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Ex. 4. Fill in the gaps with a suitable preposition.


1. The study ____ economics would be incomplete _________ an understanding ____ the

nation’s role _____ the world economy.

2. _____ opening _____ markets, a government allows its citizens to produce and export those

things they are best _____.

3. When a country decides to protect its economy _____ erecting artificial trade barriers, the

result is often damaging _____ everyone.

4. __________ the fact that trade is _____ great importance _____ each nation, all countries

impose restrictions_____one form or another to protect some _____their domestic industries.

5. Indian tea, Brazilian coffee, and American films are sold _______ the world _____ currencies

as diverse as Turkish liras and Mexican pesos.

6. Tariffs are customs duties or taxes imposed _____ a government _____ the importation ____

a good.

7. Tariffs may be specific, ______ the form ______ a tax per unit _____ the commodity, or

ad valorem, based ______ the value _____ the commodity.


Ex. 5. Give sentences with the following phrases.


1. has been gaining increasing significance

2. flow of funds

3. to erect trade barriers

4. a two-way street

5. sets of laws

6. establish higher standards of quality

7. involves various currencies

8. interlinked global economy

9. to protect some of their domestic industries

10. spread around the world



Ex. 6. Answer the questions.


1. What does “international economics”study?

2. Why do nations trade?

3. Does trading involve various currencies?

4. What does “flow of funds” mean?

5. How can international trade make everyone better off?

6. Why do all countries impose restrictions on the importation of goods and services?

7. What restrictions do the countries impose?

8. What is the difference between specific tariff and ad valorem?

9. What do some countries do in order to restrict import?

10. What happens when a country decides to protect its economy by erecting artificial trade





1. What would happen to standards of living in your country if all foreign trade were prohibited?

How significant do you think this would be? In what areas would this impact be the strongest?

2. In order to restrict import many countries impose nontariff barriers. It encourages foreign

manufactures to produce high-quality goods in order to work up (завоевать) foreign markets.

It leads to the situation when high-quality imported goods are in more demand than the similar

goods produced domestically. Do you think it, in its turn, encourages domestic manufactures

to better the quality of domestic goods?


Text 2



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