Accounting and financial problems.
Significant rates of inflation can cause accounting and financial problems for businesses. They may experience difficulty in valuing assets and stocks, for example. Such problems can waste valuable management time and make forecasting, comparisons and financial control more onerous.
Falling sales.
Many businesses may experience falling sales during inflationary periods for two broad reasons. Firstly, it may be that saving rises in a time of inflation. We would expect people to spend more of their money when prices are rising to avoid holding an asset (cash), which is falling in value. However, during the mid-1970s, when industrialized nations were experiencing high inflation rates, savings as a proportion of income rose! It is not easy to identify the reason for this, but some economists suggest that people like to hold a relatively high proportion of their assets in a form which can tie quickly converted into cash when the future is uncertain.
Whatever the reason, if people save more they spend less and businesses suffer falling sales. The economic model predicts that if savings rose the level of activity in the economy would fall. Clearly, if this happened we would expect businesses to experience difficulty in maintaining their levels of sales.
Businesses may be hit by a reduction in sales during a time of inflation for a second reason. As inflation progresses, it is likely that workers' money wages (that is, wages unadjusted for inflation) will be increased broadly in line with inflation. This may well take a worker into a higher tax bracket and result in a higher percentage of his or her wages being taken as tax. This process, known as fiscal drag, will cause workers to have less money available to spend on firms' goods and services. The poverty trap has a similar impact. As money wages rise, the poor may find that they no longer qualify for state benefits to supplement their incomes and at the same time they begin to pay income tax on their earnings. Again, this leaves less disposable income to spend on the output of firms. Finally, it may be that the wages of many groups are not index-linked and so they rise less quickly than the rate of inflation, causing a reduction in spending power and demand for goods and services.
Once again, the economic model can be used to predict that increases in the level of taxation will increase withdrawals, lowering the level of economic activity and depressing firms' sales.
Not all businesses will suffer equally from declining demand in an inflationary period. Those selling essential items, such as food, may be little affected whilst others supplying less essential goods and services, such as foreign holidays, may be hard hit.
High interest rates.
Inflation is often accompanied by high interest rates.
High interest rates tend to discourage investment by businesses as they increase the cost of borrowing funds. Thus, investment may fall. Businesses may also be dissuaded from undertaking investment programmes because of a lack of confidence in the future stability and prosperity of the economy. This fall in investment may be worsened by foreign investment being reduced as they also lose some confidence in the economy's future. Such a decline in the level of investment can lead to businesses having to retain obsolete, inefficient and expensive means of production and cause a loss of international competitiveness. Finally, a fall in investment can lower the level of economic activity, causing lower sales, output and so on. Thus, to some extent, businesses can influence the economic environment in which they operate.
Higher costs.
During a bout of inflation firms will face higher costs for the resources they need to carry on their business. They will have to pay higher wages to their employees to compensate them for rising prices. Supplies of raw materials and fuel will become more expensive as will rents and rates. The inevitable reaction to this is that the firm has to raise its own prices. This will lead to further demands for higher wages as is called the wage-price spiral. Such cost-push inflation may make the goods and services produced by that enterprise internationally less competitive in terms of price. An economy whose relative or comparative rate of inflation is high may find that it is unable to compete in home or foreign markets because its products are expensive. The economic model tells us that a situation of declining exports and increasing imports will lower the level of activity in the economy with all the consequent side-effects.
Vocabulary:
impact – удар, влияние. воздействие
to waste valuable management time – может уходить много драгоценного времени
make more onerous – сделать более затруднительным
to avoid holding an asset – чтобы избавиться от наличности
whatever the reason – какова бы ни была причина
businesses may be hit by – фирмы (предприятия) могут пострадать от…
wages unadjusted for inflation – заработная плата без учета уровня инфляции
a higher tax bracket – следующая категория при группировке налогоплательщиков по доходу
fiscal drag – финансовый тормоз экономического роста с помощью налоговых изъятий
they no longer qualify for – они больше не попадают под…
to supplement their incomes – что является дополнением к их доходу
this leaves less disposable income – из-за этого остается меньше средств
index-linked – индексированный
a reduction in spending – снижение покупательной способности
declining demand – падение спроса
tend to discourage investment – не способствует инвестированию
may also be dissuaded from – могут также отказаться от…
a lack of confidence – недостаток (отсутствие) уверенности
this fall in investment may be worsened by foreign investment being reduced – это падение уровня инвестирования может стать еще сильнее, если сократятся иностранные инвестиции
can lead to businesses having to retain – может привести к тому, что фирмам (предприятиям) придется сохранить
a bout (period, spell) of inflation – период инфляции
less competitive in terms of price – менее конкурентоспособный в смысле цены
Exercise 19: Find Russian equivalents to the following word combinations:
1. difficulty in valuing assets and stocks;
2. to avoid holding an asset;
3. wages unadjusted for inflation;
4. increased in line with inflation;
5. this may well take a worker into a higher tax bracket;
6. fiscal drag;
7. poverty trap;
8. wages are not index-linked;
9. spending power;
10. the cost of borrowing funds;
11. the wage-price spiral;
12. in terms of price.
