6. Trade raises incomes
Lowering trade barriers allows trade to increase, which adds to
incomes – national incomes and personal incomes. But some
adjustment is necessary.
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The WTO’s own estimates for the
impact of the 1994 Uruguay Round
trade deal were between $109 billion
and $510 billion added to world
income (depending on the assumptions
of the calculations and allowing for
margins of error).
More recent research has produced
similar figures. Economists estimate
that cutting trade barriers in agriculture,
manufacturing and services by one
third would boost the world economy
by $613 billion – equivalent to adding
The fact that there is
additional income means
that resources are available
for governments to
redistribute
an economy the size of Canada to the world economy.
In Europe, the EU Commission calculates that over 1989–93 EU
incomes increased by 1.1–1.5% more than they would have done
without the Single Market. So trade clearly boosts incomes.
Trade also poses challenges as domestic producers face competition
from imports. But the fact that there is additional income means that
resources are available for governments to redistribute the benefits
from those who gain the most – for example to help companies and
workers adapt by becoming more productive and competitive in what
they were already doing, or by switching to new activities.
TASKS
Task 1. Transcribe:
Adjustment, exotic, margin, error, redistribute, nation – national,
increase – to increase, import – to import
Task 2. Define the following terms:
import
export
adjustment
the Single Market
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Task 3. Provide a synonym from the text:
originating in a foreign country
domestic
to increase or to cause to rise
to adjust
to put forward
supposition or postulate
regulation
Task 4. Translate using the text:
1.
2.
3.
4.
5.
6.
7.
8.
9.
хозяйственные товары
фрукты и овощи вне сезона
увеличивать доходы (2)
снижать торговые барьеры (2)
допустимые пределы погрешности
способствовать росту мировой экономики
бросать вызов
перераспределять доходы
приспосабливаться, становясь более продуктивным и
конкурентоспособным
10. переходить на новый вид деятельности
Make up 5 sentences with the new vocabulary of ex. 1-4.
Task 5. Give the three forms of these verbs:
to rise, to raise, to spring, to cut
Study the difference between to rise and to raise and fill in the gaps
using the correct form of the verb:
The student ... her hand to ask a question.
Trade ... incomes.
As I looked up I saw smoke ... from the chimney.
Children must be taught ... above selfishness and egoism.
It was not easy for him ... in the world, but eventually he
succeeded.
As the landlord ... the rent it was difficult for her to make both
ends meet.
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A wind ... and we had to close the shutters.
What do you do when you are depressed and want ... your
spirits?
... and shine! (Подъем!)
In her misfortunes and troubles she had … above the prejudices.
The rescue unit did everything possible … the sunken ship from
the bottom of the sea.
Task 6. Make up and ask your group-mates 3 questions on the
benefits of the WTO which are considered in these two chapters.
Task 7. Monologue: Make a speech protecting a local market from
being closed down.
Grammar Review
PAST SUBJUNCTIVE II
The Past Subjunctive II is used to refer to an unreal situation in the
past, i.e. it expresses past unreality . In its form the Past Subjunctive II
is identical with the Past Perfect tense*:
I wish I had listened more carefully to my mother, when I was a
teenager.
Like the Present Subjunctive II, the Past form is also found in object
clauses after “I wish...” and in clauses of condition:
He wished he had been more careful when speaking to the attorney.
The teacher wishes his students hadn't used their notes when writing
the test.
The students wish they had prepared better for the exam in Statistics.
If he had been a better swimmer in his childhood, he would have
become the captain of the school team.
If I hadn't consulted the dictionary yesterday, I wouldn't have learnt the
history of this word.
* The reader should mind that, though being identical, the Subjunctive II Past and the
Past Perfect tense are not the same verb category. Historically they looked different,
but have coincided now and look the same.
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PAST CONDITIONAL MOOD
The Past Conditional Mood, like the Past Subjunctive II, is used to
refer to an unreal situation in the past. It is formed by the auxiliary
WOULD + Perfect Infinitive. The Past Conditional Mood is often
used in combination with the Past Subjunctive II: the Conditional
Mood occurring in the main clause and the Subjunctive II in the clause
of condition:
I wouldn't have tried to break the door, if I hadn't lost my key
yesterday.
He would have visited the trade fair in Paris, if his boss hadn't asked
his to fly to Canada.
I would have given you a better piece of advice, you hadn't been in a
hurry.
Exercise: Open the brackets using the Past Conditional:
1. The quality of locally-produced goods (not to improve) if
consumers hadn’t switched to foreign products.
2. If trade had allowed us to import more in the past, it also (to
allow) others to buy more of our exports.
3. Even if the governments had cut the trade barriers in
manufacturing by one fourth last year it (not to boost) the world
economy greatly.
4. If only our countries had established commercial relationship
earlier, consumers (to give) more choice and a broader range of
qualities to choose from.
5. But for the Single Market national as well as personal incomes
(not to increase).