PROFESSIONAL ENGLISH FOR BUSINESS II

Qualified Practice - Session 6

TEMA: INTERNATIONAL TRADE

Sección :………………………..………………... Apellidos : Perez………………………..

……………….
Docente : Rosa Ñaña Nombre : ………………………………………….
Baquerizo s
Unidad : Fecha : .…../……/2021-
I 20
I. Read carefully the text and
complete with the appropriate words

INTERNATIONAL TRADE

COMPARATIVE ADVANTAGE

OPPORTUNITY COST

ABSOLUTE ADVANTAGE
 FOREIGN DIRECT
INVESTMENT

GROSS DOMESTIC
PRODUCT

A. VOCABULARY

1. Opportunity cost: It is that cost that was not made to prioritize another more
urgent or priority investment. It is a magnitude used to predict the costs of one
investment or another.

2. Comparative advantage: Comparative advantage refers to the ability of a

company or country to produce or to offer goods or services at a lower cost, which
makes them efficient when compared to other companies or countries.

3. Competitive advantage: characteristic that a company has with respect to

other competing companies, which makes it different and allows to attract more
consumers to improve the company.

4. Absolute advantage: are the capabilities that a country has to produce a

product, more efficiently and with lower costs than another country.

5. International trade: is the exchange, transactions, sales or purchases of

goods, intermediate goods, raw materials, final products, or services between 2 or more
countries, or between regions and blocks.

6. Foreing direct investment: is that investment who aims to create a lasting

interest and for long-term economic or business purposes by a foreign investor in the
host country.
7. Gross domestic products: it is one of the main indicators used to measure
the health of a country's economy. Represents the total dollar value of all goods and
services produced in a specific time period; you can think of it as the size of the
economy.
8. Gross national product : Set of goods and services generated by the
productive factors of a country during a period of time, usually one year, in the country
itself or outside it, deducting the part that is due to the services provided by foreign
productive factors.

9. Domestic trade : This is done between traders or individuals who are located in
the same country and who operate, therefore, under the same trading rules.

10. Protectionism: It is the doctrine that seeks to favor domestic production over
foreign production. The objective of protectionism is to protect the domestic
production of all those who debate obtaining a product outside the country.

11. Free trade : A system that eliminates fiscal obstacles in international trade.

12. Investors : Is anyone who allocates capital to an investment with the aim of
making a profit.

13. Higher revenues: the income exceeds the expenses, we will obtain a positive
result, therefore, we will obtain benefits.

14. Business cycle : It is a set of economic phenomena that occur in a given time
or period, also divided into four phases depending on when, ascending or
descending, the economy is.

15. Trade balance : The trade balance is part of the balance of payments, which
records all economic transactions between a country and the rest of the countries with
which it maintains commercial relations.