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Business English Exercises
 

Trade Regulation

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Home > Teaching Business English > Business English Lessons, Advanced Level # 129
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Recent World Bank research suggests that countries should complement trade openness with greater flexibility of their investment climate and labor markets.

Correct answer: (a) climate

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"Trade boosts growth in flexible economies, but its positive impact is much reduced — and in some cases, even reversed-in excessively regulated economies," says Caroline Freund, Senior Economist in the World Bank's Trade Research Team.

Correct answer: (a) boosts

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Trade stimulates growth by directing resources into their most productive uses both within and across industries.

Correct answer: (a) across

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An excessive regulatory burden will prevent this reallocation of resources from occurring, reducing the prospects for trade-generated growth.

Correct answer: (a) burden

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However, complications can arise because of interest groups that stand to lose in a more flexible environment.

Correct answer: (c) stand

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Some of the steps that heavily regulated economies need to take are easy and inexpensive; for example, it does not cost much to reduce excess procedures for registering a new business.

Correct answer: (b) heavily

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New technologies can also facilitate deregulation, such as implementing online registration systems.

Correct answer: (b) facilitate

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The success of openness depends on whether firms can adjust quickly to the new conditions imposed by international competition.

Correct answer: (a) imposed

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Doing well in the areas of public infrastructure, governance and ease of firm entry clearly correlates with stronger trade-related growth, suggesting that countries may need to simultaneously undertake reform in several areas in order to benefit from trade openness.

Correct answer: (c) undertake

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An analysis to help identify the areas requiring reform helps design a policy package tailored for a particular country, as opposed to a(n) 'one-size-fits-all' approach.

Correct answer: (d) one-size-fits-all

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