大学英语四级快速阅读专项突破(三)

Directions:In this part, you will have 15 minutes to go over the passage quickly
For questions 1-7, mark
Y (for YES)if the statement agrees with the information given in the passage;
N (for NO)if he statement contradicts the information given in the passage;
NG (for NOT GIVEN)if the information is not given in the passage;
For questions 8-10, complete the sentences with the information given in the passage.

3.The Definition of International Economic Integration.

The price gap of a goods in different markets should take into account not only the transport costs but also, and more importantly, the consumption patterns in different countries. This is an extremely difficult exercise. Income, tastes, traditions and climate may be homogeneous in relatively small areas, sometimes even within a single country. The more homogeneous are the countries, the easier the test.

So we can conclude that international economic integration is a process and a means by which a group of countries strives to increase its level of welfare in relation to the present level or some past one ( it is possible that the past level of welfare was higher than the current one). It involves the recognition that a weak or strong partnership between countries can achieve this goal in a more efficient way, than by unilateral and independent pursuance of policy in each country. International economic integration requires the division of labor and freedom of movements for goods and services (at least) and factors of production within the integrated area, as well as restriction of these movements between the integrated area and countries outside of it. The essential point is that those countries together adopt a kind of inwardlooking approach and concern for what happens in all member countries more than what happens outside of them. At least some consultation, if not coordination, of monetary and fiscal policies is also a necessary condition for the success and durability of integration, as is the case in the United States. The process of integration may be practically unlimited, just as is the continuous integration of various regions within a single country. From a technical point of view, international economic integration can be a limited process, i.e. the elimination of tariffs and quantitative restrictions, as well as the introduction of a common external tariff in a customs union. Ultimately, competition, new technologies and the like, require continuous adjustments for countries in a customs union, which makes integration more of an unlimited than a limited process. International economic integration is a process by which the economies of separate states merge in large entities. This definition of international economic integration, incorporating the ideas in this paragraph, will be maintained throughout this article.

Types of International Economic Integration

Consumption in an integrated area is potentially higher than the sum of the consumptions of individual countries which are potential partners for integration in the situation in which trade is impeded by customs duties, quotas and barriers to factor mobility. International economic integration removes, at least partly, these and other distortions to trade and, possibly, investment. In this sense, international economic integration between at least two countries can have the following seven theoretical types.

A preferential tariff agreement among countries assumes that the customs duties on trade among the signatory countries are lower in relation to customs duties charged on trade with third countries.

A partial customs union is formed when the participating countries retain their initial tariffs on their mutual trade and introduce a common external tariff on trade with third countries.

A free trade area is an agreement among countries about the elimination of all tariff and quantitative restrictions on mutual trade. Every country in this area retains its own tariff and other regulation of trade with third countries. The bases of this agreement are the rules of origin. These rules prevent trade deflection, which is the import of goods from third countries into the area by country A (which has a relatively lower external tariff than country B) in order to reexport the goods to country B.

In a customs union, participating countries not only remove tariff and quantitative restrictions on their internal trade, but also introduce a common external tariff on trade with third countries. The participating countries take part in international negotiations about trade and tariffs as a single unity.

In a common market, apart from a customs union, there exists free mobility of factors of production. Common regulations (restrictions) on the movement of factors with third countries are introduced.

An economic union among countries assumes not only a common market, but also the harmonization of fiscal, monetary, industrial, regional, transport and other economic policies.

A total economic union among countries assumes a union with a single economic policy and a supranational government of this confederation with great economic authority.

Table 1 shows selected types of international economic integration. The process of international economic integration does not have to be gradual from one type to another. The establishment of any of these types depends on the agreement among the participating countries. Spontaneous or market integration is created by actions of TNCs, banks and other financial institutions—often without the involvement of their governments—while formal of institutional integration asks for a formal agreement among governments to eliminate selected or all restrictions on trade and factor movements on their economic relations (Panic, 1988, p. 6-7). There is substantial historical evidence to support the argument that the formal approach to integration asks for a spontaneous way, and vice versa. The decision about entering into a customs union or any other type of integration is in fact political. A decision to abandon a part of national sovereignty with respect to the taxation of trade (all in a customs union, part in a free trade area) should be made by politicians.

