Lesson 10

Task 1. Complete the text with the words in the box.

1. payment	5. Conversely	9. exports	13. the exchange	17. markets
2. imports	6. A foreign exchange market	10. supply and demand	14. As a consequence	18. the value
3. international trade	7. transportation costs	11. foreign currency	15. commodities	19. transactions
4. opportunities	8. foreigners	12. an incentive	16. deficit	20. Money

Transportation of Goods

When ( 7 ) are low and governments do not interfere much in ( 19 ) that cross national boundaries, firms and individuals frequently look across those boundaries for

( 4 ) to buy or sell. Indeed, for many ( 15 ) there are international rather than domestic markets, and for most commodities there are international effects on ( 17 ).

Commodities that are produced in a foreign economy, but which are consumed by individuals within a domestic economy, are ( 2 ), while commodities, which are produced within a domestic economy, but which are consumed by individuals in a foreign economy, are ( 9 ). If the world price of commodity is below the domestic price, there will be ( 12 ) to import the commodity, purchasing it from foreign producers.

( 20 ) once again solves the problem of coincident or reciprocal wants: individuals or firms who want to import a commodity can make ( 13 ) using money, while those individuals or firms who want to export do so in exchange for money. As long as money can be used in international transactions (as well as within an economy), exporters and importers do not need to be the same individuals.

The complexity arises because foreign firms usually want to be paid in money useful in their own economy. ( 5 ), domestic firms who want to export usually want to be paid with money useful in the domestic economy, while ( 8 ) to whom they must sell if they are to export usually want to pay for the commodities using money from their own economy.

When the money used in the international exchange is different from that used in the domestic economy, the person receiving ( 1 ) in the ( 11 ) will want to exchange it for a domestic currency. Hence, ( 3 ) creates markets for different kinds of money. Such markets are called foreign exchange or foreign currency markets. ( 6 ) is a market where one kind of money is traded for a different kind of money.

Changes in ( 10 ) in these markets change the rate at which one currency will be exchanged for another currency. ( 14 ), the price of goods that are traded will change either because of a change in the price in the economy where they are produced or because of a change in the exchange rate. The difference between ( 18 ) of exports and imports is the foreign trade balance. If the value of imports exceeds the value of exports then trade balance is ( 16 ).

Task 2. Match each of the words or phrases on the left to an appropriate definition.

1 brand j	a) the things that sb/sth must have
2 achievement i	b) 1) a person, company or country that grows or makes food, goods or materials 2) a person who is in charge of the practical and financial side of making a film or a play
3 company g	c) the costs that a business must pay that do not change, even if the amount of work produced changes
4 labour h	d) the buying or selling of goods or services between people or countries
5 need a	e) a thing that you are given because you have done sth good, worked hard, etc.
6 producer b	f) a business company that belongs to and is controlled by another larger company
7 fixed costs c	g) a business organization that sells goods or services
8 reward e	h) 1) work, usually of a hard, physical kind; 2) workers, when thought of as a group
9 subsidiary f	i) something that you have done successfully, especially through hard work or skill
10 trade d	j) the name of a product that is made by a particular company

Task 3. Fill in the blanks using the word combinations given below, translate the letter.

Letter 1.

I was very pleased ( f ) of 15 January and ( e ) and price list giving the details requested.

A full range of samples has also been sent by separate post. When you have had an opportunity to examine them, I feel confident you will agree that the goods are excellent in quality and ( d ).

On regular purchases of quantities of not less than 500 individual items, we would allow a trade discount of 33%. For payment within 10 days from receipt of invoice, an extra discount of 5% of net price would be allowed.

Polyester cotton products are rapidly becoming popular because they are strong, warm and light. ( c ) you will not be surprised to learn that we are finding it difficult to meet the demand. However, if you place your order not later than the end of this month, we guarantee delivery within 14 days of receipt.

I am sure you will also be interested ( b ) which are shown in our catalogue; ( a ) on any of these please contact me.

I look forward to hearing from you.

a) if you need further details

b) to see information on our other products

c) after studying our prices

d) very reasonably priced

e) enclose our illustrated catalogue

f). to receive your enquiry

Letter 2.

( b ) Spett, Mancienne of Rome that you are producing for export handmade gloves in a variety of natural leathers. ( d ) in this country for gloves of high quality, and although sales are not particularly high, ( f ).

Please send me ( a ) with details of your catalogue with details of your prices and payment terms. ( c ) if you could supply samples of the various skins in which the gloves are supplied.

( e ) hearing from you soon.

a) a copy of your catalogue

b) we learn from

c) it would also be helpful

d) there is a steady demand

e) I look forward to

f) good prices are obtained

Task 4. Choose the correct variant.

1.The service that … ready-cooked meals to people at home is almost as old as millennium itself.

a) gets

b) delivers

c) receives

d) does

2. … countries often have problems with illness.

a) developed

b) highly-developed

c) well-developed

d) developing

3. Sometimes, the advantages of tourism are not … you think.

a) as big

b) so big as

c) so big

d) such big as

4. Tourists on all-inclusive holidays usually … any money when they are there.

a) do not spend

b) does not spend

c) spend

d) spent

5. When tourists visit places in their own country, this … domestic tourism.

a) was called

b) called

c) calls

d) is called

6. When tourists … other countries, this is international tourism.

a) will visit

b) visit

c) don’t visit

d) won’t visit

7. You … go over your supervisor’s head.

a) can

b) should

c) shouldn’t

d) need

8. When we installed your equipment we … it was faulty.

a) find out

b) had found out

c) found out

d) have found out

9. Three containers in the consignment were found ….

a) be damaged

b) to be damaged

c) damaging

d) to have damaged

10. We take pleasure in … you our letter.

a) sending

b) send

c) to send

d) having sent