Unit 27.docx

UNIT 27: INTERNATIONAL TRADE Read the text on page 133 and do the following exercises: Answer the following questions

Explain in detail the analogy Chang makes between child labour and free trade (or between education and protectionism) The analogy is: When you are trying to get into a more difficult and thereby higher-return activity, developing countries have to invest in it.

What is the short-disadvantage of protecting growing industries? The investment comes in the form of protection, which makes for the moment, your local consumer use expensive and inferior domestic products.

What does each of the underlined part refer to?

“This little guy is perfectly capable of making a living” (Paragraph 1) THE YOUNG SON …………………………………………………………………........................... “Well, of course I don’t do this.” SEND HIS SON TO THE LABOUR MARKET…………………………...........................

Ø Words and expressions: Find words in the text with the following meanings

1/ the supply of people in a particular country or area who are able and willing to work LABOUR MARKET 2/ a person who travels about selling goods, typically advertising them by shouting A STREET HAWKER 3/ the possibility of something bad happening DANGER / RISK

POST READING TASKS

VOCABULARY REVIEW

Complete the sentences with one of the words in the following box protectionism inefficient

high-return

stimulate expose

analogy

physicist inferior

1. While there are several investment plans, one can choose ..HIGH-RETURN.......... investment options if they are willing to take risks.

2. You might call something .......INFERIOR.................... if its quality is not as good as another.

3. .........INEFFICIENT.................... management may come from the leader’s individual personality.

4. A raise in employee wages can ...........STIMULATE................ production

5. Isaac Newton (1643-1727) was a great .............PHYSICIST.............. who outlined the principle of gravity.

6. There will be a lot of competitive and strong companies coming here and even though Kosovo is a small company, one of our main interest is to ..........EXPOSE............ it to the world market.

7. Australia’s Treasurer, Wayne Swan, used the ......ANALOGY................ of Hurricane Katrina to convince his audience that through crisis came a better understanding of underlying weaknesses in a system.

8. Trade .....PROTECTIONISM....................... is how countries raise tariffs and reduce imports to protect their domestic industries