Unit Three Why Nations Trade

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Unit ThreeWhy Nations Trade

• Lead-in
• Vocabulary
• Outline
• Text Study
• Summary
• Exercise

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Lead-in

• What do you think national trade is?
• Why do you think nations trade with each other?
• Do you know the history of Chinese trade?
• Can you imagine that someday you are going to see
  a movie with a Paris suit and in your German car?

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Vocabulary

• goods exchange product
  enable resource import
• elsewhere raw sale manufacture
  efficient

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goods

• things that are produced to be sold

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exchange

• ex- give to each other
• to give or receive something/someone of the same
  type or of equal value in return for another
• e.g. 1) He exchanged the blue sweater for a red
  one.
• 2) Ali exchanged seats with Ben.

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product

• something useful that is made in a factory,
  grown, or taken from nature
• product -ion production
• -ion the state or condition that
• e.g. conduct -ion conduction

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enable

• to give someone the ability or opportunity to do
  something
• e.g. Money from her aunt enabled Jan to buy the
  house.

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resource

• often used in plural form to mean something
  such as land, minerals, or natural energy
• e.g. 1) a country rich in natural resources
• 2) Canadas vast mineral resources
• Cf. 1) We must make the best possible use of our
  limited financial resources.
• 2) Martin has inner resources that will
  see him through this crisis.
• 3) resources for learning
• 4) resource room/centre

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import

• im- in, into
• ex- out
• import
• export

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elsewhere

• else where elsewhere
• some where somewhere
• any where anywhere

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raw

• in the natural state not yet treated for use.
  For example, rubber is raw material.

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manufacture

• to make or produce large quantities of goods to
  be sold
• e.g. 1) the company that manufactures the drug
• 2) manufactured goods
• 3) manufacturing industries
• Cf. produce to grow something or make it
  naturally make things to be sold
• e.g. 1) Canada produces high-quality wheat.
• 2) The factory produces an incredible 100
  cars per hour.
• 3) Gas can be produced from coal.

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efficient

• working or operating quickly and effectively in
  an organized way
• e.g. 1) The citys transport system is one of
  the most efficient in Europe.
• 2) We need someone really efficient who
  can organize the office and make it run smoothly.
• Cf. effective
• producing the result that was wanted or intended
• Start officially
• e.g. 1) Its a very effective cure for a
  headache.
• 2) The new law will become effective next
  month.

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Outline

• Para.1 The general form of international trade
  buying and selling goods and services.
• Paras.2-4 The reasons for nations to trade
• The differences in natural resources.
• It pays to specialize.
• Paras.5-8 Advantages of specialization
• It can make some goods that are of better
  quality.
• It also enables one country to produce
  some goods more cheaply.
• It may also help towns, countries, and
  people better off,
• Paras.9-10 Selling primary products
• Primary products are of great importance
  to many countries.

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Why Nations Trade

• International trade is the exchange of goods
  and services produced in one country for goods
  and services produced in another country. In most
  cases, countries do not trade the actual goods
  and services. Rather, they use the income or
  money, from the sale of their products to buy the
  products of another country.
• Trade among countries allows people in each
  country to use their energies in doing what they
  do best. That is, it lets them specialize. Trade
  and specialization go hand in hand and enable
  each of us to have more products to use and more
  different kinds of products at the lowest
  possible cost.

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• Nations trade for many reasons. First,
  they trade because there are differences in
  natural resources in different parts of the
  world. The plants that can be grown are
  different. The mineral resources are also
  different. For example, Canada has nickel mines
  bur produces large crops of oranges. So the
  United States buys nickel from Canada, and Canada
  buys oranges from the United States, ( We say
  that the United States exports oranges and
  imports nickel. Canada exports nickel and imports
  oranges. )

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• The second reason nations trade with one
  another is that it pays to specialize.
  Specialization makes the best use of a countrys
  productive resources-----its natural resources,
  the skill of its workers, and its factories.
• When a country specializes, it can make some
  goods that are of better quality than goods made
  elsewhere. Carpets woven in Iran and wine
  produced in France are examples of these special
  goods.

