The Grounds for Exports

Trade relations among nations provide mutually beneficial exports of goods and services. The

basis of trade relations has already been examined. Let us see again what exports are.

By exports we mean the goods and services produced by one country which are sold to another

in exchange for the second country’s own goods and services, for gold and foreign exchange or

in settlement of debt. Countries tend to specialize in the production of those goods and services

in which they can be relatively most efficient, because of their indigenous factor endowments

(factors of production). Countries devote home resources to exports because they can obtain

more goods and services by international exchange than they would from the same resources

devoted to direct home production. The UK’s exports of goods amount to about 28 per cent of

its gross national income, compared with about 11 per cent in the USA.

Vocabulary Notes to Text 2.7.1.3

1. grounds for exports — обоснование экспорта

2. in settlement of debt — для урегулирования долга

3. indigenous factor endowments — фактор природных (местных) преимуществ

2.7. 1.4. Read the text “Problems of Foreign Trade and Economic Relations of Developing Countries”

And make a synopsis of it in Russian.