Exercise 20: Find synonyms for the words in italics:
broad reasons;
to identify the reason for this;
businesses may be hit by a reduction in sales;
wages unadjusted for inflation;
will increase withdrawals depressing firms' sales;
maybe dissuaded from undertaking ...
Exercise 21: Find in the text English equivalents for the following:
1. делать что-либо затруднительным
2. периоды инфляции
3. назвать причину чего-либо
4. превратить в наличные
5. распространяться на кого-либо (о государственных льготах)
6. доход, остающийся после уплаты налогов
7. товары первой необходимости
8. компенсировать кому-либо что-либо
Exercise 22: Translate into English:
Концепция инфляции спроса предполагает, что если экономика стремится к высокому уровню производства и занятости, то умеренная инфляция необходима. Однако, сторонники концепции инфляции издержек утверждают, что умеренная инфляция, которая может сначала сопутствовать оживлению экономики, потом, нарастая как снежный ком, превратится в более жестокую гиперинфляцию (чрезвычайно быстрые темпы роста инфляции, которая оказывает разрушительное действие на объем национального производства и занятость).
UNIT 16: FOREIGN TRADE
Text 1: Read and translate the text; pay attention to the construction It is … that …
FOREIGN TRADE
What is now called international trade has existed for thousands of years long before there were nations with specific boundaries. Foreign trade means the exchange of goods and services between nations, but speaking in strictly economic terms, international trade today is not between nations. It is between producers and consumers or between producers in different parts of the globe. Nations do not trade, only economic units such as agricultural, industrial, and service enterprises can participate in trade.
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.
Different aspects of international trade and its role in the domestic economy are known to have been developed by many famous economists. International trade began to assume its present form with the establishment of nation-states in the 17th and 18th centuries, new theories of economics, in particular of international trade, having appeared during this period.
In 1776 the Scottish economist Adam Smith, in The Wealth of Nations, proposed that specialization in production leads to increased output and in order to meet a constantly growing demand for goods it is necessary that a country's scarce resources be allocated efficiently. According to Smith's theory, it is essential that a country trading internationally should specialize in those goods in which it has an absolute advantage - that is, the ones it can produce more cheaply and efficiently than its trading partners can. Exporting a portion of those goods, the country can in turn import those that its trading partners produce more cheaply. To prove his theory Adam Smith used the example of Portuguese wine in contrast to English woolens.
Half a century later, having been modified by the English economist David Ricardo, the theory of international trade is still accepted by most modern economists. In line with the principle of comparative advantage, it is important that a country should gain from trading certain goods even though its trading partners can produce those goods more cheaply. The comparative advantage is supposed to be realized if each trading partner has a product that will bring a better price in another country than it will at home. If each country specializes in producing the goods in which it has a comparative advantage, more goods are produced, and the wealth of both the buying and the selling nations increases.
Trade based on comparative advantage still exists: France and Italy are known for their wines, and Switzerland maintains a reputation for fine watches. Alongside this kind of trade, an exchange based on a competitive advantage began late in the 19th century. Several countries in Europe and North America having reached a fairly advanced stage of industrialization, competitive advantage began to play a more important role in trade. With relatively similar economies countries could start competing for customers in each other's home markets. Whereas comparative advantage is based on location, competitive advantage must be earned by product quality and customer acceptance. For example, German manufacturers sell cars in the United States, and American automakers sell cars in Germany, both countries as well as Japanese automakers competing for customers throughout Europe and in Latin America.
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. In recent years foreign trade has also been considered as a means to promote growth within a nation's economy. Developing countries and international organizations have increasingly emphasized such trade.
