XV. Translate from Russian into English

1. В конкурентной отрасли должно быть много продавцов и покупателей.

2. В конкурентной отрасли ни покупатели, ни продавцы не считают, что их действия влияют на рыночную цену.

3. В конкурентной отрасли должно быть большое количество фирм, которые производят стандартный товар, назначают одинаковую цену за этот товар и имеют свободный вход и выход из отрасли.

4. Если все фирмы ограничат предложение, то они могут увеличить цену на свою продукцию.

5. Стоимость организации сплоченной группы могла бы быть непомерно высокой.

6. Логично последовавшее увеличение прибыли просто привлекло бы новые фирмы в отрасль.

Speaking

XVI. Talk to your partner and give one or two examples of a perfectly competitive market where neither buyers nor sellers believe that their own actions affect the market price.

XVII. Firstly work as a class and read the information below. Then think of examples of some firms and prove they are really perfectly competitive ones

SECTION 5.3. COMPETITION IN WORLD MARKETS

KEY VOCABULARY

1. Read and remember the following words

follow suit ['fɔlәu sju:t] – следовать примеру

drought [draut] – засуха

extreme [ɪk'stri:m] – самый отдаленный, крайний

levy [levɪ] – взимать (налог), облагать (налогом) (on/upon), вводить налоговые ставки

ensure [ɪn'ʃuә] – гарантировать, обеспечивать, ручаться

prohibitive [prәu'hɪbɪtɪv] – запрещающий, препятствующий

negligible ['neglɪʤәbl] – незначительный, неважный, не принимаемый в расчет, игнорируемый

II. Translate the following word combinations from Russian into English

внутренний рынок, падение цен, крупнейший поставщик, перемещение кривой спроса, в крайних случаях, транспортные издержки, по самой низкой цене.

III. Translate the word combinations from English into Russian

affect competitive markets, to highlight this issue, trade restrictions, unified world market, prices moving together, allow international differences, to be simultaneously traded.

IV. Listen, read and translate the text

COMPETITION IN THE WORLD MARKET

Changes in conditions in domestic markets are often the result of events in other countries. The fall in world oil prices in 1986 quickly led British producers of North Sea oil to follow suit. Wool prices in the European Community change when there is a drought in Australia, one of the world's largest wool suppliers. We now discuss how competitive markets in different countries are linked together and show why shifts in foreign supply or demand curves affect domestic markets.

When a commodity is internationally traded, its price in one country cannot be independent of its price in another country. In the extreme case, the «Law of One Price» will hold.

If there were no obstacles to trade and no transport costs, the Law of One Price implies that the price of a given commodity will be the same all over the world.

Without trade barriers and transport costs, suppliers would always wish to sell in the market with the highest price but consumers would always wish to purchase in the market with the lowest price. The commodity could be simultaneously traded in two different countries only if its price were the same in both markets. In practice, transport costs and trade restrictions such as tariffs (taxes levied only on imports) allow international differences in the price of a commodity. Nevertheless, unless these costs and restrictions are prohibitive, international competition will ensure that prices of the same good in different countries generally move together.