Вопрос № 224011 - Английский язык

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In an interlinked global economy, consumers are given the opportunity to buy the best products at the best prices. By opening up markets, a government allows its citizens to produce and export those things they are best at and to import the rest, choosing from whatever the world has to offer.

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                                                    Market Economies
1. In a true market economy the government plays no role in the management of the economy, the government does not intervene in it. The system is based on private enterprise with private ownership of the means of production and private supplies of capital, which can be defined as surplus income available for investment in new business activities. Workers are paid wages by employers according to how skilled they are and how many firms wish to employ them. They spend their wages on the products and services they need. Consumers are willing to spend more on products and services, which are favoured. Firms producing these goods will make more profits and this will persuade more firms to produce these particular goods rather than less favoured ones.
2. Thus, in a market economy consumers decide what is to be produced. Consumers will be willing to pay high prices for products they particularly desire. Firms, which are privately owned, see the opportunity of increased profits and produce the new fashionable and favoured products.
3. Such a system is, at first view, very attractive. The economy adjusts automatically to meet changing demands. No planners have to be employed, which allows more resources to be available for production. Firms tend to be highly competitive in such an environment. New advanced products and low prices are good ways to increase sales and profits. Since all firms are privately owned they try to make the largest profits possible.
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There are some institutions and policies in the world that foster international trade. If these institutions did not exist, many companies would not at all be able to go international. The U.S. government created the Export - Import Bank (Eximbank) in order to reduce unemployment in the country. Eximbank makes loans to U.S exporters and foreign buyers of U.S. imports if private financing is not available. A firm can also buy insurance from the Foreign Credit Insurance Association (FCIA) to cover political risk (such as expropriation and loss due to war). The exporter can also buy insurance coverage on credit sales to foreign customer.

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The fifth largest trading nation in the world, Britain provides just over 9 per cent of the main manufacturing countries’ exports of manufactured goods. The country is a major supplier of aerospace products, motor vehicles, electrical equipment, chemicals, textiles and most types of machinery, and is a growing oil exporter. It relies upon imports for about two-fifths of total consumption of foodstuffs and for most of the raw materials required by industry.

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Тhе economy of Great Britain is based largely on private enterprises but has some major publicly owned industries (notably coal, steel, gas, electricity and railways) and a few joint enterprises. The Government is reducing the size of the public sector, returning parts of the steel, transport, telecommunications and aerospace industries, for example, to private enterprise.

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When a company is small it cannot sometimes enter a foreign market. It can sign a licensing agreement with a foreign firm. A license is a legal agreement in which one firm gives another a right to manufacture and sell its product. A company that obtains this right pays the licenser a royalty. Royalty is a certain percentage of the income from the sale of the product. Businesses that have patents or trademarks usually can use licensing to protect them against counterfeiters. The licensee gains a successful product and the know-how. The licenser often controls the quality of the goods which the licensee produces, because high quality guarantees the reputation of the licenser. The licensee chooses the selling strategies because he knows more about how to sell the product in the foreign market.