2. Read and translate the text, be ready to speak on the topic:

A

International trade is the exchange of goods and services between different countries. Depending on what a country produces and needs, it can export (sell goods to another country) and import (buy goods from another country). Governments can control international trade. The most common measures are tariffs (or duties) and quotas. A tariff is a tax on imported goods, and a quota is the maximum quantity of a product allowed into a country during a certain period of time. These measures protectionist as they raise the price of imported goods to protect domestically produced goods.

International organisations such as the WTO (World Trade Organisation) and EFTA (European Free Trade Association) regulate tariffs and reduce trade restrictions between member countries.

Companies can choose from various methods to establish their products in a foreign market. One option is to start by working with local experts such as sole agents or multi-distributors, who have a specialist knowledge of the market and sell on behalf of the company. This often leads to the company opening a local branch or sales office. Another option is to sell, or give permission to use, patents and licences for their products. Companies may wish to start by manufacturing in the export market, in which case they can either set up a local subsidiary or a joint venture with a local partner.

B

Nations trade with each other for the same reason that business compa­nies and individuals within a domestic trade: they expect to have profit. Trade permits them to have things they need and to exchange their surplus goods and services. Some countries have unique climate or soil, others have valuable raw materials, skilled labour forces or favourable geographic situation.

For instance, Colombia has the right climate to grow coffee beans or Morocco has the suitable conditions for producing bananas. Ukraine is incapable to do this because of unsuitable climate. So, coffee and bananas are an important export product for Colombia and Morocco and an im­portant import for Ukraine. Another example for the importance of overseas trade is a supply of raw materials. For some countries raw materials are major imports. Most of the coun­tries in Western Europe must import oil. They lack this product which is an important source of energy for the industries. One more example is Singapore. It doesn't have such advantages as natural resources, but it's very successful. The government turned its people into its advantage. They developed a highly-educated workforce and know-how in manufacturing high-tech goods.

Nations will gain because of differences in terms of climate, natural resources, labour force skills and technology. These special conditions give one country an advantage over others in production of certain goods or services.

A country’s balance of trade is the difference between the values of its imports and exports. This includes visible imports / exports (goods) and invisible imports / exports (services). If a country imports more than it exports, it has a trade deficit. If it exports more than it imports, it has a trade surplus.

International trade allows countries to specialize in the goods and ser­vices that they produce best, satisfying their other needs by importing commodi­ties that they do not produce themselves.

Free trade increases export opportunities and create wealth. Manufacturers in countries with small population can find new markets which will allow them to expand. Free trade is good for consumers too. It creates competition between producers, which keeps prices down and gives people wider choices.

But protectionism in some cases is also justified. There is a strong case for developing countries which want to start manufacturing their own goods. This makes them less dependent on imports and helps with their balance of trade. In this case, the government needs to protect the young industry from outside competition for a few years. As far as established industries in developed countries concerns, the protectionism can help against unfair competition. Sometimes aggressive companies dump their goods in importing countries. They don't make a profit but this kills the local competition.