UNIT 9: INTERNATIONAL MARKETS
READING 1: TRADE BETWEEN CHINA AND THE US
Activity 1: Discussion
What do you know about the US economy and the Chinese economy?
What do you know about trade between the two countries?
Activity 2: Useful Vocabulary
Part of
Word/Phrase Speec Definition and Example
h
protectionism
combat
Chamber of
Commerce
defend
instance
sustain
dispute
with respect
to
accuse
manipulate
press
Article 1
by Xin Zhiming
'The US should focus on improving its overall
economic competitiveness instead of seeking
protectionism to combat its economic slowdown,'
said the latest 2008 White Paper: American
Business in China.
‘And it should not argue for a stronger currency to reduce its trade deficit with China, since
the value of the yuan is not the fundamental cause of the deficit,' said the White Paper,
which was released by the American Chamber of Commerce (AmCham) China, AmCham
Shanghai and AmCham South China Tuesday.
The US economy is currently slowing, while its trade deficit with China remains high,
standing at $163.3 billion last year. The deficit has led to protectionism against Chinese goods
and investment in the US.
The two countries should make 'defending and preserving the openness of the trade
relationship a core commitment ', the White Paper said. ‘Instances of co-operation between
China and US far exceed instances of dispute. '
An open US and an open China will lead to sustained benefits for both US companies and
citizens back home,' said Harley Seyedin, Chairman of AmCham South China.'
from China Daily
Article 2
by Andrea Hopkins
The US trade deficit with China cost 2.3 million American
jobs over six years, the Economic Policy Institute said on
Wednesday.
Even when they found new jobs, workers who had lost jobs
to Chinese competition saw their earnings decrease by an
average of $8,146 each year because the new jobs paid less,
according to the report, funded in part by labor unions.
"(We hope) it will help to focus the debate on trade to
where it needs to be right now with respect to China," said Scott Paul, Executive Director
of the Alliance for American Manufacturing.
US manufacturers, labor unions, and many lawmakers have long accused China of
manipulating its currency to give Chinese companies an unfair advantage in international trade,
and are pressing China to continue to allow the yuan to rise against the US dollar.
China has said the United States should recognize how much its yuan currency has
already risen against the dollar – it is about 20 per cent higher since China revalued its
currency in July 2005.
China has also said the fact that Americans save much less of their incomes than the Chinese do
has increased the trade deficit. Chinese-made goods have been extremely popular in recent years
with US consumers looking for low prices.
from Reuters
Activity 3: (A, page 84, Course Book)
Work in pairs. Read the two articles quickly and choose the best title for each one.
a) US-China trade has cost 2.3 million American jobs
b) US protectionism is not the way forward
c) Stop blaming China for US trade deficit
d) Yuan needs to rise against the US dollar
Activity 4: (B, page 85, Course Book)
Look at the articles again. Decide if the statements are true (T) or False (F).
Article 1
1. The US should concentrate on being more competitive economically.
2. The US should be protectionist.
3. The US should argue for a stronger Chinese currency in order to reduce the US’s trade deficit
with China.
4. The US and China should focus on the openness of their trading relationship.
Article 2
5. The US should recognize how much the Chinese currency has already risen against the dollar.
6. US labor unions say China has manipulated its currency to give Chinese companies an unfair
advantage in international trade.
7. The Chinese save less of their income than Americans.
8. Americans have recently bought Chinese-made goods at low prices.
Activity 5: (C, page 85, Course Book)
Find the opposites of these words in the articles.
1. free trade
2. upturn
3. surplus
4. dispute
5. decreased
6. spend
Activity 6: (D, page 85, Course Book)
Complete the sentences with words you found in exercise C.
1. Economists know that ……………………... and import taxes promote inefficiency.
2. The study was done in ……………………… with local businesses.
3. There has been a …………………….. in the tourist trade.
4. The figures show a trade ……………………… of $4 billion.
Activity 7: Words in Phrases
Go back to the articles on pages84-85. Find prepositions to complete the following phrases
and write them in the blanks.
1. The US should focus …………… improving its overall economic competitiveness.
2. The US economy is currently slowing, while its trade deficit …………… China remains high,
standing ………………. $163.3 billion last year.
3. Instances ……………. co-operation between China and US far exceed instances
……………… dispute.
4. An open US and an open China will lead ……………. sustained benefits …………….. both
US companies and citizens back home.
5. The US trade deficit ……………… China cost 2.3 million American jobs ……………. six
years.
6. Workers who had lost jobs ……………Chinese competition saw their earnings decrease
…………… an average …………… $8,146 each year.
7. It will help to focus the debate on trade to where it needs to be right now ……………. respect
…………. China.
Activity 8: Pronoun Reference
What does the underlined pronoun refer to?
1. ‘And it should not argue for a stronger currency …’ (article 1, line 11)
....................................................................................................................................................
2. ‘Even when they found new jobs, …’ (article 2, line 5)
....................................................................................................................................................
3. ‘…. have long accused China of manipulating its currency…’(article 2, line18)
....................................................................................................................................................
Activity 9: Word Form
Complete the following sentences with the correct form of the word.
1. compete
Graduates have to fight for jobs in a highly …………………….market.
Pete likes professions involving a higher degree of ……………….. such as marketing and
business administration.
We are in …………………….. with four other companies for the contract.
2. release
She burst into tears, …………….……. all her pent-up emotions.
Police have …………….……. no further details about the accident.
3. remain
The …………………… twenty patients were transferred to another hospital.
Most of our employees work in New York; the ………………..are in London.
Divide 2 into 7, and the answer is 3, ……………………… 1.
4. protect
The government is ready to introduce ………………………. for the car industry.
Workers should wear full …………………… clothing.
In economics,……………………. is the economic policy of restraining trade between countries
through methods such as tariffs on imported goods, restrictive quotas, and a variety of other
government regulations designed to allow fair competition between imports and goods and
services produced domestically.
5. sustain
The country has achieved …………………… economic growth for past decade.
Technologies that promote ………………….. energy include renewable energy sources, such
as hydroelectricity, solar energy, wind energy, wave power, geothermal energy, bioenergy, tidal
power and also technologies designed to improve energy efficiency.
6. accuse
The government was …………………… of incompetence.
The ……………………… was found innocent.
He demanded the right to face his …………………….. at a public hearing.
7. consume
The electricity industry ……………………. large amounts of fossil fuels.
In economics,……………….. goods are any tangible commoditiesproduced and subsequently
purchased for ……………………….
in satisfaction of human wantsandarenotutilizedinany furtherproduction. Consumer goods are
divided into three categories: durable goods, nondurable goods, and services.
Activity 10: Focusing on Words
Fill in each blank in the sentences below with one suitable word.
When you finish, turn back to pages 84 and check your answers.
The latest 2008 White Paper: American Business in China said that the US should focus on
improving its overall economic (1) ……………. instead of seeking protectionism to combat its
economic (2) …………… and that it should not argue for a stronger (3) …………… to reduce
its trade deficit with China, since the value of the (4) …………… is not the fundamental cause
of the deficit. Its trade deficit with China remains (5)……………, standing at $163.3 billion last
year. The deficit has (6)…………… to protectionism against Chinese goods and investment in
the US. The two countries should make defending and preserving the (7)…………… of the trade
relationship a core commitment.
Activity 11: (E, page 85, Course Book)
Discussion
What do you think will happen to the trade situation between China and the US?
