Grammar

Task 1. Write true sentences about yourself: Where will you be at these times? Use one of these phrases: I'll probably be...; I don't know where I'll be...

1. Next Monday evening at 7.45.

2. At 5 o'clock tomorrow morning.

3. At 10.30 tomorrow morning.

4. Next Saturday afternoon at 4.15.

5. This time next year.

Task 2. The verbs in these sentences are wrong. Correct them. One example is given.

1. The water boils. Can you turn it off? - The water is boiling.

2. Look that man tries to open the door of your car.

3. Can you hear those people? What do they talk about?

4. I must go. It gets late.

5. Hurry up! It's time to leave - O.K. I come.

Task 3. Put the verb into the correct form, Present Continuous or Present Simple.

1. Are you hungry? ... something to eat (you / want)?

2. Jill is interested in politics but she ... to a political party (not be­long).

3. Don't put the dictionary away. I... it (use).

4. Who is that man? What... (he / want)?

5. Don't put the dictionary away. I... it (need).

6. Who is that man? Why ... at us (he / look)?

7. George says he is 80 years old but nobody ... him (believe).

8. She told me her name but I... it now (not / remember).

Lesson V

International trade

International trade is exchange of capital, goods, and services across in­ternational borders or territories. Industrialization, transportation, and globa­lization influence the international trade system. Depending on what a coun­try produces and needs, it can export (sell goods to another country) and import (buy goods from another country).

The main difference between international trade and domestic trade is that governments control international trade by means of tariffs (or duties) and quotas. A tariff is a tax on imported goods, and a quota is the number of goods, that must be produced or imported into a country during a certain period of time. These measures increase the price of imported goods to "pro­tect" national economy. International organizations such as the WTO (World Trade Organization) and EFTA (European Free Trade Association) regulate tariffs and reduce trade restrictions between member countries.

Two basic concepts describe the process of international trade - the concept of specialization and the concept of economic interdependence. The concept of specialization described in Ricardian model focuses on compara­tive advantage, when countries specialize in producing what they produce best. A nation's comparative advantage is measured in relation to all of the goods and services the nation produces. By specializing in production, each nation can make the best use of its available resources.

Economic interdependence is another force which stimulates interna­tional trade. It means that the distribution of resources often gives a nation an absolute advantage in the production of a particular product. Absolute advantage means that using the same resources one nation can produce a product at a lower cost than a second nation.

Brazil, for example, enjoys an absolute advantage over the United States in coffee production. Brazil's resources - especially its land, climate and labour force let this country produce large quantities of coffee at a relatively low price compared to the costs for coffee production in the United States. Thus, it is to Brazil's advantage to export coffee to the United States.

The United States, on the other hand, enjoys an absolute advantage over Brazil in many other areas, particularly in the production of manufactured goods. The United States has natural resources, a highly skilled labour force and well-developed means of production for consumer and capital goods. Thus, it is to the advantage of the United States to export manufactured goods to Brazil.