商务英语阅读Unit-10-Foreign-Trade-Association课件.ppt

1、Unit 10Foreign Trade AssociationI.Reading PracticeText A Introduction Nowadays,we talk more and more about foreign trade.Then,do you know what foreign trade is,the reason why we need to increase foreign trade and the benefits of foreign trade.Now you may read the text to find out the answer.What is

2、Foreign Trade?If you walk into a supermarket and you are able to buy South American bananas,Brazilian coffee and a bottle of South African wine,you are experiencing the effects of foreign trade.Foreign trade allows us to expand our markets for both goods and services that otherwise may not have been

3、 available to us.It is the reason why you can pick between a Japanese,German and American car.As a result of foreign trade,the market contains greater competition and therefore more competitive prices,which bring a cheaper product home to the consumer.Definition of Foreign Trade Foreign trade is the

4、 exchange of goods and services between countries.This type of trade gives rise to a world economy,in which prices,or supply and demand,affect and are affected by global events.Political change in Asia,for example,could result in an increase in the cost of labor,thereby increasing the manufacturing

5、costs for an American sneaker company based in Malaysia,which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall.A decrease in the cost of labor,on the other hand,would result in you having to pay less for your new shoes.Trading globally giv

6、es consumers and countries the opportunity to be exposed to goods and services not available in their own countries.Almost every kind of product can be found on the international market:food,clothes,spare parts,oil,jewelry,wine,stocks,currencies and water.Services are also traded:tourism,banking,con

7、sulting and transportation.A product that is sold to the global market is an export,and a product that is bought from the global market is an import.Imports and exports are accounted for in a countrys current account in the balance of payments.Increased Efficiency of Trading Globally Global trade al

8、lows wealthy countries to use their resources-whether labor,technology or capital-more efficiently.Because countries are endowed with different assets and natural resources(land,labor,capital and technology),some countries may produce the same good more efficiently and therefore sell it more cheaply

9、 than other countries.If a country cannot efficiently produce an item,it can obtain the item by trading with another country that can.This is known as specialization in foreign trade.Lets take a simple example.Country A and Country B both produce cotton sweaters and wine.Country A produces 10 sweate

10、rs and six bottles of wine a year while Country B produces six sweaters and 10 bottles of wine a year.Both can produce a total of 16 units.Country A,however,takes three hours to produce the 10 sweaters and two hours to produce the six bottles of wine(total of five hours).Country B,on the other hand,

11、takes one hour to produce 10 sweaters and three hours to produce six bottles of wine(total of four hours).But these two countries realize that they could produce more by focusing on those products with which they have a comparative advantage.Country A then begins to produce only wine and Country B p

12、roduces only cotton sweaters.Each country can now create a specialized output of 20 units per year and trade equal proportions of both products.As such,each country now has access to 20 units of both products.We can see then that for both countries,the opportunity cost of producing both products is

13、greater than the cost of specializing.More specifically,for each country,the opportunity cost of producing 16 units of both sweaters and wine is 20 units of both products(after trading).Specialization reduces their opportunity cost and therefore maximizes their efficiency in acquiring the goods they

14、 need.With the greater supply,the price of each product would decrease,thus giving an advantage to the end consumer as well.Note that,in the example above,Country B could produce both wine and cotton more efficiently than Country A(less time).This is called an absolute advantage,and Country B may ha

15、ve it because of a higher level of technology.However,according to international trade theory,even if a country has an absolute advantage over another,it can still benefit from specialization.Other Possible Benefits of Trading Globally Foreign trade not only results in increased efficiency but also

16、allows countries to participate in a global economy,encouraging the opportunity of foreign direct investment(FDI),which is the amount of money that individuals invest into foreign companies and other assets.In theory,economies can therefore grow more efficiently and can more easily become competitiv

17、e economic participants.For the receiving government,FDI is a means by which foreign currency and expertise can enter the country.These raise employment levels and,theoretically,lead to a growth in the gross domestic product.For the investor,FDI offers company expansion and growth,which means higher

18、 revenues.Free Trade vs.Protectionism As with other theories,there are opposing views.Foreign trade has two contrasting views regarding the level of control placed on trade:free trade and protectionism.Free trade is the simpler of the two theories:a laissez-faire approach,with no restrictions on tra