Table 1 Types of international economic integration

SovereigntyInternational economic integration is popularly criticized on the grounds that it reduces a country’s national sovereignty (undisputed political power). When two or more sovereign countries sign a treaty, they agree to do and/ or not to do specified things. Therefore, it is not a valid criticism of any international treaty to say that it entails a loss of national sovereignty. All treaties do so in one way or another. The real issue is: do the countries’ concessions constitute a mutually beneficial deal. Is the surrender of sovereignty justified by the results? Consider, for example, the Canadian debate leading up to the Canada-United States Free Trade Agreement in Lipsey and York (1988).

Canada is a small (in economic terms) and open economy. The competitive future of this country has been seriously jeopardized by the uncertain future of the relative liberal international trading system. Canada therefore negotiated, and subsequently signed in 1988, a Free Trade Agreement with the United States. The negotiations and the pre-election period at that time were subject to one of the greatest debates in Canada history. The opponents of this Agreement would significantly reduce Canadian sovereignty and distinctiveness. The ado made by the opponents is probably the greatest one in the history of international economic integration. Giving their vote to the Conservatives, the Canadians, however, supported the Agreement.

There was a fear that Canada should have to harmonize a range of economic policies with the United States. If experience is a reliable guide, then this fear is not relevant. The Netherlands has a developed and costly social policy while Belgium spends little in this area. Yet, these two countries have been in a free trade area for more than a half a century without harmonizing their social policies. As for other economic policies, pressures for harmonization do exist. If tax rates differ among countries and if factors are allowed to move, then, other things being equal, factors will move to countries where the tax burden is lower. It should be noted, however, that these harmonizing pressures exist even in the situation without integration. Within, for example, a common market, apart from the agreed matters, countries will have to give each other national treatment. This means that countries can have any policy they wish, even those which are completely different from policies in the partner countrieswith just one important condition. The country should not use these policies to discriminate between partners on the basis of their nationality. International economic integration is not the enemy of diversity in many economic policies. In others, like fiscal policy of the EC, integration does not reduce the diversity of the main policy instruments. It is this that raises all sorts of problems when economies at different levels of development, facing different problems, become integrated. They ought to harmonize such policies.

If a small country accepts a long term policy of protection, as opposed to liberalization or international economic integration, it chooses a long-term deterioration in its competitive position. It is coupled with a reduction in living standard in relation to countries which do not practice protectionism and / or to the level of welfare which could have been achieved by an alternative economic strategy. Can a country preserve its sovereignty and the welfare of its citizens with a long-term trend of deterioration in the standard of living?

The expectation of a net economic gain compared to the situation without integration is the most fundamental incentive for international economic integration. Anticipated gains include an increase in the efficiency of the use of factors due to increased competition, specialization, returns to scale, increases in investment, improvements in terms of trade, reduced risk and equalization of factor prices. Integration will be beneficial when cooperation and coordination of policies takes place instead of the disintegrated exercise of power through often contradictory policies. Sovereignty is pooled, rather than given up. Small, open countries need to realize that it is much less a choice between national sovereignty and international economic integration and much more a choice between one form of interdependence and another. If one's aim is to increase the competitiveness of a small country and secure widest markets for its goods and services in the future, then international economic integration is a serious alternative to the national freedom to implement and continue with bad economic policies.

1. International economic integration is based on the tastes and traditions of all countries.

2. International economic integration is a process and a means by which a group of countries strives to increase its level of welfare.

3. From a technical point of view, international economic integration is an unlimited process.

4. The decision about entering into any other type of integration is in fact political factor.

5. International economic integration can reduce the competitive future of all countries throughout the world.

6. Canada has a developed and costly social policy while the Netherlands spends little in this area.

7. International economic integration can not be based on diversity in many economic policies.

8. Someone said international economic integration was criticized because it reduced.

9. With respect to others, like fiscal policy of the EC, international economic integration does not reduce the diversity of.

10. Small open countries need to realize that it is not a choice between national sovereignty and international economic integration but a choice between one form of.