Trade and Development

trade - торгівля

home (domestic) trade - внутрішня торгівля

foreign (international) trade - зовнішня торгівля

to handle - керувати, мати справу з ...

to promote - сприяти, підтримувати

to ensure - забезпечувати, гарантувати

advance - успіх, прогрес

to enable - давати можливість або право

advantage - перевага

to expand - розширювати, збільшувати обсяг

major- головний, більш важливий

diverse - різний, різноманітний

innovation - нововведення, новаторство

to aid - допомагати

restriction - обмеження

to occur - відбуватися, траплятися, мати місце

depressed - послаблений, пригнічений

flow - потік, течія

consumer - споживач

artificial - штучний

damage - збиток, втрата, шкода

A special branch of economy - trade - handles the circulation of goods and services. Trade is one of the oldest occupations, because as soon as goods appeared, the need for trade arose. Trade brings people closer together. It always was and still is the symbol of co-operation. Tens of millions of people deal with this branch of economy every day.

The successful development of trade ensures the establishment of economic ties between town and country, promotes the advance of industry and agriculture.

There are two forms of trade: home or domestic and foreign or internationaI trade. Foreign trade is an exchange of goods or services between different countries. It develops as a result of the division of labour and differences in economic, natural and geographical соnditions.

Goods can be defined as finished products, as intermediate goods used in producing other goods, or as agricultural products and foodstuffs. International trade enables a nation to specialize in those goods it can produce most cheaply and efficiently and it is one of the greatest advantages of trade. On the other hand, trade also enables a country to consume more than it can produce if it depends only on its own resources. Finally, trade expands the potential market for the goods of a particular economy. Trade has always been the major force behind the economic relations among nations.

Thus, international trade leads to more efficient and increased world production, allows countries to consume a larger and more diverse amount of goods, expands the number of potential markets in which a country can sell its goods. The increased international demand for goods results in greater production and more extensive use of raw materials and labour which means the growth of domestic employment Competition from international trade can also force domestic firms to become more efficient through modernization and innovation.

It is obvious that within each economy the importance of foreign trade varies. Some nations export only to expand their domestic market or to aid economically depressed sectors within the domestic economy. Other nations depend on trade for a large part of their national income and it is often important for them to develop import of manufactured goods in order to supply the ones for domestic consumption. The main difference between domestic and international trade is the use of foreign currencies to pay for the goods and services crossing international borders.

Whenever a country imports or exports goods and services, there is a resulting flow of funds; money returns to the exporting nation, and money flows out of the importing nation. Trade and investment is a two-way street, and with a minimum of trade barriers, international trade and investment usually makes everyone better off.

In interlinked global economy, consumers are given the opportunity to buy the best products at the best prices. By opening up markets, a government allows its citizens to produce and export those things they are best at to import the rest, choosing from whatever the world has to offer.

Some trade barriers will always exist as any two countries have different sets of laws. Foreign trade being an essential part of a nation's economy, governmental restrictions are sometimes necessary to protect national interests. Government actions may occur in response to the trade policies of other countries or in order to protect specific depressed industries. However, when a country decides to protect its economy erecting artificial trade barriers, the result is often damaging to everyone, including those people whose barriers were meant to protect.

QUESTIONS AND TASKS

1. What branch of economy handles the circulation of goods and services?

2. What forms of trade do you know?

3. What is foreign trade?

4. What is the basic idea of international trade?

5. Why do countries sometimes put up barriers to trade? Can you give examples of such barriers?

6. Say a few words about our country's import; our country's export.