International Trade
Trade happens because people need or want things that they dont have. Trade between countries happens for the same reason. Some countries, for example, have natural resources, like coal, oil or wood which other countries might want to buy. They try to sell the goods, products or services that they have too much to other countries. They earn money from these sales and then can buy the things that they themselves need and cannot produce on their own. Both producers and consumers profit from international trade. Even though many nations have a lot of different goods to export there are countries that depend only on one or two products to get money. Saudi Arabia, Kuwait and other countries of the Middle East depend on oil exports, because it is the only thing that they can sell.
The difference between what a country exports and what it imports is called the balance of trade. If a country exports more than it imports we call this a trade surplus. And if a country pays more for its imports than it gets for its exports it has a trade deficit. In some countries the government controls all trade and in others it allows companies and firms to trade freely. However, all governments control trade in some way. Sometimes a government forbids companies to buy or sell dangerous or illegal products, or military technology.
Many governments try to help their own industries by making it more difficult to import foreign products. They put import taxes on foreign goods to make products more expensive and their own products cheaper. A government may also limit the number of products that it will buy from another nation. European countries, for example, may limit the number of cars that are imported from Japan or the USA. They want their people to buy European cars. We call this strategy protectionism because governments want to protect their companies and industries.
V. :
What is the difference between a trade surplus and a trade deficit?
3
I. :
1) earnings a) financial protection
2) consumption b) income
3) recession c) the members of the population able to work
4) workforce d) the amount of a product that people buy or use
5) imports e) the people who control a country and make
laws
6) insurance f) when there is not enough of something
7) government g) goods and services a country buy abroad
8) shortage h) a serious slowing down of the economy
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II. :
| pensioners discount auction manufacturers structure demand increase competition |
1. There is a lot of . for organic fruit and vegetables these days.
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2. If there is only one producer in the market, there is no .
3. There has been a huge . in demand for air conditioners due to the hot weather.
4. . produce new goods from raw materials.
5. Companies usually have a with senior managers at the top and employees at the bottom.
6. In an ., the item for sale is sold to the customer who offers the highest price.
7. In the winter sales the shops often give a. of up to 50%.
8. Because retired people usually receive a pension, they are often called.
III. :
1. INTERVIEWEE / INTERVIEWER
a) The person who usually asks most of the questions at an interview is the
b) The person who usually answers most of the questions at an interview is the .
2. FOREIGNERS / STRANGERS
a) Our company has been bought by a German multinational. More and more.................. are coming from abroad to work in our office.
b) There were two at the corner table in the restaurant where we usually go for lunch: no one had ever seen them before.
3. WHITE-COLLAR / BLUE-COLLAR
a) .workers work in the factory.
b) .workers work in the office.
4. TRAVEL / TRIP
a) Zangief is doing too much business and wants to cut the number of visits to foreign clients next year.
b) However, he still has to make one important to the agent in Singapore.
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| a | b | a | b | a | b | a | b |