Vocabulary:
to assume – зд. принимать
in turn – в свою очередь
woolens – шерстяные ткани
foreign trade – международная торговля (syn. international trade)
wholesale trade – оптовая торговля (syn. wholesaling)
wholesaler – оптовый торговец
retail trade – розничная торговля (syn. retailing)
retailer – розничный торговец
participatev (in smth) – участвовать (в чем-л)
enablev – давать возможность (что-л сделать)
to enable smb to do smth – давать кому-л возможность или право что-л сделать; позволить кому-л сделать что-л (syn. let (let, let)v – позволять, допускать; выдавать (заказ на что-л))
to let (smb) do smth– разрешить, позволить (кому-л) сделать что-л (syn. allowv – позволять, разрешать)
to allow (smb) to do smth – позволять (кому-л) делать что-л
to be allowed to do smth – иметь разрешение делать что-л
expandv – расширять, увеличивать в объеме
majora – более важный, значительный
according toprep – согласно, в соответствии с
in accordance with – в соответствии с чем-л, согласно чему-л (syn. in line with)
absolute advantage – абсолютное преимущество
comparative advantage – сравнительное преимущество
to compare with smth – сравнивать с чем-л
to compare to smth – уподоблять чему-л
in comparison with smth – в сравнении с чем-л
gainv – выигрывать; получать; извлекать выгоду
gainn – прирост; прибыль; выигрыш
gainspl – доходы; выручка; прибыль, заработок; увеличение, рост
competitivea – конкурентный, конкурентоспособный
competitive advantage – преимущество, основанное на конкуренции
competitionn – соревнование; состязание; конкуренция
competitivenessn – конкурентная способность
competev – соревноваться; конкурировать
to compete in smth – конкурировать в чем-л
to compete with smb – конкурировать с кем-л
to compete for smth – конкурировать ради чего-л
relativelyadv – относительно, сравнительно
relativea – относительный
customern – заказчик; покупатель; клиент
acceptancen – одобрение, принятие
throughoutprep – через, по всей площади, длине и т.п.; все время, в течение всего времени
diversea – разный, разнообразный (syn. different)
innovationn – нововведение, новаторство
aid v – помогать
aid n – помощь
depresseda – ослабленный, сниженный, подавленный
promotev – способствовать, содействовать
emphasizev – подчеркивать, придавать особое значение
Exercise 1: Match the two parts of the sentences:
| 1. The principle of absolute advantage assumes | a) in international division of labour, LDCs became the centres of cheap foreign labour. |
| 2. Having been involved | b) that the country can gain from trading high quality products and should compete for customers in the world market. |
| 3. The concept of competitive advantage proves | c) producers from different countries participate in foreign trade as economic units. |
| 4. Developed countries | d) that a country should specialize in producing those goods which it can produce more cheaply than its trading partners. |
| 5. Both the buying and the selling nations | e) the governments want to expand the potential market for the goods of their countries. |
| 6. The theory of comparative advantage emphasizes | f) are known to have become main world trade centres, half of all foreign trade taking place between these countries. |
| 7. It is necessary | g) the nation has to develop wide trade relations to supply the necessary goods for domestic consumption. |
| 8. Being limited by scarce resources | h) that developing countries export more finished goods instead of raw materials. |
| 9. In accordance with economic theory, | i) that a country should specialize in producing certain goods although its trading partners produce those goods more cheaply. |
| 10. Promoting foreign trade | j) gain from trade relations, as countries can consume larger and more diverse amounts of goods. |
Exercise 2: Change the Russian words in brackets into the English words from the Vocabulary:
Japan is known as a small nation with high population density (плотность). Traditionally the Japanese government has to (разрешать) domestic producers export manufactured goods in order to (получить) additional foodstuffs. This policy (позволила) to maintain the low level of living standards of the country's population. In the late 1940s Japan was said to be close to bankruptcy and starvation (голод). But between 1965 and 1973 the country was able to maintain a real average growth rate of 10 percent per year. It is important that during the same period (участвуя в международной торговле) Japan increased it at a rate of 16.8 percent in real terms or twice the rate at which total world trade (расширилась). (Согласно) statistical reports, per capita income rose from $700 to over $2,400. The (принятие) of special trade policy and (стимулирование нововведений) in production (позволило) Japan to overtake (догнать) West Germany in terms of GNP by 1968 and to become the world's third (главным) producer after the USA and the Soviet Union. In contrast to Japan's earlier dependence on foreign (помощь), by 1971 Japan had become the second largest contributor, among non-communist nations, of long-term capital to underdeveloped countries. As a result of this amazing rapid economic growth Japan (усилила) its role in the world economy. It is well-known that (разнообразные) Japanese goods are highly (конкурентоспособны) and are popular with (покупателей) (повсюду) the world.
Exercise 3: Fill in the gaps with the words from the box in the correct form:
| to allow, to emphasize, to compete with, to compete in, to compete for, to participate, to enable, to promote, to gain, gain, to expand, major, relatively, diverse, competitive, innovations, throughout |
1. In 1992 US exports totalled about $447 billion, ... US exports including chemicals, grain (зерно) or grain products, soybeans (соя) and coal (уголь).
