4. Международная экономика (International Economics)
European Economic Community
Since World War II, countries have reduced barriers to trade mainly through multilateral negotiations such as the General Agreement on Tariffs and Trade (GATT).
A central premise of the GATT is nondiscrimination: countries should give all GATT members the same access to their markets. The main exemption to that rule is free trade areas. Partners to free trade agreements are allowed to exempt one another\'s goods from import duties while maintaining tariffs and/or quotas on products from other GATT countries. The European Economic Community (EEC), the most prominent example of a free trade area, actually is what economists call a customs union. Whereas member nations in a free trade area remove all barriers to trade among themselves, in a customs union they also adopt uniform tariffs on goods and services from outside the union.
The EEC is currently attempting to transform itself from a customs union to a true common market in which capital and labour, and not just goods, are allowed to flow freely from one country to another. The EEC\'s impact has been significant. In 1960 more than 60 percent of the trade of the Community\'s twelve members was with other parts of the world. Now more than 60 percent stays within the European grouping. Where the EEC contented itself initially with removing internal barriers to trade, it has since expanded into the regulation of domestic markets and monetary unification.
Слова и выражения:
access – доступ
adopt – принимать
barrier – барьер, преграда
community – сообщество
content – удовлетворять(ся)
currently – в настоящий момент
domestic – домашний, внутренний
exempt – исключать
exemption – исключение
expand – распространять(ся), расширять(ся)
grouping – группировка
impact – удар, результат, вклад
import duties – импортные пошлины
initially – изначально
maintain – поддерживать
multilateral – многосторонний
negotiations – переговоры
nondiscrimination – отсутствие дискриминации
premise – предпосылка
prominent – значительный, важный
quota – квота
tariff – тариф
unification – унификация
uniform – единообразный
General Agreement on Tariffs and Trade (GATT) – Генеральное соглашение о тарифах и торговле
free trade areas – зона свободной торговли
customs union – таможенный союз
Exercise 1
Answer the questions:
1. How have countries been reducing barriers since World War II?
2. What is the GATT\'s central premise?
3. What is the main exemption to the rule of nondiscrimination?
4. What are partners to free trade agreements allowed to do?
5. How do economists call the European Economic Community?
6. What is the main difference between a free trade area and a customs union?
7. What is the EEC currently attempting to transform itself into?
8. How much of the Community twelve members\' trade was with other parts of the world in 1960?
9. How much of the European Community trade stays within the EEC\'s countries now?
10. What has the EEC been preoccupied with since it removed internal barriers to trade?Exchange Rates
Under the Bretton Woods system of fixed exchange rates, which lasted from 1946 to 1973, exchange rates (for example, the number of dollars it takes to buy a British pound or German mark) were fixed at levels determined by governments. In 1973 «floating» exchange rates were introduced. Since then exchange rates are determined by people buying and selling currencies in the foreign-exchange (Forex) markets.
Floating rates tend to be unstable at times. Thus, the pound sterling / U.S. dollar rate did not change at all from 1949 to 1966. In 1967 the pound was devaluated by 14 percent. Since the end of fixed rates in 1973 to 1991, however, the pound, on average, either appreciated or depreciated by 14 percent every two years.
The experience with floating exchange rates in the twenties had been marked by massive instability. Currency markets were subject to destabilizing speculation, which created pointless and economically damaging fluctuations.During the fifties and sixties, however, both economists and policymakers began to see exchange rate flexibility in a more favourable light.
The main advantage was that nations could pursue independent monetary policies and adjust easily to eliminate payments imbalances and offset changes in their international competitiveness. Some of the changes in exchange rates can be attributed to differences in national inflation rates, as well as in different growth rates in various countries\' money supplies.
Слова и выражения:
appreciate – повышать цену, ценить, повышать курс валюты
attribute – приписывать
competitiveness – состязательность, конкурентоспособность
currency – валюта
depreciate – обесценивать(ся), снижать стоимость, курс валюты
destabilizing speculation – де – стабилизирующая спекуляция ( игра на курсах валют )
devaluate – обесценивать(ся), девальвировать(ся)
eliminate – уничтожать
fix – устанавливать, фиксировать
flexibility – гибкость
float – плавать
fluctuation – колебание
mark – марка
offset – возмещать, компенсировать
pointless – бесцельный
pound – фунт (стерлингов)
pursue – следовать, преследовать
tend – стремиться ( к чему-либо ), иметь тенденцию ( к чему-либо )
unstable – нестабильный
Bretton Woods system – Бреттон-Вудская валютная система
exchange rate – обменный курс
it takes… – на это требуется…
Forex – сокр . foreign exchange
by 14 percent – на 14 процентов
on average – в среднем
favourable light – благоприятный свет
payments imbalance – платежный дисбаланс
inflation rate – темпы инфляции
growth rate – темпы роста
Exercise 2
Answer the questions:
1. How long did the Bretton Woods system of fixed exchange rates last?
2. Who determined the levels of exchange rates within the Bretton Woods system?
3. When were the «floating» exchange rates introduced?
4. Who determines at what price to buy and sell a currency under the «floating» exchange rates?
5. What is a Forex market?
6. How has the pound sterling been fluctuating since 1967?
7. How do currency markets behave when they are subject to destabilizing speculation?
8. How did the economists\'s attitude towards exchange rate flexibility change in the sixties?
9. What is the main advantage of floating exchange rates?
10. How do exchange rates relate to differences in national inflation rates?What is Fluctuations?
A tourist from China was traveling to New York City for a two week vacation. He went to the bank as soon as he arrived in order to exchange his Chinese money for American money. He gave the teller 1000 yuan, and the teller in turn gave him 150 dollars.
A week went by, and the tourist had used up his money, so he returned to the bank. He gave the teller another 1000 yuan, but this time the teller only gave him 125 dollars. Seeing the difference, the man angrily asked the teller in his broken English why last week he received 150 dollars for the same amount of money. The teller replied, «Fluctuations.»
Flustered, the tourist responded, «Well fluck you crazy Americans too!»
Слова и выражения:
fluctuations – колебание (цен)
fluster – разгорячаться, возмущаться
teller – банковский кассир
yuan – юань
China – Китай
in turn – в свою очередь
Exercise 3
Answer the questions:
1. For how long did the Chinese tourist come to New York?
2. What was the exchange rate of the dollar to the yuan on the first week of his vacation?
3. By how much had the yuan depreciated in two weeks?
4. What is fluctuations, in the Chinese\'s point of view?International Business
Companies that want greater control over their product have to manufacture it at home and then export it to the foreign countries. In this case exporters must examine the market. Some firms can sell their products to an export/import merchant who takes all the selling risks. In other cases the company may use an export/import agent who sells the product to wholesalers or retailers in the foreign country. Sometimes the exporter may set up its own sales offices and branches abroad. This is more expensive, and only large firms can afford it.
US Imports in 2001 in $ Million
96.4 – Petroleum
34.5 – Motor vehicle parts
18.6 – Iron and steel
12.8 – Electrical machinery parts
14.7 – TV, radio and sound products
10.6 – Clothing
9.1 – Natural gas
8.8 – Chemicals
To go international a large firm can also set up a joint venture with a company in another country. In this case two companies pool their resources to design, manufacture and sell the product. Both firms profit by the results of this arrangement. They also share responsibility. One of the firms provides the necessary funds and know-how for producing goods. In return it gets a foothold in the foreign market. The other firm obtains financial aid and technical assistance. And it takes responsibility for handling red tape and organizing sales in the local market.