trade deficit

Passage 1 In the coastal cities, only factories where plant is being upgraded by foreign investment, enjoy the 15% tax rate or less for target projects such as transport, energy and telecommunications).The major source of confusion for foreign investors, however, is not the tax rate but who has the authority to approve projects. One official who is well aware of the confusion afflicting both local authorities and foreign investors is Mr. Jing, president of China International Economic Consultants Inc. which is the consultancy arm of the China Intemational Trust and Investment Corp. While a comprehensive framework for the country's modernization has been provided by the central committee's decision to reform the economic structure, it will be some time before the dust settles and local authorities and foreign investors can deal with one another in a systematic way.What are"target projects"?

Passage 1 In the coastal cities, only factories where plant is being upgraded by foreign investment, enjoy the 15% tax rate or less for target projects such as transport, energy and telecommunications).The major source of confusion for foreign investors, however, is not the tax rate but who has the authority to approve projects. One official who is well aware of the confusion afflicting both local authorities and foreign investors is Mr. Jing, president of China International Economic Consultants Inc. which is the consultancy arm of the China Intemational Trust and Investment Corp. While a comprehensive framework for the country's modernization has been provided by the central committee's decision to reform the economic structure, it will be some time before the dust settles and local authorities and foreign investors can deal with one another in a systematic way.Could you find some other words to substitute the word "arm"here?

Passage 1 In the coastal cities, only factories where plant is being upgraded by foreign investment, enjoy the 15% tax rate or less for target projects such as transport, energy and telecommunications).The major source of confusion for foreign investors, however, is not the tax rate but who has the authority to approve projects. One official who is well aware of the confusion afflicting both local authorities and foreign investors is Mr. Jing, president of China International Economic Consultants Inc. which is the consultancy arm of the China Intemational Trust and Investment Corp. While a comprehensive framework for the country's modernization has been provided by the central committee's decision to reform the economic structure, it will be some time before the dust settles and local authorities and foreign investors can deal with one another in a systematic way.What is your understanding of"the dust settles"?

Passage2 There are several common features-which would apply to metals and minerals, just as much as to soft commodities. Investment funds have moved out of commodities which were bought in the 1970s as store of value and into more liquid assets. The world has got used to living with much lower levels of stocks than in the inflationary 1970s. On the other hand, the persistence of high real interest rates has increased the cost of carrying large inventories. The long term downward trend is said to reflect increasing efficiency, both in the production and in the consumption of commodities. There is a constant shift in the soft commodities business, from the less efficient, higher-cost producers to their more competitive rivals. Only protectionism, for many products, prevents this shift happening more quickly, or, in the case of coffee, the transition is impeded in normal times by the existence of a rigid export quota system.What are"soft commodities"?

Passage2 There are several common features-which would apply to metals and minerals, just as much as to soft commodities. Investment funds have moved out of commodities which were bought in the 1970s as store of value and into more liquid assets. The world has got used to living with much lower levels of stocks than in the inflationary 1970s. On the other hand, the persistence of high real interest rates has increased the cost of carrying large inventories. The long term downward trend is said to reflect increasing efficiency, both in the production and in the consumption of commodities. There is a constant shift in the soft commodities business, from the less efficient, higher-cost producers to their more competitive rivals. Only protectionism, for many products, prevents this shift happening more quickly, or, in the case of coffee, the transition is impeded in normal times by the existence of a rigid export quota system.Why is the 1970s named as"the inflationary 1970s"?

Passage2 There are several common features-which would apply to metals and minerals, just as much as to soft commodities. Investment funds have moved out of commodities which were bought in the 1970s as store of value and into more liquid assets. The world has got used to living with much lower levels of stocks than in the inflationary 1970s. On the other hand, the persistence of high real interest rates has increased the cost of carrying large inventories. The long term downward trend is said to reflect increasing efficiency, both in the production and in the consumption of commodities. There is a constant shift in the soft commodities business, from the less efficient, higher-cost producers to their more competitive rivals. Only protectionism, for many products, prevents this shift happening more quickly, or, in the case of coffee, the transition is impeded in normal times by the existence of a rigid export quota system.What protectionist steps might be taken to prevent the shift happening more quickly?

Because of the recession at home, Japan has seen a decline in expensive imports of luxuries, which were enormously fashionable during the second half of the 1980s. This effect has been compounded, thanks to slow growth elsewhere, by low prices for the international commodities that Japanese industry depends upon. Exports of Japanese machinery, on the other hand, withstood the downturn quite well because the Asian economies that buy them continued to boom. Also, the American and Japanese economy have been out of kilter. America's strengthening economy caused an increase in American demand for Japanese imports while Japanese demand for foreign goods declined. The effect is amplified because 35% of American exports to Japan are industrial commodities, which are highly sensitive to the business cycle.

We can see no 【justifications】 for an increase in the price.

Multinational companies 【reaped】 great rewards of their foreign investment in developing countries.