UNIT 5

IMPORT EXPORT
 INTRODUCTION

Speaking:
• look around you. How many things can you see that were imported from another
country?
• How much of the food you have eaten in the last 24 hours came from abroad?
• Can you imagine living in a country that doesn’t import anything? (a self sufficient one )
• What are your country’s major trading partners?
• What are your country’s most important exports? Does your country try to restrict
imports why?
 Tariffs / Duties
• A charge or list of charges either for services or
on goods entering a country = Tax paid to the
government
 Quotas
• A fixed, limited amount or number that is officially
allowed into a country during a certain period of
time
 Tariffs and quotas
Tariffs and quotas are restrictions imposed by the
government =These are included into the trade barriers used
by infant industries.
Some countries use other non-tariff barriers like the so-called
safety norms, and the deliberate creation of customs
difficulties and delays.
• They are considered as protectionist measures.
 Infant industries
• An infant industry is one that is in an early
stage of development and which cannot
survive competition from foreign companies.
 Customs
• the place at an airport, port,
or border where goods that people bring into
a country are examined to make sure they
are legal and whether any tax should
be paid on them.
 Protectionist Measures
• Their aim is to protect domestic industries
against foreign competition (tariffs, import
quotas, or other restrictions placed on the
imports of foreign competitors.)
 WTO
• abbreviation for World Trade Organization:
an official organisation that deals with
agreements for buying and selling goods and servi
ces between countries( it was known as GATT=
General Agreement on Tariffs and Trade)
 Why do we need to protect the domestic
industries from foreign competition?
• - Infant or developing industries ( not able to compete and might go bankrupt )
• - Domestic markets might be flooded with foreign products/services and as a
consequence local copanies might lose market share ( customers preferring imported
goods/services because of better quality/price)
• - -----------------
• = Tariffs increase the price of imported goods in the domestic market, which,
consequently, reduces the demand for them
• =Quotas are known as a “non-tariff trade barrier.” A constraint on the supply causes an
increase in the prices of imported goods, reducing the demand in the domestic market.
 Advantages of Protectionism
• More growth opportunities: Protectionism provides local industries
with growth opportunities until they can compete against more
experienced firms in the international market
• Lower imports: Protectionist policies help reduce import levels and –
allow the country to increase its trade balance.
More jobs: Higher employment rates result when domestic firms boost
their workforce
Higher GDP: Protectionist policies tend to boost the economy’s GDP
due to a rise in domestic production
 Why do countries trade ( exchange
goods/services?)
• - Lack of certain products
• -Not having expertise/ skills to produce a certain product
• Not having raw materials
• Not having the appropriate climate for certain products
Lead-in : Listening
• 1- He compares countries to individuals
• 2- He uses the example of growing one’s food
• 3- Countries should specialise in what they do most efficiently ( i,e where
they can best use their resources) and buy what they don’t produce
themselves
EEC ?
EC ?
EU ?
 EEC =
• the European Economic Community:
an organisation formed in 1958
that developed into the European Community,
which then became the European Union in
1994.
 Memember coutries?

• 27 Countries( used to be 28 but UK withdrew from the EU )