2. The Industrial Revolution which began in the mid-18th century, ... a few economies to develop and … … similar (похожий) goods.
3. Adam Smith ... that businesses within each nation produced what was most suitable to their region, and individual producers as economic units ... from trading certain goods.
4. Nowadays some countries with ... similar free market economies … … customers in each other's home markets.
5. World trade ... very rapidly since 1950, at an average rate of 8 percent per year.
6. In the 1960s the USA lost its dominant position in world trade as Japanese companies began successfully … … American ones.
7. It is known that an exchange based on ... advantage appeared late in the 19th century when several countries had reached the stage of industrialization.
8. Many countries depend especially on foreign trade of ... raw materials for their plants, factories and other industries.
9. Strong competition in the world market ... producers to look for ... in order to dominate in the world's economy.
10. The membership in the European Economic Community ... member countries to import goods and services from others on favourable terms (на льготных условиях).
11. Exploiting international differences in opportunity costs, countries ... in foreign trade can get a net ....
12. Various degrees of socialism exist ... the world, such as those in Egypt, Burma, Sweden and Denmark.
Exercise 4: Choose the correct word:
1. Special agreements (allowed / allocated) the former Soviet block countries' exports of meat, fruit, dairy (молочный) goods and vegetables to rise by 10 percent a year for five years.
2. The European Community due to importing and exporting (limited / diverse) resources is considered to be a more integrated market, in which distance, information barriers and tariffs are (actually / relatively) unimportant.
3. The society will (gain / economize) by restricting imports until the benefit of the last import equals its cost to society as a whole.
4. Special care should be taken by the government to protect economic interests of the (depressed / competitive) groups of the population and reduce absolute poverty (бедность).
5. Nowadays environmental management should be (adjusted / accepted) as (an unimportant / a major) factor for any country's national development and it should be (emphasized / expanded) by scientific, technical and administrative support.
6. The (wholesaler / retailer) performs the last stage of the distribution process, for he puts the goods in the hands of the actual consumer.
7. The law of (comparative / competitive) advantage states (утверждать) that countries specialize in producing and exporting the goods that they produce at a (relative / relatively) lower cost than other countries.
8. Due to achievements of modern sciences various (advantages / innovations) applied in production cycles have greatly decreased the share of labour-consuming operations.
9. Centralized control of the production factors results from the (acceptance / exception) of an ideology that (emphasizes / gives rise to) the importance of the group of people rather than the individual.
Exercise 5: Translate the following sentences into Russian paying attention to the translation of the construction It is … that …:
1. In order to cut taxes it is necessary that the government spending be cut.
2. In many countries with mixed economies it is essential that governments intervene in some sectors of economy.
3. To restrict inflation it is recommended that a tight incomes policy be adopted by the government.
4. In some markets, for example stock exchange, it is not necessary that sellers and buyers contact directly as they can operate through intermediaries.
5. It is recommended that students of economics study both modern economic theories and works of well-known economists such as Adam Smith, John Keynes, Karl Marx, etc.
6. It is required that commercial banks obtain government licences before starting their activity in the financial market.
7. It is desirable that as much information as possible about consumer demand should be obtained before planning business strategy.
8. To make economic forecasts it is important that the effect of a price change on the whole output should be considered.
9. It is important that the population's main food products requirements should be met.
10. To calculate the Gross Domestic Product (GDP) of the whole country it is essential that the GDP in different sectors of economy should be determined.
Exercise 6: a) Translate the following words of the same root:
to develop, developed, development, underdeveloped, developing, underdevelopment
Следующие прилагательные используются для описания степени экономического развития страны. Слова расположены в порядке, соответствующем росту благосостояния страны:
Undeveloped(1)→ Underdeveloped(2)→ Less developed(3)→ Developing(4)→ Developed= syn. Industrialized countries(5)
Прилагательные (2), (3) и (4) взаимозаменяемы, однако слово developing имеет более позитивный смысл. В литературе часто пользуются сокращениями: LDC = less developed country; LDCs = less developed countries
b) Say at what stage of development the following countries are:
Canada, Zambia, the United Kingdom, Mexico, Colombia, China, Brazil, India, Chad, France, Kenya, Argentina, Australia, Japan, Nigeria, Germany
c) Insert the words from the box into the following sentences:
| development (2), developing (2 or 3), developed (3), less developed (2 or 3), to develop |
1. Economists should clearly understand the difference between the economic growth and economic ... of the country.
2. The ... countries include Western Europe, North America, Japan, Australia and New Zealand, these rich countries contributing the largest share to world trade and world income.
3. To hold the leading role in the market it is important ... new technologies and materials and introduce different innovations more widely.
