INTERNATIONAL TRADE PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 43. INTERNATIONAL TRADE

 

A Trade Most economists believe in free trade – that people and companies should be able to buy goods from all countries, without any barriers when they cross frontiers. The comparative cost principle is that countries should produce whatever they can make the most cheaply. Countries will raise their living standards and income if they specialize in the B Balance of payments Imports are goods or services bought from a foreign country. Exports are good or services sold to a foreign country. C Protectionism Governments, unlike most economists, often want to protect various areas of the economy. These include agriculture – so that the country is certain to have food – and other strategic industries that would be necessary if there was a war and international trade became impossible. Governments also want to protect other industries that provide a lot of jobs. EXERCISES 43.1 Complete the crossword. Look at A, B and C opposite to help you.     Across 2 Countries that export a lot of oil or manufactured goods tend to have a positive _________. (7,2,5) 5 A country exporting more than it imports has a trade _________. (7) 6 In a free trade area, governments cannot impose a _________ on imports. (6)   Down 1 Producing in large quantities becomes cheaper because of economies of _________. (5) 3 and 4 If a country can produce something more cheaply than anywhere else in the world it has an _________. (8,9)   Many economists encourage governments to abolish import taxes and have completely _________. (4,5)

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