Basic terms in foreign trade

Countries buy and sell various goods as well as various services. Goods bought from abroad, such as food, cars, machines, medicines, books and many others, are called visible¹ imports.Goods sold abroad are calledvisible exports.

Services, such as insurance , freight, tourism, technical expertise and others, are called invisible imports and invisible exports.

The total amount of money a country makes including money from visible and invisible exports, for a certain period of time, usually for a year, is Gross National Product,orGNP.

The difference between a country’s total earnings⁶or GNP, and its total

nQ

expenditure is called its balance of payments .

The difference between what a country receives for its visible exports and what it pays for its visible imports is its balance of trade⁹.If a country sells more goods than it buys, it will have asurplus¹⁰If a country buys more than it sells, it will have adeficit.

Words

Visible insurance freight ⁴expertise

• явний;

• страхування;

• фрахтування, фрахт;

• експертиза;

• валовий національний продукт;

• прибутки, надходження;

• витрати;

• платіжний баланс;

• торгівельний баланс;

• надлишок, активне сальдо.

5Gross National Product6earnings

7

expenditure

o

balance of payments ⁹balance of trade¹⁰surplus

Canada

Canada consists of almost all of the North American continent north of the US except Alaska. Its total land area of more than 9 mln sq. km makes it the second largest country in the world.

The total population according to the census 19o1 was about 24 mln people with the average population density of 2.8per sq. km.

English and French are the official languages of Canada and have equal status and equal rights and privileges as to their use in all governmental institutions.

Canada is a federation of 10 provinces and 2 northern territories. The federal Parliament is made up of the House of Commons and the Senate. The leader of the party that wins the largest number of seats in a newly elected House of Commons is asked to form the government.

Ottawa is the capital city of Canada. It is situated on the Ottawa River. The population of Ottawa is about 760,000 people.

Despite its small population, Canada is a great industrial nation, and manufacturing is the foremost sector of its economy, Canada is a main supplier to the USA of oil, gas, pulp and paper and electricity produced at its hydroelectric stations.

The leading industries are foods and beverages, primary metals (iron and steel), transportation equipment, paper, petroleum and coal products, wood products, textiles, clothing, machinery, nonmetallic minerals and furniture.

Nevertheless agriculture is of major importance to the economy as a whole and is basic in many areas. Three fourths of the cultivated area is in the prairie region producing wheat, oats, sugar beet, soya-beans, tobacco, potatoes.

Canada is among the world’s leading wheat producers and is second in the export of wheat.

Basically, Canada has a free-enterprise economy.