Unit 6Goodbye, Free Trade?Exercises1.Answer the questions on the text.1) What was the result when the House of Representatives passed theHawley-Smoot Tariff Act in 1930?The economic recession in the United States became even worse.2) According to the author, what happens when a currency appreciates?It diminishes the export advantage of the country and makes it difficult to increase exports or even maintain the status quo.3) How did American politicians take advantage of the public’s stronganti-free-trade sentiment in the United States?They created a talking point in charges of unfair trade so that they thought they could benefit in the mid-term elections.4) What did American politicians and economists agree and disagree over theHawley-Smoot Tariff Act?Almost all of them agreed that it was a bad law, but they disagreed whether it triggered the Great Depression in the 1930s.5) What did Milton Friedman think were the more important reasons for theGreat Depression?The malfunctioning gold standard system and inept monetary policy of the Federal Reserve.6) What was the foreign reaction unexpected by the American lawmakers afterthe Hawley-Smoot Tariff Act was enacted?The trading partners were angered and imposed discriminatory tariffs on American goods. Canada in particular, as the largest export market for the US, reacted fiercely and handed its market over to the British competitors.7) Why is it unlikely for the US to adopt another Smoot-Hawley today in the eyeof the author?(1)The US is much more integrated into the world economy today than it was inthe 1930s.(2)Import restrictions seldom achieve their intended goals, instead, often end uphurting American industries and consumers.(3)The Americans have learned to consider the possible strong foreignretaliation against US exporters.8) What were the respective results for those countries withdrawing from thegold standard and those clinging to it during the 1930s according to the author?Those countries going off the gold standard allowed their currencies to depreciate, avoided protectionist trade policies and, instead, used monetary policy to end price deflation and stimulate economic growth.Those countries choosing to stay on pursued protectionist trade policies by imposing high tariffs, import quotas and exchange controls, which did little in boosting their economic growth. Thus they suffered a longer economic depression.9) How does the author justify his support for the policy of "quantitativeeasing"?(1) Historically, the most important tool for resisting protectionist sentiment in the1930s was a monetary policy that would promote economic growth.Today the US is in a similar situation. Taking right monetary policy can alleviate the pressure on Washington to adopt protectionist trade policy and can help to raise output before it leads to a high inflation.(2) He also quotes what Charles Evens said: Additional measures taken by the Fedto stimulate growth should condoned, not condemned.(3) What Mr. Friedman wrote 1997 about Japan: The surest road to a healthyeconomic recovery is to increase the rate of monetary growth, to shift from tight money to easier money.10) What does the author imply about the US Congress?In comparison with the Fed, the US Congress is following a trade protectionist policy in blaming other countries for its unemployment and may cause serious trade retaliations from trading partners.2. Fill in each blank of the following sentences with one of the phrases in the list given below. Make changes when necessary.1)As the financial scandal involves so many people, the probe in to it could dragon for another year.2)In the age of globalization more individuals are forced to integrate intomultinational work teams.3)Many in Europe are now very much worried that it may sink into a Japan-styleeconomic recession.4)But the business leaders yesterday warned against interest rate rises, arguing thatinflation was being driven not by consumer spending, but by rising commodity prices.5)After the call scandal, the American automakers and some politicians there wereso eager to keep their rival Toyota at bay in the auto market.6)Under the current labor law, two categories of employees are exempt fromminimum wage and overtime requirements.7)Though the local partner made a revised offer, the foreigner investor refused andreverted back to the original agreement conditions.8)Last Friday the two parties met for more than five hours only to end up walkingaway from the table once again, reaching no agreement at all.9)When the government supervises banks, it should take into account their payand bonus structures which may often be the source of corruption.10)The customers severely affected in the incident demanded that the company putin place effective measures to avoid occurrence of such things in the future. 11)It’s critical to take hold of any opportunity coming your way because it willnever come back again once lost.12)At times of economic depression, people are more inclined to unethical means intheir business.3. Match the terms in column A with the definitions in column B:A__________________________ B____________________________________ 1)unfair trade A) Restrictions that governments put in placeon the purchase or sale of a foreign or localcurrency, particularly by those in shortageof hard currencies. 62) real estate B) Escalation of protectionism between two ormore countries that impose punitive tariffsand barriers in retaliation for each other. 83) business cycle C) A general decline in prices often caused bya reduction in the money supply or a decreasein spending. 54) trade protectionism D) Unjustifiable and discriminatory policiesand supports by a government to its ownfirms, ranging from export subsidies to anti-competitive practices. 15) price deflation E) Land, buildings, homes or anything fixed,immovable, or permanently attached that canbe traded in the market. 26) exchange control F) The policy of imposing duties or quotas onimports in order to protect home jobs,markets or industries from overseascompetition. 97) competitive currency devaluation G) A company or country with whom you havean ongoing business relationship and engagein importing or exporting activities. 108) trade war H) A predictable long-term pattern ofeconomic activity that an economyexperiences four stages including decline,recession, recovery and boom. 39) import barriers I) The currency devaluation by a governmentto make its goods more competitive in theinternational markets. 710) trading partner L) The economic policy of restrainingbusiness between states through a variety ofgovernment actions to discourage importsand prevent foreign take-over of domesticmarkets and companies. 44. Translate the following passage into Chinese.按官方的说法，中美间过去三天日益严重的贸易纠纷涉及轮胎、鸡肉和汽车，但实际上远远超出此范围。