Варіант 5. The economic case for intergration

THE ECONOMIC CASE FOR INTERGRATION

1. The reason for regional integration is both economic and political. The economic case for regional integration is relatively straightforward. As economic theories of international trade predict that unrestricted free trade will allow countries to specialize in the production of goods and services that they can produce most efficiently. The result is greater world production than would be possible with trade restrictions. Opening a country to free trade stimulates economic growth in the country, which in turn creates dynamic gains from trade. Further, foreign direct investment (FDI) can transfer technological, marketing, and managerial know-how to host nations. Given the central role of knowledge in stimulating economic growth, opening a country to FDI also is likely to stimulate economic growth.

2. Given this, the theoretical ideal is a total absence of barriers to the free flow of goods, services, and factors of production among nations. However, a case can be made for government intervention in international trade and FDI. Because many governments have accepted part or all of the case for intervention, unrestricted free trade and FDI have proved to be only an ideal. Although international institutions such as GATT and WTO have been moving the world toward a free trade regime, success has been less than total. In a world of many nations and many political ideologies, it is very difficult to get all countries to agree to a common set of rules.

3. Against this background, regional economic integration can be seen as an attempt to achieve additional gains from the free flow of trade and investment between countries beyond those attainable under international agreements such as GATT and WTO. Undoubtedly, it is easier to establish a free trade and investment regime among a limited number of adjacent countries than among the world community. Problems of coordination and policy harmonization are largely a function of the number of countries that seek agreement. The greater the number of countries involved, the greater the number of different perspectives that must be reconciled, and the harder it will be to reach agreement. Thus attempts at regional economic integration are motivated by a desire to exploit the gains from free trade and investment.

I. Знайдіть у тексті та випишіть еквіваленти таких слів та словосполучень:

необмежена вільна торгівля, виробництво товарів та послуг, економічний зріст,

передавати досвід, вільний потік товарів, втручання в торгівлю, встановити режим

вільної торгівлі.

Найдите в тексте и выпишите эквиваленты следующих слов и словосочетаний:

неограниченная свободная торговля, производство товаров и услуг, экономический

рост, передавать опыт, свободный поток товаров, вмешательство в торговлю,

установить режим свободной торговли

II. Перекладіть письмово абзац 1.

Переведите письменно абзац 1.

III. Випишіть з тексту словосполучення з Past Participle та перекладіть їх.

Выпишите из текста словосочетания с Past Participle и переведите их.

IV. Поставте 5 запитань до абзацу 3 та запишіть їх.

Поставьте 5 вопросов к абзацу 3 и запишите их.

V. Дайте письмові відповіді на запитання.

Письменно ответьте на вопросы.

1. What are the consequences of opening a country to free trade?
2. What is largely a function of the number of countries that seek agreement?

Дата добавления: 2015-07-14