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• Specialization also enables one country to
  produce some goods more cheaply than another
  country. For example, the United States has
  factories, machines, and tools for manufacturing
  jet planes. Belgium has artisans who are skilled
  at making lace. So the United States sells jet
  planes to Belgium. Belgium sells lace to the
  United States. If the Belgians built factories
  and trained engineers for the few jets they need,
  those jets would be very expensive. If the United
  States began to trade people to make lace, that,
  too, would be expensive. By trading, both
  countries get a good product from abroad for less
  than it would cost if made at home.

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• It pays a country to specialize even if
  it can produce everything cheaply. Within each
  country there are some things that are produced
  more efficiently than other things. This is
  called comparative advantage.
• Suppose there is a person in town who is
  an excellent teacher and who also is a skilled
  carpenter. Suppose, too, that there is another
  person in town who is a skilled carpenter and who
  is a below-average teacher. If the second person
  could devote full attention to carpentry and the
  first person full attention to teaching, then the
  town would be making the best use of the skills
  and

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• talents it possesses. If, instead, both persons
  taught for half the week and did carpentry the
  other half, the town might not suffer from the
  quality of the carpentry. But the town would lose
  some of the benefits of better education, because
  the carpenter is a person of lesser teaching
  skills. In teaching, the carpenter does not have
  an advantage compared to the teacher. Towns,
  countries, and people are better off when they
  specialize in producing those things in which
  they have a comparative advantage.

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• Many countries get a large part of their
  income from selling one or two primary products.
  Primary products are the raw materials from which
  manufactured goods are made. They may be farm
  products, may come from beneath the surface of
  the earth, or may come from forests.
• For example, the majority of Colombias
  trade comes from selling coffee. Ghana depends
  heavily on cocoa exports. Malalysia depends on
  tin and rubber. These countries have all their
  eggs in one basket. If anything happens to the
  sales of their primary products, they are in
  trouble. Such countries will not be able to count
  on stable economies until they have more products
  to trade.

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          International trade is the exchange of
goods and services produced in one country for
goods and services produced in another country.

• This sentence gives us a definition of
  international trade.

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  in most cases

• 1.       in most situations
• cf. Cf. 1)in that case
• e.g Im afraid I cant come after all.
• Well, in that case Im not going either.
• 2)in any case
• e.g. We have to pass your house in any case,
  so well take you home.
•  

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    Rather, they use the income, or money, from
the sale of their products to buy the products of
another country.

• The writer uses rather to give more specific
  information about international trade, meaning
  it would be more exact/precise to say that they
  use the money they have got from selling their
  products to buy products of another country.

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• (or) rather used to give more specific
  information or correct something you have said.
• e.g. 1) You have to be sixteen for cheap
  tickets----or rather under sixteen.
• 2) He explained what the Crux is, or
  rather, what it was.

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That is, it lets them specialize.

• In other words, trade among countries enables
  them to specialize.
• In the sentence, it refers to trade among
  countries.
• that is (to say) in other words, used to
  indicate that the writer or speaker is about to
  express the same idea more clearly or precisely.
• e.g. 1) Education Ministers ought to have placed
  the interests of consumers---that is to say
  pupils---first.
• 2) Ill meet you in the city, that is, I
  will if the trains are running.

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• Specialize to limit all or most of your study,
  business, etc. to a particular subject or
  activity.
• e.g. 1)After qualifying, he decided to specialize
  in contract law.
• 2)We went to a restaurant that
  specializes in Italian food.

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hand in hand

•  if something goes hand in hand with something
  else, it is closely related to it and happens at
  the same time as it does or as a result of it
• e.g. 1) Prosperity goes hand in hand with
  investment,
• 2) Prosperity and investment go hand in
  hand.
• Cf. I saw Pat and Chris walking hand in hand.
  (holding each others hand) through town the
  other day.

