Key ESP Unit 1 FTU
Key to Unit 1- ESP2
Vocabulary
1 visible trade (GB) or merchandise trade (US)
2. invisible imports and exports
3. barter or counter trade
4. balance of trade
5. balance of payments
6. autarky
7. surplus
8. deficit
9. dumping
10. protectionism
11. tariffs
12. quotas
Reading
1. Because it can be shown that if all countries specialize in the goods or services in which they are most productive (in which they have an absolute or a comparative advantage), they will all raise their income.
2. In order to protect jobs and what they consider to be strategic industries.
3. Because they wanted to industrialize (and protect their infant industries), rather than merely produce raw materials, whose price could easily fall.
4. For fear of being excluded by large trading blocks, and because they have seen the exported led growth of the East Asia ‘Tiger’ economies.
Possible questions
1. What can give a country an absolute or comparative advantage in goods and services over other producers?
2. Why does the theory of comparative advantage seem inadequate to explain international trade?
3. What is an ‘infant industry’?
4. What is the advantage of tariffs for the government?
5. What is the advantage of quotas over tariffs?
Exercise
Exercise 1
1 nations; 2 commodities; 3 balance of trade; 4 balance of payment; 5 barter or counter trade; 6 protectionism; 7 factors of production’ 8 climate; 9 division of labor; 10 economies of scale; 11 tariffs; 12 quotas.
Exercise 2
These answers are not definitive; learners may think of other logical ways of linking the words.
1. Economists recommend free trade in the commodities in which countries have either an asolute or comparative advantage. This is the opposite of importing barriers.
2. Visible trade is goods, invisible trade is services, counter-trade is the exchange of goods or services without the use of money. Autarky is the absence of foreign trade.
3. A trade balance can either be in surplus or in deficit;
Vocabulary
1 visible trade (GB) or merchandise trade (US)
2. invisible imports and exports
3. barter or counter trade
4. balance of trade
5. balance of payments
6. autarky
7. surplus
8. deficit
9. dumping
10. protectionism
11. tariffs
12. quotas
Reading
1. Because it can be shown that if all countries specialize in the goods or services in which they are most productive (in which they have an absolute or a comparative advantage), they will all raise their income.
2. In order to protect jobs and what they consider to be strategic industries.
3. Because they wanted to industrialize (and protect their infant industries), rather than merely produce raw materials, whose price could easily fall.
4. For fear of being excluded by large trading blocks, and because they have seen the exported led growth of the East Asia ‘Tiger’ economies.
Possible questions
1. What can give a country an absolute or comparative advantage in goods and services over other producers?
2. Why does the theory of comparative advantage seem inadequate to explain international trade?
3. What is an ‘infant industry’?
4. What is the advantage of tariffs for the government?
5. What is the advantage of quotas over tariffs?
Exercise
Exercise 1
1 nations; 2 commodities; 3 balance of trade; 4 balance of payment; 5 barter or counter trade; 6 protectionism; 7 factors of production’ 8 climate; 9 division of labor; 10 economies of scale; 11 tariffs; 12 quotas.
Exercise 2
These answers are not definitive; learners may think of other logical ways of linking the words.
1. Economists recommend free trade in the commodities in which countries have either an asolute or comparative advantage. This is the opposite of importing barriers.
2. Visible trade is goods, invisible trade is services, counter-trade is the exchange of goods or services without the use of money. Autarky is the absence of foreign trade.
3. A trade balance can either be in surplus or in deficit;