1. INTERNATIONAL TRADE, cont. + * EU* RB, p 45-55 MK, U 27

2. READING: RB, p 45 PROTECTIONISM AND FREE TRADE, cont. After reading the specified paragraphs match with headings 1&23-5 Organizations promoting free trade Reasons for protectionism Economic reasons for free trade Problems of developing countries

3. Collocations from pgs 1 & 2 rai______ living standard spe______ in the production c________ advantage ___ producing... fac______ of production natural r_________ div_______ of labour ec_______ of scale

4. Collocations from pgs 1 & 2 raise living standard specialize in the production comparative advantage in producing... factors of production natural resources division of labour economies of scale Pairwork: Practice talking about economic reasons for practicing free trade / trade liberalization (use the phrases above, propose further phrases)

5. Free trade vs. Protectionism International trade (imports and exports) without government r__________ Trade of goods and services without trade b_______ Protection of d________ industries against foreign c________ Government restrictions are placed on the i______ of foreign competitors (tarrifs, quotas and subsidies) estrictions arriers omestic ompetition mports

6. Reasons for TRADE LIBERALIZATION spe_______n a______e/c________e advantage a_____s to markets intern. c________n & efficiency efficient market m_________m freer m________t of resources f______m to choose

7. TRADE LIBERALIZATION vs. PROTECTIONISM (reasons for)(reasons for) protect jobs (v____s) protect d_______c ind. strategic reasons –i_____t industries political p______e protect culture (?) r______e prevent d________g specialization absolute/comparative advantage access to markets intern. competition & efficiency efficient market mechanism freer movement of resources freedom to choose

8. TRADE LIBERALIZATION vs. PROTECTIONISM (reasons for)(reasons for) specialization absolute/comparative advantage access to markets intern. competition & efficiency efficient market mechanism freer movement of resources freedom to choose protect jobs (votes) protect domestic ind. strategic reasons –infant industries political pressure protect culture (?) revenue prevent dumping

9. Which reason for imposing barriers to trade should apply? Why? Explain the cartoon!

10. Collocations from paragraphs 3, 4 & 5 im________ tariffs & quotas / restrictions pro________ strategic / infant industries ab_________ sectors l____ to structural unemployment red________ a balance of payment deficit pr_________ against dumping des_______ or wea______ competitors ret________ against restrictions a_________ economies of scale s____ a limit to imports pro______ revenue for the government

11. Collocations from paragraphs 3, 4 & 5 impose tariffs & quotas / restrictions protect strategic / infant industries abandon a sector lead to structural unemployment reduce a balance of payment deficit protect against dumping destroy or weaken competitors retaliate against restrictions achieve economies of scale set a limit to imports provide revenue for the government

12. TRADE BARRIERS Tariffs Import quotas Embargo Subsidies Non-tariff barriers: Import substitution Safety norms Customs difficulties and delays

13. Name the trade barrier 1.Taxes on imported goods. They raise the price to customers and make them less attractive. 2.Limits on the quantity of a product that can be imported into a country e.g. 200,000 cars. 3.Laws and safety guidelines. 4.Making it difficult to arrange all certificates necessary to import into a country. 5.When a country produces and protects goods that cost more than those made abroad. 6.Money paid by a government to producers of certain goods to help them provide low-priced goods without loss to themselves. 7.A government order to stop trade with another country. Tariffs Quotas Subsidy Safety norms Import substitution Embargo Custom difficulties and delays

14. Barriers to free trade and what to do with them: Complete the sentences with appropriate terms: Customs ______ on seafaring vessels are very high. Only breeders of endangered species qualify for government _________. If the Govt. lifts import ________ for apples, nobody knows what quantities of apples will be imported. The Government decided to impose a high _____ on the import of SUVs in order to disuade people from buying them. Importers will face charges if they ________ quotas. The government will _______ subsidies to electric car companies and their suppliers. duties subsidies quotas tariff exceede grant / provide

15. RB, p 46 Read paragraphs 6 & 7 to explain: ORGANISATIONS PROMOTING FREE TRADE & THEIR FUNCTION OPPOSITION TO FREE TRADE Heading? Organizations promoting free trade Reasons for protectionism Economic reasons for free trade Problems of developing countries

16. What is GATT? What is WTO? What does the final GATT agreement from 1997 include? Which form of protectionism is the only one allowed by the WTO? Why did it take 50 years to finalize the agreement?

17. Collocations from paragraphs 6 & 7 gr____ favourable conditions opp_____ free trade countera_____ a fall in prices pra______ import substitution

18. Collocations from paragraphs 6 & 7 grant favourable conditions oppose free trade counteract a fall in prices practice import substitution

19. Read paragraphs 8 & 9 to explain: PROBLEMS & FEARS OF DEVELOPING COUNTRIES (IMF) Heading? Organizations promoting free trade Reasons for protectionism Economic reasons for free trade Problems of developing countries

20. Read paragraphs 8 & 9 to explain: PROBLEMS & FEARS OF DEVELOPING COUNTRIES (IMF) 1 need to repay huge d____ - IMF imposed obligation to export 2 s_______ of the East Asian “Tiger” economies 3 c_______ of the Soviet Union 4 potential ex________ from the t______ blocks (the EU, NAFTA)

21. Read paragraphs 8 & 9 to explain: PROBLEMS & FEARS OF DEVELOPING COUNTRIES (IMF) 1 need to repay huge debts - IMF imposed obligation to export 2 success of the East Asian “Tiger” economies 3 collapse of the Soviet Union 4 potential exclusion from the trading blocks (the EU, NAFTA)

22. Collocations: p_____ the interest r______ the principal r______ (renew) a loan r _________ (postpone) repayments i________ severe conditions t_______ blocks l_______the economy l_______trade barriers

23. HW: RB, p 47 Write the questions. MK, p 133 Education and protection Read the text and get ready to answers Questions 1 & 2 + Discussion