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it pays to specialize

• 1. it brings an advantage to a country if it
  specializes
• it pays to do something doing something will
  bring a good result or advantage to do something
  else.
• e.g. 1) It usually pays to tell the truth.
• 2) It never pays to take risks where human
  safety is concerned.
• Cf. If the pub doesn't start to pay ( make a
  profit), well have to sell it.

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be skilled at / in doing sth

• 1. to have the knowledge and ability to do
  something well
• e.g. 1) Shes skilled at dealing with members of
  the public.
• 2) Few doctors are actually trained, and
  not all are skilled, in helping their patients
  make choices.

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at home

• 1.          in ones own country
• e.g. Newspapers both at home and abroad ignored
  the incident.

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comparative advantage

• 1.         
• be in a better position than others

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suppose

• 1.   is used at the beginning at the beginning of
  the sentence to suggest a situation.
• e.g. 1) Suppose (that) the news is true, what
  then?
• 2) Look, suppose you lose your job tomorrow,
  what would you do?

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below-average

• 1. below the standard or level which is
  considered to be typical or usual
• e.g. The quality of candidates was below
  average.

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devote to

• 1.   to give ones time or effort or love) wholly
  to (something he believes in or a person), or to
  use (a particular amount of time or energy) doing
  (something).
• e.g. She has devoted all her energies/life to
  taking care of homeless people.

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suffer from

• 1.   to experience something unpleasant, such as
  an illness, pain, loss, or hardship.
• e.g. 1) She suffers from headaches.
• 2) The village suffered from floods.

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benefit

• 1. something that gives you advantages or
  improves your life in some way.
• e.g. an aid program that has brought lasting
  benefits to the region.
• Cf. profit money that you gain by selling
  things or doing business
• e.g. She makes a big profit from selling waste
  material to textile companies.

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compared to/with

• 1.       in comparison with
• e.g. Compared to many others you are very
  lucky indeed.
• Cf. 1) compare to ???
• 2) compare with ????

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be better off

• 1. to have more money, to be in a better
  condition
• e.g. We are better off this year than we were
  last year.

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put all ones eggs in one basket

•   to depend on a single plan of action or person
  for success.
• e.g. Im applying for several jobs because I
  dont really want to put all my eggs in one
  basket.

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count on something

• 1.     to expect something to happen and include
  it in your plans.
• e.g. 1) You cant count on the weather being
  fine.
• 2) We are counting on selling at least 5000
  copies of the book.

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Summary

• International trade can be regarded as a
  form of buying and selling goods and services
  among different countries. There are two reasons
  for nations to trade the differences in natural
  resources in different countries and the benefit
  of specialization. When a country specializes, it
  can benefit in three ways. !) products it makes
  will have a better quality. 2) The cost of these
  products will be lower. 3) Most important of all,
  the people in these countries will enjoy a
  wealthier life. Countries can specialize not only
  by producing certain goods but also by selling
  primary products, which can be a very important
  source of income for many countries.

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Exercise

• Rewrite the sentences by using notuntil.
• EXAMPLE
• She understood it only when I explained it to
  her.
• She didnt understand it until I explained it to
  her.
• 1.The buses leave only when all the places are
  taken.
• The buses wont leave until all the places are
  taken.
•     2.I shall go to bed as soon as I have
  finished my work..
• I shall not go to bed until I have finished my
  work.

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• 3 3.  He arrived on Wednesday morning.
• He didnt arrive until Wednesday morning.
• 44.  Only yesterday did I learn the news.
• I didnt learn the news until yesterday.
• 3.5. We will leave only when the other guests
  have gone.
• We will not leave until the other guests have
  gone.
• 4. 6.John got back from the office very late last
  night.
• John didnt get bank from the office until very
  late last night.