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 product abroad.