Listening Comprehension II

You will hear Ajit Singh, Professor of Economics at Cambridge University, talking about free trade and unemployment.

Ex. 1. Listen to Part One of the interview, and then listen a second time and complete the following sentences.

1. Formerly, the less developed countries were against free trade because ….

2. Countries like South Korea and Malasia are competitive today because they’ve been able to….

3. Free trade is disruptive; in other words ….

4. The advantage of free trade is that …

5. People in industrialized countries can only put up with the disruption caused by free trade if….

Ex. 2. Listen to Part Two of the interview and answer these questions.

1. What would African countries need to do if they wanted to develop a car industry?

2. What does Ajit Singh say could lead to full employment in the rich countries?

3. What does he say will be the consequences if mass unemployment continues?

4. Does he foresee an end to mass unemployment?

DISCUSSION

Discuss:

– the reasons for opposing protectionism by many economists

– the reasons for imposing tariffs and quotas

– the attitude of many developing countries to GATT until the 1980s

– the increase of international trade of the Third World Governments

– the notion and definition of a market

– different types of markets

– the advantages and disadvantages of free trade

– free trade and dumping

– the problem of international debt

– the advantages and disadvantages of import and export for a country's economy. For the customer

VOCABULARY

principal, n – основная сумма, капитал, сумма долга на которую начисляется процент

retaliate, v – принять ответные меры

rollover, n– пролонгация кредита (путем выдачи новой ссуды взамен старой)

short-term capital, v – краткосрочный капитал

supersede, v – заменять

GLOSSARY

Autarky – the (impossible) situation in which a country is completely self – sufficient and has no foreign trade

Balance of trade – the difference between what a country receives and pays for its exports and imports of goods)

Deficit– a negative balance of trade or payments

Dumping – selling goods abroad at (or below) cost price

Invisible imports and exports – trade in services (banking, insurance, tourism and so on)

Protectionism– imposing trade barriers in order to restrict imports

Quotas– quantitative limits on the import of particular products or commodities

Surplus – a positive balance of trade or payments

Tariffs – taxes charged on imports

Visible trade – trade in goods

TAPESCRIPT

Unit 2. In the Office