19、de.The main idea is that supply and demand factors,operating on a global scale,will ensure that production happens efficiently.Therefore,nothing needs to be done to protect or promote trade and growth because market forces will do so automatically.In contrast,protectionism holds that regulation of f

20、oreign trade is important to ensure that markets function properly.Advocates of this theory believe that market inefficiencies may hamper the benefits of foreign trade and they aim to guide the market accordingly.Protectionism exists in many different forms,but the most common are tariffs,subsidies

21、and quotas.These strategies attempt to correct any inefficiency in the international market.(973 words)Words and Expressions 1 available veilbl adj.可用的；有空的；可会见的；2 exchange iksteind n.交换；交易；3 sneaker sni:k n.橡皮底帆布鞋；4 expose ikspuz vt.使暴露；使遭受；使曝光 5 spare sp n.备用零件 6 currency krnsi n.货币；通用，流通 7 capital

22、 kpitl n.资本；资金；8 specialization,spelaizen n.特别化；专门化；9 comparative kmprtiv adj.比较（上）的；按比较估计的；相当的 10 output autput n.产量；输出；11 proportion prp:n n.比，比率；12 specifically spisifikli adv.特有地，明确地 13 access kses vt.接近，进入；14 maximize mks,maiz vt.最大化，使（某事物）增至最大限度；15 efficiency ifinsi n.效率，效能；16 asset set n.资产，财

23、产17 expertise,ekspti:z n.专门知识或技能；18 gross grus adj.总的；毛的；19 revenue revnju:n.（国家的）岁入，税收，（土地，财产等的）收入，收益，所得，（个人的）固定收入；复数总收入；20 protectionism prteknizm n.保护主义，贸易保护制度 21 hamper hmp vt.妨碍，束缚，限制22 tariff trif n.关税；23 subsidy sbsidi n.补贴；津贴；24 quota kwut n.（正式限定的）定量，定额；配额；指标 Notes 1 Because countries are e

24、ndowed with different assets and natural resources(land,labor,capital and technology).由于国家被赋予了不同的资产和自然资源（土地，劳动力，资本和技术）2 However,according to international trade theory,even if a country has an absolute advantage over another,it can still benefit from specialization.根据国际贸易理论，即使一个国家拥有绝对优势，它仍然可以受益于专业化。

25、3 foreign direct investment(FDI)外商直接投资 4 a laissez-faire approach 一种放任自流的方式 5 Protectionism exists in many different forms,but the most common are tariffs,subsidies and quotas.贸易保护主义以许多不同的形式存在，但最常见的形式是关税，补贴和配额。ExercisesI.Choose the best answer to each of the following questions according to the pass

26、ages.1 Which of the following things can be exchanged between countries in foreign trade?A goodsB raw materialsC servicesD both A and C2 Which of the following does NOT belong to services that can be traded?A bankingB politicsC tourismD transportation3 What kind of effect could political change resu

27、lt?A result in an increase in the cost of labor,then decreasing the manufacturing costB result in a decrease in the cost of labor,then decreasing the manufacturing costC result in an increase in the cost of labor,then increasing the manufacturing costD result in a decrease in the cost of labor,then

28、increasing the manufacturing cost4 Which are accounted for a countrys current account in the balance of payments?A importsB exportsC imports and exportsD imports,exports and entrepot5 Which of the following does NOT belong to resources of global trade?A landB laborC capitalD technology6 Some countri

29、es could produce more by focusing on certain products with which they have a comparative advantage,this is known as _ in foreign trade.A globalizationB internationalizationC specializationD categorization7 Which of the following statements are right?A Specialization increases their opportunity cost

30、and therefore maximizes their efficiency in acquiring the goods they need.B Specialization reduces their opportunity cost and therefore maximizes their efficiency in acquiring the goods they need.C Specialization reduces their opportunity cost and therefore minimizes their efficiency in acquiring th

31、e goods they need.D Specialization increases their opportunity cost and therefore minimizes their efficiency in acquiring the goods they need.8 As for FDI,which of the following statements are NOT right?A FDI is a means by which foreign currency and expertise can enter the country.B FDI is the amoun

32、t of money that individuals invest into foreign companies and other assets.C FDI offers company expansion and growth,which means higher revenues.D FDI raises employment levels and,theoretically,lead to a growth in the gross domestic product.9 Which of the following belongs to foreign trade theoryA F

