UNIT 27: INTERNATIONAL TRADE

Read the text on page 133 and do the following exercises:

Answer the following questions

Explain in detail the analogy Chang makes between child labour and free trade (or
between education and protectionism)
The analogy is: When you are trying to get into a more difficult and thereby
higher-return activity, developing countries have to invest in it.

What is the short-disadvantage of protecting growing industries?

The investment comes in the form of protection, which makes for the moment,
your local consumer use expensive and inferior domestic products.

What does each of the underlined part refer to?

“This little guy is perfectly capable of making a living” (Paragraph 1)

THE YOUNG
SON …………………………………………………………………...........................
“Well, of course I don’t do this.”
SEND HIS SON TO THE LABOUR
MARKET…………………………...........................

Ø Words and expressions: Find words in the text with the following meanings

1/ the supply of people in a particular country or area who are able and willing to
work LABOUR MARKET
2/ a person who travels about selling goods, typically advertising them by shouting A
STREET HAWKER
3/ the possibility of something bad happening DANGER / RISK
POST READING TASKS

VOCABULARY REVIEW

Complete the sentences with one of the words in the following box
protectionism high-return physicist
inefficient
stimulate analogy inferior
expose

1. While there are several investment plans, one can choose ..HIGH-RETURN..........
investment options if they are willing to take risks.

2. You might call something .......INFERIOR.................... if its quality is not as good

as another.

3. .........INEFFICIENT.................... management may come from the leader’s

individual personality.

4. A raise in employee wages can ...........STIMULATE................ production

5. Isaac Newton (1643-1727) was a great .............PHYSICIST.............. who outlined

the principle of gravity.

6. There will be a lot of competitive and strong companies coming here and even
though Kosovo is a small company, one of our main interest is
to ..........EXPOSE............ it to the world market.

7. Australia’s Treasurer, Wayne Swan, used the ......ANALOGY................ of

Hurricane Katrina to convince his audience that through crisis came a better
understanding of underlying weaknesses in a system.

8. Trade .....PROTECTIONISM....................... is how countries raise tariffs and

reduce imports to protect their domestic industries