International trade enables countries to obtain some goods and services more cheaply than they could produce them for themselves or to consume goods and services which would otherwise be unobtainable from domestic supply sources. 

Through International trade countries can improve their living standards. International trade keeps domestic price down by creating competition at home and provides large markets abroad.

 Governments can control international trade. The most common measures are tariffs, quotas, exchange controls. They raise the price of imported goods to protect procedures.   

The international trade that takes place without barriers such as tariffs, quotes and exchange controls is called free trade.  Free trade area is a form of trade integration between a number of countries, in which members eliminate all trade barriers among themselves on goods and services, but each continues to operate its own barriers against trade with the rest of the world.    

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.                 

Exercise 1. Give the English for:

міжнародна торгівля, покращувати життєвий рівень, контролювати міжнародну торгівлю, заходи, валютне регулювання, підвищувати ціни на імпортні товари, захищати національного виробника, вільна торгівля, усувати всі торгові бар’єри.

Exercise 2. Match words from list A with words from list B that have similar meaning:

A                                                     B

obtain                                              obstacle

produce                                           defend

consume                                          internal

domestic                                         elevate

raise                                                 use up

protect                                             manufacture

barrier                                             get 

Exercise 3. Match the correct definition from the list below:

domestic, free trade, exchange control, tariff, barrier, quota, living standard;