商务英语阅读第二单元问题解答

商务英语阅读第二单元问题解答
商务英语阅读第二单元问题解答

Unit 2 International Trade

Text A

Exercises:

2) What are the advantages of international trade?

Key: To begin with, International trade enables a nation to specialize in those goods it can produce most cheaply and efficiently. Then, international trade also enables a country to consume more than it would be able to produce if it depended only on its own resources. Finally, trade enlarges the potential market for the goods of a particular economy.

4) Who and in what book was specialization first proposed? Key: In 1776 the Scottish economist Adam Smith, in The Wealth of Nations, first proposed that specialization in production leads to increased output.

6) Who modified Smith’s theory? How?

Key: It is David Ricardo who modified Smith’theory by stressing the principle of comparative advantage.

Text B

Exercises:

1) What does the quotation of Samuelson demonstrate?

Key: The quotation of Samuelson demonstrates the theory of comparative advantage.

5) How do people identify a country’s comparative advantage goods?

Key: To identify a country’s comparative advantage goods requires a comparison of production costs across countries. However, one does not compare the monetary costs of production or even the resource costs of production. Instead one must compare the opportunity costs of producing goods across countries.

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