced by?

31. What is supply?

32. What factors is supply determined by?

33. What role do prices play in a market economy?

34. How do sellers and buyers use prices?

35. Why do buyers and sellers have the opposite intentions and hopes?

36. What is market equilibrium?

37. What messages do price increases and decreases send to producers of goods and services?

38. What is money?

39. What forms of money are in use in the world today?

40. What does the term currency refer to?

41. What are the most important characteristics of modern money?

42. What is a progressive tax?

43. What is the main source of government revenue?

44. What is the difference between tangible and intangible property?

45. What is a tax assessor?

46. What is the main purpose of a business organization?

47. What are the major types of business organizations?

48. What is a sole proprietorship?

49. What is a partnership?

50. What type of economy does the USA have?

51. What role does international trade play in the US economy?

52. Why are transportation-related businesses considered to be an important part of the service industry?

53. What can you say about the US agriculture?

54. What place does the United Kingdom hold in the world and in Europe?

55. What type of the economy does Great Britain have?

56. What is the basic unit of currency in Britain? What did the British government decide about euro?

57. What are the main branches of Ukrainian industry?

58. Why is steel industry the most important sector of the national economy?

59. What does Ukraine import?

60. Why is Ukraine dependent on energy imports?

61. What factors make Ukraine’s agriculture one of the key economic sectors?

62. What products does Ukraine export?

63. What criteria do you think people use when they choose their future profession?

64. What has inspired you to choose this speciality?

65. What is your future speciality?

66. How long does the course of study last in your university?

67. What subjects do you consider to be the most important for you to gain your professional skills?

68. What position would you like to hold?

69. Are people who have economic training in demand in modern society?

70. Why is the economist’s education never really finished?