4. The General Assembly of the United Nations called for international cooperation to reduce the growing gap (разрыв) between the ... and the ... countries.
5. Many countries have realized that the way to the economic ... lies through the expansion of industries producing manufactured goods.
6. The ... countries ranging from rather poor, such as Yemen and India, to nearly rich, such as Brazil and Mexico, want to make their own manufactured goods and export them throughout the world including the ... countries.
7. Both ... middle-income countries, such as Argentina and Chile, and very poor ... countries of Africa and Asia belong to the countries of the Third World.
Exercise 7: Translate these sentences into Russian.
1. It is essential that many businesses within each nation produce what is most suitable to their region.
2. It is not surprising that a strong competition for customers makes companies spend much money on production modernization and innovations.
3. The practice shows that it is natural for wholesalers to distribute goods in large quantities, usually to retailers for resale (перепродажа).
4. Economists say it is desirable that the share of country's imports should not exceed its exports.
5. It is expected that the government restrictions should be imposed on foreign trade in some situations to protect national interests.
6. It is important for American economy to promote trade in two main areas such as agriculture and services but European countries are unwilling (несклонный) to open their markets to American companies.
7. For poor countries it is advisable that different incentives be provided for domestic producers who will use the country's scarce resources in their business.
8. It is recommended that trade should be in balance and the foreign exchange market should be in equilibrium, each country having a comparative advantage in at least (по крайней мере) one good.
9. As foreign trade involves international payments, it is important that exchange rates and the balance of payment be examined.
10. The European Community has declared that it is necessary to support the liberal and democratic reforms of its eastern neighbors.
11. It is clear that the free trade agreement of the USA with Mexico will enable American producers to expand sales in Mexico.
12. It was necessary to provide the country with extra foreign aid after the earthquake.
Exercise 8: Fill in the gaps with the words from the box (verbs or nouns):
| produce- to produce record- to record subject- to subject use - to use present- to present survey- to survey import- to import export- to export |
1. The goods bought or sold from abroad such as foodstuffs, machines, medicines, consumer goods are called visible ... or ....
2. A developing nation tries ... more of its own capital and finished goods though the export of agricultural... and natural resources is still one of the important items in its foreign trade.
3. The goods produced by the members of the European Economic Community are not ... to high taxes and sometimes are free of duty (не облагаются пошлиной).
4. It is important ... the information about any transaction accurately and in due time.
5. Periodical ... of goods quality and their acceptance by customers is very useful for predicting main trends in the market.
6. Proper... of monetary policies and indexation often help to reduce the rate of inflation.
7. A fully developed industrial nation tends ... capital as foreign aid, private foreign investment and private bank lending.
8. Producers can ... different methods of selling their goods either through retailing or wholesaling.
9. Economics is a complex ... and it is difficult to give a simple definition to it.
10. It is easier to compare and analyze the production and the sales figures if they ... as graphs or in tables.
11. Nowadays it is more convenient to store ... about inputs and expenses using a computer.
12. It is necessary ... the situation in the market before starting your own business.
Exercise 9: Translate the sentences into Russian paying attention to the different meanings of the word throughout:
1. Delays in the supply of any of production components may cause holdups (задержки, остановки) throughout the industry.
2. It is known that Germany experienced (испытывать) hyperinflation throughout 1923 and by the end of that year prices were one million times greater than their pre-war level.
3. Since the last quarter of the 18th century and throughout the following centuries there has been a great migration of people from the country to town, a movement still taking place now.
4. It is necessary that the government should establish special training centres throughout the country where redundant (уволенный, потерявший работу) workers can learn new skills.
5. A sharp slowing in the rate of population growth is sure to be taking place throughout most Western countries now.
6. The exchange rate of American currency was maintained at the same level throughout the week.
7. Government bodies (Правительственные органы) in the USA are known to regulate the prices for services offered and the rates charged for many public utilities such as gas, electricity and telephone companies throughout the country.
Exercise 10: Say what parts of speech do the underlined words belong. Translate the sentences into Russian.
1. Microeconomics places the emphasis on a thorough understanding of particular markets.
2. Such places as a theatre, sauna, bath have an elastic demand.
3. Intermediate goods are partly finished goods which form inputs to another firm's production process.
4. These companies process raw materials into manufactured goods.
5. In free market economies the private property is the main form of property.
6. The term "final goods" means that ultimate users purchase these goods.
7. Trade unions let workers take part in many types of political activities and protect themselves by political and economic means.
8. The main purpose of a purchase department is to supply the production cycle with all necessary materials.
9. The theory of supply and demand was developed by many famous economists.
10.Consumers usually demand high-quality goods at lower prices.
