Unit 36. International Trade Active Vocabulary

overseas market export foreign currency international trade consume unobtainable domestic living standard domestic tariff quota exchange control protect procedures free trade national producer barrier free trade exchange rate

закордонні ринки експорт іноземна валюта міжнародна торгівля споживати недосяжний, недоступний вітчизняний, внутрішній життєвий рівень внутрішній, місцевий тариф квота валютне регулювання захищати заходи вільна торгівля національний виробник бар’єр вільна торгівля обмін валюти

International trade is when companies from one country sell their products or services in other countries. For example, the UK producers cars, machinery, oil and chemicals, which it exports to overseas markets. Other British exports include services like banking and travel. These earn foreign currency for the UK. Imports to the UK include cars, food, and electrical goods.

International trade enables countries to obtain some goods and services more cheaply than they could produce them for themselves or to consume goods and services which would otherwise be unobtainable from domestic supply sources.

Through International trade countries can improve their living standards. International trade keeps domestic price down by creating competition at home and provides large markets abroad.

Governments can control international trade. The most common measures are tariffs, quotas, exchange controls. They raise the price of imported goods to protect procedures.

The international trade that takes place without barriers such as tariffs, quotes and exchange controls is called free trade. Free trade area is a form of trade integration between a number of countries, in which members eliminate all trade barriers among themselves on goods and services, but each continues to operate its own barriers against trade with the rest of the world.

Changes in the exchange rate can make a company more or less competitive. The exchange rate is the amount of one currency needed to buy another currency. For example, in 2002, one British pound bought about 200 Japanese yen, so the exchange rate was 1:200. If the exchange rate falls, exports become cheaper, so companies become more competitive. If the exchange rate rises, exports become more expensive, so companies become less competitive.

Exercise 1. Give the English for:

міжнародна торгівля, покращувати життєвий рівень, контролювати міжнародну торгівлю, заходи, валютне регулювання, підвищувати ціни на імпортні товари, захищати національного виробника, вільна торгівля, усувати всі торгові бар’єри.

Exercise 2. Match words from list A with words from list B that have similar meaning:

A B

obtain obstacle

produce defend

consume internal

domestic elevate

raise use up

protect manufacture

barrier get

Exercise 3. Match the correct definition from the list below:

domestic, free trade, exchange control, tariff, barrier, quota, living standard;

1. the level of material comfort and wealth that a person or a community has;

2. an amount that must be paid when particular goods are imported into a country, or sometimes when they are exported;

3. a limit on the amount of a particular good that may be imported into country during a given a period of time;

4. a set of restrictions imposed by a government on buying and selling foreign currencies;

5. trade between countries with few government restrictions;

6. a system of import controls set up by a government to protect the country from foreign competition;

7. inside a particular country.

Exercise 4. Write an appropriate word into sentence:

national producer, free, barriers, exchange controls, quota, tariff, living standard, international.

1. The company depends on … trade.

2. I hope this new job will give me a better …. .

3. … . barriers can make trade difficult.

4. The government fixed a … on the number of foreign cars allowed to be sold in the USA.

5. The United Kingdom removed all … long tome ago.

6. The General Agreement on Tariffs and Trade (GATT) is an international organization whose goal is to eliminate tariffs and other … to international trade.

7. .… trade among nations results in increased competition and lower prices.

8. This company is the largest … of steel.

Exercise 5. Answer the following questions:

1.What is the international trade?

2 .Why do countries engage in international trade?

3. Does international trade influence on domestic prices?

4. Do the government control international trade?

5. What are the most common protectionist measures?

6. What reasons are generally given for imposing trade barrier?

7. What is the free trade?