Specific Factors

In this model, labour mobility between industries is possible while capital is immobile between industries in the short run. The specific factors name refers to the given that in the short-run specific factors of production, such as physical capital, are not easily transferable between industries. The theory suggests that if there is an increase in the price of a good, the owners of the factor of production specific to that good will profit in real terms. Additionally, owners of opposing specific factors of production (i.e. labour and capital) are likely to have opposing agendas when lobbying for controls over immigration of labour. Conversely, both owners of capital and labour profit in real terms from an increase in the capital endowment. This model is perfect for understanding income distribution but awkward for discussing the pattern of trade. It is ideal for particular industries.

The Gravity model of trade presents a more empirical analysis of trading patterns rather than the more theoretical models discussed above. The gravity model, in its basic form, predicts trade based on the distance between countries and the interaction of the countries' economic sizes. The model mimics the Newtonian law of gravity which also considers distance and physical size between two objects. The model has been proven to be empirically strong through econometric analysis. Other factors such as income level, diplomatic relationships between countries, and trade policies are also included in expanded versions of the model.

Notes:

1. international economics – международная экономика (часть экономической науки, изучающая международные экономические отношения: торговлю, кредитование, миграцию ресурсов, интеграцию)

2. trade policy – торговая [внешнеторговая] политика

3.The Heckscher-Ohlin model – теория Хекшера-Олина

4. comparative advantage – сравнительное преимущество

5. Leontief paradox – парадокс Леонтьева (вывод о том, что вопреки теории Хекшера-Олина, капиталоизбыточная страна может экспортировать трудоемкую продукцию)

6. econometric analysis – эконометрический анализ (эконометрика – изучение экономических явлений на основе анализа данных с применением методов математики и статистики)

I. Прочитайте текст (без словаря).

II. Перепишите следующие предложения, определите в каждом из них видо-временную форму и залог глагола-сказуемого. Переведите предложения на русский язык.

1. Empirical problems with the Heckscher-Ohlin model were exposed in empirical tests by Wassily Leontief

2. Such factors as income level, diplomatic relationships between countries and trade policies are included in expanded versions of the gravity model.

3. The Gravity model can be used in econometric analysis.

4. Specific Factors model was designed to replace the preceding models of international trade.

5. Several theoretical models may be proposed to analyze the effects of trade policies.

III. Перепишите следующие предложения и переведите их на русский язык, обращая внимание на разные значения слов that, it, one.

1. It is possible for some countries to export those goods that make intensive use of locally abundant factors.

2. In the Heckscher-Ohlin model one can see an alternative to the Ricardian model of basic comparative advantage.

3. It is easier for developed contries to specialize instead of producing a broad array of goods.

4. This theory suggests that if there is an increase in the price of a good, the owners of the factor of production specific to that good will profit in real terms.

5. One should note, however, that this model is perfect for understanding income distribution but awkward for discussing the pattern of trade.

IV. Перепишите предложения и переведите их на русский язык, обращая внимание на разные значения глаголов to be, to have, to do.

1. It is possible for some countries to export those goods that make intensive use of locally abundant factors.

2. One way to digest this contradictory literature is to combine and assess these results in a single statistical analysis, called meta-analysis.

3. This theory does not set standards in the various countries, though its goal is to help harmonize economic laws.

4. Some of models of international trade have been in existence for many years.

5. According to this model, owners of such specific factors of production as labour and capital have opposing agendas when lobbying for controls over immigration of labour.

V. Перепишите следующие предложения и переведите их на русский язык, обращая внимание на бессоюзное подчинение.

1. Empirical analysis of trading patterns this theory presents must be used for understanding income distribution and discussing the pattern of trade.

2. The use of specific factors of labour and capital the corporation has made have been financed by shareholders investments.

3. The Newtonian law of gravity this model mimics considers distance and physical size between two objects.

4. The quantity of goods countries want to import depends on taxes and prices.

5. The specific factors this theory distinguishes are not easily transferable between industries.

VI. Перепишите следующие предложения и переведите их на руcский язык, обращая внимание на функцию инфинитива в предложении.

1. The Heckscher-Ohlin model is an attempt to produce an alternative to the Ricardian model of basic comparative advantage

2. The main purpose of several different models of international trade is to predict patterns of trade and to analyze the effects of trade policies such as tariffs.

3. The model requires countries to develop rules of origin to prevent imports from third countries from being transshipped through the member country with the lowest tariffs.

4. Three types of agreements were intended to stabilize the region after 1989.

5. Several different models have been proposed to predict patterns of trade and to analyze the effects of trade policies such as tariffs.

VII. Прочитайте, перепишите и письменно переведите следующий текст.

VIII. Ответьте письменно на следующие вопросы:

1. What does the Ricardian model of international trade focus on?

2. Who fully specializes in the Ricardian model?

3. What is the main purpose of the Heckscher-Ohlin model?

4. What is the Specific Factors model ideal for?

5. In what features do the Gravity model of trade and the Specific Factors model differ?

Вариант 3

Trade

Trade is the voluntary exchange of goods, services, or both. Trade is also called commerce. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.

Trade exists for many reasons. Due to specialisation and division of labour, most people concentrate on a small aspect of production, trading for other products. Trade exists between regions because different regions have a comparative advantage in the production of some tradable commodity, or because different regions' size allows for the benefits of mass production. As such, trade at market prices between locations benefits both locations. Trading can also refer to the action performed by traders and other market agents in the financial markets.

Patterns of organizing and administering trade include: state control, laws regulating trade and establishing a framework, guild control, free enterprise, infrastructure in support of trade, technology in support of trade such as electronic commerce, vending machines.

