Consequence

следствие, последствие

to deteriorate

ухудшаться, портиться, разрушаться

to disrupt

разрушать, срывать, подрывать

to emerge

возникать, появляться

to eschew

избегать, сторониться

to falter

колебаться, спотыкаться

Fealty

верность (вассала феодалу)

to flee

бежать, избегать, исчезать

to go bust

разоряться,

оставаться без копейки

Hue

оттенок, цвет

Multilateral

многосторонний

Net private capital flow

чистый приток частного капитала

Plausible

правдоподобный

to plunge

погружать(ся)

Retaliation

возмездие, отплата

Scope

сфера, рамки, масштаб, возможности

to shrink

сокращать(ся), сжимать(ся)

to shrivel

высыхать,

вянуть, делать(ся) бесполезным

to slump

резко падать

Surplus

избыток,

излишек, профицит

to tempt

искушать,

соблазнять,

проверять

Transparency

принцип прозрачности

to triple

утраивать(ся)

to tumble

опрокидывать,

падать, рушиться

Unilateral

односторонний

to wrench

искажать, выворачивать

Text I

■ Skimming

Ex. 1. Skim the article below and choose the right topic for it:

a) Regulations of the World Trade Organization.

b) Free trade problems today.

c) Milestones of world economy.

******

(1) This Christmas the world economy offers few reasons for good cheer. As credit contracts and asset prices plunge, demand across the globe is shrivelling. Rich countries collectively face the severest recession since the Second World War... And conditions are deteriorating fast too in emerging economies, which have been whacked by tumbling exports and the drying-up of foreign finance.

(2) This news is bad enough in itself; but it also poses the biggest threat to open markets in the modern era of globalization. For the first time in more than a generation, two of the engines of global integration—trade and capital flows —are simultaneously shifting into reverse. The World Bank says that net private capital flows to emerging economies in 2009 are likely to be only half the record $1 trillion of 2007, while global trade volumes will shrink for the first time since 1982.

(3) This twin shift will force wrenching adjustments. Countries that have relied on exports to drive growth, from China to Germany, will slump unless they can boost domestic demand quickly. The flight of private capital means emerging economies with current-account deficits face a drought of financing as well as export earnings. There is a risk that in their discomfort governments turn to an old, but false, friend: protectionism. Integration has less appeal when pain rather than prosperity is ricocheting across borders. It will be tempting to prop up domestic jobs and incomes by diverting demand from abroad with export subsidies, tariffs and cheaper currencies.

(4) The lessons of history, though, are clear. The economic isolationism of the 1930s, epitomised by America’s Smoot-Hawley tariff*, cruelly intensified the Depression. To be sure, the World Trade Organization (WTO) and its multilateral trading rules are a bulwark against protection on that scale. But today’s globalised economy, with far-flung supply chains and just-in-time delivery, could be disrupted by policies much less dramatic than the Smoot-Hawley act. A modest shift away from openness—well within the WTO’s rules—would be enough to turn the recession of 2009 much nastier. Incremental protection of that sort is, alas, all too plausible.

* The Tariff Act of 1930, otherwise known as the Smoot–Hawley Tariff was an act, sponsored by United States Senator Reed Smoot and Representative Willis C. Hawley, and signed into law on June 17, 1930, that raised U.S. tariffs on over 20,000 imported goods to record levels.

■ Scanning

Ex. 2. Guess the meaning of the following phrases taken from the text:

1) to prop up domestic jobs and incomes (3)

2) far-flung supply chains (4)

3) incremental protection (4)

4) whacked by smth. (1)

5) ricocheting across borders (3)

Ex. 3. Find the synonyms from the text above to the following words and phrases:

1) attraction (3)

2) decline (1)

3) at the same time (2)

4) represented by smth. (4)

5) change (4)

6) work places within the home country (3)

7) pillar (4)

8) countries with the developing economy (1)

Ex. 4. Look through the article again and find the answers to the following questions:

1) What two elements of global integration are mentioned in the text?

2) What countries have been suffering most of all since 40s of the 20^th century?

3) What can help the countries that relied too much on the export?

4) What is considered to be the bastion for the free trade?

5) What countries can turn to the policy of protectionism?