3.6. Oral Practice

Hold a business exchange of opinions using the given cliches, set expressions, and some prompts.

Work with partners.

1. Как вы знаете, в свободной торговле су-

I think it’s an interesting point.

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ронам политики свободной междуна-

•expands mercantilexchanges.

родной торговли? I’d like to ad that.

•fre trade promotes international specialization makes the gods 2. Безусловно, ответыse lsenpxevi верные в отношении .ilebv I

положительных сторон политики сво-

export—import operations are realized in

бодной торговли. Но давайте посмот-

case of a perfect form.

рим, в чем принципиальное различие со-

In case of an imperfect form, the same

вершенной и несо дунежаорднмигорй .тволвершенной форм.iltsaezdno rae

a reop

3. Несовершенная форма международной

sm sa.ro rsaA tfeh f ,fenowIk

3.7. Development

3.7.1. Reading (skimming, scanning for subject and language study)

3.7.1.1. Read the text “Free Thide. Advantages and Disadvantages” and make a synopsis of it in

ian.

(!) Free Trade. Advanta ges and Disadvantages

By free trade we mean the condition in which the free flow of goods and services in international

exchange is neither restricted nor encouraged by direct government intervention. In practice all governments

are involved in regulating overseas trade in some way. The most common means of affecting the

distribution and levels of international trade are import tariffs, import quotas and export subsidies (export

incentives). It has been broadly accepted among economists that an international free-trade policy

is desirable to optimize world output and income levels in the long run. The Organization for European

Cooperation and Development and the United Nations (World Trade Organization) are committed to

freeing world trade, but most economists would agree that under present conditions complete freedom

of trade would not be desirable. In any case, it is clear that individual countries could gain from protectionism

(customs unions; first-mover advantage; infant-industry argument; protection).

Towards the end of the eighteenth century there was a reaction against mercantilism, which had

advocated government intervention to obtain surpluses on visible trade. This reaction was consolidated

in a new economic liberalism and the doctrine of laissez-faire. The classical economists’ support

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of a free-trade policy was not so much based on specific economic analyses of international trade as

simply part of their general belief in what Adam Smith called the “hidden hand” — the greatest good

is achieved if each individual is left to seek his own profit. The free-trade era lasted in England for

almost a century. After the First World War economic nationalism reached its peak and free trade was

abandoned for protectionism. However, since the end of the Second World War there has been a

general acceptance internationally of the dangers of protectionism and some reduction in international

trade barriers, especially for manufactured goods. Progress has been slow, and has paradoxically

been associated with the growth of regional customs unions. Some economists have advocated

unilateral free trade (countries can help themselves by freeing up imports, regardless of other countries’

behaviour). Other economists have seen the problem as that of the prisoner’s dilemma — with

individual incentives for nations to restrict trade, but a collective interest that all nations should pursue

it. In practice, the latter view is reflected in the many set-piece negotiations through the General

Agreement on Tariffs and Trade and culminating in the setting up of the World Trade Organization.