Вопрос № 223996 - Английский язык

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When Honduras exports bananas to Switzerland, they can use the money they earn to import Swiss chocolate - or to pay for Kuwaiti oil or a vacation in Hawaii. The basic idea of international trade and investment is simple: each country produces goods or services that can be either consumed at home or exported to other countries.

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International trade is the exchange of goods and services between different countries. Depending on what a country produces and needs, it can export (sell goods to another country) and import (buy goods from another country). Governments can control international trade.

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Many companies set up subsidiaries overseas, either for manufacturing or for distribution, or both. These companies are called multinationals – Shell, Ford, and Sony are examples. Most multinational companies “think global and act local”. This means that they try to understand and cater for the needs of every market they sell in.

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International trade means there are more companies competing with each other to sell their products. This means lower prices, which is good for customers because they pay less and have more choice. Producers, however, make less profit. Multinational companies often look for ways to reduce their costs, for example, by manufacturing their products in countries where labour costs are cheap.

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Changes in the exchange rate can make a company more or less competitive. The exchange rate is the amount of one currency needed to buy another currency. For example, in 2002, one British pound bought about 200 Japanese yen, so the exchange rate was 1:200. If the exchange rate falls, exports become cheaper, so companies become more competitive. If the exchange rate rises, exports become more expensive, so companies become less competitive.

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Countries export some products and import others because sometimes it is cheaper to buy than to produce. There is warm climate and much vegetation in Australia. This is very good for sheep-breeding, and Australia exports much high-quality wool. Taiwan has many skilled technicians and so it produces radios, television sets and other electronic products for export. Canada’s climate is good for wheat, and Argentina is a low-cost producer of meat. Canada ships its wheat to Argentina and Argentina sells its meat to Canada. Both countries profit by these import-export transactions. Very few countries do not take part in international business.