UNIT 5
IMPORT EXPORT
INTRODUCTION
Speaking:
• look around you. How many things can you see that were imported from another
country?
• How much of the food you have eaten in the last 24 hours came from abroad?
• Can you imagine living in a country that doesn’t import anything? (a self sufficient one )
• What are your country’s major trading partners?
• What are your country’s most important exports? Does your country try to restrict imports
why?
Tariffs / Duties
• A charge or list of charges either for services or
on goods entering a country = Tax paid to the
government
Quotas
• A fixed, limited amount or number that is officially
allowed into a country during a certain period of time
Tariffs and quotas
Tariffs and quotas are restrictions imposed by the government
=These are included into the trade barriers used by infant
industries.
Some countries use other non-tariff barriers like the so-called
safety norms, and the deliberate creation of customs
difficulties and delays.
• They are considered as protectionist measures.
Infant industries
• An infant industry is one that is in an early
stage of development and which cannot
survive competition from foreign companies.
Customs
• the place at an airport, port,
or border where goods that people bring into
a country are examined to make sure they
are legal and whether any tax should
be paid on them.
Protectionist Measures
• Their aim is to protect domestic industries
against foreign competition (tariffs, import
quotas, or other restrictions placed on the
imports of foreign competitors.)
WTO
• abbreviation for World Trade Organization:
an official organisation that deals with
agreements for buying and selling goods and servi
ces between countries( it was known as GATT=
General Agreement on Tariffs and Trade)
Why do we need to protect the domestic
industries from foreign competition?
• - Infant or developing industries ( not able to compete and might go bankrupt )
• - Domestic markets might be flooded with foreign products/services and as a consequence
local copanies might lose market share ( customers preferring imported goods/services
because of better quality/price)
• - -----------------
• = Tariffs increase the price of imported goods in the domestic market, which,
consequently, reduces the demand for them
• =Quotas are known as a “non-tariff trade barrier.” A constraint on the supply causes an
increase in the prices of imported goods, reducing the demand in the domestic market.
Advantages of Protectionism
• More growth opportunities: Protectionism provides local industries
with growth opportunities until they can compete against more
experienced firms in the international market
• Lower imports: Protectionist policies help reduce import levels and –
allow the country to increase its trade balance.
More jobs: Higher employment rates result when domestic firms boost
their workforce
Higher GDP: Protectionist policies tend to boost the economy’s GDP
due to a rise in domestic production
Why do countries trade ( exchange
goods/services?)
• - Lack of certain products
• -Not having expertise/ skills to produce a certain product
• Not having raw materials
• Not having the appropriate climate for certain products
Lead-in : Listening
• 1- He compares countries to individuals
• 2- He uses the example of growing one’s food
• 3- Countries should specialise in what they do most efficiently ( where they
can best use their resources) and buy what they don’t produce themselves
EEC ?
EC ?
EU ?
EEC =
• the European Economic Community:
an organisation formed in 1958
that developed into the European Community,
which then became the European Union in
1994.
Memember coutries?
• 27 Countries( used to be 28 but UK withdrew from the EU )
READING LEXIS
Pg.37
• Local experts:
• They have a specialist knowledge of the market and sell on behalf of the company ( sole agents and
multi-distributors)
• Patent: The exclusive right to use a documented intellectual property in producing or selling a particular product.
• Licence: A legal document giving official permission to do something.
• To licence: to authorize officially.
• Subsidiary: A company that is completely controlled by another company/
Functioning in a supporting capacity/ Part of a large corporation.
• Joint venture: A method of entry into a foreign market in which a firm joins with an overseas company to establish
a partnership for the production and marketing of its products abroad.
Reading Comprehension
• Title :
• Barco Of Belgium =
Company’s name : BARCO ( an abbreviation ?)
- Origin : Belgium ( Belgian Company)
It is exporting to india : -Why do you think they opted for India ?
- Which techniques can a company use to
establish itself on a foreign market ?
Question 1 pg.37
• The methods used by Barco to establish itself on the Indian market:
* It started by working with local agents to sell kits for video monitors.
* It set up its own sales office.
* It Set up an assembly plant.
Question 2 pg 37
Advantages Disadvantages
- The market is growing - High import duties
- Exciting long term market opportunities - Complex market
- People speak English - More closed than other fast growing economies
- Fascinating country - Tax barriers and delays
- One fifth’s of the population lives there - A lot of bureaucracy
VOCABULARY 1 pg.37
• 2 Assembled ( para 1)
• 3 A shift (para 2)
• 4 Niche market(para 3)
• 5 Exploit (para 6)
• 6 Obstacles (para 6)
• 7 Bureaucracy (para 6)
• 8 Delays(para 7)
• SUPPLEMENTARY VOCABULARY:
• Plant: A building for carrying industrial labor (pg.5)
• Hurdles: Obstacles/difficulties (pg.8)
• Sensitive: Being susceptibleto the attitudes, feelings or circumstances of others (pg8)
• Strata: Several parallel layersof materials arranged one on top of another (pg8)
• Subcontinent: Large and distinctive landmass (pg9)
EXERCISE 2 pg. 39
• 2 Assemble
• 3 Niche market
• 4 Delays
• 5 Tariffs
• 6 Obstacles
• 7 Licences
