Lesson 10

Task 1. Complete the text with the words in the box.

1. excess	5. domestic	9. living	13. price	17. Although
2. specialize in	6. flows	10. basis	14. investment	18. reason
3. consumed	7. concepts	11. allocation	15. resources	19. comparative
4. Through	8. law	12. currencies	16. Trading	20. exported

International trade

The basic idea of international trade and ( 1 ) is simple: each country produces goods and services that can be either ( 2 ) at home or ( 3 ) to other countries. The main difference between ( 4 ) trade and international trade is the use of foreign ( 5 ) to pay for goods and services crossing international borders.

( 6 ) global trade is often added up in U.S. dollars, the trading itself involves a lot of currencies.

( 7 ) in goods may be done between countries, states, and individuals for their mutual benefit. If a country has exports in ( 8 ) of its imports, that country will be magnifying its income. In trade, two fundamental ( 9 ) are absolute advantage and

( 10 ) advantage.

Absolute advantage is when one nation can produce a product more efficiently than the other. Thus, a ( 11 ) of trade is created. Comparative advantage allows even a nation that can produce two goods more efficiently to establish a basis for trade. The

( 12 ) of comparative advantage is the fundamental ( 13 ) for trading. It is when two entities, each one producing the same two types of goods, ( 14 ) one good that it can produce at a lower opportunity cost. Therefore, both entities derive more goods by trading because each entity can offer the best produced goods at the best possible (15 ). Any two entities can engage in trade, i.e. two nations, two states, one or two persons.

( 16 ) specialization and free trade, nations can achieve a more efficient ( 17 ) of scarce world ( 18 ), thereby raising standards of ( 19 ).

Whenever a country imports or exports goods and services, there is a resulting flow of funds: money returns to the exporting nation, and money ( 20 ) out of the importing nation.

Task 2. Match each of the words or phrases on the left to an appropriate definition.

1. market economy	a) a company (or a customer) which is profitable and has strong assets
2. company capital	b) dividing a sum of money in various ways; giving money to people who have applied for it
3. joint-stock company	c) sending goods to foreign countries/bringing goods from abroad into a country for sale
4. limited company	d) money, property and assets used in a business
5. financially secure	e) placing of money so that it’ll increase in value and produce an income
6. payroll transfer operations	f) system where the government does not interfere in business activity in any way
7. allocation of credit	g) company where a shareholder is responsible for repaying the company’s debts only to the face value of the share he owns
8. investment activity	h) business of buying debts at a discount
9.trust operations	i) company whose shares are held by many people
10. factoring operations	j) operations with money placed in a bank
11. deposit operations	k) holding and controlling of property for someone else
12. export and import operations	l) operations with money, paid by a company in salaries (by means of bank transfer)

Task 3. Fill in the blanks using the word combinations given below, translate the letter.

Letter 1.

We would like to (1) of your letter of 31 March 2001. Being aware of your (2) , our firm made a concession in suggesting payment for collection terms. You accepted (3) of payment and undertook to submit a first class bank guarantee for 81 per cent (4) .

We urge you to advise us at your (5) when the bank guarantee (6) .

a. the suggested method

b. earliest convenience

c. difficulties

d. will be submitted

e. of the contract value

f. remind you

Letter 2.

In accordance with Contract No 2 of 22^nd March this year we sent to your city our highly ( 1 ) specialists ( 2 ) you assistance.

Payment for the services of ( 3 ) are to be made by you quarterly against our invoices with detailed calculations ( 4 ). However our invoice hasn’t been ( 5 ) by you. In view of this we ask you to take the most drastic steps to ( 6 ).

a. our specialists

b. fully paid

c. settle the matter

d. qualified

e. attached

f. to render

Task 4. Choose the correct variant.

1. We have … our sales targets this year.

a) gone

b) arrived

c) met

d) come

2. Many consumers prefer to pay more for a … brand.

a) genuine

b) right

c) normal

d) reality

3. It’s … task I have ever had.

a) simplest

b) the simplest

c) simple

d) the simpler

4. The company … through a difficult time at the moment.

a) is going

b) go

c) will go

d) goes

5. Many people … of the right to vote.

a) was deprived

b) have been deprived

c) had been deprived

d) will deprived

6. The manager told me he … in my proposal.

a) is interested

b) will be interested

c) interests

d) was interested

7. … you mind if I help you?

a) should

b) can

c) could

d) would

8. If we … the design soon, someone else will do it before us.

a) won’t patent

b) don’t patent

c) didn’t patent

d) wouldn’t patent

9. If I had known, I … everybody about it.

a) had told

b) would tell

c) will tell

d) would have told

10. I wouldn’t be … if the economy collapsed.

a) surprising

b) at surprise

c) surprised

d) surprise