1. Read and learn the following words and word combinations. Translate the examples:

foreign trade activity - зовнішньо торгівельна діяльність

e.g. The government can control foreign trade activities in different ways.

encourage v – підтримувати, заохочувати (opp. to discourage)

e.g. Who can encourage exports and control imports?

trend n – напрямок, тенденція

e.g. The general trend of the foreign trade of Ukraine is closely connected with its foreign policy.

restriction n – обмеження; to impose restrictions – накладати/вводити обмеження

e.g. The government has imposed restrictions on oil export.

quota n - квота; to establish quota – встановити квоту

e.g. A quota is a limited quantity of goods allowed to be produced, sold, etc.

tax n - податок

e.g. Taxes are paid to the government for public purposes.

licence system – ліцензійна система

e.g. The local authorities plan to introduce licence system in public transportation.

measure n – 1) міра; 2) одиниця вимірювання; 3) захід

e.g. Administrative measures affect foreign trade activities directly.

foreign exchange regulations – регулювання обміну валют

e.g. The National Bank controls foreign exchange regulations.

turnover n – обіг

e.g. Domestic trade turnover has increased in recent years.

devalue v– девальвувати

devaluation n - девальвація

e.g. To devalue means to make the value of currency less.

subsidize v– надавати субсидію;

subsidy n – субсидія

e.g. Subsidizing allows goods to be sold at a price lower than the market price.

the policy of customs duties – митна політика

e.g. The policy of customs duties is one of the most important means of controlling foreign trade activities.

II. Read and translate the text:

The Means of Controlling Foreign Trade

The government can control foreign trade activities in different ways. It can encourage exports and control imports.

The commercial policy of a country is always closely connected with its foreign policy. This is reflected not only by the general trend of the foreign trade of the respective country but also by the various restrictions, for example establishing quotas, raising taxes, and introducing licence systems to encourage imports or promote exports.

The government can control foreign trade activities directly or indirectly. Administrative measures (for example the introduction of a strict licence system) control these activities directly, foreign exchange regulations (for example the devaluation of the local currency) have an indirect effect on foreign trade turnover. The pound sterling, for instance, was devalued against the dollar in 1949 and 1967, making the dollar more expensive to purchase in the United Kingdom and the pound less expensive in the United States. So imports to Britain were discouraged and exports encouraged.

The government can also subsidize prices, which means that it allows goods to be sold at a price lower than the market price. The aim is to prevent the decline of a company or industry. For the same purpose the government can also extend credits.

One of the most important means of controlling foreign trade activities is through the policy of customs duties.

III. Answer the following questions:

1. What are the two different ways of controlling a country’s foreign trade activities?

2. How is the foreign policy reflected by its foreign trade?

3. What restrictions can be imposed on foreign trade?

4. How can the government control foreign trade activities?

5. What administrative measures can be taken to control foreign trade?

6. In what ways do foreign exchange regulations affect foreign trade?

7. What do subsidies serve for?

IV. Give Ukrainian equivalents of the following:

commercial policy; the respective country; by raising taxes; a strict licence system; local currency; to have an indirect effect on something; making the dollar more expensive to purchase; to prevent the decline of something; to extend credits.

5. Give English equivalents of the following:

торгівельна політика (2 варіанти); бути тісно пов’язаним з; різноманітні обмеження; запроваджувати системи ліцензій; заохочувати експорт; прямо або опосередковано; адміністративні заходи; дозволяти продавати товари за ціною, що нижча за ринкову ціну; з тією ж самою метою.

VI. Match the definition on the right with the word on the left. Translate and learn the definitions:

subsidy	a) a person who pays taxes
licence	b) changing to a new, lower fixed value
tax-payer	c) money granted by government to an industry to keep prices down
devaluation	d) (written or printed) statement giving permission from someone in authority to do something

VII. Fill in the gaps with the words from the list below:

credit, licence, measures, trade, devaluation, discourage, policy

1. To … imports the government introduced a strict … system.

2. Some … must be taken to prevent the decline of this company.

3. The … of the bank is to extend … for education.

4. … of the local currency taxes effect the total trade.

5. How does raising taxes effect the total …?

VIII. Match the synonyms. Use any 5 words in the sentences of your own.

1) restriction	a) influence
2) to promote	b) to establish
3) effect	c) limitation
4) to set up	d) to encourage
5) currency	e) domestic
6) home	f) money

IX. Match the words with the opposite meaning. Use any 5 words in the sentences of your own.

1) foreign	a) cheap
2) devaluation	b) encourage
3) expensive	c) direct
4) discourage	d) revaluation
5) indirect	e) different
6) the same	f) domestic

10. Translate into English:

1. Торгівельна політика країни тісно пов’язана з її зовнішньою політи­кою.

2. Щоб підтримати внутрішнього виробника уряд ввів різноманітні об­меження на імпорт.

3. Ця галузь економіки потребує субсидій.

4. Банк надає кредити і контролює їх використання.

5. Девальвація євро заохотить експорт країн ЄС.

6. Чому ви продаєте ці товари за ціною нижчою, ніж ринкова?

XI. Topics for discussion:

1. Speak about foreign trade activities in Ukraine.

2. Speak about government control of foreign trade.

3. What could be the results of the devaluation of the euro?

XII .Skills practice:

Dealing with money and payments usually involves numbers and figures. Here is some useful information.

Cardinal numbers

A comma is often written to separate the thousands in large numbers:

3,986 – three thousand nine hundred and eighty-six

British and American English (BE, AE) differ in the pronunciation of these very large numbers:

1,000,000,000 – a thousand million (BE), a billion (AE)

1,000,000,000,000 – a billion (BE), a trillion (AE)

(the European term for a thousand million is milliard, a term still uncommon)

Fractions

½ - half, one-second

¾ - three quarters, three-fourths

1⅔ - one and two-thirds

Decimal fractions

In BE and AE a point is used when writing decimals, not a comma as in Europe: – six point nine

The numbers after point are pronounced individually. 0 is pronounced “oh” after the point and “nought” before the point in BE, and “zero” or “oh” in AE

8.07 – eight point oh seven (BE), eight point zero seven (AE)

0.6 – nought point six (BE), point six (AE)

Since 24.305 – twenty-four point three oh five (BE)

twenty-four point three zero five (AE)

Measurements

62 km – sixty-two kilometres

14 ½ cm – fourteen centimetres

6 m x 9 m – six metres by nine metres

Money

Although the money signs are written in front of the numbers, we generally say them after the numbers:

$4 m – four million dollars

¥92 bn – ninety-two billion yen

Assignment. Here are some expressions using numbers. Decide which of the expressions below go with which figures. Which items are left over? Write out the numbers for these.

invoice No. 508/19 G a gross profit of 14.5 % the list price is £41,337 31 August 1993 profit before interest and tax of £1,457,000 an annual rate of interest of 26.8 % a handling charge of 1 ½ % total interest charges of £3.66 $673 m operating profits

three pound sixty-six fourteen point five per cent twenty-six point eight per cent forty one thousand three hundred and thirty-seven one million four hundred and fifty-seven thousand seventeen hundred and ninety-five six hundred and seventy-three million the thirty-first of August nineteen ninety-three three point six six one and a half per cent one and a quarter per cent five oh eight stroke nineteen G

Unit Three

CUSTOMS