Vocabulary Focus
1. Match the words with their definitions.
1. free trade |
a. success or wealth. |
2. prosperity |
b. a country that is seeking to become more advanced economically and socially. |
3. living standard |
c. international trade that is free of such government interference as import quotas, export subsidies, and protective tariffs. |
4. developing country |
d. lack of adequate food. |
5. malnutrition |
e. level of comfort in which people live, which usually depends on how much money they have. |
2. Use the words from the list of Useful Vocabulary to complete the sentences.
1. As a result of ….. many businesses trade throughout the world.
a. malnutrition
b. globalization
c. promotion
2. Governments are planning to expand the global economy by …..trade and economic interdependence.
a. promoting
b. fighting
c. economizing
3. International furniture retailer IKEA announced that it will ….. the world’s ancient forests.
a. trade
b. supply
c. protect
4. Cheaper housing would improve the ….. of ordinary people.
a. living advantages
b. living disadvantages
c. living standards
5. The police have made no attempt to solve these ….. .
a. standards
b. issues
c. businesses
6. The supporters of globalization state that it will lead the world to economic ….. .
a. trade
b. prosperity
c. opportunity
3. Give the English equivalents to the following expressions.
- угрожать окружающей среде
- продвигать торговлю
- финансовые и инвестиционные рынки
- видеть много преимуществ
- иностранное предприятие
- создавать межкультурные проблемы
Talking Points
1. Comment on the quotations.
1. “It has been said that arguing against globalization is like arguing against the law of gravity”.
Kofi Annan
2. “Globalization is a fact of economic life”.
Carlos Salinas de Gortari
2. Express your opinion on the following points.
1. Globalization: is it good or bad? Why?
2. What is your opinion about the future of the process of globalization?
3. Finish the phrase.
- I would (not) like to live in the era of globalization, because ….. .
Summary Points
1. Look through the text from Reading and fill in the missing parts of its plan.
I. The definition of globalization.
II.
III. The disadvantages of globalization.
IV.
2. Put down key words for each point of the plan.
3. Summarize the text, basing on the key words you have put down.
Unit 15 the first modern economists
Lead-in
1. Can you name any well-known economists? What were they famous for?
2. Who got the epithet «the father of economics»?
Key Vocabulary
1. Study the following list of vocabulary.
1. merchant n |
купец, торговец; лицо, занимающееся торговлей |
2. compete v |
конкурировать, состязаться, соревноваться |
3. wealth n |
богатство, состояние |
4. object v |
возражать, протестовать; выдвигать возражения |
5. outperform v |
превосходить; выполнять лучше (кого-л.) |
6. invisible hand |
«невидимая рука» (рыночный механизм, автоматически осуществляющий регулирование хозяйства в условиях свободной конкуренции) |
7. benefit the society |
помогать, приносить пользу обществу
|
2. Mind the following common nouns.
1. mercantilist n - меркантилист (сторонник меркантилизма, системы взглядов на вопросы экономической политики, господствовавшей в 16 – 18 вв.)
2. physiocrat n - физиократ (представитель французской школы политической экономики в 18 веке)
Pre-Reading Activities
1. Use a dictionary and match the synonyms. Mind the use of the prepositions.
i) to outperform somebody |
a) to oppose something |
ii) to object to something |
b) a seller |
iii) to compete with somebody |
c) to surpass somebody |
iv) a merchant |
d) to rival somebody |
Reading
Read the text and assimilate its information.
Between the 16th and 18th centuries the major countries of Europe believed in the economic theory of mercantilism. Mercantilists claimed that nations should behave as if they were merchants competing with one another for profit and like merchants, nations should protect business and industry.
But for a group of 18th-centuary French philosophers and economists, the suggestion that nations should protect their own business and industry made no sense at all. Those were the physiocrats. They claimed that the products of agriculture and other natural resources were the true source of wealth. In other words, since real wealth came from the land, it followed that the best thing the government could do would be to keep its hands off business and let nature take its course. This idea was expressed in the slogan «laissez faire», (let people do as they choose).
T
he
year of 1776 became very significant for the development of the world
economic thought, as one of the most influential scientific works,
The Wealth of Nations, written by Adam Smith, the father of
economics, was published. The author objected to the principal
economic beliefs of his day. He disagreed both with the physiocrats
and mercantilists. In Smith’s view, the nation’s wealth depended
on production, not agriculture alone.
The heart of Smith’s economic philosophy was his belief that the economy would work best without any government regulation. In this case, self-interest would lead companies to produce only those products that consumers wanted, and to produce them at the lowest possible cost. They would do this to outperform their competitors and gain the greatest profit. He believed that self- interest would benefit the society as a whole by providing it with more and better goods and services at the lowest prices. To explain why the society benefits when the economy is free of regulation, Adam Smith used the term «invisible hand», meaning the economic forces that today are called supply and demand.
In his work «The Wealth of Nations» Adam Smith sounds realistic and practical, respectful of the classical past but at the same time dedicated to the great discovery of his epoch – progress. Although he was writing for his generation, his thoughts and ideas have always attracted the attention of all economists, that is why Adam Smith has remained a significant figure in the history of economic thought for more than 2 centuries.
Comprehension Check
1. Complete the following sentences.
1. The economic theory of mercantilism … .
2. Some French philosophers and economists claimed that … .
3. … in 1776.
4. A. Smith objected to … .
5. According to Smith, … .
6. Adam Smith used the term «invisible hand» to … .
2. Answer the questions.
1. What was the difference between mercantilists’ and physiocrats’ views?
2. What idea was expressed in the slogan «laissez faire»?
3. Why did the year of 1776 become very significant for the development of the world economic thought?
4. Who is considered to be the father of economics?
5. What theories formed the core of Smith’s philosophy?
6. Why has Adam Smith remained a significant figure in the history of economic thought?
3. Read the text once more and explain the meaning of the phrases below.
“balance of trade” |
“laissez faire” |
“invisible hand” |