5. Fill in the blanks with articles if needed

"Neoclassical" factors - trade and comparative advantage – caused … long-term shift in industrial structure: … economy moved from manufacturing to services. Many services have to be produced where they are consumed, which means less regional specialization. This was enough to outweigh any tendency within manufacturing for specialization to increase. Europe can draw comfort from this. Its shift from manufacturing to services lags far behind America's. Integration, other things equal, will speed it up. This should mitigate any tendency towards … clustering. For now at least, service economies look more alike than … manufacturing economies, and should prove less susceptible to … shocking developments.

6. Translate the following sentences into Russian in writing

1. The case against the euro rests largely on the idea that "asymmetric shocks" - disturbances that affect some countries much more than others - will be harder to deal with in the absence of national monetary policies.

2. As countries become richer, the accumulation of physical and human capital comes to outweigh resources such as land and climate: endowments become more similar, and so do patterns of output.

3. "New" growth theory is interested in externalities. The return to a unit of extra investment may be higher in a country that already has a lot of capital: the existing stock confers an external benefit on the new addition.

4. It would be hard to deny, though, that the economy of the United States is more regionally specialised than the euro zone.

5. A paper cited by the OECD shows that specialisation in America has traced a bell-curve over time.

7. Translate the sentences into English

1. Согласно экономической теории существует несколько причин, позволяющих говорить о взаимосвязи интеграции и региональной специализации.

2. В «новой» теории роста особое внимание обращается на внешние экономические факторы.

3. Так называемые «неоклассические факторы» - торговля и сравнительное преимущество - произвели в промышленной структуре долговременный сдвиг: от сферы производства - к сфере обслуживания.

4. Многие услуги потребляются там же, где производятся, что означает меньшую степень региональной специализации.

8. Give Russian equivalents for the following words and phrases used in the text

service economies; manufacturing economies; the single-currency area; sub-regions; the gains from integration; endowment of labour and capital; accumulation of physical and human capital; patterns of output; externalities; divergence/ convergence; fiscal transfers; labour mobility; a bell-curve; a long-term shift in industrial structure.

9. Summarise the text, using the words and phrases given below

the case for…; the case against; at first sight; to suggest; to promote competition; to emphasize; to complement; to be fiercely contested; to deny; to report; inconclusive; to cite; to cause.

10. Work in several groups. Supply details to prove the following assumptions:

1. the economy of the United States is more regionally specialised than the euro-zone;

2. Italy is the most "European" economy, and Belgium the least;

3) the gains from integration in good times may be great, but the risks in bad times will be bigger too;

4. externalities in production will cause high-technology, high-wage industries to form clusters.

11. Work as one group. Argue for or against the following debating themes

1. Integration makes economies less alike.

2. For now, at least, service economies look more alike than manufacturing economies, and should prove less susceptible to shocking developments.