Babich Dmytro RK-201

Unit 5 - Text B - International Trade

Ex. 16, 17, 18 pp.94-96

TEXT B: International Trade

Ex.16. Scan the text below and give headlines to each paragraph.
1. Introduction to International Trade and its Significance
2. Global Trade and its Benefits to Consumers and Countries
3. Specialization in international trade
4. Simple example of two countries and their production
5. Specialized output of each country
6. Specialization reduces opportunity cost and maximizes efficiency.
7. Absolute advantage and international trade theory.
8. International trade and participation in the global economy
9. Benefits of Foreign Direct Investment for Governments and Investors
10. Opposing Views on International Trade: Free Trade vs Protectionism
11. The Theory of Protectionism and its Strategies in International Trade
12. Maximizing Production and Acquiring Goods through International Trade

Ex.17. Read the text again and decide whether the following statements are
true (T) or false (F). Correct the false statements.
1. False. International trade is an ancient concept.
2. True.
3. False. Trade deficit is the amount by which the value of a country's imports
exceeds the value of its exports.
4. False. International trade allows countries to specialize in producing what they
are comparatively more efficient at and import what they are less efficient at
producing.
5. True. Comparative advantage, not absolute advantage, indicates the
specialization that each country should pursue in international trade.
6. True.
7.False. International trade can lead to a convergence of prices, as countries
specialize in the production of goods in which they have a comparative advantage
and trade with each other.
8.True.
9.True.

Ex.18. Match the words on the left with the definitions on the right.
1.E
2.G
3.C
4.H
5.D
6.B
7.I
8.J
9.A
10.M
11.N
12.F
13.K
14.L