V. Answer the following questions:

1. What do US imports include?

2. What are the gains from international trade?

3. What does resistance to international trade mean?

4. What are the means of restricting trade?

5. What is trade-adjustment assistance?

6. What is the role of specialization in the increasing of the total output?

7. In what sense does international trade restrain the exercise of domestic market power?

VI. Define the terms:

trade surplus imports

trade deficit trade-balance

exports embargo

gainers and losers tariff

quota import-competing industries

VII. Translate into English:

1. 3a eiflCVTHOCTi 30BHiujHboT TopriBni ujhm Ha BHVTpiiuHbOMy pwHKy 3anewaTMMyTb Bip, nonMTy Ta npono3nu.fi' b Mewax Kpai-hh. 2. TapMcbn 3yMOBfiK)K>Tb niflBMiu,eHHFi ivh Ha BHyTpiujHbOMy pviHKy Ta 3MeHLueHHJi KinbKocTi npoAawix TOBapiB. 3. Kboth o6Me>KyroTb iMnopr, waflaiOfM MO»uiMBicTb BiTfM3H5iHMM bm-po6HMKaM niABMmysa™ pMHKOBi ujhm. 4. 3Haho i3 cTaTMCTHH-hmmm flaHMMM, b 1989 pou,i o6car iMnopTy CLUA nepeBMmy-saB eKcnopT. 5. y 1989 pou,i AecbiuwT ToproBe/ibHoro 6anaH-cy CLUA cTawoBMB $ 113 MinbfioHiB. 6. ripoTe a ujnoMy eKC-nopr cno>KMBHnx TOBapiB CLUA ciaHOBMB 6,7 BiACOTKa bia sa-noBoro HauioHanbworo npoAyKTy. 7. 3riAHO 3 Mi>KHapoAHo»o npaKTMKOto 3ane>KHicTb CLUA Bifl iMnopTy HeBHCOKa. 8. Ekc-nopT <t>PH, HanpMKnaA. CTaHOBWTb 37 bIacotkjb bIa 3aranbHoro Banosoro npoAyKTy, a TaMBaHb eKcnopTye 50 bjacotkib.

VIII. Read and dramatize the following dialogue:

A.: To demonstrate the economic gains obtainable from international trade, we may examine the production po­ssibilities of two countries.

B.: Excuse me for interrupting you. What are production possibilities?

A.: It's easy to understand. Production possibility is the alter­native combinations of final goods and services that could be produced in a given time period with all available resources and technology. We want to demonstrate that two countries that trade can together produce more output than they could in the absence of trade.

B.: We are from France. Consider the production and con­sumption possibilities of just two countries — say, the United States and France.

A.: For the sake of illustration, we shall assume that both countries produce only two goods, bread and wine.

B.: Let it be. We know, the United States is capable of producing much more bread than France is.

A.: That is because, we have a greater abundance of labor, land and other factors of production. We assume the US is producing up to 100 billion loaves of bread per year. France on the other hand, is producing only 15 billion loaves per year, because it has little available land, less fuel and fewer potential workers. The capacities of the two countries for wine production are 50 billion barrels for the US and 60 billion for France. And what about consumption possibilities?

B..' I can conclude, that consumption possibilities are the alternative combinations of goods and services that a country can consume in a given time period.

A.: You are right. In the absence of contact with the outside world, the production possibilities for each country defines its consumption possibilities. Without imports, neither country can consume more than it produces. The obvious thing to do is to trade, to start exchanging wine for bread and vice versa. When international trade is permitted, each country can concentrate on what it does best.

6.; So, the gains from trade are due to specialization in production increasing total world output. As a result, with more goods and services, everyone's living standard is likely to improve. Thank you. Professor, for your interesting lecture.

198

199