TRADE

Trade is the buying and selling of goods between people and groups of people. There is home trade and foreign trade. Home trade is the buying and selling of goods and services inside the country. Foreign trade is the buying and selling of goods between trading organizations from different countries.

Goods brought into a country are called imports. Goods sent out of a country are called exports. Imported goods have to be paid for with the money received for the exported goods.

Most countries in the world rely on foreign trade to raise the standard of living of their population as they don't have sufficient raw materials and food to exist satisfactorily by themselves. Each country specializes in producing the goods which it can make best. Its specialization depends mostly on the ability of the workers to make the goods and the climate and natural resources of the country. Germany, Japan, the United States and Great Britain, as countries with trained manpower, specialize in the production of industrial equipment. The standard of living of an industrial country largely depends on the success of its trade.

Other countries like Sweden and Canada produce agricultural products such as dairy produce and wheat. France and Italy produce a lot of wine, Russia specializes in precious metals and gems mining, oil and gas extracting. Malaysia produces rubber, tin and palm oil and some industrial products.

Balance of trade is income and expenditure from trade in goods. Trade in products which can be seen is called visible trade and the money earned is called visible earnings.

Earnings which come from the services of say banking, transport, insurance and tourism are called invisible earnings. When invisible earnings are taken into consideration, we get a figure known as the balance of payment.

Vocabulary:

trade - торговля

home trade - внутренняя торговля

foreign trade - внешняя торговля

receive - получать

rely  (on) - полагаться (на), зависеть (от)

raise - повышать   

standard of living - уровень жизни

sufficient - достаточный

enable - давать возможность

exist - существовать

specialize (in) - специализироваться (на)

product - продукт, продукция

depend (on) - зависеть (от)

ability - способность, умение

manpower (syn. labour) - рабочая сила

success - успех

dairy produce - молочные продукты

wheat - пшеница

precious metals - драгоценные металлы

gem - драгоценный камень

balance of trade- торговый баланс

balance of trade surplus - положительное сальдо в торговом балансе

balance of trade deficit - дефицит в торговом балансе

income - доход

expenditure - расходы

visible trade - “видимая” торговля (экспорт и импорт товаров)

invisible trade -“невидимая” торговля (экспорт и импорт услуг)

earn - зарабатывать

earnings - заработанные деньги, поступления

take into consideration - принимать во внимание

figure - цифра

balance of payment - платежный баланс

Insert the right prepositions:

1) The production of goods starts .... the raw material stage. 2) Factories make raw materials .... finished goods. 3) Wholesalers sell goods .... retailers. 4) Insurance is a financial protection .... loss. 5) Raw materials used .... production are obtained .... the land. 6) Raw materials are sometimes referred .... as primary sector. 7) Sweden specializes .... agricultural products. 8) Italy trades .... wine. 9) Please, explain how we arrive .... a balance of trade figure. 10) Most countries depend .... trade .... each other.