Exercise 11: Translate the following sentences into Russian paying attention to the translation of the participles:
1. The European Parliament and the European Court of Justice were formed in accordance with the Treaty of Rome in 1957.
2. An increase in the price level leads to an increase in the GNP even if the quantities sold are constant.
3. Having decreased the retail price, the new company was able to attract thousands of customers.
4. In case of war, domestic industries producing food must be preserved (сохранять).
5. Most products are similar in some ways to the existing products made by other companies.
6. Minimum wage may lead to the substitution of adults for youths, at the same time increasing the unemployment of the former.
7. Free market is a market that is free from government intervention, prices rising and falling according to supply and demand.
8. Real estate is defined as the land and the improvements that are usually transferred with it.
9. Part of national spending includes the purchase of imported goods and services.
10. Having been introduced as a standard of value, money helped to solve the problem of exchange rates of different kinds of goods.
Exercise 12: a) Make nouns out of the given verbs and translate them into Russian:
Model: to deliver → delivery
to employ (2), to depend, to gain, to insure, to expand, to credit (2), to tend, to construct (2), to exchange, to measure (2), to decide, to cost, to value, to prepare, to increase, to promote
b) Name the verbs having the same root with the following nouns:
Model:innovation → to innovate
manufacture, operation, consumer, report, cause, difference, competition, market, development, emphasis, fall, seller, force, comparison
c) Name the adjectives made out of the following verbs and nouns:
to differ, advantage, to clean, to free, to market, to add, to depress (2), to rely, to close, diversity, alternative, to direct, to vary, to lower, to warm, majority, practice, finance, to accept
Exercise 13: Open the brackets using the verbs for making an appropriate form of a participle. Translate the sentences into Russian.
1. Very low reported per capita GNP levels in less (to develop) countries underestimate true income as not all transactions (to record).
2. (to be) an important part of distribution process, wholesaling helps manufacturers and retailers to avoid the risk of a fall in demand, for example due to fashion changes.
3. Part of national spending includes the purchase of (to import) goods and services.
4. In the early 1950s the Indian government policy (to adopt) emphasized the state responsibility for setting up new industrial enterprises.
5. (To hold) stocks of goods wholesalers perform a valuable economic function (to maintain) the necessary level of goods supply.
6. While some domestic income leaks abroad, foreigners buy domestically (to produce) goods and services, the country's exports.
7. The LDCs (to allow) private sector to develop and expand will be able to enjoy significant gains from trade in the near future.
8. (To destroy) by the Great Depression of the 1930s and World War II, international trade reached its level of 1928 only by the 1960s.
9. At the end of the 19th century, (to apply) innovation of refrigeration, Argentina became the main supplier of frozen meat to the world market.
10. Productive equipment (to include) in physical capital, the purchase of new equipment (to call) investment.
11. Even (to be limited) by import quotas and various export restrictions, the value of international commerce, that is exports plus imports, (to increase) steadily throughout the world.
12. (To design) by the British government in 1984, special changes in government policy made financial aid more available to service industries (to know) as more labour-intensive and (to require) the job creation.
Exercise 14: Translate the Russian parts of the sentences into English using participles:
1. Налагая таможенные тарифы, the governments protect domestic producers.
Наложив таможенные тарифы, the government protected domestic producers.
Когда они налагаются, customs tariffs protect domestic producers.
Когда они были наложены, customs tariffs protected domestic producers.
2. Содействуя международной торговле, the government increases the wealth of its nation.
Оказав содействие международной торговле, the government increased the wealth of its nation.
Когда международной торговле содействует правительство, foreign trade increases the wealth of the nation.
Когда правительство оказало содействие международной торговле, foreign trade increased the wealth of the nation.
3. Признавая принцип относительного преимущества, a nation gains from trading certain goods.
Признав принцип относительного преимущества, a nation gained from trading certain goods.
Когда его признают, the principle of comparative advantage helps the nation to gain from trading certain goods.
Когда он был признан, the principle of comparative advantage helped the nation to gain from trading certain goods.
4. Покупая товары в небольших количествах, retailers sell them directly to consumers.
Купив товары в небольших количествах, retailers sold them directly to consumers.
Если их покупают в небольших количествах, the goods are sold by retailers directly to consumers.
После того как они были куплены в небольших количествах, the goods were sold by retailers directly to consumers.
5. Участвуя в производственной специализации, the developing countries help their depressed sectors.
Приняв участие в производственной специализации, the developing countries helped their depressed sectors.
Вовлеченные в мировое производство, the developing countries can help their depressed sectors of economy.
