Every two years or so, 146 countries meet to talk about international trade. Their most recent meeting took place this past September in Cancún, Mexico. The 146 countries are all voluntary members of the World Trade Organization (WTO). The WTO members meet because they want to trade with other countries.
WTO member
countries want to buy imports, or products, from other countries. Imports give
people more products to choose from. They also want to sell exports, products
they sell to other countries. Exports give businesses new places to sell their
products.
During
the WTO meeting in Cancún in September, a large group of developing countries
formed a group that is now called the Group of 20 or G-20. The G-20 includes
Brazil, China, India, South Africa, Indonesia, the Philippines, Mexico, Nigeria,
and other developing countries. They worked together to try to change some of
the trading rules they thought were unfair. When developed nations did not want
to talk about these trading rules, the G-20 left, and the WTO meeting was
canceled.
The
G-20 had demanded that the United States, Japan, and the European Union decrease
the money that governments are paying to their own farmers and agricultural
businesses. This money is called subsidies. Governments pay subsidies to their
country's producers to help keep the producers in business. For example, the
United States pays its 25,000 cotton farmers subsidies that total about $3.6
billion dollars a year. Members of the G-20 say that by lowering the price of
cotton in the world market, these subsidies are putting their cotton farmers out
of business and are harming their nations' economies.
Countries
often put up trade barriers(海关关卡)
such as subsidies(补助金)
to protect their own products. Countries put up trade barriers when they are
worried that products from other countries might be better or cheaper than
products made in their own country. In an effort to protect their economies,
countries use trade barriers. The examples below show common trade barriers used
by the United States.
The country adds an extra fee, or
tariff(关税), to the price of imports. For example, the
United States wants to protect the producers who make steel. It adds a tariff to
the price of steel produced in Brazil to encourage people to buy steel made in
the United States.
The country limits the number of
imports. For example, the United States has also limited the number of steel
products that United States' businesses can buy from Brazil. Again, this
encourages people to buy steel made in the United States.
1.
Why did representatives from 145 countries meet in Cancún, Mexico, a
few months ago?
A.
to discuss Iraq
B.
to produce new products for trade
C.
to improve the rules of international trade
D.
for a vacation
2.
What is an import?
A.
a product you buy from another country
B.
a product you sell to another country
C.
a fancy car
D.
a place to dock a boat carrying products for sale
3.
What is an export?
A.
a product you buy from another country
B.
a product you sell to another country
C.
a fancy car
D.
a place to dock a boat carrying products for sale
4.
Which of the following is an example of a trade
barrier?
A. adding an extra fee, or tariff, to the price of
imports
B. limiting the number of imports
C. paying bonus money,
or subsidies, to your producers
D. all of the above
5.
Which of the following countries is a member of the
G-20?
A.
United States
B. Japan
C. France
D.
India
Key
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Key:
1.
C 2. A
3. B 4. D
5. D