Study the words and phrases.

to influence – влиять

investment – вложения

to affect – оказать действие, затронуть

invisible – невидимый

surplus – излишек

to guard (against) – охранять от

value – стоимость, ценность

exchange rate – обменный курс

frequently – часто

balance of payments – платежный баланс

foreign exchange market – валютный рынок

balance of payments surplus – активный платежный баланс

Find the definitions (in the right column) of the given words (in the left column)

 

balance of trade balance of payment invisible import   exchange rate   forward exchange cover

- form of insurance. -the price at which money can be exchanged - the difference between the amount of money a country spends and earns - the transaction when a country spends money abroad on things other than goods - the difference between the money a country earns for goods and the amount it spends on goods

Study the text and mid the English equivalents.

1.... когда страна экспортирует товары, ей платят в валюте...;

2.... зарубежные вложения...;

3.... сделка называется невидимым экспортом...;

4.... цена валюты изменяется часто...;

5.... излишек оплаты...;

6.... на изменения в обменном курсе воздействуют (влияют) многие политические и

экономические факторы...;

7.... обменный курс может влиять на стоимость экспорта товаров...;

8.... он может получить больше доходов...;

9... экспортеру, возможно, придется поднять цены за рубежом, чтобы получить доход...;

10.... это защищает экспортера от потери денег...;

 

4. Read the text and answer the following questions. When a country imports goods it spends its currency abroad. When country exports goods, it is paid in foreign currency. The difference between the money a country earns for goods and the amount it spends on goods is called its balance of trade (or trade balance). Countries also trade abroad in things like insurance, tourism, foreign investment etc., which are known as invisible imports and exports.

When, a firm trades abroad for things other than goods, the transaction is called an invisible export. When a country spends money abroad on things other than goods, the transaction is called an invisible import. The difference between the total amount of money acountry spends and the total amount it earns is its balance of payments.

If a country earns more than it spends, it has a favourable balance of payments. A favourable balance of payments is also called balance of payments surplus. If a country spends more than it earns it has an unfavourable balance of payments. This is also called a balance of payments deficit. In order for international trade to take place, countries have to buy and sell foreign currencies/currency. This is done on the foreign exchange market. The value of a currency on the foreign exchange market changes frequently and the price at which money can be exchanged at a particular time is called the exchange rate (or rate of exchange). The changes in the exchange rate are influenced by many political and economic factors. The value of a cur­rency will probably fall, for example, if a country has a large trade balance deficit.

The exchange rate can affect the price of exported goods. If the value of the exporter's currency falls (or takes a fall) he will make more profit. On the other hand, if the value of the foreign currency takes a fall, the exporter may have to raise his prices abroad in order to make a profit. Alternatively the exporter can take out forward exchange cover. Forward exchange cover is a form of insurance. The exporter arranges to sell forward (e. g. in three months time) at an agreed rate of exchange the foreign currency he will receive from the sale of goods. This guards the exporter against losing money if the foreign currency falls in value.

1. What is called the balance of trade? What can countries trade abroad?

2.What is called an invisible import?

3.When does a country have a favourable balance of payment? Which of the two balances is preferable and favourable for the country?

4.Why do countries buy and sell foreign currency? Where is it done? Can you give an exam­ple of any exchange rate?

5.How does the exchange rate affect the price of exported goods? Can you give an example?

6.What can guard the exporter against losing money if the foreign currency falls in value?