To the achievement of equilibrium. Price discrimination between markets is difficult or impossible

Where possibilities for arbitrage exist. The participants of a forward market who exercise buying

Of foreign exchange in one foreign exchange market and simultaneously exercise selling in

Another forward market and gain spread are called arbitrageurs (arbitragists). The participants of a

Forward market who buy and sell foreign exchange in accordance with the order of the stock exchange

Customers and gain commission are called traders unlike exchange speculators who support

An open currency position.

Commentary and Notes to Text 8.7.1.3

Dealing costs — расходы, связанные со сделкой

Switching from... to... — переключение с... на...

The cost of covering against the risk — стоимость покрытия риска

A forward market — срочный рынок

The order — поручение

The stock exchange customers — биржевые клиенты

Traders — трейдеры (брокеры)

Exchange speculators — спекулянты на валютной бирже

8.7.1.4. Read and translate the text “The Relationship Between Imports and Exports.” Try to

substantiate the corollary: “Any restriction of imports ultimately reduces exports.”

The Relationship Between Imports and Exports

The basic proposition in understanding all of international trade is this:

In the long run, imports are paid for by exports.

We have to modify this rule by adding that imports can also be paid for by the sale of real and