После того, как они были вовлечены в мировое производство, the developing countries could help their depressed sectors of economy.
6. Внедряя новшества в производственный процесс, the company competes successfully with its partners for expanding its potential market.
Внедрив новшество в производственный процесс, the company expanded its potential market.
Внедряемые в производственный процесс, the innovations help companies to compete successfully at the market.
После того как они были внедрены, the innovations helped the company to expand its potential market.
7. Используя кредитные карточки, the busy people can relatively easily purchase goods by mail or telephone.
Использовав кредитные карточки, the busy people could purchase relatively easily some goods by mail or telephone.
Если они используются для покупки товаров по почте или телефону, credit cards help the busy people to economize much time.
Когда они были использованы для покупки товаров по почте, the credit cards helped the busy people to economize much time.
Exercise 15: Translate the following sentences into English:
1. На прошлой неделе один доллар был равен 29 рублям.
2. Курс фунта вырос и составил 46 рублей за один фунт стерлингов.
3. Курс франка находится на том же уровне, что и вчера: 7 франков за один доллар.
4. Две немецких марки сегодня равны одному доллару.
5. Курс Йены упал до 109 йен за один доллар.
6. На Лондонской бирже отмечен рост курса эскудо к доллару.
7. Курс рубля резко упал вчера.
8. На прошлой неделе курс итальянской лиры к доллару не изменился.
Exercise 16: Translate the sentences into Russian:
1. The United States trade policy has passed through an era of self-sufficiency in which high tariffs, import quotas and other means were used to protect domestic industries and to maintain the country's economic security.
2. The acceptance of the principle of international cooperation means that the first and the most important thing any nation can do is to achieve and maintain a high level of domestic prosperity.
3. Direct or indirect subsidies are government payments to aid domestic industry if it is subjected to unfavourable competitive conditions in foreign trade.
4. In the "pure" economical theory of international trade economists discuss questions such as the determination of comparative advantage by examining the real resources (physical qualities of land, labour and capital) used to make diverse goods in various countries.
5. The international monetary system is supposed to provide a medium of exchange for foreign transactions in the world economy, the operation of the system of international payments being of special interest to economists.
6. Exports of manufactured goods produced in LDCs to industrial countries have led to complaints in developed countries that jobs are being threatened by competition from cheap foreign labour.
7. According to economic theory there always exists an exchange rate that will allow the country to produce at least one good more cheaply than other countries when all goods are valued in a common currency.
8. Through international exchange countries supply the world economy with the commodities that they produce relatively cheaply and demand from the world economy the goods that are made relatively cheaply elsewhere.
9. It has been proved that comparative advantage leads to specialization of different countries in different brands within the same industry, a country importing or exporting a good but not both.
10. Commercial policy is the government policy that influences foreign trade through taxes or subsidies or through direct restrictions on imports and exports.
Exercise 17: Translate the sentences into English:
1. Международная торговля, включающая обмен товарами и услугами между странами, привела к большей взаимозависимости между экономиками разных стран.
2. Важно, чтобы международная торговля позволяла стране специализироваться на тех товарах, которые она может производить дешевле и эффективнее, чем конкуренты.
3. Многие экономисты считают, что торговля, основанная на принципе относительного преимущества, дает возможность стране получать больше товаров, чем она может произвести, используя только свои ресурсы.
4. Принципы развития международной торговли, рассмотренные такими известными экономистами, как Адам Смит и Давид Риккардо, как полагают, являются основой современных экономических теорий.
5. Конкуренция как на мировом рынке, так и внутри страны заставляет производителей улучшать качество товаров, проводить модернизацию и вносить новшества, чтобы привлечь больше потребителей.
6. Развитие международной торговли позволяет стране расширить рынок товаров, более рационально использовать сырье и трудовые ресурсы, а также помочь ослабленным секторам местной экономики.
Text 2: Read the text, translate and entitle it:
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. Since the beginnings of foreign trade, nations have tried to maintain a favourable balance of trade — that is, to export more than they import.
Products are known to be bought and sold in the international market with national currencies. Seeking to improve its balance of international payments, that is, to increase reserves of its own currency and reduce the amount held by foreigners, a country may attempt to limit imports. The aim of such policy is to control the amount of currency that leaves the country.
One method of limiting imports is simply to close the channels of entry into a country. Usually maximum allowable (разрешенный) import quantities known as quotas may be set for specific products. These may also be used to limit the amount of foreign or domestic currency that is allowed to cross national borders. Having been imposed, quotas serve as the quickest means of stopping or even reversing (зд. изменять) a negative trend in a country's balance of payments as well as of protecting domestic industry from foreign competition.