33、ree TradeB ProtectionismC TraditionalismD both A and B10 Which of the following does NOT belong to the most common forms of protectionism?A tariffB subsidyC bonusD quotaII.Fill in the blanks with the words given blow.Change the form where necessary.available exchange expose currency capital comparat

34、ive output efficiency revenue hamper 1 Government statistics show the largest drop in industrial _ for ten years.2 Tourism is the countrys top earner of foreign _.3 The bad weather_ rescue operations.4 There are many ways to increase agricultural _ in the poorer areas of the world.5 Im going to go o

35、n an _ visit to Paris.6 The task was accomplished with _ ease.7 After the scandal was_,Dr Bailey committed suicide.8 One study said the government would gain about$12 billion in tax _ over five years.9 There are three small boats_ for hire.10 Companies are having difficulty in raising _.Text B Intro

36、duction Most of countries in the world pay much to foreign trade.Can you summarize the importance of foreign trade?Now,you can read the text to find out what are writers opinions about the importance of foreign trade.Then,you can compare if you and the writer share the same opinions.Importance of Fo

37、reign Trade Foreign trade is nothing but trade between the different countries of the world.It is also called as International trade,External trade or Inter-Regional trade.It consists of imports,exports and entrepot.The inflow of goods in a country is called import trade whereas outflow of goods fro

38、m a country is called export trade.Many times goods are imported for the purpose of re-export after some processing operations.This is called entrepot trade.Foreign trade basically takes place for mutual satisfaction of wants and utilities of resources.Three Types of Foreign Trade Foreign Trade can

39、be divided into following three groups:1 Import Trade:Import trade refers to purchase of goods by one country from another country or inflow of goods and services from foreign country to home country.2 Export Trade:Export trade refers to the sale of goods by one country to another country or outflow

40、 of goods from home country to foreign country.3 Entrepot Trade:Entrepot trade is also known as Re-export.It refers to purchase of goods from one country and then selling them to another country after some processing operations.Importance of Foreign Trade Following points explain the need and import

41、ance of foreign trade to a nation.1.Division of labor and specialization Foreign trade leads to division of labor and specialization at the world level.Some countries have abundant natural resources.They should export raw materials and import finished goods from countries which are advanced in skill

42、ed manpower.This gives benefits to all the countries and thereby leading to division of labor and specialization.2.Optimum allocation and utilization of resources Due to specialization,unproductive lines can be eliminated and wastage of resources avoided.In other words,resources are channelized for

43、the production of only those goods which would give highest returns.Thus there is rational allocation and utilization of resources at the international level due to foreign trade.3.Equality of prices Prices can be stabilized by foreign trade.It helps to keep the demand and supply position stable,whi

44、ch in turn stabilizes the prices,making allowances for transport and other marketing expenses.4.Availability of multiple choices Foreign trade helps in providing a better choice to the consumers.It helps in making available new varieties to consumers all over the world.5.Ensures quality and standard

45、 goods Foreign trade is highly competitive.To maintain and increase the demand for goods,the exporting countries have to keep up the quality of goods.Thus quality and standardized goods are produced.6.Raises standard of living of the people Imports can facilitate standard of living of the people.Thi

46、s is because people can have a choice of new and better varieties of goods and services.By consuming new and better varieties of goods,people can improve their standard of living.7.Generate employment opportunities Foreign trade helps in generating employment opportunities,by increasing the mobility

47、 of labor and resources.It generates direct employment in import sector and indirect employment in other sector of the economy.Such as Industry,Service Sector(insurance,banking,transport,communication),etc.8.Facilitate economic development Imports facilitate economic development of a nation.This is

48、because with the import of capital goods and technology,a country can generate growth in all sectors of the economy,i.e.agriculture,industry and service sector.9.Assistance during natural calamities During natural calamities such as earthquakes,floods,famines,etc.,the affected countries face the pro

49、blem of shortage of essential goods.Foreign trade enables a country to import food grains and medicines from other countries to help the affected people.10.Maintains balance of payment position Every country has to maintain its balance of payment position.Since,every country has to import,which resu

50、lts in outflow of foreign exchange,it also deals in export for the inflow of foreign exchange.11.Brings reputation and helps earn goodwill A country which is involved in exports earns goodwill in the international market.For example,Japan has earned a lot of goodwill in foreign markets due to its ex