C: Rephrasing ideas

Date: 2015-10-07; view: 516.

B: Matching

Match the words in the left column with phrases in the right column that have the same meaning.

1. advantage a. a company with a worldwide management and production philosophy

2. labor pool b. excess of imports over exports

3. free market с. company which owns a subsidiary

4. division of labor d. foreign

5. overseas e. beneficial condition

6. domestic f. without government restrictions regulating trade

7. floating rate g. worldwide

8. subsidy h. group of workers

9. protectionism i. home

10. dumping j. tariff based on value

11. tariff k . limit

12. ad valorem tax l. trade restrictions to benefit domestic producers

13. specific tax m. below cost foreign sale

14. quota n . labor specialization

15. currency о. money given to cover losses and assist nonprofit enterprises

16. exchange p. cost plus insurance plus freight

17. legal tender q . money value not determined by gold or a fixed standard

18. balance of trade deficit r . circulating money

19. subsidiary s. e.g., the dollar in the U.S., the yen in Japan

20. global t. branch company

21. multinational u. duty or tax

22. parent company v. unit or item tax

23. market forces w. supply and demand

24. CIFx. convert

This exercise is designed to increase vocabulary and reading comprehension. Select the answer which is consistent with the meaning of the sentence.

1. International trade develops because certain countries are able to produce some goods more efficiently than other countries. They exchange these goods in order to satisfy their needs and wants.

a. Countries import the goods which they produce efficiently.

b. Countries probably export the goods which are not efficiently produced.

с Countries probably exchange goods which they produce efficiently for goods which other countries produce efficiently

d. Efficient exchange results from international trade.

2. A certain climate in a particular country may allow that country to grow agricultural products in abundance.

a. This country probably has a comparative advantage in agriculture.

b. This country most likely exports farm products.

c. This country can grow food efficiently.

d. All of the above.

3. In an uncontrolled free market trade situation, there would be an international division of labor resulting in the most efficient production of goods.

a. With trade restrictions, countries specialize in what they produce.

b. The most efficient production is a result of a free market.

c. Specialization in production should be left uncontrolled.

d. Labor always favors a free market trade situation.

4. Price is determined by the supply side of the market.

a. If the demand for products increased so would the price.

b. There is such an abundance of products for sale that prices would have to increase.

c. If the supply is low, the price is low.

d. Supply is more of a factor than demand in determining the price.

5. A basis for mutually beneficial trade is the fact that one country has a comparative advantage.

a. Both the importing country and the exporting country benefit from trade.

b. One country's comparative advantage can benefit another country.

с The comparative advantage of one country can result in trade between countries

d. All of the above.

6. A country can accrue wealth if it exports more than it imports.

a. This country has a balance of trade deficit.

b. Demand for this country's currency will fall.

c. This country receives money from countries which import its products.

d. All of the above.

7. Governments try to control imports of products to protect domestic industries.

a. Protectionist measures take the form of import duties and quotas.

b. Protectionist measures insure free trade.

c. Workers are always opposed to protectionism.

d. All protectionist policies have the same effect on the market.

8. Selling products abroad at prices lower than the cost of production is known as dumping.

a. Dumping is always against government policy.

b. Dumping is always beneficial to the importing country because buyers pay lower prices.

c. Exporters dump products on foreign markets to lower domestic employment.

d. Some reasons for dumping could be inventory reduction, maintenance of domestic employment, and continuation of high production levels.

9. Most currencies are now exchanged on a floating rate basis in which there are no official exchange rates, and rates fluctuate according to market forces.

a. If money changers want to sell dollars for yen, the price of the dollar will decline.

b. An exporting country with a balance of payments surplus may accumulate a lot of foreign currency for which demand is low, thus making their exports more expensive.

c. The supply and demand for currencies determine the exchange rates.

d. All of the above.

10. Multinational companies set up production facilities in countries where production is most efficient.

a. All countries allow foreign ownership of production facilities.

b. The larger company is called the parent company; the production facilities are referred to as a subsidiary.

c. Subsidiary companies eliminate the problem of worldwide competition.

d. Each subsidiary needs to consider only local market conditions.