Another common way of restricting imports is by imposing tariffs or taxes on imported goods. A tariff paid by the buyer of the imported product makes the price higher for that good in the importing country. The higher price reduces consumer demand, effectively restricting the import. The taxes collected on the imported goods also increase revenues for the nation's government. Tariffs also serve as a subsidy to domestic producers of the goods taxed because the higher price resulting from a tariff is an incentive for the competing domestic industry to expand production.
In recent years the use of non-tariff barriers to trade has increased. It may result in some administrative regulations that discriminate against foreign goods and in favour of domestic ones. These regulations may include various measures such as adopting special domestic tax policies or strict standards on imported goods, delaying imports at the country's boundaries, ordering government officers to use domestically produced goods. Direct government support of depressed domestic industries is considered as a non-tariff barrier to trade, as such support puts the aided industries at an unfair (несправедливый) advantage among trading nations. However, these barriers are not necessarily imposed by a government, for example an organized public campaigns "buy only American" or "don't buy beef of mad cows" may be effective as well.
Exercise 18: Complete the following sentences using Text 2:
1. Governmental restrictions in foreign trade can be imposed ...
2. To increase the amount of national currency ...
3. Quotas are known to be ...
4. Both tariffs and taxes are used ...
5. It is important that non-tariff barriers ...
ПРИЛОЖЕНИЯ
Приложение 1: Тексты для дополнительного чтения
СОДЕРЖАНИЕ:
TEXT 1: MANAGEMENT: AN OVERVIEW……………………………………………..…147
TEXT 2: THE CONCERT OF STRATEGIC MANAGEMENT…………………………..….148
TEXT 3: MANAGERIAL KNOWLEDGE, SKILLS AND PERFORMANCE…………..…..149
TEXT 4: MANAGERAL JOB TYPES………………………………………………………...150
TEXT 5: DEFINING OPERATIONS MANAGEMENT……………………………………...151
TEXT 6: STRATEGIC HUMAN RESOURCE MANAGEMENT…………………….…..….152
TEXT 7: HOW LEADERS INFLUENCE OTHERS……………………………………...…...153
TEXT 8: CONTROL AS A MANAGEMENT PROCESS………………………………...…..154
TEXT 9: THE NATURE OF MANAGERIAL COMMUNICATION …………………..……155
TEXT 10: THE NATURE OF INTERNATIONAL MANAGEMENT…………………...…...156
THE FIRST MODERN ECONOMISTS
TEXT 11: THE MERCANTILISTS……………………………………………………...…….158
TEXT 12: THE PHYSIOCRATS…………………………………………………………..…..158
TEXT 13: ADAM SMITH AND THE WEALTH OF NATIONS………………………..…...158
TEXT 14: DAVID RICARDO (1772-1823)…………………………………………..……….159
TEXT 15: ALFRED MARSHALL (1842-1924)……………………………...…………...…..160
TEXT 16: JOHN MAYNARD KEYNES (1883-1946)…………………………………..……160
TEXT 17: THOMAS ROBERT MAFTHUS (1766-1834)……………………………..……...161
TEXT 18: IRVING FISHER (1867-1947)………………………………..……………………162
TEXT 19: KARL MARX (1818-1883)………………………………………..……………….162
TEXT 20: A BRIEF HISTORY OF STATISTICS…………………………………...…158
TEXT 21: TYPES OF BUSINESSES IN THE U.K…………………………………….158
TEXT 22: ENGLISH BANKS…………………………………………………………..159
TEXT 23: FOREIGN TRADE OF THE U.K…………………….…………………….160
TEXT 24 FORMS OF ACCOUNTING…………………………………………………160
TEXT 25: HOW THE MARKETS WORK……………………………………………..161
TEXT 26: GROSS DOMESTIC PRODUCT……………………………………………161
TEXT 27: FORMS OF BUSINESSES IN THE U.S.A…………………………….……162
TEXT 28: FEDERAL RESERVE SYSTEM OF THE U.S.A………………….………..162
TEXT 29: TWO TALES OF TRADE………………………………………………….163
TEXT 30: A LITTLE LEARNING…………………………………………………….164
TEXT 31: PLAY IT AGAIN, SAMUELSON…………………………………………165
TEXT 32: CAR CRASH AHEAD……………………………………………………..166
TEXT 33: FUN FOR THE MASSES……………………………………………….….167
TEXT 34: STRANDED ON THE FARM?...................................................................169
TEXT 35: EASTERN PROMISE………………………………………….…………...170
TEXT 36: THE LAW OF THE MARKET…………………………………………….171
TEXT 37: A NEW START FOR EUROPE?..................................................................172