Comprehension

Ex. 1. Based on your understanding of the text, are the following TRUE or FALSE? Explain why.

1. Industrialized nations also have well-established systems of government and law, and provide educational opportunities for their people.

2. Greece may best be described as an economy in transition.

3. EU includes only countries of Europe.

4. The term sustainable growth refers to political growth based on renewable resources and average environmental degradation.

5. Newly industrialized nations (NICs) have a slowly growing base of productive capital and rising incomes. Most of these nations have poor governments and primitive banking and financial systems

6. Brazil is weighed down with international debt and must work hard to control inflation.

7. Developing nations range from the poorest in the world to those that have begun to build an industrial base.

Ex. 2. Find in the text the answers to the following questions.

1. What countries are considered as industrialized countries?

2. What are problems facing the developed countries?

3. What countries are called Asian Tigers?

4. Why Asian Tigers succeeded in their economic development?

5. What is Brazil weighed down with?

6. What problems does Pakistan face?

7. How can you characterize the problems of developing countries?

Ex. 3. Speak on:

1. Classification of the nations according to the development of their economy.

2. International trade as a form of specialization.

3. Main features of industrialized countries

4. Sectors of the economy the NIC need to develop.

5. Primary issues of concern in LDC.

Text 2

Scan the text and find information on the following issues.

• three factors for successful development;

• functions of ICC;

• the location of ICC;

• mission of APEC;

• difference between APEC and other multilateral trade bodies.

Economic Cooperation

Only international co-operation can shape globalization in a positive way, and make it equitable for all. Development is a long-term process. Three factors in particular account for successful development: ownership of the process by developing countries; effective dialogue between developing and developed countries; and coherent policies in developed countries, in areas such as trade, investment, and agriculture, that will have a maximum positive impact on developing countries.

Different international organizations appeared in different parts of the world. One of them is International Chamber of Commerce (ICC) is the voice of world business championing the global economy as a force for economic growth, job creation and prosperity. Because national economies are now so closely interwoven, government decisions have far stronger international repercussions than in the past. ICC – the world's only truly global business organization responds by being more assertive in expressing business views.

Transformations in Europe, gave European nations a completely new chance of cooperation and friendship. An example for cooperation is European Union, which attempts to form infrastructure that crosses state borders. Last years have shown, that the neighbouring cooperation between countries is possible and mutually advantageous, and the borders, which used to be burdened with the weight of conflicts from the past, have become a symbol of the reconciliation and integration between countries. the European Union Harmonised standards create a larger, more efficient market – member states can form a single customs union without loss of health or safety. For example, states whose people would never agree to eat the same food might still agree on standards for labelling and cleanliness.

Another example of international coperation is Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC was established in 1989 to further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community.

APEC is the only inter governmental grouping in the world operating on the basis of non-binding commitments, open dialogue and equal respect for the views of all participants. Unlike the WTO or other multilateral trade bodies, APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are undertaken on a voluntary basis.

APEC's 21 Member Economies are Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam.

Text 3

Skim the text and find the following information:

1. Location of IFM.

2. Goals of IFM.

3. USA contribution to the fund.

The International Monetary Fund is like a central bank for the world’s central banks. It is headquartered in Washington, D.C., has 184 member nations, and cooperates closely with the World bank, which we discuss in Chapter 19. The IMF has a board of governors consisting of one representative from each member nation. The board of governors elects a 20-member executive board to conduct regular operations.

The goals of the IMF are to promote world trade, stable exchange rates, and orderly correction of balance of payments problems. One important part of this is preventing situations in which a nation devalues its currency purely to promote its exports. That kind of devaluation is often considered unfairly competitive if underlying issues, such as poor fiscal and monetary policies, are not addressed by the nation.

Member nations maintain funds in the form of currency reserve units called Special Drawing Rights (SDRs) on deposit with the IMF. (This is a bit like the federal funds that. commercial banks keep on deposit with the Central Bank reserve.) The value of SDRs is reassigned every five years. SDRs are held in the accounts of IMF nations in proportion to their contribution to the fund. (The United States is the largest contributor, accounting for about 25 percent of the fund.) Participating nations agree to accept SDRs in exchange for reserve currencies – that is, foreign exchange currencies – in settling international accounts. All IMF accounting is done in SDRs, and commercial banks accept SDR-denominated deposits. By using SDRs as the unit of value, the IMF simplifies its own and its member nations’ payment and accounting procedures.