II. Read and translate the text.

International trade is essential for the maintenance growth of prosperity in all countries.

One of the major reasons why international trade takes place is that of economic advantage. International trade creates value. It increases the efficiency of resource allocation worldwide, reduces production costs, lowers input costs and through the international division of labour, lowers prices paid by consumers and increases product variety and availability.

Nations are usually better off if they specialize in certain products or commercial activities. By doing what they do best they are able to exchange products not needed. This allows a higher standard of living than would be possible if the country tried to produce everything itself.

The concepts of absolute advantage and comparative advantage play a critical role in international trade.

A country has an absolute advantage in the marketing of a product if it has a monopolistic position or if it has a monopolistic position or if it produces the item at the lowest cost. Examples of absolute advantage are rare, because economic conditions rapidly alter production costs.

A more practical approach to international specialization in that of comparative advantage. A country has a comparative advantage in an item if it can supply that item more efficiently and at a lower cost that it can supply other products. Nations usually produce and export those goods in which they have the greatest comparative advantage or the least comparative disadvantage. Countries tend to import those items in which they have the least comparative advantage or the greatest comparative disadvantage.

III. Retell the text.

INTERNATIONAL DEVELOPMENT

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