X. Change the following sentences using the Present

Subjunctive II in the subordinate clauses:

Model: If the world price of the commodity is below the domestic price, there will be an incentive to import the commodity.

If the world price of the commodity were below the domestc price, there would be an incentive to import the commodity.

1. If an economy is importing a commodity and world price increases, less will be imported. 2. If transportation costs are low and governments do not interfere much in transactions that cross national boundaries, firms and individuals frequently look across those boundaries for opportunities to buy or sell. 3. If the world price of the commodity is above the domestic price, there will be an incentive to export the commodity, selling it to foreign consumers. 4. If he has much money, he will produce this commodity within a domestic economy. 5. If the money used in the international exchange is different from that used in the domestic economy, the person receiving payment in the foreign currency will want to exchange it for a domestic one. 6. If the value of imports exceeds the value of exports then the trade balance will be deficit.

XI. Paraphrase the following sentences:

Model: It's a pity he has no incentive to barter machinery

for wheat.

I wish he had an incentive to barter machinery for

wheat.

1. It's a pity foreign firms want to be paid in money useful in their own economy. 2. Unfortunately, the economy and political system in Ukraine are less stable than other economies or political systems. 3. We are all sorry our country has a higher or more erratic rate of inflation. 4. It's a pity foreigners need U.S. dollars rather than their own currency. 5. What a pity domestic banks do not pay 10 percent interest.

XII. Translate into English:

1. Якби товари не вироблялися національною економікою, їх імпортували б. 2. Хотілося б, щоб гроші розв'яза­ли проблему взаємних потреб. 3. Якби світова ціна товару була нижчою за внутрішню ціну, існував би стимул імпортувати його. 4. Якби наша економіка була високорозвиненою, національна валюта стала б різновидом міжнародної валюти. 5. Якби світова ціна підвищилася, це зумовило б зростання національного виробництва.

XIII. Communicative situations:

1. Why should a government care about the foreign exchange value of its currency (that is, why not let the currency value float)?

Discuss it.

2. Can a country run a balance-of-trade surplus or deficit?

(Hint: If a country runs a surplus, what must be happening elsewhere in the world?)

Discuss it.

Lesson 24