1.

COLLOCATIONS

a. Make a living
b. Capable of achieving the targets
c. Turn out to be a disaster
d. Take a risk
e. Know for sure
f. Invest in stock and share
g. Increase the productivity
h. Expose themselves to the pressures of foreign markets
i. Create job opportunities
j. Get into risky ventures

2. DEFINITION
a. The products which are made in own industries =  domestic products
b. A legal right created by the law of a country that grants the creator of an original work exclusive rights
for its use and distribution = copyright
c. International buying and selling of goods, without limits on the amount of goods that one country can
sell to another, and without special taxes on the goods bought from a foreign country = free trade
d. A situation in which something is not likely to move or change = stability
e. The protection of creations of the mind, which have both a moral and a commercial value =
Intellectual property
f. The state of not achieving maximum productivity; failure to make the best use of time or resources =
Inefficiency
g. A system of organizations, people, activities, information, and resources involved in moving a product
or service from supplier to customer = Supply chain
h. Any name, symbol, figure, letter, word or mark adopted and used by a manufacturer or merchant in
order to designate specific goods and to distinguish them from those manufactured or sold by others =
Trademarks
i. The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output
per unit of input = Productivity
j. Measures that governments or public authorities introduce to make imported goods or services less
competitive than locally produced goods and services = Trade barriers
READING CHAP 27

EDUCATION AND PROTECTION

The Korean economist Ha-Joon Chang is the author of several books including Bad Samaritans – Guilty Secrets
of Rich Nations and the Threat to Global Prosperity. Here is part of an interview about this book. Read it and
answer the questions below.

To explain this idea in the book I use the example of my young son. This little guy is perfectly capable of
making a living. He’s already eight now, but when I wrote the book he was six. Millions of children work in
developing countries from the age of four or five, as did millions of children in rich countries in the 19th and
early 20th century. Maybe I should send my son to the labour market and make him get a job. If he can earn his
own living, that’s a lot of money saved for me. But more importantly, this will expose him to competition and
make him a very productive person. Well, of course I don’t do this. He is quite a clever kid and maybe if I
support him for another 12 or 15 years, he could become a software engineer or brain surgeon or nuclear
physicist. Of course, there’s a danger that he might turn out to be a total waste of time, but that’s a risk I’m
willing to take. I know for sure that if I kick him into the labour market now, he will become a shoe-shine boy,
and will maybe grow up to be a street hawker, but he will never be a brain surgeon or a nuclear physicist. 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. The investment comes in the form of protection, which makes, for the moment,
your local consumer use expensive and inferior domestic products. But unless you do that, these industries are
not going to grow, you accept that you will use inferior products from inefficient producers for the time being.
In the meantime, you do certain things to make sure that these firms grow up, i.e. they increase their
productivity and eventually give you cheaper domestic goods, create jobs and stimulate other activities. In the
end, you are better off that way.

So, inefficiency is part of the deal. Only you are deliberately creating these inefficiencies with the view of
becoming even more efficient than otherwise possible.

➢ Choose the best answer

1. What is the minimum age to start working in developing countries?

A. 6 B. 8 C. 4

2. According Ha-Joon Chang, if he supports his son for more than 10 years, the kid will definitely

grow up to be a white-collar worker.

A. True B. False C. Not given

3. What do customers have to accept in order to help their domestic firms to grow up?

A. inferior and expensive domestic products

B. cheap and good-quality domestic products

C. cheap and inferior domestic products

➢ Answer the following questions

4. Explain in detail the analogy Chang makes between child labour and free trade (or between

education and protectionism)

.......................................................................................................................................................

……………………………………………………………………………………………………

5. What is the short-term disadvantage of protecting growing industries?

..............................................................................................................................

..............................................................................................................................

➢ What does each of the underlined part refer to?

6. ‘This little guy is perfectly capable of making a living’ (Para. 1)

..............................................................................................................................

7. ‘Well, of course I don’t do this.’ (Para. 2)

..............................................................................................................................

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

8. the supply of people in a particular country or area who are able and willing to work

..............................................................................................................................

9. a person who travels about selling goods, typically advertising them by shouting

..............................................................................................................................

10. the possibility of something bad happening

..............................................................................................................................
4, VOCAB REVIEW

Protectionism high-risk physicist inefficient

Stimulate analogy inferior expose

1. While there are several investment
plans, one can choose ………………. investment options if they are willing to take risks.
2. You might call something ………………. if its quality is not as good as another.
3. ………………. management may come from the leader’s individual personality.
4. A raise in employee wages can ………………. production.
5. Isaac Newton (1643-1727) was a great ………………. 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 ………………. it to the world market.
7. Australia’s Treasurer, Wayne Swan, used the ………………. of Hurricane Katrina to convince his audience that
through crisis came a better understanding of underlying weaknesses in a system.
8. Trade ………………. is how countries raise tariffs and reduce imports to protect their domestic industries.
FURTHER READING: FOR AND AGAINST FREE TRADE
Before discussing arguments for and against free trade, match up these words and definitions.

 a cheaper copy of a product that is not marked with the producer’s name = generic
 a name or a symbol showing that a product is made by a particular producer and which cannot be legally used by
anyone else. = trademark
 selling unwanted goods very cheaply, usually in other countries. = dumping
 the legal right to control the production and selling of a book, play, film, photograph, piece of music, etc. = copyright
 to pay part of the cost of something = subsidize