Strategic Trade Policy.

In recent years the infant-industry argument has taken a modified form in advanced economies. The contention is that government should use trade barriers to reduce the risk of product development borne by domestic firms, particularly products involving advanced technology. Firms protected from foreign competition can grow more rapidly and achieve greater economies of scale than unprotected foreign competitors. The protected firms can eventually dominate world markets because of lower costs. Supposedly dominance of world markets will enable the domestic firms to return high profits to the home nation. These profits will exceed the domestic sacrifices caused by trade barriers. Also specialization in high technology industries is deemed beneficial because technology advances achieved in one domestic industry often can be transferred to other domestic industries.

Japan and South Korea, in particular, have been accused of using this form of strategic trade policy. The problem with this strategy and therefore this argument for tariffs is that the nations put at a disadvantage by strategic trade policies tend to retaliate with tariffs of their own. The outcome may result in higher tariffs world wide, reductions in world trade, and loss of the gains from specialization and exchange.

Exercise 9.

Write down the detailed information about your last work experience. Describe the core of your responsibilities. The text should be half of the printed page.

Exercise 10.

Read texts 3 and 4 and answer the questions that follow in writing.

Text 3.

Space Development

In 1957 the first satellite Sputnik, orbited the Earth. In 1969, Neil Armstrong was the first man to set foot on the Moon. In the near future, perhaps you will be one of the first tourists to stay on the orbiting space hotel or at a hotel on the surface of the Moon. Major industrial companies are now carrying out serious research in the use of space for recreation purposes with a view to building hotels both in space and on the Moon. Such hotels will be constructed by robots controlled by computers based on the Earth. Much of the material used in construction will be taken from the Moon which has all the minerals and metals which are needed. It would not be necessary to launch all the building material into space from the Earth. We can confidently predict that such hotels will exist sometime in the first half of the twenty first century. Hotels, which orbit the Earth, will spin in order to create artificial gravity. Almost certainly guestrooms will have artificial gravity, as well as all the facilities that you would expect to find in a hotel room on the earth. Other parts of the hotel will have lower gravity or zero gravity so that guests can enjoy the sensation of weightlessness. As well as just floating about, guests will be able to take part in sports, such as tennis or pole-vaulting, which will be very different in a low-gravity environment. There will be no need for lifts or stairs in a space hotel. Gravity can be controlled to enable guests to float or slide from one level to another. One of the great attractions of the space hotel will be the absolutely stunning views of the Earth, especially of sunrises and sunsets.

1. What are the stages of spaces exploration?
2. What serious research is being carried out in the use of space?
3. What gravity will be used in different parts of the space hotel?
4. Will there be lifts or stairs in a space hotel?
5. What will be one of the great attractions of the space hotel?

Text 4.

Date: 2016-01-05; view: 340