 READING LEXIS
Pg.37
• Local experts:
• They have a specialist knowledge of the market and sell on behalf of the company ( sole agents and multi-
distributors)
• Patent: The exclusive right to use a documented intellectual property in producing or selling a particular
product.
• Licence: A legal document giving official permission to do something.
• To licence: to authorize officially.
• Subsidiary: A company that is completely controlled by another company/
Functioning in a supporting capacity/ Part of a large corporation.
• Joint venture: A method of entry into a foreign market in which a firm joins with an overseas company to
establish a partnership for the production and marketing of its products abroad.
 Reading Comprehension
• Title :
• Barco Of Belgium =
Company’s name : BARCO ( an abbreviation ?)
- Origin : Belgium ( Belgian Company)
It is exporting to india : -Why do you think they opted for India ?
- Which techniques can a company use to
establish itself on a foreign market ?
 Question 1 pg.37
• The methods used by Barco to establish itself on the Indian market:
* It started by working with local agents to sell kits for video monitors.
* It set up its own sales office.
* It Set up an assembly plant.
 Question 2 pg 37
Advantages Disadvantages
- The market is growing - High import duties
- Exciting long term market opportunities - Complex market
- People speak English - More closed than other fast growing economies
- Fascinating country - Tax barriers and delays
- One fifth’s of the population lives there - A lot of bureaucracy
 VOCABULARY 1 pg.37
•2 Assembled ( para 1)
•3 A shift (para 2)
•4 Niche market(para 3)
•5 Exploit (para 6)
•6 Obstacles (para 6)
•7 Bureaucracy (para 6)
•8 Delays(para 7)
•SUPPLEMENTARY VOCABULARY:
•Plant: A building for carrying industrial labor (pg.5)
•Hurdles: Obstacles/difficulties (pg.8)
•Sensitive: Being susceptibleto the attitudes, feelings or circumstances of others (pg8)
•Strata: Several parallel layersof materials arranged one on top of another (pg8)
•Subcontinent: Large and distinctive landmass (pg9)
EXERCISE 2 pg. 39

• 2 Assemble
• 3 Niche market
• 4 Delays
• 5 Tariffs
• 6 Obstacles
• 7 Licences
 Vocabulary development: Ccompound adjectives 1
(p39)

• a Environmentally friendly packaging Other adjectives of this type

• High-powered
• b Old-fashioned typewriter
• High-ranking
• c short-term opportunities • High-pressure
• d Low-budget advertising • Open-minded
• Over-optimistic
• e Well-known personality • Full-time
• f High-level decision making • All-inclusive
• g User-friendly software( easy to use)
• h Well-trained staff
 Listening pg. 40
• VOCABULARY:
• The invoice: An itemised statement of money owed for goods shipped or
services rendered /A bill.
• Freight: Goods carried by a large vehicle
• Warehouse: A storehouse for goods and merchandise
 Pg.41& 42
• The bill of lading: A document generated by a shipper detailing a shipment of
merchandise giving title to the goods and requiring the carrier to release the
merchandise to a named party at the destination.
• Freight: Goods carried by a large vehicle.
• Concignee: The person to whom merchandise is delivered over.
Pg.42 : 1g/ 2b/ 3f/ 4c/ 5h/ 6e /7a/ 8d
Laguage focus: 1f/2c/3e/4a/5b/6d/ Practice:
1 ‘ll get/2 ‘m going to leave/3 i’ll have/4 are going to need/5 are going to visit/6 will be
 Pg.43
Adjective Adverb

Used to show a small change: a slight slightly

Used to show a regular movement: b gradual Gradually
c steady steadily
Used to show considerable, striking or d sharp sharply
unexpected change: e dramatic dramatically
f sudden suddenly

1 steadily
2 dramatically
3 slightly
4 gradual
5 sudden:/sharp/dramatic
6 slight
 PG. 44
• Exercise 2 (Vocabulary)
• a)To fluctuate: to rise and fall irregulary
• b)To level off: to reach stability after a period of movement
• c) To remain stable: to show no change
• d) To reach a peak: to reach the highest point
• Exercise3: 1c/2e/3b/4a/5d
 PG 45
• Listening 1
• 1: Stood at/2 : sharp increase/3: reached/4: sharp decrease/5dropped/6:
slight rise/7: fell/8: a dramatic rise/9: reached a peak/9: falling again.
Skills focus
Graph 1
Graph 2
Graph 3
 PG 46
• Vocabulary:
• Balance of trade: is the difference between the values of imports and exports.
This includes visible imports/exports(goods)and invisible
imports/exports(services).
• A trade surplus: when a country exports more than it imports.
• A trade deficit: when a country imports more than it exports.
• Inflation: A general increase in prices and fall in the purchasing value of money.