Trade has taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the stone age. Materials used for creating jewelry were traded with Egypt since 3000 BC. Trading is important to the global economy. From the beginning of Greek civilization until the fall of the Roman empire in the 5th century, a financially lucrative trade brought valuable spice to Europe from the far east, including China. Roman commerce allowed their empire to flourish and endure.

In 1776, Adam Smith published the paper An Inquiry into the Nature and Causes of the Wealth of Nations. It criticised Mercantilism, and argued that economic specialisation could benefit nations just as much as firms. In 1817, David Ricardo, James Mill and Robert Torrens showed that free trade might benefit the industrially weak as well as the strong, in the famous theory of comparative advantage.

The Great Depression was a major economic recession that ran from 1929 to the late 1930s. During this period, there was a great drop in trade and other economic indicators.The lack of free trade was considered by many as a principal cause of the depression. During the war, in 1944, 44 countries signed the Bretton Woods Agreement, intended to prevent national trade barriers, to avoid depressions. It set up rules and institutions to regulate the international political economy. In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade.

Free trade advanced further in the late 20th century and early 2000s. In 1992 European Union lifted barriers to internal trade in goods and labour. January 1, 1995 World Trade Organization was created to facilitate free trade, by mandating mutual most favoured nation trading status between all signatories. EC was transformed into the European Union, which accomplished the Economic and Monnetary Union (EMU) in 2002, through introducing the Euro, and creating this way a real single market between 13 member states.

Notes:

1. commerce – (оптовая) торговля; коммерция

2. medium of exchange – средство обращения (функция денег, состоящая в обеспечении обмена одних товаров или услуг на другие)

3. multilateral trade – многосторонняя торговля

4. comparative advantage – сравнительное преимущество (способность страны или фирмы производить товары с меньшими альтернативными затратами, чем у конкурентов)

5. trader – трейдер, торговец (особ. оптовый)

6. «An Inquiry into the Nature and Causes of the Wealth of Nations» - «Исследование о природе и причинах богатства народов» (1776), труд Адама Смита (1723-90), шотландского экономиста и философа, одного из крупнейших представителей классической политэкономии

7. Mercantilism – меркантилизм (первая школа политэкономии)

8. free trade – беспошлинная торговля

9. The Great Depression – Великая депрессия, кризис 1929-1933 гг.

10. The Bretton Woods Agreement – Бреттон-Bудское соглашение о послевоенной валютной системе (1944 г.)

11. World Trade Organization – Всемирная торговая организация (ВТО)

12. EC (European Community) – Европейское сообщество (ЕС)

13. General Agreement on Tariffs and Trade (GATT) – генеральное соглашение о тарифах и торговле, ГАТТ (1948 г.)

I. Прочитайте текст (без словаря).

II. Перепишите следующие предложения, определите в каждом из них видо-временную форму и залог глагола-сказуемого. Переведите предложения на русский язык.

1. European free market must unite European countries of which 13 have already signed the Free Trade Agreement.

2. Buying can be separated from selling or earning.

3. Free trade diffusion is also governed by close contacts and the hands-on relationships that are more likely with neighbors.

4. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade

5. Imported inputs that can be used in the production of the exported good.

III. Перепишите следующие предложения и переведите их на русский язык, обращая внимание на разные значения слов that, it, one.

1. It is the lack of free trade that is the principal cause of the depression

2. One goal of developing countries seeking an Regional Trade Agreement (RTA) with a large market, such as the EU or the United States, is simply to secure market access.

3. Market is a mechanism that allows trade.

4. One should know that barter is the direct exchange of goods and services.

5. In this way a country that is open to trade can benefit from free trade activities undertaken overseas.

IV. Перепишите предложения и переведите их на русский язык, обращая внимание на разные значения глаголов to be, to have, to do.

1. Any individual may buy goods or products in large quantities from manufacturers or importers and sell smaller quantities to the end-user and when he does so he becomes a “retailer”.

2. The aim of economic specialisation is to benefit nations just as much as firms.

3. The objective is to promote development, strengthen regional integration, and ensure compatibility with WTO principles.

4. The European Fair Trade Association is to promote fair trade and to make fair trade importing more efficient and effective.

5. Because a new entrant has to build plants in both countries (not just one), the agreement acts as a barrier to competition that favored insiders.

V. Перепишите следующие предложения и переведите их на русский язык, обращая внимание на бессоюзное подчинение.

1. Trade the private business associations control to exclude new entrants is known as guild control.

2. High tariff rates, restrictions on services entry, and controls on agriculture the economists distinguish impede trade and keep transactions costs high.

3. Trader must know the actions other market agents perform in the financial markets.

4. A strategy of export-led growth East Asia generally followed resulted in elimination of anti-export bias and sustained nondiscriminatory liberalization.

5. The economic growth this year depends on barriers European Union lifted to internal trade in goods and labour last year.

VI. Перепишите следующие предложения и переведите их на русcкий язык, обращая внимание на функцию инфинитива в предложении.

1. Trade is believed to have taken place throughout much of recorded human history.

2. To measure the role of imported intermediates in trade, we calculate an index of vertical specialization, which measures the share of the value added of an export accounted for by imported intermediate inputs.

3. A customer may have to pay more if the seller determines that he or she is willing to.

4. Most-favored-nation (MFN; i.e., nondiscriminatory) liberalization, which creates more trade, is the fastest and most efficient way to increase intraregional trade.

5. Roman commerce allowed their empire to flourish and endure.

VII. Прочитайте, перепишите и письменно переведите текст.

VIII. Прочитайте текст и ответьте письменно на вопросы:

1. What is trade?

2. What reasons does trade exist for?

3. What do patterns of organizing and administering trade include?

4. How long is trade believed to have taken place?

5. What is the basic difference between barter and trade through a medium of exchange?

Вариант 4