A: Vocabulary in context

Date: 2015-10-07; view: 544.

Vocabulary Building Introduction

Read the following sentences carefully and pay particular attention to the words in italics.

1. Most countries today realize the advantages of world trade. Most countries benefit from world trade. World trade provides economic development and increased business opportunities.

2. Countries with many unskilled laborers are able to produce labor-intensive products efficiently. Large pools of unskilled workers are needed to make things which require a lot of hand labor. Electronic devices are assembled where labor is inexpensive.

3. Geographical location can be a benefit if a country is engaged in international trade. Some countries have an advantage in the import and export business because of their location.

4. In a free market situation producers can purchase their raw materials and sell their finished products without being restricted by government regulations. When there is free trade, there are no tariffs and quotas.

5. An international division of labor results in the most efficient production of goods. If the workers in each country specialize in what they do best, manufacturing costs will be less.

6. High volume production results in lower costs. The price is determined by the supply side of the market.

7. Countries import products which are not produced domestically. We can purchase these products cheaply overseas.

8. The sales manager would like to know if we can market these products abroad. If there is demand in other countries, we will begin to export this product.

9. The United States enjoys an advantage in the production of food compared to Japan. Japan has a comparative advantage in the production of motorcycles. Trade between the two countries will benefit both of them. This mutually beneficial trade is the result of each country's comparative advantage.

10. Countries that export more than they import become rich. Wealth accrues to the exporting country.

11. Government programs help companies export by establishing trade missions. Companies are encouraged to export, and the government assists them.

12. Nationalized industries like British Steel and Renault receive subsidies from governments. Government owned industries receive financial support from the government.

13. U.S. Steel accused British Steel of dumping because steel was being sold in the United States at lower prices than in Great Britain.

14. Governments sometimes protect domestic industries from foreign competition. Trade restrictions and import duties are forms of protectionism. Trade restrictions were imposed because foreign dumping was resulting in high unemployment among workers in the steel industry.

15. There is an ad valorem import tax of 6%. The duty is equal to 6% of the value of the item.

16. The tariff on alcohol is $2 per liter of spirits and $1 per liter of wine. The cost of the wine or spirits does not matter; this is a specific tax.

17. The government is restricting the import of fresh meat to one hundred tons. No amounts in excess of the quota may be imported.

18. The legal tender in the Federal Republic of Germany is the deutsche mark (DM). Producers in Japan want to be paid in yen (Y). The dollars ($) must be exchanged for yen or marks.

19. Currencies are now being exchanged on a floating rate basis. The exchange rate changes according to supply and demand for the currency. The rates fluctuate according to market forces.

20. Large numbers of people were converting dollars to deutsche marks and the German government began purchasing dollars in order to stabilize its value. The central bank in Germany supported the value of the dollar.

21. The United States imported more goods last month than it exported. The balance of trade deficit was $1.2 billion. Japan exports more than it imports. It always enjoys a balance of trade surplus.

22. Honda of America is an American branch of the Japanese firm. The parent company in Japan set up this subsidiary to produce motorcycles in the United States.

23. Multinational corporations have a worldwide philosophy of management and marketing. Their global strategy is to operate and produce in many countries so that they enjoy each country's comparative advantage.